COMPETITIVENESS ANALYSIS OF INDONESIAN ESSENTIAL OIL AS AN EXPORT COMMODITY IN THE INTERNATIONAL MARKET USING REVEALED COMPARATIVE ADVANTAGE (RCA) METHOD

Putu Fajar Kartika Lestari; Amallia Ferhat; Mohammad Prasanto Bimantio

doi:10.14710/agrisocionomics.v7i1.16369

DOI: https://doi.org/10.14710/agrisocionomics.v7i1.16369

COMPETITIVENESS ANALYSIS OF INDONESIAN ESSENTIAL OIL AS AN EXPORT COMMODITY IN THE INTERNATIONAL MARKET USING REVEALED COMPARATIVE ADVANTAGE (RCA) METHOD

Putu Fajar Kartika Lestari - Faculty of Agriculture and Business, Universitas Mahasaraswati, Denpasar, Indonesia, Indonesia

*Amallia Ferhat

- Faculty of Agriculture, Institut Pertanian STIPER, Yogyakarta, Indonesia, Indonesia

Mohammad Prasanto Bimantio

- Faculty of Agricultural Technology, Institut Pertanian STIPER, Yogyakarta, Indonesia, Indonesia

BibTex Citation Data :

@article{Agrisocionomics16369,
    author = {Putu Kartika Lestari and Amallia Ferhat and Mohammad Bimantio},
    title = {COMPETITIVENESS ANALYSIS OF INDONESIAN ESSENTIAL OIL AS AN EXPORT COMMODITY IN THE INTERNATIONAL MARKET USING REVEALED COMPARATIVE ADVANTAGE (RCA) METHOD},
    journal = {Agrisocionomics: Jurnal Sosial Ekonomi Pertanian},
  volume = {7},
    number = {1},
    year = {2023},
    keywords = {competitiveness, essential oils, comparative advantages, RCA},
    abstract = { The demand for Indonesian essential oils in the global market has trended quite well in the past decade. However, there has been no significant effort to increase the competitiveness of Indonesian essential oils in the global market. Seeing the increasing demand for Indonesian essential oils and the competition between the fierce producing countries, it shows that Indonesian essential oils have the potential to be developed, especially by looking at Indonesia's position which is in the 6th order as the world's essential oil exporter in the last ten years (2011-2020). The purpose of this study is to determine the competitive position of Indonesia's essential oil exports in the international market using a comparative advantage approach and competitive advantage with the five main export destination countries of Indonesian essential oils (United States, India, France, China, and Singapore) using the Revealed Comparative Advantage (RCA) analysis method, based on comparative advantage analysis, Indonesia's essential oil position commodities are said to be strongly competitive  because Indonesia's essential oil commodities have a comparative advantage or RCA>1 value in all major export destination countries that are the object of research, with the highest competitiveness between Indonesia and France. This happens because of the trend of export value that decreases from year to year and the market is less dynamic. Indonesian essential oil commodities can be declared quite strongly competitive but development is still needed so that Indonesian essential oil commodity products are increasingly in demand in export destination countries so that export market share increases consistently from year to year and Indonesian essential oil commodities are increasingly competitive. },
   issn = {2621-9778},   pages = {144--154}  doi = {10.14710/agrisocionomics.v7i1.16369},
    url = {https://ejournal2.undip.ac.id/index.php/agrisocionomics/article/view/16369}
}

Citation Format:

Abstract

The demand for Indonesian essential oils in the global market has trended quite well in the past decade. However, there has been no significant effort to increase the competitiveness of Indonesian essential oils in the global market. Seeing the increasing demand for Indonesian essential oils and the competition between the fierce producing countries, it shows that Indonesian essential oils have the potential to be developed, especially by looking at Indonesia's position which is in the 6th order as the world's essential oil exporter in the last ten years (2011-2020). The purpose of this study is to determine the competitive position of Indonesia's essential oil exports in the international market using a comparative advantage approach and competitive advantage with the five main export destination countries of Indonesian essential oils (United States, India, France, China, and Singapore) using the Revealed Comparative Advantage (RCA) analysis method, based on comparative advantage analysis, Indonesia's essential oil position commodities are said to be strongly competitive because Indonesia's essential oil commodities have a comparative advantage or RCA>1 value in all major export destination countries that are the object of research, with the highest competitiveness between Indonesia and France. This happens because of the trend of export value that decreases from year to year and the market is less dynamic. Indonesian essential oil commodities can be declared quite strongly competitive but development is still needed so that Indonesian essential oil commodity products are increasingly in demand in export destination countries so that export market share increases consistently from year to year and Indonesian essential oil commodities are increasingly competitive.

Fulltext View|Download

Keywords: competitiveness, essential oils, comparative advantages, RCA

Article Metrics:

Article Info

Section: Articles

Language : EN

In Vol 7, No 1 (2023): March 2023

Recent articles

ANALYSIS OF THE EFFECTIVENESS OF THE FERTILIZER SUBSIDY POLICY ON RICE FARMERS IN WAJO DISTRICT SOCIAL ECONOMIC FACTORS AFFECTING THE TECHNICAL INEFFICIENCY OF SHALLOTS IN MALANG DISTRICT RELATIONSHIP BETWEEN THE ROLE OF WOMEN FARMER GROUP AND FARMER CHARACTERISTICS WITH MEMBER INCOME (CASE OF SRI KANDI WOMEN FARMER GROUP IN SUKRA DISTRICT, INDRAMAYU REGENCY) More recent articles

Alamil Huda, F., Meitasari, D., & Widyawati, W. (2021). Analysis Of The Competitiveness Of Indonesia’s Patchouli Essential Oil Exports In The International Market With Brazil, United States Of America, Mexico, And France In 2001-2018. Ekonomi Pertanian Dan Agribisnis, 5(4), 1069–1085. https://doi.org/10.21776/ub.jepa.2021.005.04.10
Apridar. (2009). Ekonomi Internasional : Sejarah, Teori, Konsep dan Permasalahan dalam Aplikasinya (1st ed.). Yogyakarta: Graha Ilmu
Bara. (2020). Analisis Daya Saing Minyak Atsiri Indonesia di Pasar Internasional. IPB University
Bimantio, M. P., & Wardoyo, A. D. H. (2020). Sensitivity and Feasibility Analysis of Citronella Oil Business. SOCA: Jurnal Sosial Ekonomi Pertanian, 14(2), 313–324. https://doi.org/https://doi.org/10.24843/SOCA.2020.v14.i02.p11
Cahyaning, R. (2021). Daya Saing Dan Tingkat Persaingan Minyak Atsiri Indonesia di Pasar Global. Fakultas Sains dan Teknologi UIN Syarif Hidayatullah Jakarta
Ekananda, M. (2014). Ekonomi internasional/ Ekananda. Jakarta: Erlangga
Faradiva, A. (2020). Analisis Daya Saing Ekspor Minyak Atsiri Indonesia. Universitas Hasanuddin
International Trade Centre. (2022). Trade Map - Trade statistics for international business development. Retrieved February 15, 2022, from https://www.trademap.org/Product_SelCountry_TS.aspx?
Kementerian Pertanian Direktorat Jenderal Perkebunan. (2020). Harumnya Nilam Primadona Dunia. Retrieved February 15, 2022, from https://ditjenbun.pertanian.go.id/harumnya-nilam-primadona-dunia/
Rahardja, P. (2008). Pengantar Ilmu Ekonomi: Mikroekonom Makroekonomi. Jakarta: Lembaga Penerbit FE UI
Rahmi, D. (2018). Minyak Atsiri Indonesia Dan Peluang Pengembangannya. Retrieved February 15, 2022, from Balai Besar Kimia dan Kemasan website: http://bbkk.kemenperin.go.id/
Ridhwan, M. M., Wicaksono, G., Nurliana, L., Bary, P., Suryani, F. T., & Satyanugroho, R. (2015). Analisis Daya Saing dan Strategi Industri Nasional Di Era Masyarakat Ekonomi Asean dan Perdagangan Bebas. Jakarta, Bank Indonesia
Tambunan, T. T. H. (2004). Globalisasi dan Perdagangan internasional. Jakarta: Ghalia Indonesia
Tragistina, V. N. (2011). Industri di Indonesia Kian Gemar Impor Minyak Atsiri. Retrieved March 17, 2022, from industri.kontan.co.id website: https://industri.kontan.co.id/news/industri-di-indonesia-kian-gemar-impor-minyak-atsiri-1

Last update:

No citation recorded.

Last update:

No citation recorded.

Starting from 2021, the author(s) whose article is published in the Agrisocionomics journal attain the copyright for their article. By submitting the manuscript to Agrisocionomics, the author(s) agree with this policy. No special document approval is required.

The author(s) guarantee that:

Their article is original, written by the mentioned author(s),
Has never been published before,
Does not contain statements that violate the law, and
Does not violate the rights of others, is subject to copyright held exclusively by the author(s), and is free from the rights of third parties, and that the necessary written permission to quote from other sources has been obtained by the author(s).

The author(s) retain all rights to the published work, such as (but not limited to) the following rights:

Copyright and other proprietary rights related to the article, such as patents,
The right to use the substance of the article in its own future works, including lectures and books,
The right to reproduce the article for its own purposes,
The right to archive all versions of the article, and
The right to enter into separate additional contractual arrangements for the non-exclusive distribution of published versions of the article (for example, posting them to institutional repositories or publishing them in a book), acknowledging its initial publication in this journal.

If the article was prepared jointly by more than one author, each author submitting the manuscript warrants that they have been given permission by all co-authors to agree to copyright and license notices (agreements) on their behalf, and agree to notify the co-authors of the terms of this policy. Agrisocionomics will not be held responsible for anything that may arise because of the writer's internal dispute. Agrisocionomics will only communicate with correspondence authors.

Authors should also understand that once published, their articles (and any additional files, including data sets, and analysis/computation data) will become publicly available. The license of published articles (and additional data) will be governed by the Creative Commons Attribution license as currently featured on the Creative Commons Attribution-ShareAlike 4.0 International License. Agrisocionomics allows users to copy, distribute, display and perform work under license. Users need to attribute the author(s) and Agrisocionomics to distribute works in journals and other publication media. Unless otherwise stated, the author(s) is a public entity as soon as the article is published.