skip to main content

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 orcid  -  Faculty of Agriculture, Institut Pertanian STIPER, Yogyakarta, Indonesia, Indonesia
Mohammad Prasanto Bimantio orcid  -  Faculty of Agricultural Technology, Institut Pertanian STIPER, Yogyakarta, Indonesia, Indonesia
Open Access Copyright 2023 Agrisocionomics: Jurnal Sosial Ekonomi Pertanian under http://creativecommons.org/licenses/by-sa/4.0.

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:

  1. 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
  2. Apridar. (2009). Ekonomi Internasional : Sejarah, Teori, Konsep dan Permasalahan dalam Aplikasinya (1st ed.). Yogyakarta: Graha Ilmu
  3. Bara. (2020). Analisis Daya Saing Minyak Atsiri Indonesia di Pasar Internasional. IPB University
  4. 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
  5. Cahyaning, R. (2021). Daya Saing Dan Tingkat Persaingan Minyak Atsiri Indonesia di Pasar Global. Fakultas Sains dan Teknologi UIN Syarif Hidayatullah Jakarta
  6. Ekananda, M. (2014). Ekonomi internasional/ Ekananda. Jakarta: Erlangga
  7. Faradiva, A. (2020). Analisis Daya Saing Ekspor Minyak Atsiri Indonesia. Universitas Hasanuddin
  8. 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?
  9. Kementerian Pertanian Direktorat Jenderal Perkebunan. (2020). Harumnya Nilam Primadona Dunia. Retrieved February 15, 2022, from https://ditjenbun.pertanian.go.id/harumnya-nilam-primadona-dunia/
  10. Rahardja, P. (2008). Pengantar Ilmu Ekonomi: Mikroekonom Makroekonomi. Jakarta: Lembaga Penerbit FE UI
  11. 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/
  12. 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
  13. Tambunan, T. T. H. (2004). Globalisasi dan Perdagangan internasional. Jakarta: Ghalia Indonesia
  14. 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.