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The Effectiveness of Fabric Safeguards in Protecting and Improving the Indonesian Textile Industry Competitiveness Nurkomariyah, Siti; Tyasti, Avia Enggar
Jurnal Manajemen & Agribisnis Vol. 19 No. 3 (2022): JMA Vol. 19 No. 3, November 2022
Publisher : School of Business, Bogor Agricultural University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/jma.19.3.351

Abstract

This study investigates the effectiveness of fabric safeguards set by the Indonesian government on protecting and improving the competitiveness of the textile industry in the domestic and global markets. Data on exports and imports of 107 HS codes of fabrics subject to additional import duties in 2011-2020 are used to measure Indonesia's competitiveness compared with six major exporting countries. The Revealed Comparative Advantage (RCA) and the Trade Specialization Index (TSI) interpret the Indonesian fabric competitiveness and its competitors. Independent variables of this research are Safeguard Measure Import Duty (BMTP), Most Favoured Nation (MFN) rates, period of investigation, exchange rate, and inflation. The results show that the safeguard, MFN, and period of investigation significantly affect the decline in fabric imports, but other variables have no significant effect. The regime effectively protects Indonesia's textile industry, which is marked by a decrease in the value and volume of imports during the validity period. The RCA indicates that Indonesia does not have a comparative advantage, and according to the TSI, Indonesia is an importing country. BMTP cannot change Indonesia's position as a net exporter and improve its competitiveness. This study implies that it is necessary to increase investment in more efficient production machines with high productivity, optimize the supply chain, reduce production and enterprise costs, and restructure business models; thus, their competitiveness increases in domestic and foreign markets. Keywords: BMTP, fabric, comparative advantage, trade index, impor duties
Measuring The Competitiveness of Footwear in The Global Market: A Comparison Study of Indonesia and Cambodia Nurkomariyah, Siti; Sutjiatmo, Bayu Prabowo
Journal of Scientific Research, Education, and Technology (JSRET) Vol. 2 No. 2 (2023): Vol. 2 No. 2 2023
Publisher : Kirana Publisher (KNPub)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58526/jsret.v2i2.127

Abstract

This study aims to compare the competitiveness of Indonesian and Cambodian footwear in the global market. Indonesia’s export value increased over the year, but in 2019 it significantly decreased. The footwear industry has grown negatively since 2019, and during the pandemic, the growth rate is -8.76%. In contrast, since 2019, Cambodia has become the 10th world's footwear exporter. It is undoubtedly a threat to Indonesia, so it is necessary to make various strategies to increase Indonesia's competitiveness. Revealed Comparative Advantage (RCA) and Export Dynamic Product (EPD) methods measure the competitive position. This study uses secondary data in the form of annual export from 2011 to 2020. The results show that Indonesia has a comparative advantage over the world but is moderate, with an RCA value of 3.81. Cambodia has more competitively than Indonesia, with an RCA index of 8.22. Even though in 2020 it experienced negative growth, Indonesia's footwear both comparatively and competitively increased. The RCA index value increases and the EPD is in the best position, "the rising star". Indonesian products have high market attractiveness and market share in the global.