Hasanuddin Economics and Business Review
Vol 6, No 3 (2023): Vol.6, No.3 (2023): HEBR February 2023

Indonesia Natural Rubber Export Competitiveness Analysis in World Export Market

Abednego Victor (IPB University)



Article Info

Publish Date
01 Mar 2023

Abstract

Natural rubber is often used in industrial and household goods. Indonesia is one of the largest natural rubber-producing countries in the world and is ranked second, with total exports reaching US$7.10 billion in 2021. The global market determines the price of natural rubber, while rubber farmers and producers are price takers. Given that low rubber, prices will impact a reduced income and low welfare. Therefore the government's policy to protect world rubber prices is the right policy. It is important to know what types of natural rub-ber-specific commodities have competitiveness in global trade to be supported and maximized by producers, exporters, and the government. This study aims to determine the level of export competitiveness of Indonesia’s natural rubber products, namely TSNR (Technically Specified Natural Rubber), natural rubber latex pre-vulcanized or not, Natural rubber smoked sheets, Mixture of natural rubber latex, and Compounded of natural gums. In addition, Comparing Indonesia’s natural rubber competitiveness to Malaysia and Thailand in the ASEAN region. The research method used Revealed Comparative Advantage (RCA) and market share using time series data from 2012 to 2021. There are only four types with good competitiveness with RCA > 1, namely TSNR, Smoked Sheets, Mixture Latex, and Compounded Natural Gums. These four commodities have a comparative advantage with RCA > 1. This shows that Indonesia specializes in these commodities in the world market. Natural rubber TSNR has the highest market share at 41%. The lowest is Natural Rubber Latex and Compounded of Natural Gums at 1%. Indonesia's natural rubber has a comparative advantage or stronger competitiveness than Thailand and Malaysia. This is shown by Indonesia's average RCA value for ten years from 2012 to 2021, which is 30.37. However, Indonesia’s market share has been lower than Thailand’s in ten years.

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Journal Info

Abbrev

hebr

Publisher

Subject

Economics, Econometrics & Finance

Description

Hasanuddin Economics and Business Review (HEBR) is an international triannual open access and peer reviewed journal of economics and business. HEBR is published by Faculty of Economics and Business Hasanuddin University. The journal is published in both print and online ...