An Analysis Of Factors Determining Competitiveness: The Case Of The Indonesian Palm Oil Industry

Mohamad F. Hasan (Post-doctoral researcher at Department of Agricultural Economics, University of Kentucky, Lexington, USA and an associate at the Institute for Development of Economics and Finance (INDEF) Jakarta, Indonesia.)
Michael R. Reed (Professor of Agricultural Economics, University of Kentucky, Lexington, USA.)

Jurnal Agro Ekonomi
Vol 19, No 1 (2001): Jurnal Agro Ekonomi

IndonesianKajian ini menganalisis faktor-faktor yang mempengaruhi daya saing industri kelapa sawit Indonesia di pasar internasional. Kerangka kajian ini menggabungkan pendekatan teori perdagangan neo-klasik dan manajemen strategis dalam menganalisis daya saing internasional pada tingkat industri. Penelitian ini menunjukan bahwa daya saing global industri kelapa sawit di Indonesia dapat dijelaskan oleh produktifitas tenaga kerja, nilai tukar rupiah, dan rasio konsentrasi empat perusahaan. Campur tangan pemerintah dalam bentuk penentuan harga alokasi dalam negeri juga merupakan faktor yang sangat penting dan berpengaruh negatif pada daya saing global industri kelapa sawit di Indonesia.EnglishThis paper analyses factors that determine the competitiveness of the Indonesian palm oil industry including the effect of government interventions. The conceptual framework used in this study combines neo-classical trade and strategic management approaches for analyzing competitiveness at the industry level. This study shows that the competitiveness of the Indonesian palm oil industry can be explained by its labor productivity, the real exchange rates, and the four-firm concentration ratio. It is shown that government interventions--in the form of domestic allocation prices--have significant and negative effects on the competitiveness of the palm oil industry.