THE COMPETITIVENESS OF
INDONESIAN COCOA PRODUCT AND THEIR DERIVATES
IN THE INTERNATIONAL MARKET
ISTIS BAROH
Govermen t
Export Duty Policy
Domes tic
Cocoa Industr y
Cocoa Derivates
Competitiven ess
INTRODUCTION
“THIS STUDY AIMS TO (1) ANALYZE THE COMPETITIVENESS OF COCOA PASTE PRODUCTS, COCOA POWDER AND COCOA BUTTER IN GERMANY AND THE USA.
(2) TEST THE CALCULATION RESULTS OF THE RCA INDEX AND RSCA OF COCOA PASTE, COCOA POWDER AND COCOA BUTTER IN GERMANY AND THE USA.”
RESEARCH METHOD
DATA : SECONDARY DATA. THE DATA AND INFORMATION USED ARE TIME SERIES DATA 2006 - 2015 FROM THE UNITED NATIONS COMMODITY TRADE STATISTICS DATABASE, COUPLED WITH DATA AND INFORMATION FROM VARIOUS RELATED SOURCES
RESEARCH ANALYSIS: RCA AND RSCA APPROACHES
RCA (REVEALED COMPARATIVE ADVANTAGE)
• THE RCA (REVEALED COMPARATIVE ADVANTAGE) APPROACH IS USED TO ANALYZE THE
COMPETITIVENESS OF INDONESIAN COCOA PRODUCTS (COCOA PASTE, COCOA POWDER, AND COCOA FAT). IF THE CALCULATION OF THE RCA INDEX> 1, INDONESIAN COCOA PRODUCTS ARE COMPETITIVE AND IF THE RCA INDEX <1, INDONESIAN COCOA PRODUCTS ARE NOT COMPETITIVE.
MATHEMATICALLY RCA IS FORMULATED:
• XIJ = EXPORT OF INDONESIAN COCOA TO GERMANY OR USA
• XJ = TOTAL COMMODITY EXPORTS OF INDONESIAN TO GERMANY OR USA
• XIW = EXPORT OF COMMODITY COCOA IN THE WORLD
• XW = TOTAL COMMODITY EXPORTS IN THE WORLD
•
RSCA (REVEALED SYMMETRIC COMPARATIVE ADVANTAGE)
• RSCA (REVEALED SYMMETRIC COMPARATIVE ADVANTAGE) IS USED TO AVOID UPWARD-BIASED PROBLEMS FROM THE RCA INDEX VALUE. WITH RSCA WE CAN MAKE THE RCA INDEX SYMMETRICAL WITH INTERVAL VALUES BETWEEN -1 AND +1 (PRASAD, 2004). THE RSCA VALUE POSITIVELY INDICATES THAT INDONESIAN COCOA PRODUCTS HAVE A HIGH COMPARATIVE ADVANTAGE IN THE GERMAN OR USA MARKET. CONVERSELY, IF THE RSCA VALUE IS
NEGATIVE THEN INDONESIAN COCOA PRODUCTS DO NOT COMPETE IN THE GERMAN OR USA MARKETS BECAUSE THEY DO NOT HAVE COMPARATIVE AND INEFFICIENT ADVANTAGES. HERE'S THE RSCA FORMULA:
•
RESULTS AND DISCUSSION
• TABLE 1. INDONESIAN RCA INDEX TO GERMANY (2006-2015)
Table 1. Shows data from 2006 - 2015
Indonesian cocoa butter products
have competitiveness on the German
market with an average RCA index of
1.92 and RSCA 0.51. Cocoa paste has
competitiveness with an average RCA
index of 3.45 and RSCA 0.38. The
competitiveness of Indonesian cocoa
powder in Germany shows the
average RCA 1.14 and RSCA index
-0.24 which means that for these
products Indonesia does not yet have
competitiveness.
TABLE 2. INDONESIAN RCA AND RSCA INDEX TO USA (2006-2015)
Table 2. Shows the competitiveness of cocoa products in the USA in 2006 - 2015. Cocoa fat products (cocoa butter) have an average RSCA index of 0.33 so that Indonesian cocoa fat products have competitiveness in the USA market.
The average RSCA index for
Indonesian cocoa paste products
is -0.8 this shows that Indonesian
cocoa paste does not yet have
competitiveness in the USA
market. Indonesian cocoa powder
products have an average RSCA
index of 0.83 indicating this
product cannot compete in the
USA market.
CONCLUSION
• IN GERMANY, INDONESIAN COCOA PASTE AND BUTTER HAVE COMPETITIVENESS, WHILE COCOA POWDER DOES NOT HAVE COMPETITIVENESS.
• IN THE USA, INDONESIAN COCOA BUTTER HAS COMPETITIVENESS, WHILE COCOA PASTE AND POWDER DO NOT HAVE COMPETITIVENESS.
