Indonesia is one of the top-ten most dominant manufacturers of wooden furniture in the world, exporting approximately $ 1.34 billion of wooden furniture in 2015, with a market share 2.09%. However, in the last decade, the volume of wood furniture exports has gradually decreased. Additionally, the wooden furniture industry in Indonesia must now implement the timber legality verification system (SVLK) to ensure raw materials come from legal sources. Given the importance of the wooden furniture industry and recent timber legality mandates, this study: 1) analyzes the competitiveness of Indonesian wooden furniture in the international markets and 2) investigates the relationship between the timber legality assurance system (TLAS) and the competitiveness of Indonesian wooden furniture in the global market. This research uses economic trade data and revealed comparative advantage (RCA) to analyze the comparative advantage of wooden furniture from Indonesia in the global market, as well as export product dynamics (EPD) methods to determine the market position of Indonesian wooden furniture. The RCA index shows that Indonesia has a comparative advantage, but its competitiveness is lower than China, Vietnam, and Malaysia. The EPD methods indicate that the competitiveness of Indonesian wood furniture continues to decline. These analyses point to a potential weakness in SVLK in relation to the competitiveness of Indonesian wood furniture in key international markets.

Mandatory Sistem Verifikasi Legalitas Kayu (SVLK) menjadi non tarif barrier yang dibuat oleh pemerintah. Seluruh produk kayu tidak dapat menembus semua pasar ekspor jika tidak memiliki sertifikat legalitas kayu dan dokumen v-legal. Deregulasi  menimbulkan kerisauan bagi industri furnitur kayu. Tarik ulur regulasi menunjukkan ketidakkonsistenan pemerintah atas regulasi yang dibuatnya. Akibatnya, selama tujuh tahun ditetapkan kebijakan ini  belum memberikan dampak signifikan bagi peningkatan daya saing industri furnitur kayu. Oleh sebab itu, diperlukan transformasi regulasi yang lebih implementatif dan sesuai dengan kebutuhan industri. Hasil kajian menyatakan bahwa pemerintah perlu melakukan evaluasi implementasi SVLK secara menyeluruh dengan melibatkan industri dan seluruh stakeholder kehutanan. Pemerintah juga harus melakukan deregulasi antara lain dengan cara menurunkan standar biaya sertifikasi dan menetapkan standar maksimum tarif sertifikasi yang diberlakukan lembaga verifikasi (LV). Mandatory SVLK khusus pasar Uni Eropa dan niche market yang dilandasi dengan voluntary partnership agreement (VPA) seperti halnya yang dilakukan dengan Uni Eropa.

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.

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.