Competitiveness analyses of Indonesian and Malaysian palm oil exports

Abstract

This study investigates the competitiveness of Indonesian and Malaysian palm oil export with special focus on five major importing countries, namely China, Singapore, India, Pakistan, and Netherlands, from 2001 to 2014. The methods used are Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA) and Constant Market Share (CMS). Findings/Originality: The RCA and RSCA calculations show that Indonesia and Malaysia have positive indices. Yet, Indonesia's RCA and RSCA indices from 2001 to 2014 are higher than those of Malaysia. It demonstrates that Indonesia's palm oil is more competitive than that of Malaysia. Based on CMS calculation, the findings show the following. Firstly, palm oil commodity is influenced by high demand from 2001 to 2014 in five major importing countries. Secondly, both countries have concentrated on the export commodity whose markets have been growing relatively fast. Thirdly, Indonesia's palm oil commodity experiences rapid growth in the selected markets while Malaysia experiences stagnant growth. Overall, Indonesia's palm oil competitiveness is higher than that of Malaysia in five major importing countries.

Analysis of Competitiveness and Product Export Determinants in the East Java Manufacturing Industry

“…Sejalan dengan itu, Balqis & Yanuar (2021) juga menemukkan bahwa berdasarkan nilai RCA, terlihat lada Indonesia memiliki daya saing untuk tujuan ekspor ke Jerman, Belanda, Prancis, Italia, dan Belgia. Ramadhani & Santoso (2019) juga menemukan bahwa pada komoditas minyak sawit, indeks RCA dan RSCA Indonesia dari tahun 2001 hingga 2014 lebih tinggi dari Malaysia. Dalam hubungan secara multilateral, Tampubolon (2020) menjelaskan ASEAN-China FT meningkatkan penetrasi produk ekspor Indonesia di pasar China, ditandai dengan peningkatan jumlah sektor dalam kategori bintang yang sedang naik daun dan peluang tertinggal dari 19 sektor sebelum ACFTA menjadi 52 sektor.…”

Karakteristik Kimia dari Penggolahan Limbah Cair PTPN Y, Sumatera Utara

“…Saat ini, Indonesia dan Malaysia menduduki produsen minyak kelapa sawit terbesar dengan jumlah produksi 85% dari total produksi minyak sawit dunia [3]. Di Available online on: http://jurnalkesehatan.unisla.ac.id/index.php/jev/index -59 -Indonesia sendiri, sebaran luas areal perkebunan sawit didominasi oleh Kalimantan dan Sumatera [4], lebih detailnya terdapat lima provinsi yang berperan sebagai produsen utama kelapa sawit di tahun 2018 yaitu Sumatera Utara (5,45%), Riau (7,14%), Sumatera Utara (3.04%), Kalimantan Barat (3,07%), Kalimantan Tengah (5,76%) [5]. Meningkatnya jumlah produksi kelapa sawit, berdampak pada peningkatan total limbah padat maupun cair dari hasil pengolahan kelapa sawit menjadi produk [6].…”

Selected Factors Influencing China's Palm Oil Import Demand from Malaysia

“…Since 2014, Malaysia has faced intense competition with Indonesia when Malaysia started to lose its palm oil market share in China's market to Indonesia due to the lower price of Indonesian palm oil (MPOB, 2015). Indonesia has a cost advantage in its palm oil production since they have cheap labor costs and larger oil palm plantations than Malaysia (Ramadhani & Santoso, 2019). Rifin (2010) also mentioned that a significant market share gained by the Indonesian palm oil in Asia, Africa, and Europe, is due to its price which is cheaper than Malaysian palm oil.…”