The determinant factors of Indonesian competitiveness of cocoa exports to Germany

Abstract

Cocoa is one of the leading commodities from the plantation sub-sector in Indonesia. At the world level, Indonesia is the third-largest producer of cocoa beans after Côte d’Ivoire and Ghana (FAO, 2017). However, Indonesia still exports cocoa in the form of (raw) beans which results in the loss of added value and not developing the domestic cocoa industry. For this reason, the government issued No. 67/PMK.011/ 2010 concerning the imposition of Export Levy and Export Levy Tariffs to suppress the export of cocoa beans and then increase the competitiveness of processed cocoa exports. The purpose of this study was to determine the competitiveness performance of Indonesian processed cocoa to Germany and what factors influenced the export competitiveness in 1992-2017. This study uses secondary data from various sources that were analyzed using Revealed Comparative Advantage (RCA) and Error Correction Mechanism (ECM). The analysis shows that in the long run the variable exchange rate, world cocoa prices, and dummy export duty significantly affect competitiveness while in the short term, population variables and world cocoa prices significantly influence competitiveness.

Non-Tariff Measures and Competitiveness of Indonesia’s Natural Rubber Export in Destination Countries

“…Research on forest products using the OLS method disclosed that NTMs influenced a country's GDP and WTO membership status (Chin & Rusli, 2015;Zhang et al, 2020). However, other studies and Rural Development Research revealed that NTMs and a country's real exchange rate affected RCA (Hapsari & Yuniasih, 2020;Purnomowati et al, 2015;Virginia & Novianti, 2020).…”

“…Several research which utilized the Ordinary Lease Square (OLS model) in Indonesia revealed that export competitiveness was influenced by productivity, the Indonesia's Natural Rubber Productivity and ….. (Prasada and Dhamira) export price of agricultural commodities, and trade openness (Sa'diyah & Darwanto, 2020;Yanita, Napitupulu, & Rahmah, 2019;Yulhar & Darwanto, 2019). Another study on Indonesia's cocoa commodity analyzed using the ECM model discovered that the export competitiveness was affected by the exchange rate, the world price of cocoa, and the export duty (Hapsari & Yuniasih, 2020). In addition, another research uncovered that the export competitiveness of the rubber commodity was influenced by the implementation of NTMs, encompassing SPS, TBT, and quota policy (Purnomowati, Darwanto, Widodo, & Hartono, 2015;Virginia & Novianti, 2020).…”

Dark chocolate: An overview of its biological activity, processing, and fortification approaches

“…Austria was ranked 2nd after Switzerland in per-capita consumption of chocolate. Germany, Ireland, Great Britain, Sweden, Estonia, Norway, and Poland are popular examples of per-capita chocolate consumption in the world ( Hapsari and Yuniasih, 2020 ).…”

The Competitiveness of Indonesian Crude Palm Oil in International Market

“…Palm oil Indonesia has competitiveness, according to Porter competitiveness is the level of productivity which is defined as the output produced by a workforce (Mechael M. Porter, 1990). While according to Tambunan (2000) competitiveness is a distinguishing advantage from the others which consist of comparative advantage and competitive advantage factors (Hapsari & Yuniasih, 2020;and Tambunan, 2000). According to the Directorate General of Plantations, the destinations country for Indonesia's palm oil is India, China, Pakistan, and Europe, it can be said that Indonesia is competitive in the Asian market (Ditjenbun, 2018;Marwa et al, 2018;and Vanzza, Ishak, & Mukhlis, 2019).…”