The Competitiveness of Indonesian Cocoa Product and Their Derivates in the International Market
Corresponding Author(s) : Istis Baroh
Prosiding International Conference on Sustainable Innovation (ICoSI),
Vol. 2 No. 2 (2022): Optimizing Global Benefit for Future Wellbeing
Abstract
This study aims to analyze the competitiveness of
Indonesian cocoa between its several derivate products from 2006
to 2015 of two importing countries. Germany and The USA are
chosen as the representative of the international markets because
of three reasons. First, those two countries are the most
prospective markets of cocoa products. Second, they consume
large amount of cocoa processing products for their Industries.
Third, as the core players of trade, they always import processed
cocoa producs from Indonesia in the pastdecade. We use Revealed
Comparative Advantage (RCA) approach to analyze the
competitiveness of processed cocoa products, followed by
Revealed Symmetric Comparative Advantage (RSCA) approach
to avoid upward-biased problems from the previous steps. RSCA
enables us to manipulate the RCA index to be symmetrical with
interval values between -1 and +1 (Prasad, 2004). The results
showed that in Germany, cocoa paste products and cocoa butter
the two products that have high competitiveness, whereas cocoa
powder was not competitive. In the USA, Indonesian cocoa butter
was competitive while cocoa paste and cocoa powder were not
competitive. Indonesia should focus on cocoa paste and cocoa
butter to maintain their competitiveness through pricing, contract
negotiations, and trade relations
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