Competitiveness analyses of Indonesian and Malaysian palm oil exports (original) (raw)
Related papers
2020
The supply of palm oil products is still a central issue in international trade. Indonesia and Malaysia are major suppliers, contributing around 85% of world palm oil. Hence, both countries have an important role, as well as competing with each other in international trade. The palm oil products usually in high demand worldwide include Crude Palm Oil (CPO), which is the main and its derivative products such as Refined Bleached Deodorized (RBD) palm olein and Palm Fatty Acid Distillate (PFAD). Therefore, the research aims at assessing the competitiveness of palm oil products between Indonesia and Malaysia in international trade. The Revealed Comparative Advantage (RCA) and products mapping methods were used in this assessment. The results show that, the value of RCA of Indonesian CPO showed a negative trend, although, still higher than Malaysia, though with positive trend. However, Indonesian RBD palm olein and PFAD have a positive trend compared with Malaysia. Upon using the method ...
Analysis of Indonesian Palm Oil Competitiveness in the Main Export Destination Countries
Indonesian Journal of Agricultural Research, 2023
Indonesia is the largest palm oil producing country in the world with a production volume of nearly 43 million tons/year. The high production of Indonesian palm oil is a new opportunity that needs to be developed in this globalization era to compete with its main competitors. Therefore, an analysis is needed in order to discover the competitiveness of Indonesian palm oil commodity in the main export destination countries. Export is an activity conducted by a country by selling its products abroad using the payment system, quality, quantity, and other sales terms that have been agreed upon by the exporting and importing countries. This study aims to analyze the level of competitiveness of Indonesian palm oil exports in the Asian and European markets represented by six countries: India, Malaysia, Singapore, the Netherlands, Italy, and Spain. The analytical method used is Revealed Competitive Advantage (RCA) to see the comparative advantage and to determine whether the performance of Indonesian palm oil products in the main export destination countries increases or decreases by using the Revealed Comparative Advantage Index (RCA Index) calculation. The data used are secondary data in the form of time series during the period of 2014 to 2020 and cross sections of the main export destination countries of Indonesian palm oil. The results of the calculation of the RCA value show that in the period 2014 to 2020 the RCA value of Indonesian palm oil products in the main export destination countries is higher than one (> 1). Thus, Indonesian palm oil products have a comparative advantage in the main exports of destination countries from year to year. In contrast to the RCA index calculation results in this study, Indonesian palm oil products are still able to show a positive trend every year. This is proven by certain years' RCA index of the main export destination countries: India, Malaysia, Singapore, the Netherlands, Italy, and Spain is still less than one (<1) even though the average RCA index value for each country is higher than one (>1). Hence, it can be said that the performance of Indonesian palm oil products increases or decreases frequently every year in each of the main export destination countries.
Comparative Analysis of the Competitiveness of the Indonesian and Malaysian Palm Oil Industry
2004
Since 1970s, Malaysia has strengthened its position as the primary producer and exporter of world palm oil. However, during the 1975 - 2001 period, the rates of Malaysia's oil palm estate growth, and palm oil production and exports were lower than those of Indonesia. However, the Indonesian palm oil industry has always been overshadowed by Malaysia's, which is the main producer and exporter of world palm oil. The objectives of this study are to calculate the production cost, to measure the production efficiency and productivity in producing fresh fruit bunches (FFB) and crude palm oil (CPO), to examine the export competitiveness of Indonesia's palm oil and to recommend policy alternatives to improve the competitiveness of Indonesia's palm oil industry. Production costs are analyzed in tabular descriptive manner. Efficiency of production, on the other hand, is analyzed using Banker - Charnes - Cooper (BCC) model, whilst productivity is analyzed using general malmquist...
2018
Indonesia and Malaysia are the two largest palm oil exporters in the world. Collectively, they cover on average more than 80% of total palm oil exports. Although Malaysia is ranked second after Indonesia in palm oil exports, their export competitiveness varies between markets. Therefore, the objective of this study is to examine the export competitiveness of Malaysian and Indonesian palm oil in the Balkans market using constant market share analysis (CMS). CMS approach has often been used in examining export performance and indicating the direction of competitiveness. This study shows that Malaysia has demonstrated better market effect and distribution effect performance compared to Indonesia in the Balkans as evidenced in the CMS results of the period under review.
Indonesian Journal of Agricultural Research
This study aims to: (1) Analyze the development of Indonesian CPO export competitiveness in the global market from 1998 to 2017 (2) Analyze factors affecting the competitiveness of Indonesian CPO export in the global market from 1998 to 2017. The data used is time series spanning 20 years (1998-2017). The competitiveness of Indonesian CPO export in the global market is presented descriptively in the form of images, while affecting factors are analyzed using a multiple linear regression model. The results show that Indonesian CPO has comparative and competitive competitiveness in the global market. The results of multiple linear regression tests indicate that the factors that comparatively affect the competitiveness of Indonesian CPO exports in the global market are domestic CPO production, global CPO prices and petroleum prices while factors that competitively affect competitiveness are oil palm plantation area, Malaysian export volume, soybean oil price and exchange rates. Factor...
The Determinants of Competitiveness in Global Palm Oil Trade
Economies
Palm oil is an essential commodity used in the manufacture of various daily products and is highly competitive with vegetable oil. However, the palm oil competition is fierce and complex due to movement of palm oil trade. The study examined the determinant, stability, and duration of competitiveness in the global palm oil trade involving countries worldwide. This research was analyzed from 1996 to 2019 using descriptive analysis, panel regression, stability, and Kaplan–Meier tests. The results showed that palm oil supply in the global market is centralized with distributed demand. The competitiveness of palm oil based on revealed symmetric comparative advantage (RSCA) and trade balance index (TBI) is similar to its suppliers globally. The positive factors that determine the competitiveness in the global palm oil trade are population and import of animal or vegetable fats and oils. GDP per capita and dummy RSPO negatively affect competitiveness. The stability and duration analysis sh...
IOSR Journal of Agriculture and Veterinary Science, 2017
This study analysed the export competitiveness of Palm oil in Nigeria, Ghana and Côte d'Ivoire. The specific objectives were to; determine the mean export quantity, and production quantity of palm oil in the selected countries; compute the Revealed Comparative Advantage (RCA) and the Revealed Symmetric Comparative Advantage (RSCA) indices for Nigeria, Ghana and Côte d'Ivoire with respect to palm oil exports. Data for the study was obtained from Food and Agricultural Organization (FAO) statistical database and analyzed using descriptive statistics and the Balassa index. The result of the study showed that the mean production and export quantity of palm oil for Nigeria, Ghana and Côte d'Ivoire were 964,161.3tonnes, 109,062.3tonnes, and 290,619.6 tonnes for palm oil production while palm oil export quantity was 7491.292 tonnes, 35,061.79 tonnes, and 135,838.3tonnes respectively. The empirical findings suggests that Côte d'Ivoire is highly competitive in the export of palm oil followed by Ghana and lastly Nigeria which is less competitive compared to the aforementioned countries. Policies and programmes to enhance Nigeria's palm oil output and make it more competitive is recommended.
Determining Competitiveness of Indonesian Export Commodities using Revealed Comparative Analysis
Jurnal Ekonomi & Studi Pembangunan
This article aims to analyze Indonesian products’ competitiveness in the global market using the static revealed comparative advantage (SRCA) and the dynamic revealed comparative advantage (DRCA). DRCA is considered superior to RCA because it takes into account the time element. The current research combines DRCA and RCA to provide an analytical comparison. The data were collected from the International Trade Centre, classified according to the Harmonized System (HS) from 2013 to 2019. Using SRCA, Indonesia’s tin and articles’ competitiveness only contributes 0.95% of Indonesia's total exports. The most significant shares of exports are mineral fuels, mineral oils, and their distillation products; bituminous substances; animal or vegetable fats and oils, and their cleavage products; and prepared edible fats. Using DRCA, Indonesia’s most significant exports in the rising star category are natural rubber and its derivatives; cars and other motorized vehicles; fatty acids and their...
Analisis Industry's Competitiveness pada Crude Palm Oil Indonesia
JABE (Journal of Applied Business and Economic), 2017
Indonesia's palm oil industry has a comparative advantage in term of vast areas of land and the the cheapest palm oil production cost in the world. In this study we concern on the industry competitiveness of Indonesia's crude palm oil (CPO). This study also discusses the opportunities of CPO's industry in the future. Here, the industry competitiveness is analyzed using Porter's Five-Forces. Our result showed that there is strong pressure in almost all perspectives, except the input power of buyers and entry. This high pressure related to the amount of worldwide palm oil producers, the availability of soybean oil which indicated as the main competitor for the industry as alternative products, and the internal rivalry. Thus, we analyze the strength of the palm oil industry to find opportunities for further development. Some great opportunities might be applicable for developing the CPO industries are, e.g., optimalizing the use of palm oil as biofuels, maximizing the competitiveness of palm oil among other vegetable oils in terms of production capacity, and boosting the demand from europe as new importers.
Competitiveness and Export Similarity of Indonesia’s Coconut Oil
Jurnal Agribest
Coconut oil is one of the vegetable oils that became potential export product in Indonesia. Philippines, Indonesia, and Malaysia are three of the biggest exporters of coconut oil in ASEAN, by knowing their position in the Internastional trade of Coconut Oil it become an evauation for the sustainability of the Indonesia’s coconut oil trade.,The aims of this research are knowing the position of Coconut Oil (Crude Coconut Oil with HS Code 151311 and Its derivative with HS code 151319) compared to the competitors during 2001 to 2017 by using Revealed Comparative Advantage (RCA), Acceleration Ratio (AR), Trade Specialization Index (ISP) and Export Similarity Index (ESI) for adding information about the similarity of the export structure of coconut oil from Indonesia, Philippines, and Malaysia to the world market. The results of the research show that Indonesia has high competitiveness, and has the highest acceleration in the growth of Crude Coconut Oil’s exports (HS Code 151311) compared...