The Competitiveness of Indonesian Cashew Nuts in The Global Market

Syifa Al Mani(1), Eka Purna Yudha(2),

DOI: https://doi.org/10.15294/jejak.v14i1.26067


(1) Universitas Padjadjaran
(2) Universitas Padjadjaran

Abstract

Indonesia is one of the best quality cashew nut producers and exporters with a 1.2% share in the global market. This is very far from being compared to Vietnam as the world's main exporter of cashew nut controlling 34.07% of the global export market. This study aims to determine the competitive and comparative advantages of cashew nuts from Indonesia and Vietnam in the international market at 2009-2018. The various differences between the two countries make the products produced and distributed vary in quality and quantity. Competitive advantage is analyzed using Porter's diamond theory which consists of four factors to see the competitive advantage of an industry/country. Meanwhile, to determine the comparative advantage of cashew nut trading activities, the Revealed Comparative Advantage (RCA) and Trade Specialization Index (ISP) were calculated. Based on the results of the analysis, it can be seen that Indonesia has an advantage in producing cashew nuts, but has not been able to process it optimally, such as Vietnam which applies special technology and standards in producing cashew nuts. The RCA calculation shows that Vietnam's cashew nut exports have much greater competitiveness than Indonesia, and the ISP calculation results show that both exporters are still importing to maintain the economy and ensure the availability of industrial raw materials in the global market. Trade-related policies need to be considered in order to increase export profits and benefit domestic business actors

Keywords

Comparative Advantage, Cashew Nut Export, International Agribusiness

Full Text:

PDF

References

Balassa, B. (1965). Trade Liberalisation and “Revealed†Comparative Advantage. The Manchester School, 33(2), 99–123. doi: 10.1111/j.1467-9957.1965.tb00050.x.

Bustami, B., & Hidayat, P. (2013). Analysis of the Competitiveness of Export Products in North Sumatra Province [Analisis Daya Saing Produk Ekspor Provinsi Sumatra Utara]. Jurnal Ekonomi dan Keuagan, 2(1), 56–71.

Debora, Y. (2016). Grabbing Vietnam's Cashew Market. Available at: https://tirto.id/.

Dionita, N. F., & Utama, M. S. (2015). The Influence of Production, Land Area, United States Dollar Exchange Rate and Climate on Indonesian Cashew Nut Exports and Competitiveness [Pengaruh Produksi, Luas Lahan, Kurs Dollar Amerika Serikat dan Iklim Terhadap Ekspor Kacang Mete Indonesia Beserta Daya Saingnya]. E-Jurnal Ekonomi Pembangunan Universitas Udayana, 4(5), 349–366.

Diphayana, W. (2019). International trade [Perdagangan Internasional]. Yogyakarta: Deepublish Publisher.

Fauziyah, E. (2017). Strategy of Export Competitiveness Enhacement on Cashew Nut Commodity. Economics and Policy, 10(2), 302–316.

Ghozi, S. & Sunindyo, A. (2015). Descriptive Statistics for Economics [Statistik Deskriptif untuk Ekonomi]. Yogyakarta: Deepublish Publisher.

Hidayati, S. (2017). Indonesia's Tuna Export Performance [Kinerja Ekspor Tuna Indonesia]. Yogyakarta: Penerbit ANDI.

J Witjaksono, A. (2016). Cocoa Farming System in Indonesia and its Sustainability Under Climate Change. Agriculture, Forestry and Fisheries, 5(5), 170–180.

Kurniawan., & Yudha, B. P. (2016). Strategy and Development Prospects of Cashew (Anacardium occidentale. L) Jember Regency [Strategi dan Prospek Pengembangan Jambu Mete (Anacardium occidentale. L) Kabupaten Jember]. Manajemen dan Teori Terapan, 9(3), 242–258.

Mulyono, E. (2007). Cashew Processing Technology [Teknologi Pengolahan Mete]. Bogor: Badan Penelitian dan Pengembangan Pertanian.

Narayanan, V. K., & Fahey, L. (2005). The relevance of the institutional underpinnings of porter’s five forces framework to emerging economies: An epistemological analysis. Journal of Management Studies, 42(1), 207–223. doi: 10.1111/j.1467-6486.2005.00494.x.

Nguyen, T.-L. (2019). Stregthening Export Competitiveness of Vietnam Cashew Kernels. Engineering and Applied Sciences., 14(5), 1682–1689.

Porter, M. (1990). The Competitive Advantage of Nations. Brooklyn, Massachuset: Free Press.

Sahban, M. A. (2018). Collaboration on Economic Development in Developing Countries [Kolaborasi Pembangunan Ekonomi di Negara Berkembang]. Makassar: CV Sah Media.

Salamadian (2020). Exports and Imports: Definition, Goals & Commodities of Indonesian Exports [Ekspor dan Impor : Pengertian, Tujuan & Komoditas Ekspor Indonesia]. Available at: https://salamadian.com/pengertian-ekspor-dan-impor/.

Sedyastuti, K. (2018). Analysis of UMKM empowerment and increasing competitiveness in the global market arena [Analisis pemberdayaan UMKM dan Peningkatan Daya Saing Dalam Kancah Pasar Global]. Inovasi Bisnis dan Manajemen Indonesia, 2(2), 117–127.

Sukirno, S. (2008). Introductory Theory to Macroeconomics 3rd edition [Teori Pengantar Makroekonomi edisi 3]. Jakarta: PT.Raja grafindo persada.

Supardi, E. (2019). Export Import: Theory and Practicum of Export Import Activities for Logistics and Business Practitioners [Ekspor Impor : Teori dan Praktikum Kegiatan Ekspor Impor untuk Praktisi Logistik dan Bisnis]. Yogyakarta: CV Budi Utama.

Utami, T. P. (2018). Export duties to grow the Indonesian cashew industry [Bea Ekspor untuk Menumbuhkan Industri Mete Indonesia]. Available at: http://pusdiklat.kemendag.go.id/v2019/news/bea-ekspor-untuk-menumbuhkan-industri-mete-indonesia.

Wang, W. & Chang, P. P. (2008). Entrepreneurship and strategy in China: why “Porter’s five forces†may not be. Journal of Chinese Entrepreneurship. Emerald, 1(1), 53–64.

Wardana, A. (2003). West Java Economic Analysis [Analisis Ekonomi Jawa Barat]. Bandung: Unpad Press.

Yudha, E., et al. (2018). Measuring the effect of village spending on village development performance using geographically weighted regression [Pengukuran pengaruh belanja desa terhadap kinerja pembangunan desa dengan menggunakan geographically weighted regression]. Tataloka, 20(1), 23–34.

Yudha, E., et al. (2020). Rural development policy and strategy in the rural autonomy era. Case study of Pandeglang Regency-Indonesia. Human Geographies, 14(1), 125–147.

Yudha, E. P., & Dina, R. A. (2020). Regional Potential Development of The Indonesian Country Border Area (Case Study Of Ranai - Natuna). Tataloka, 20(3)

Yuliyanti, K. (2009). Analysis of Determinants of Competitiveness and Preference of Tourists in Touring the City of Bogor [Analisis Faktor-Faktor Penentu Daya Saing dan Preferensi Wisatawan Berwisata ke Kota Bogor]. Institut Pertanian Bogor.

Zahir, N., & Sanawiri, B. (2018). Analysis of Competitiveness of Indonesian Cashew Nuts in the International Market [Analisis Daya Saing Kacang Mete Indonesia di Pasar Internasional]. Jurnal Administrasi Bisnis (JAB), 54(1), 66–73.

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.