Export Competitiveness and Dynamics of Indonesian Cassava to International Market

Abstract

Cassava is a staple food commodity in Indonesia that has successfully penetrated the international market even though the export volume fluctuates. This paper aims to assess the competitiveness of Indonesian cassava exports and compare to cassava exports from other countries. We used time series data spanning from 2012 to 2023 collected from Trade Statistics for International Business Development (Trade Map) with HS code 071410 for cassava. The analysis of this study uses Revealed Comparative Advantage (RCA) and Dynamic Revealed Comparative Advantage (DRCA) to understanding the Indonesian cassava exports position. Our findings state that the condition of Indonesian cassava exports is weak compared to its competitors, such as Thailand and Cambodia. The RCA average of Indonesian cassava from 2012-2023 is 0.52, indicates that Indonesia doesn’t have a comparative advantage. Furthermore, the dynamics of Indonesian cassava exports are evaluated based on four periods. The best market position of Indonesian cassava exports in the international market occurred in period III (2017-2020), the rising star position, which indicates that Indonesian cassava exports have relatively rapid market share growth or the most ideal market position. In the following period, Indonesian cassava exports were in the lost opportunity position, which indicates an increasing market share, but cassava exports were not dynamic. Therefore, to become as a leading and competitive exporter of cassava, Indonesia needs to rise the export volume of cassava.

Keywords: Export Competitiveness, Export Dynamic, Indonesian Cassava Export, Revealed Comparative Advantage (RCA)