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Cocoa Export Competitiveness Indonesia In European Union Market
Abstract
European Union is one of increasing cocoa consumption rate of 3.9% year. This is a potential market for Indonesia to increasing exports in this country. Currently, Indonesia's cocoa exports to European Union are still constrained by 15% tariff rate. This study aims to analyze the export competitiveness of Indonesian cocoa butter and powder in European Union market. The measurement of competitiveness Indonesian cocoa products uses Revealed Comparative Advantage (RCA) and Index Specialization of Trade. Result of average Revealed Comparative Advantage (RCA) of Indonesia's cocoa butter commodity at 5th position with a value of 5.77 after Ivory Coast, Ghana, Malaysia, and Cameroon. Positive value results of RCA analysis indicates that Indonesia has a comparative advantage in exporting cocoa butter in European Union Market. This is supported by value index specialization trade of Indonesia's cocoa butter of 0.96. Means that Indonesia has specialized as an exporter of cocoa butter in the European Union market. In cocoa powder, Indonesia's Revelaed Comparative Advantage (RCA) average value is in fourth position with an RCA value of 3.75 after Ghana, Ivory Coast, and Malaysia. The positive value of results RCA analysis indicates that Indonesia has a comparative advantage in exporting cocoa powder in the European Union Market. This supported by value of the cocoa powder index specialization trade of 0.22. This value indicates that Indonesian in additional growth. Cocoa powder is a downstream product from cocoa beans, which is currently being increased in production.
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DOI: http://dx.doi.org/10.52155/ijpsat.v35.1.4676
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