Competitiveness of Palm Oil Products in International Trade: An Analysis between Indonesia and Malaysia

Muhammad Arsyad; Achmad Amiruddin; Suharno Suharno; Siti Jahroh

doi:10.20961/carakatani.v35i2.41091

Competitiveness of Palm Oil Products in International Trade: An Analysis between Indonesia and Malaysia

Muhammad Arsyad, Achmad Amiruddin, Suharno Suharno, Siti Jahroh

Abstract

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 of products mapping, it was found that, the palm oil products of both countries were in group A. This is an indication that the products have comparative advantage and export specialization. Therefore, there is need for strategic policies, in both countries, for supporting oil palm activities at the downstream. This will enhance the production of derivative products with the capacity of also meeting demands in the international trade.

Keywords

competitiveness; downstream industry; international trade; palm oil products

Full Text:

PDF

References

Abdulla, A., Arshad, F. M., Bala, B. K., Noh, K. M., & Tasrif, M. (2014). Impact of CPO export duties on Malaysian palm oil industry. American Journal of Applied Sciences, 11(8), 1301–1309. Crossref

Abdullah, R., & Wahid, M. B. (2010). World palm oil supply, demand, price and prospects: focus on Malaysian and Indonesian palm oil industry. Oil Palm Industry Economic Journal, 11(2), 13–25. Retrieved from Link

Adileksana, C., Yudono, P., Purwanto, B. H., & Wijoyo, R. B. (2020). The Growth Perfor-mance of Oil Palm Seedlings in Pre-Nursery and Main Nursery Stages as a Response to the Substitution of NPK Compound Fertilizer and Organic Fertilizer. Caraka Tani: Journal of Sustainable Agriculture, 35(1), 89–97. Crossref

Afriyanti, D., Kroeze, C., & Saad, A. (2016). Indonesia palm oil production without deforestation and peat conversion by 2050. Science of the Total Environment, 557-558, 562–570. Crossref

Alatas, A. (2016). Trend produksi dan ekspor minyak sawit (CPO) Indonesia. AGRARIS: Journal of Agribusiness and Rural Development Research, 1(2), 114–124. Crossref

Amiruddin, A. (2017). Analisis Daya Saing Dan Dinamika Ekspor Produk Kelapa Sawit Indonesia Dalam Perdagangan Internasional (Thesis). Sekolah Pascasarjana Institut Pertanian Bogor. Retrieved from Link

Arifin, B. (2013). On the competitiveness and sustainability of the Indonesian agricultural export commodities. ASEAN Journal of Economics, Management and Accounting, 1(1), 81–100. Retrieved from Link

Astari, A. J., & Lovett, J. C. (2019). Does the rise of transnational governance ‘hollow-out’the state? Discourse analysis of the mandatory Indonesian sustainable palm oil policy. World Development, 117, 1–12. Crossref

Balassa, B. (1965). Trade liberalisation and “revealed” comparative advantage 1. The Manchester School, 33(2), 99–123. Crossref

BPS, – Statistics Indonesia. (2015). Indonesian Oil Palm Statistics 2015. Retrieved from Link

Casson, A. (2000). The Hesitant Boom: Indonesia’s Oil Palm Sub-Sectorin an Era of Economic Crisisand Political Change. Center for International Forestry Research (CIFOR), Bogor. Crossref

Cheah, K. Y., Toh, T. S., & Koh, P. M. (2010). Palm fatty acid distillate biodiesel: Next-generation palm biodiesel. Inform AOCS International News on Fats, Oils, and Related Materials, 21(5), 264–266. Retrieved from Link

Dalum, B., Laursen, K., & Villumsen, G. (1998). Structural change in OECD export specialisation patterns: de-specialisation and ‘stickiness.’ International Review of Applied Economics, 12(3), 423–443. Crossref

Ermawati, T., & Saptia, Y. (2013). Kinerja Ekspor Minyak Kelapa Sawit Indonesia The Export Performance of Indonesia’s Palm Oil. Buletin Ilmiah Litbang Perdagangan, 7(2), 129–148. Retrieved from Link

Fry, J. (2010). Is it smooth sailing or choppy waters ahead ? Conference & Exhibition Price Outlook (POC), Kuala Lumpur, Malaysia, March 8–10, 2010. Retrieved from Link

Hudori, M. (2017). Perencanaan Kebutuhan Kendaraan Angkutan Tandan Buah Segar (TBS) di Perkebunan Kelapa Sawit. Industrial Engineering Journal (IEJ), 5(1), 23–28. Retrieved from Link

Jayed, M. H., Masjuki, H. H., Kalam, M. A., Mahlia, T. M. I., Husnawan, M., & Liaquat, A. M. (2011). Prospects of dedicated biodiesel engine vehicles in Malaysia and Indonesia. Renewable and Sustainable Energy Reviews, 15(1), 220–235. Crossref

Lafay G. (1992). The measurement of revealed comparative advantages. in: Dagenais, M. G., & Muet, P. A. (Eds.). International Trade Modelling. Chapman & Hill, London. pp. 209-234.

Lam, W. Y., Kulak, M., Sim, S., King, H., Huijbregts, M. A. J., & Chaplin-Kramer, R. (2019). Greenhouse gas footprints of palm oil production in Indonesia over space and time. Science of the Total Environment, 688, 827–837. Crossref

Laursen, K. (2015). Revealed comparative advantage and the alternatives as measures of international specialization. Eurasian Business Review, 5(1), 99–115. Crossref

Muzendi, A. S. (2014). Integrasi Pasar dan Dampak Kebijakan Non Tarif terhadap Permintaan Ekspor dan Daya Saing Kopi Indonesia di Pasar Internasional (Thesis). Sekolah Pascasarjana Instititut Pertanian Bogor. Retrieved from Link

Nayantakaningtyas, J. S., & Daryanto, H. K. (2012). Daya Saing dan Strategi Pengem-bangan Minyak Sawit di Indonesia. Jurnal Manajemen & Agribisnis, 9(3), 194–201. Retrieved from Link

Nesti, L., & Tan, F. (2017). The Competitiveness of Crude Palm Oil in West Sumatra in The Domestic and The World Market. Proceedings of ICoChEA (International Conference On Chemistry And Engineering In Agroindustry), 1(1), 67–70. Retrieved from Link

PASPI, Palm Oil Agribusiness Strategic Policy Institute. (2017). Kemajuan kelapa sawit hilir Indonesia. PASPI, pp 11.

Purnomo, H., Okarda, B., Dermawan, A., Ilham, Q. P., Pacheco, P., Nurfatriani, F., & Suhendang, E. (2020). Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach. Forest Policy and Economics, 111, 102089. Crossref

Rifai, N., Syaukat, Y., Siregar, H., & Gumbira, E. (2014). The development and prospect of indonesian palm oil industry and its derivative products. IOSR Journal of Economics and Finance, 4(5), 27–39. Retrieved from Link

Rifin, A. (2010). The effect of export tax on Indonesia’s crude palm oil (CPO) export competitiveness. ASEAN Economic Bulletin, 27(2), 173–184. Retrieved from Link

Rifin, A. (2011). The role of palm oil industry in Indonesian economy and its export competitiveness. Tokyo University. Retrieved from Link

Rifin, A. (2014a). The effect of crude palm oil export tax on export and prices. ASEAN Journal of Economics, Management and Accounting, 2(1&2), 82–95. Retrieved from Link

Rifin, A. (2014b). The effect of progressive export tax on Indonesian palm oil industry. Oil Palm Industry Economic Journal, 14(1), 1–8. Retrieved from Link

Santika, T., Wilson, K. A., Budiharta, S., Law, E. A., Poh, T. M., Ancrenaz, M., … Meijaard, E. (2019). Does oil palm agriculture help alleviate poverty? A multidimensional counterfactual assessment of oil palm development in Indonesia. World Development, 120, 105–117. Crossref

Sipayung, T. (2016). Mitos vs Fakta-Industri Minyak Sawit Indonesia dalam Isu Sosial, Ekonomi dan Lingkungan Global. Bogor-Jawa Barat: PASPI-Palm Oil Agribusiness Strategic Policy Institute. Retrieved from Link

Turnip, S. M. L., Suharyono., & Mawardi, M. K. (2016). Analisis Daya Saing Crude Palm Oil (CPO) Indonesia di Pasar Internasional. Jurnal Administrasi Bisnis (JAB), 39(1), 185–194. Retrieved from Link

Widodo, T. (2009). Comparative advantage: theory, empirical measures and case studies. Review of Economic and Business Studies (REBS), 4, 57–82. Retrieved from Link

Widyaningtyas, D., & Widodo, T. (2017). Analisis pangsa pasar dan daya saing CPO Indonesia di Uni Eropa. Jurnal Manajemen Dayasaing, 18(2), 138–145. Crossref

Wijayanti, R., Irham, I., & Hardyastuti, S. (2016). Dampak Kebijakan Tarif dan Non-Tarif terbadap Permintaan dan Daya Saing Tuna Indonesia di Pasar Uni Eropa, Amerika dan Jepang. Agro Ekonomi, 18(1), 9-20. Retrieved from Link

DOI: https://doi.org/10.20961/carakatani.v35i2.41091