From local farms to global markets: an analysis of Indonesian tea competitiveness

Abstract

Tea consumption is one of the most important needs of the people in Pakistan. Over the last 20 years, the number of tea exports to Pakistan has experienced an increasing trend. However, in contrast, the trade value of tea exports from Indonesia shows a declining trend. Therefore, this study aims to analyse the competitiveness of Indonesian tea in the Pakistani market compared to other exporting countries. The study used secondary data from the trade map in the form of tea export value data (Code HS: 0902) of four exporting countries to Pakistan in 2013-2022. The data were processed using revealed comparative advantage (RCA) and dynamic revealed comparative advantage (DRCA) analysis. The results show that Kenya and Vietnam have strong competitiveness in the Pakistan tea market, and Kenya dominates the Pakistan tea market. Indonesia and China have weak competitiveness in the Pakistan tea market, and in the two study periods, both countries were in a lost opportunity position.