Trade Potential of Agricultural Commodities from Indonesia to African Countries

Abstract

Purpose: The consistent economic growth achieved by countries in the African continent is an opportunity for Indonesia to increase bilateral and multilateral cooperation with the region. One thing that can be encouraged is trade flow, especially in agricultural commodities. The main objective of this study is to determine the trade potential of agricultural commodities with countries in the African continent. Research Method: Purposive sampling is used to determine countries in the African continent as potential trading partners for Indonesia to increase trade flow in agricultural commodities. Secondary data were obtained through the International Trade Center and UN COMTRADE. Data were analyzed using acceleration ratio, revealed symmetric comparative advantage, and constant market share analysis. Findings: Indonesia has the potential to accelerate trade in agricultural commodities to sixteen destination countries in the African continent. The commodities with positive export value growth and a strong position of Indonesian competitiveness consist of product labels 03, 09, 15, 16, 17, 18, 19, and 20. Research Limitations: The selected partner countries are based on Indonesia’s agricultural commodities export from 2011 until 2019. Originality/ Value: Provides comprehensive agricultural commodities and a method that is an overlay of four indicators to decide the trade potential.