Determinant factors of Indonesian rubber export to Japan

Abstract

Export reflects trade activities between countries that can provide a boost in economic dynamics. Japan is the second largest export destination for Indonesian Rubber after United States and the third largest car manufacturer in the world, so that exporting rubber to Japan is considered quite potential. The purpose of this study is to analyse the effect of production, exchange rate, and GDP on Indonesian rubber export volume to Japan. The analytical method used in this study was the forecasting method and multiple linear analyses based on time series data from 1989 to 2018. The results indicated a positive trend in Indonesian rubber export prospect to Japan. Rubber production and world rubber prices significantly effect and have positive effect, while Japan GDP has non-significant and negative effect on Indonesian rubber export volume to Japan.