Export performance and competitiveness of Indonesian coconut oil and desiccated coconut

Abstract

Competitiveness is an essential key in market penetration in export destination countries. This study aims to analyze Indonesian coconut oil, refined, bleached and deodorized and desiccated coconut (DC) export performance and its competitiveness in the export market. The competitiveness measurement is seen from comparative and competitive advantages over the two products in each leading export destination market. The analysis method used graphical illustrations and the RCA and EPD covering the period of 2009-2018. The study shows that coconut oil and DC's export performance increases in all export markets during the analysis period. The Chinese market is a prospective market for coconut oil with the most significant export growth, 10.51% per year, and the largest market share after the USA and South Korea. Meanwhile, the Russian market is the biggest after Germany and Singapore for DC products. The result shows that coconut oil and DC product have comparative competitiveness in all export markets. Coconut oil products are no longer competitive in the South Korean market because their exports are not growing dynamically. The Chinese market is still open, but Indonesia cannot take advantage of this opportunity (lost opportunity). Meantime, DC products have an ideal position in the Russian market and the USA market for coconut oil, namely the rising star. Indonesia gains additional market share with dynamic growth (fast-growing product). Active efforts to find new markets through market diversification and diplomacy while maintaining existing markets can be an option to increase the export of coconut oil and desiccated product.