Analysis Of The Competitiveness Of Indonesian And Malaysian Palm Oil Exports In The China Market

Abstract

This study analyzes the competitiveness of Indonesian and Malaysian palm oil exports in the Chinese market during the period 2013–2023. The research was conducted using a descriptive quantitative approach by applying the Revealed Comparative Advantage (RCA) and Market Share Index (MSI) methods. The analysis is based on secondary data related to palm oil export volumes and values categorized under HS code 15119000. The results show that both countries have a comparative advantage, as reflected by RCA values above one; however, Indonesia demonstrates a stronger position with an average RCA of 42.22 compared to Malaysia's 15.87. In terms of market share, Indonesia also dominates, recording an average MSI of 61%, while Malaysia's share averaged 27%. These findings highlight Indonesia’s greater competitiveness, supported by its larger plantation areas, lower production costs, and growing export volume. Meanwhile, Malaysia's strength lies in its higher productivity per hectare. The study concludes that Indonesia holds a superior competitive position in the Chinese palm oil market and emphasizes the importance of strengthening this advantage to maintain market dominance.