Encouraging comparative advantages of export-oriented Indonesian agriculture products

Abstract

Indonesia has the second-largest diversity of plants in the world after Brazil. This condition opens opportunities for Indonesia to produce a variety of crops, which cannot be planted or produced in other regions, such as in the subtropics or the four seasons in the northern or southern regions of the world. This study aims to analyze how to encourage the comparative advantage of export-oriented Indonesian agricultural products. To achieve this, it is necessary to strengthen the export policy of agricultural products; increasing productivity and production based on innovation and strengthening institutional exports of agricultural products. These efforts not only enhance the diversity of goods exported by Indonesia but also expand the markets of Indonesian products. Competition with countries that are in the top five exporters of world agricultural products, such as the United States and China, can be achieved by selling products that cannot be produced by other countries and increasing the competitiveness of products produced by Indonesia. Related to domestic regulations, the government needs to continue to build a business climate that facilitates and promotes export orientation, in addition to the various incentives provided.