Further Investigation of the Competitiveness of Indonesian Forestry Major Products

Competitiveness, Forest Products, Market Share, RCA, RSCA

Authors

  • Ikhlas Pangaribowo Pambudi Graduate Program in Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, Indonesia
  • Koji Kotani Graduate School of International Relations, International University of Japan, 777-Kokusaicho, Minamiuonuma, Niigata Prefecture, 949-7248 Japan
October 10, 2017

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This study examines competitiveness of Indonesia’s forestry major products focuses on plywood, sawn wood, veneer sheet and pulp & paper. Three methods are employed to uncover the value;  Market Share (MS) calculation, Revealed Comparative Advantage (RCA), and Revealed Symmetric Comparative Advantage (RSCA) method. Indonesian Forestry Export Products from Indonesian Statistics and world export data from FAOSTAT statistic database from 1993 to 2014 are employed in the research. In order to uncover the level of competitiveness, top-ten exporter countries in forestry products are chosen along with the world data. The result of the study illustrates that Indonesia possesses exceptionally strong competitiveness export of plywood with notes that the trend continues to decline over the years. Veneer can be considered as a potential commodity since it has a sharp increasing trend and strong comparative advantage. Sawn wood, and pulp & paper exhibit a weak comparative advantage comparing to the competitors.