Indonesian natural rubber export potential in European market

Abstract

Indonesia is one of the largest natural rubber exporters in the world. On the other hand, the potential for natural rubber in the world market is enormous. The Asian continent is the largest market for Indonesian natural rubber, followed by American and European markets. Currently there have been many studies on the competitiveness of Indonesian natural rubber exports to the international market, but so far there has not been much research on the competitiveness and potential of rubber exports specifically to European countries. This study aims to determine the competitiveness and the potential of Indonesian natural rubber in European countries, namely Germany, France, and Spain. The method used in this study is descriptive analytics, meanwhile Revealed Comparative Advantage (RCA) was used to determine Indonesia’s competitiveness in each of the partner countries, on the other hand Export Product Dynamic (EPD) was used to determine the performance of Indonesian natural rubber in partner countries. The RCA index shows that Indonesia has competitive advantages in the partner countries, and the EPD matrix indicated that Indonesia is in a rising star position in the German, French and Spanish markets. To strengthen this position, Indonesia needs to increase their export value through the increase in production.