The Indonesian Natural Rubber Export Competitiveness in Global Market

Abstract

As one of the largest natural rubber exporters in the world, Indonesia has a potential to globally conquer the natural rubber export market. Furthermore, natural rubber gave a positive contribution to economy due to supplying foreign exchange for the country. This condition was indicated from a high Indonesian natural rubber export value to the global market. Therefore, the aim of this study was to measure the Indonesian natural rubber export competitiveness in global market. The methods in this study used Revealed Comparative Advantage (RCA) and Constant Market Share (CMS). The result showed that the Indonesian natural rubber export still had competitiveness in global market, but in a declined trend. One cause of declined Indonesian natural rubber export competitiveness in global market was due to low quality product of natural rubber. Moreover, land control was still dominated by the community plantation, therefore necessary performed a dissemination related to cultivation technological use to improve the Indonesian natural rubber productivity.