Export Performance and Export Competitiveness of the Indonesian CPO (Crude Palm Oil) Industry with RSPO (Roundtable Sustainable Palm Oil) in the India and EU Markets

Helmi Ali, Syafruddin Karimi, Rudi Febriamansyah, Jon Kenedi

Abstract


The research objective is to describe and analyze the differences between the two main export markets for Indonesian CPO after the implementation of the RSPO (roundtable sustainable palm oil) policy. The difference in the European Union market (EU-25) since 2012 has implemented the RSPO, and the Indian market continues to accept CPO imports without the RSPO. Descriptive analysis of export performance used the trade flow indicator (trade value and quantity) and export competitiveness used the RCA indicator (revealed comparative advantage) for CPO exports for the 1996-2017 period. To test the differences between the two markets, statistical analysis was carried out using a compare means independent sample t test and paired samples test. The results show that the export performance of Indonesian CPO to the Indian market and the European Union for the period 1996-2017 was a total of 70,855.52 thousand USD and 11,068,006 thousand USD, with an average of India 4773,237 thousand USD and the EU-25 503,091.2 thousand USD per year. There is no difference in the competitiveness of Indonesia's CPO exports to the Indian and EU-25 markets, the average RCA is 43.41% and 51.57%. The results of the analysis of the compare means independent sample t-test showed that there were differences in trade flow (value and quantity), but there was no significant difference in the competitiveness of Indonesian CPO RCA exports in the Indian and EU-25 markets (Sig.0.024>0.05). The results of the compare means paired samples test show a significant difference between the competitiveness of RCA CPO exports after the RSPO period 2012-2017 between the Indian market and the European Union-25. However, there were significant differences in export competitiveness (CPO RCA index) between the EU-25 market before and after the implementation of the RSPO policy.


Keywords


Crude palm oil (CPO), revealed comparative advantage (RCA), roundtable on sustainable palm oil (RSPO), international market.

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.306

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