Strengthening Indonesian Commercial and Trade Diplomacy by Designing a Clustering of Indonesian Export Market Destination

• Main Author: Sulthon Sjahril Sabaruddin
• Format: Article
• Language: English
• Published: Universidad de Colima 2018-02-01
• Series: Portes: Revista mexicana de estudios sobre la Cuenca del Pacífico
• Subjects: Indonesian economic diplomacy; trade; Indonesian export; traditional market; non-traditional market; developed export market; untapped market; descriptive statistical analysis
• Online Access: http://revistasacademicas.ucol.mx/index.php/portes/article/view/1581

This study is intended to cluster Indonesian export market destinations using quantitative methods and descriptive statistical analysis approach over the period of 1962-2015 so as  to generate a concrete clustering of Indonesian export market destinations. Indonesian export market destinations are classified into two markets: traditional and non-traditional markets (developed export markets and untapped markets). The result of analysis concludes that there are 12 countries that fall into the category of Indonesian traditional market, namely: Australia, Germany, Italy, Japan, South Korea, the Netherlands, Malaysia, Philippines, Singapore, United Kingdom, United States, and China (including Hong Kong). While in the category of nontraditional market, there are nine countries that fall into the classification of developed export destinations, namely Belgium, France, India, Saudi Arabia, the Soviet Union (and the Russian Federation), Spain, Thailand, Trinidad and Tobago, and Vietnam. Meanwhile, within the category of untapped market consists of other countries and economic entities than those mentioned above (219 countries and economic entities). Overall, the study result of the clustering of Indonesian export market destination is quite in tune with the numerous statements made by Indonesian Government officials.