Competitiveness of Major Players in Indonesian Sugar Market

• Main Authors: Henidiah Fitriana, 斐安娜
• Other Authors: Wen-Chi Huang
• Format: Others
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/84464971071154941012

碩士 === 國立屏東科技大學 === 農企業管理系所 === 101 === Indonesian domestic demand of sugar always increases every year along with the increase of the population, income, and growth in the food and beverage processing industry. The Government also has tried to increase the domestic supply of sugar for a along time, but Indonesia still can not get self-sufficiency in sugar market. About 4 million tonnes are demanded and only 2.3 million tonnes come from domestic supply, this forces Indonesia to import sugar from other countries. Indeed, Indonesia has now become a potential market for international sugar trade. This study is to determine the competitiveness level between exporting countries in Indonesian sugar market and to determine the factors that affect the level of those competitiveness. There are ten exporting countries that contributed to Indonesian sugar market during 2005- 2011, namely; Thailand, Brazil, Malaysia, India, South Africa, EU- 27, Singapore, Guatemala, Rep. of Korea, and United Arab Emirates. The results show that from ten exporting countries included in this research during 2005- 2011, Guatemala has the highest value in comparative advantage using RCA index and competitive advantage using RTA and ln RXA indices. While for the RC index, Uni Arab Emirates count the highest value. Based on the regression analysis using panel data analysis, it can be seen that fixed effect method is the best model to estimate the competitiveness. The model estimate that 98.88 percent variation in the competitiveness can be explained by all variables in the model. The domestic production of the exporting countries and sugar import price have a positively significant effect to the competitiveness in Indonesia sugar market, while GDP of Indonesia and Indonesian domestic production of sugar have negatively significant effect. Keywords: Indonesian Market, Sugar, Competitiveness, RCA, Vollrath Indices