ANALISIS DINAMIKA EKSPOR DAN KEUNGGULAN KOMPARATIF MINYAK KELAPA SAWIT (CPO) DI INDONESIA (ANALYSIS OF EXPORT DYNAMICS AND COMPARATIVE ADVANTAGE OF INDONESIAN CRUDE PALM OIL)

Abstract

Crude Palm Oil (CPO) has been one of important agricultural export commodities of
Indonesia, but it faces competition with product from other exporting counties as well as
trade barriers from importing countries. This study aims to analyse changes in export and
comparative and competitive advantage as indicators of Indonesian palm oil
competitiveness. By employing trend and DRCR (Domestic Resource Cost Ratio) and PCR
(Private Cost Ratio) methods, it is concluded that : (1) Quantity and value of Indonesian palm
oil export, especially CPO (Crude Palm Oil) during 1996-2001 increased respectively by
19.91% and 1.52% per annum, namely from 1.67 million tons and US$ 0.83 billion in 1996 to
4.90 million tons and US$ 1.08 billion in 2001; (2) Most Indonesian CPO was exported to
India (17.90%), the Netherlands (14,29%) and China (7.14%); (3) Domestic distribution of
palm oil was controlled by the government aimed at maintaining the balance between the
filling of the domestic demand and the foreign exchange creation; (4) Trade policy in some
major importing countries remains protective, namely imposition of high tariff, quota and
health issues; and (5) Oil palm farm in Indonesia has a comparative as well as competitive
advantage indicated by the DRCR and PCR coefficients of less than unity. It is suggested
that oil palm needs to be continuously developed in Indonesia while attempting in various
WTO forum for more opened and fairer trade of palm oil.