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Optimizing Indonesian export in Latin America and the Caribbean: Identifying potential products using revealed comparative advantage analysis

To realize the vision of Golden Indonesia 2045 when Indonesia is aimed to be one of the world’s top 10 economies, Indonesia must take all the necessary steps to strengthen its economic foundation. Among the steps are through strengthening international trades. While trade with the countries in the European Union, North America, and East Asia constitute the largest part of Indonesia’s current export, growing uncertainties in the world market caused by geopolitical shifts, economic recessions, or global pandemic will necessitate Indonesia to diversify its trade to other regions. One of the regions with untapped market potentials is Latin America and the Caribbean (LAC) where Indonesia’s export is only 0,38% of the total import in the region.

This policy paper is based on the premise that it is more effective for a country to export the products that have higher comparative advantage to other countries. Therefore, based on real export and import performance from Indonesia and LAC region, the paper will identify several products with the highest comparative advantage and to refine it further with constant share market analysis to determine the competitiveness of the products before it is being re-refined with share difference analysis to identify the potential products that can be increased to fulfil the demands in the LAC region.

Lastly, these analyses will be more useful if it is coupled with other trade policies and arrangements. Several policy recommendations that this paper would like to propose are internally, based on the focused identified products, the government must improve the product quality and offers incentives for exporting those products to LAC. Externally, the government must take benefit of the existing trade arrangements and proposes new arrangements to reduce tariffs and non-tariff barriers for the products to enter the LAC markets. The arrangements could also serve as entry points for Indonesia products to enter the entire LA markets. Research must also be continually conducted to understand the LAC market better and to find new products which have high comparative advantage

Ketersediaan
2023-0035Sesparlu 73-2023Training Materials RepositoryTersedia
Informasi Detail
Judul Seri
-
No. Panggil
Sesparlu 73-2023
Penerbit
Jakarta : Kementerian Luar Negeri.,
Deskripsi Fisik
-
Bahasa
English
ISBN/ISSN
-
Klasifikasi
NONE
Tipe Isi
text
Tipe Media
computer
Tipe Pembawa
online resource
Edisi
-
Subjek
Latin America
Golden Indonesia 2045
Global uncertainties
Untapped market potentials
the Caribbean
Revealed comparative advantage
Market research
Trade policies
Trade arrangements
Info Detail Spesifik
-
Pernyataan Tanggungjawab
Versi lain/terkait

Tidak tersedia versi lain

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