This document summarizes an analysis of the competitiveness of Indonesian ginger exports. It finds that Indonesian ginger has comparative advantages in the UK and Germany markets based on RCA values above 1. An EPD analysis shows rising export potential in Bangladesh and Malaysia. A cluster analysis using the X-Model method finds potential market development in Bangladesh, Germany and Malaysia, while markets in India, Japan, Korea, Singapore and UK are less potential due to stiff competition. The document concludes Indonesian ginger should focus on market penetration in potential markets like Bangladesh, Germany and Malaysia to gain a stable export share.
This document summarizes an analysis of the competitiveness of Indonesian ginger exports. It finds that Indonesian ginger has comparative advantages in the UK and Germany markets based on RCA values above 1. An EPD analysis shows rising export potential in Bangladesh and Malaysia. A cluster analysis using the X-Model method finds potential market development in Bangladesh, Germany and Malaysia, while markets in India, Japan, Korea, Singapore and UK are less potential due to stiff competition. The document concludes Indonesian ginger should focus on market penetration in potential markets like Bangladesh, Germany and Malaysia to gain a stable export share.
This document summarizes an analysis of the competitiveness of Indonesian ginger exports. It finds that Indonesian ginger has comparative advantages in the UK and Germany markets based on RCA values above 1. An EPD analysis shows rising export potential in Bangladesh and Malaysia. A cluster analysis using the X-Model method finds potential market development in Bangladesh, Germany and Malaysia, while markets in India, Japan, Korea, Singapore and UK are less potential due to stiff competition. The document concludes Indonesian ginger should focus on market penetration in potential markets like Bangladesh, Germany and Malaysia to gain a stable export share.
This document summarizes an analysis of the competitiveness of Indonesian ginger exports. It finds that Indonesian ginger has comparative advantages in the UK and Germany markets based on RCA values above 1. An EPD analysis shows rising export potential in Bangladesh and Malaysia. A cluster analysis using the X-Model method finds potential market development in Bangladesh, Germany and Malaysia, while markets in India, Japan, Korea, Singapore and UK are less potential due to stiff competition. The document concludes Indonesian ginger should focus on market penetration in potential markets like Bangladesh, Germany and Malaysia to gain a stable export share.
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USD).
Germany and the United Kingdom are non-Asian
countries considered as the main destination markets for Indonesian ginger exports with export values of USD 619,000 and USD 242,000, respectively (Figure 5a). Meanwhile, it can be seen in Figure 5b describing the main countries that are ginger import partners for Indonesia. In 2019, Indonesia's largest ginger import value was ginger originating from Thailand with an import value of 1.949 million USD. This value is more than double the value of Indonesian ginger imports from China (3.901 million USD) and Vietnam (3.657 million USD). India and Myanmar are also countries that send ginger to Indonesia with a large value, the values are 364,000 USD and 180,000 USD, respectively. Nigeria, which is one of the world's main ginger producing countries, became a non-Asian country that became Indonesia's ginger import partner with a value of 347,000 USD. Figure 4. Indonesian ginger export import trend (a) (b) Figure 5. (a) Indonesian ginger import value by main destination; (b) Indonesian ginger import value by main destination (tonnes) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Export (000 USD) 3467 1209 1358 14909 49127 18230 10581 13954 3647 4933 Import (000 USD) 1820 16572 16704 5927 2465 5977 371 98 2888 17119 Ex : Im 1.90 0.07 0.08 2.52 19.93 3.05 28.52 142.39 1.26 0.29 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 0 10 20 30 40 50 60 Thousands Advances in Economics, Business and Management Research, volume 199 300 3.2. Competitiveness and Potential Market The study of competitiveness and potential market for Indonesian ginger is focused on the main export destinations of Indonesian ginger in 2019, namely Bangladesh, Germany, India, Japan, Korea Republic, Malaysia, Singapore, and the United Kingdom. The competitiveness of Indonesian ginger in each export destination country was analysed by formulating RCA. The results of the RCA analysis show that Indonesian ginger is indicated to have competitiveness in the United Kingdom (RCA = 2.84) and Germany (RCA = 1.90). In these two countries, Indonesian ginger has a greater comparative advantage to continue to penetrate the market compared to other countries that export ginger to these two countries. Meanwhile, in the Asian market, the RCA value of Indonesian ginger is less than 1, meaning that Indonesian ginger is indicated to have weak competitiveness in seeking to increase exports in destination countries (Bangladesh, India, Japan, Malaysia, Korea Republic, and Singapore). Figure 6. Indonesian RCA on ginger by main destination Furthermore, Indonesia's ginger export potential will be evaluated with Export Product Dynamic (EPD) and X-Model Potential Export Products (X-Model). The EPD method is used to determine the dynamic trend of ginger exports which indicates whether the export performance of ginger has a fast growth or not. If Indonesia's ginger export growth is above the world average and this situation continues in the long term, then this commodity can eventually become an important commodity to boost export revenues. Based on the results of the EPD analysis, this study revealed that Indonesia's ginger exports which are in a rising star market position are in Bangladesh and Malaysia. These results indicate that the growth of the export market share of Indonesian ginger is positive and the growth of the trade share is positive. Thus, Indonesia's ginger exports are indicated to have a fastgrowing market share in Bangladesh and Malaysia. Meanwhile, Indonesian ginger exports which are classified as lost opportunities are in Germany, India, Japan, Korea Republic, Singapore, and the United Kingdom. These results indicate that the growth of ginger export market share is negative but the growth of trade share is positive. Facts like this indicate that Indonesian ginger in these countries has the potential to lose the opportunity to increase the share of ginger exports in the future. Furthermore, after obtaining the results of the RCA and EPD analysis, the potential market development potential was clustered using the X-model potential export products method. This analysis was carried out by considering the results of the RCA and EPD analysis that had been obtained. By using this method, the results of the competitiveness analysis under study become more comprehensive because they see the competitiveness of Indonesian ginger commodities from two sides at once, namely from the RCA side and also the EPD. From this analysis, it will be known the potential for market development of ginger commodities. The market development potential is divided into four clusters, namely optimistic market development potential, potential market development potential, less potential market development potential, and non-potential market development potential. Table 1. EPD Analysis on Indonesian Ginger by Major Export Destination Export Destination Bangladesh Germany India Japan Malaysia Korea Rep. Singapore Unt. Kingdom Ginger Export Growth Index 0.16 -0.04 -0.17 -0.01 0.01 -0.09 -0.12 -0.06 Total Export Growth Index 0.04 0.01 0.01 0.19 0.18 0.12 0.10 0.01 CLASSIFICATION Rising Star Lost Opportunity Lost Opportunity Lost Opportunity Rising Star Lost Opportunity Lost Opportunity Lost Opportunity Advances in Economics, Business and Management Research, volume 199 301 Based on the results of the X-Model analysis on Indonesian ginger, it is known that the export markets in Bangladesh, Germany, and Malaysia are classified as potential market development. Thus, to increase exports to these countries, Indonesia must still strive for market penetration to ensure a more stable share of ginger export dominance in the future. Meanwhile, Indonesia's ginger export market to India, Japan, Korea Republic, Singapore, and United Kingdom is classified as less potential market development status. This status indicates that market penetration is facing relatively tight competition to gain dominance of ginger exports in the future. As it is known, India and Japan are the top ten ginger producers in the world. This requires the differentiation of ginger products that do not intersect with the types of products of the two countries. On the other hand; namely in Korea Republic, Singapore, and United Kingdom; Indonesia does not face the challenge of domestic ginger products in the three countries but needs to identify the preferences of ginger products that are in demand and needed there. 4. CONCLUSION The competitiveness of Indonesian ginger in export destination markets which are categorized as high is in the United Kingdom and Germany. In other export destination countries, Indonesian ginger has low competitiveness. Furthermore, the results of the analysis show that the high export of Indonesian ginger to destination countries does not always reflect high export competitiveness. The size of exports to destination countries does not always reflect the position of the commodity in the destination market, such as ginger exports in several partner countries which indicate that the market potential of Indonesian ginger is in the category of lost opportunity Germany, India, Japan, Korea Republic, Singapore, and the United Kingdom). This means that even though this market is one of the main markets, the potential for ginger commodity development in that market is under pressure. Based on the results of the X-Model analysis on Indonesian ginger, it is known that the export markets in Bangladesh, Germany, and Malaysia are classified as potential market development. Thus, to increase exports to these countries, Indonesia must still strive for market penetration to ensure a more stable share of ginger export dominance in the future. REFERENCES [1] D. Cucinotta, and M. Vanelli, WHO Declares COVID-19 a Pandemic. Acta Bio-Medica : Atenei Parmensis, 91(1), 2020, 157– 160. [2] G. Tillu, S. Chaturvedi, A. Chopra and B. Patwardhan, Public Health Approach of Ayurveda and Yoga for COVID-19 Prophylaxis. The Journal of Alternative and Complementary Medicine, 26(5), 2020, 360–364. https://doi.org/10.1089/acm.2020 .0129 [3] B. Vellingiri, K. Jayaramayya, M. Iyer, A. Narayanasamy, V. Govindasamy, B. Giridharan, M. D. Subramaniam, COVID-19: A promising cure for the global panic. 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