Indonesian Market Share Export CPO

ANALYSIS  OF  MARKET  SHARE    OF INDONESIAN CPO (Crude Palm Oil) EXPORT

By; Haris Susanto

 

The purpose of this study is to analysis of market share of Indonesia's CPO export, and was conducted during 4 months from April to July 2010.  Data CPO exports from 1996-2008 were used. The results showed that market share of Indonesia's CPO export was influenced by market size amounted to 132.14% (early period), 120.15% (period I) and 140.75% (period II), the distribution effect of -0.88% (early period), -0.57% (period I) and -40.77% (period II) and the competitiveness effects of -31.26% (early period), -19.58% (period I) and 0.01% (period II). The market size is significant source of growth compared with the effect of market distribution and competitiveness influence is negative. The contribution of the market distribution is negative on the growth of real exports due to the export growth which low concentrations (in relative demand growth below the world) importing country. Indonesia's CPO export market share has increased from 3,703.99 thousand tonnes (72.61%) early period (period 0) to be 9,363.72 thousand tonnes (60.80%), with a total gain of 5,659.73 thousand tonnes. Indonesia's market share has not been strong marginally from 72.61% to 53.71%, most of its influenced by market size compared to the the distribution and competitiveness. The total value of exports increases in the early period (1996-1999) reached 5,659.73 thousand tonnes. The increase was caused by the impulse market size effects of 7478.59 thousand tonnes, while the effects of distribution and competitiveness were offers negative influence. Export value of  Performance Ratio of Indonesia CPO export in 1996 was 3.33, decreased to 2.91 in 1997 to 1999, but then increased to 2.12 in 2000 and in 2005 reached the highest level of 7.40. export value of Indonesian CPO performance ratio was lower than other countries such as Malaysia, Colombia, Ecuador and Guatemala. This shows that Indonesia's CPO export performance has not been a good international market due to the composition of primary products only concentrate on products which have relatively low global demand. Moreover, Indonesian CPO exports was concentrated on specific market namely Asia, so that changes that occur in those markets will have a major impact of Indonesia's CPO export performance. Based on the the results indicates that Indonesian CPO export competitiveness in world markets were still low, compared with other countries. The low competitiveness of Indonesian CPO exports due to the low quality which  causes to low prices. Besides, the benchmark export price is still determined by the foreign exchange rate (dollar).