Daya Saing Produk Asam Lemak Indonesia

Abstract

Market share of Indonesian fatty acid in 1998 achieved 27,1 % of the world fatty acid export. Indonesia was the second largest of fatty acid exporter countries in the world after Malaysia which holds 28,6% market share. In the period of 1995 - 1999, Indonesian fatty acid export tend to decline sharply by 8,6% per year. The declining export is related with the comparative and competitive advantages of it's product in the world market. The objective of this research was to understand the competitive and comparative advantages of Indonesian fatty acid. Survey was conducted to collect primary data from all members of Indonesian Oleo-chemical Producer Association. • Data were analyzed by Policy Analysis Matrix (PAM). The result showed that Domestic Resource Cost Ratio (DRCR) and Private Cost Ratio (PCR) of Indonesian fatty acid both are still below I implying that product still has comparative and competitive advantages respectively. The declining of Tndonesian fatty acid export is mainly due to declining of fatty acid world market. Both the comparative and competitive advantages of Indonesia fatty acid have opportunity to be stronger by more supporting on research and development and rationalization of import tariff oftradable input.