2019.
Meanwhile, the Netherlands and Thailand are in
the second and third largest exporters with export values
of 106 million USD and 55.77 million USD respectively
in the same period. Furthermore, the list of the top ten
major ginger exporters in the world are India (44.55
million USD), Peru (41.44 million USD), United Arab
Emirates (29.05 million USD), European Union (25.83
million USD), Brazil (22.16 million USD), Germany
(15.66 million USD), and Spain (10.7 million USD).
Indonesia is one of the countries with the largest ginger
cultivation area in the world. The area of ginger harvested
in the main countries in 2019 was dominated by India and
Nigeria. More than 60% of ginger cultivation area is in
these two countries. Followed by China (14.29%) and
Nepal (5.75%). If the ten main producing countries
(India, Nigeria, China, Nepal, Indonesia, Cameroon,
Bangladesh, Thailand, Philippines, and Japan) are
combined, they have a proportion of 95.37% of the total
area of ginger in the world, leaving only around 4.73. %
for the proportion in other countries.
With existing resources, Indonesia should be able to
become one of the main ginger commodity market
players in the global market. This statement refers to the
fact that Indonesia is one of the countries with the largest
ginger harvested area, but is not one of the world's main
exporters. This indicates that the competitiveness of
Indonesian ginger needs to be studied further. The study
of the competitiveness of Indonesian ginger in the global
market has been conducted by [10]. In this study, they
revealed that ginger commodity has competitiveness in
the international market and Indonesian ginger exports
are influenced by ginger production, ginger export
volume and the exchange rate of the rupiah to the USD.
However, this study has not identified potential export
destinations for Indonesian ginger. Therefore, this study
tries to fill this gap.
This research was conducted to: (1) describe the trend of
ginger in the global market; (2) evaluate the
competitiveness of Indonesian ginger in partner country
markets; and (3) identify potential export markets for
Indonesian ginger.
2. METHODOLOGY
2.1. Data
This study employed secondary data. The data were
obtained from FAOSTAT and the World Bank's World
Integrated Trade Solution (WITS) with commodity code
HS091010. The data period from these two sources is the
last 10 (ten) years (2010-2019). If some indicators, in a
certain year, are not available, then data will be used in
accordance with the availability of these sources.
2.2. Analysis
Revealed Comparative Advantage (RCA) is a method
that can be used to measure the competitiveness or
comparative advantage of a country's commodities. The
variable used is the export variable, namely the export
value of a commodity to the total exports in a country
compared to the share of product value in international
trade. This study adopted RCA formulation from Balasa
[11] and modified it as:
### = (# #)/(#
#)
(
#)/(
#) (1)
where:
Xaj : Indonesia’s ginger export value to partner country
Xtj : Indonesia’s total export value to partner country
Waj: World’s ginger export value to partner country
Wtj: World’s total export value to partner country
The results of the RCA analysis show two indications:
(1) if the RCA value is more than one (RCA > 1), then
the Indonesian ginger commodity has a comparative
advantage or has a strong competitiveness and (2) if the
value of RCA is less than one (RCA < 1), then the
Indonesian ginger commodity is indicated to have weak
competitiveness.
The export potential market of Indonesian ginger will
be evaluated with Export Product Dynamic (EPD) and XModel
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 [12]. If Indonesia's
ginger export growth is above the world’s average and
this situation continues in the long term, then this
commodity can eventually become an important
commodity to boost export revenues. EPD is formulated
by the following two equations:
Advances in Economics, Business and Management Research, volume 199
298
(a) Ginger export growth index
