Research Article
Covid-19 Pandemic Potential Risks for Indonesia’s CPO Trade
@INPROCEEDINGS{10.4108/eai.31-3-2022.2320951, author={Desi Maria Pakpahan and Eka Puspitawati}, title={Covid-19 Pandemic Potential Risks for Indonesia’s CPO Trade}, proceedings={Proceedings of the 1st International Conference on Contemporary Risk Studies, ICONIC-RS 2022, 31 March-1 April 2022, South Jakarta, DKI Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICONIC-RS}, year={2022}, month={8}, keywords={trade cpo competitiveness porter diamond theory}, doi={10.4108/eai.31-3-2022.2320951} }- Desi Maria Pakpahan
Eka Puspitawati
Year: 2022
Covid-19 Pandemic Potential Risks for Indonesia’s CPO Trade
ICONIC-RS
EAI
DOI: 10.4108/eai.31-3-2022.2320951
Abstract
Indonesian Crude Palm Oil (CPO) exports in 2019 amounted US$23 billion equivalent to Rp300 trillion, puts CPO as main contributor to country's foreign exchange, exceeding the oil and gas sector. Covid-19 pandemic impacts on Indonesia’s CPO trade. The aim of this study is to analyze potential risks of Indonesia’s CPO trade under Covid 19 pandemic. Methods used in this research are Porter's Diamond Theory and the comparative competitiveness using the Revealed Comparative Advantage (RCA) in 2012- 2020. The results show Indonesian CPO commodities have strong competitive and comparative competitiveness in the international market. Although most of world commodities experienced a trade decline, Indonesia’s CPO competitiveness can still survive in the international market. Indonesia's CPO export strategy to compete in the world market under the pandemic is to develop the CPO industry, its derivatives and CPO downstream, and to increase CPO productivity.