Optimization of Indonesian Pineapple Exports to Japan by Utilizing The Indonesia – Japan Economic Partnership Agreement (IJEPA)

This study discusses the optimization of Indonesia's pineapple exports to Japan by leveraging the Indonesia-Japan Economic Partnership Agreement (IJEPA). Although Indonesia is the world's second-largest pineapple producer and Japan is one of the largest pineapple importers, Indonesia's pineapple exports to Japan are still ranked sixth, below five other competing countries. This research aims to identify factors that can enhance the effectiveness of utilizing the IJEPA in Indonesia's pineapple exports to Japan. This study employs a quantitative method by applying RCA analysis to measure comparative advantages in pineapple production, ECI analysis to evaluate export competitiveness based on product quality, price, services, marketing, production efficiency, and ease of doing business, and EPD analysis to evaluate export product performance based on market share position. The results of this research are expected to provide a deeper understanding of the utilization of the IJEPA so that exporters can optimize Indonesia's pineapple export volume to Japan. Additionally, it is hoped that Indonesian businesses can effectively utilize this agreement and achieve greater success in entering the Japanese pineapple market..


Introduction
Export is an economic activity that involves the sale of goods, services, or products produced in a country to parties outside the territory of the country.It involves several complex processes: production, distribution, marketing, and logistics.In the export step, local producers or entrepreneurs ship their products to international markets to attract customers abroad.This process involves various stages, which include adjusting the product to meet international standards, meticulous cost planning, careful contract negotiation, and compliance with customs requirements and import regulations applicable to the destination country.Along with technological advances, increasingly sophisticated means of transportation, and increasingly complicated international trade agreements, export activities have become very important in the dynamics of the global economy.Exports are one of the main pillars in strengthening a country's economy because of their significant impact on overall economic growth.Exports play a central role in strengthening a country's economy by providing a significant source of income, creating employment opportunities, and stimulating overall economic growth.In addition, exports also facilitate countries to take advantage of their comparative advantages, expand market reach, and build strong trade relations in the international arena.
Evidence of the importance of these exports can be found in many countries that depend on exports as their main source of foreign exchange.
As a country that relies heavily on the agricultural sector, Indonesia has many comparative advantages and potentials, which significantly contribute to the country's Gross Domestic Product (GDP).In 2023, Indonesia's economy will reach Rp20,892.4trillion with GDP per capita reaching Rp75.0 million or equivalent to US$4,919.7,calculated based on Gross Domestic Product (GDP) based on prevailing prices (ADHB).The agricultural sector was one of the third major sectors that impacted Indonesia's economic growth that year.The data clearly shows that 2023 the agricultural sector will play an important role in Indonesia's economic growth, ranking third among major contributors.This sector contributes 12.53% of Indonesia's GDP, equivalent to Rp2,617.7 trillion.The agricultural sector is below the processing industry sector, which ranked top with a value of Rp3,900.1 trillion (18.67%), and the large trade and retail sector, which ranked second with a value of Rp2,702.4 trillion (12.94%) of Indonesia's total GDP in the same year.This emphasizes the importance of the agricultural industry and the imperative to develop it to strengthen the Indonesian economy.Horticultural crops are promising in the agricultural industry, with great economic value and a wide market.GDP distribution data shows that the contribution of horticultural crops to Indonesia's total GDP continues to increase, especially tropical fruits such as pineapples.Pineapple is a tropical fruit in demand internationally, with HS code 080430 signifying its status as a key commodity in Indonesia.Besides being consumed directly, pineapple is also used in various products and has high nutritional value.Indonesia's pineapple production increased significantly, reaching 3.2 million tons in 2022, positively impacting Indonesia's agricultural economy.
The following is the data of the top 10 provinces in terms of pineapple production volume in Indonesia in 2022: Based on the data above, Lampung stands out as the top province in pineapple production in Indonesia in 2022, reaching 861,706 tons.Meanwhile, South Sumatra is in second position with pineapple production of 567,120 tons, and East Java is ranked third with production reaching 357,505 tons.On the other hand, DKI Jakarta did not record pineapple production at all in 2022.Papua and Gorontalo provinces recorded the lowest pineapple production, respectively, at 79 and 142 tons.This shows the need for Indonesia to maintain a balance between export activities and pineapple production per year.
In addition, in 2021, Indonesia, one of the world's largest pineapple producers, is ranked second by producing 2,860 tons of pineapples, after Costa Rica, which is ranked first and has produced 2,938 tons of pineapples, ranked third is the Philippines which produces 2,317 tons of pineapples, from these data it can be understood that the value of pineapple production in Indonesia can compete with competing countries and become an advantage and also advantages for Indonesia itself.
As the second largest pineapple producer in the world, Indonesia has the potential to export pineapples to international markets, including Japan.The Japanese fruit market is very promising due to the high demand and use of pineapple as a raw material in the food industry.Pineapple prices from Indonesia have great profit potential because fruit prices in Japan tend to be high.According to data from the Indonesian Ministry of Trade, in 2020, Indonesian pineapple exports to Japan reached 5,807 tons worth 4.55 million US dollars, and import needs reached 200 thousand tons per year.Although Japan has become an important export market for Indonesian pineapples, the export value of Indonesian pineapples to Japan is still relatively low.This is evidenced by the results of the data attached below: Based on the table data above, in 2022, Indonesia's pineapple exports to Japan experienced a significant decline compared to the previous year, causing Indonesia to drop to sixth place in the list of pineapple-importing countries to Japan.Nevertheless, this shows that Indonesia has managed to enter the Japanese market with significant exports.To improve its position, Indonesia needs to optimize its export strategy by adjusting products to market tastes, building long-term business relationships, seeking support from related institutions, expanding operational areas, and finally utilizing agreements with export destination countries.In this case, Indonesia and Japan have a bilateral trade agreement, namely the Indonesia-Japan Economic Partnership Agreement (IJEPA).
The IJEPA, initiated by President Susilo Bambang Yudhoyono and Japanese Prime Minister Shinzo Abe, was signed on August 20, 2007, and officially entered into force on July 1, 2008.It is an economic agreement between Indonesia and Japan that aims to strengthen the economic partnership between the two countries.It covers various aspects such as economic capacity building, trade liberalization, and bilateral investment enhancement.The agreement emphasizes three main pillars: trade liberalization, trade facilitation, and capacity building.IJEPA is expected to increase trade and investment between the two countries as well as expand regional market share.Japan enforces a duty-free policy for most of its products and provides opportunities for Indonesian SMEs to enter the Japanese market.
For business actors who want to benefit from reduced tariffs in trade in goods with Japan, a Certificate of Origin (SKA) of goods is needed.SKA is an official document or certificate that assures that exported goods from Indonesia have met the Indonesian Rules of Origin requirements.This confirms that the product must be produced and processed in the territory of Indonesia in accordance with applicable regulations.scheme than Indonesia, supported by the fact that the percentage of preferential tariff utilization for imports from Japan to Indonesia ranges from 60% to 76%, which is greater than the percentage of Indonesian exports to Japan, which ranges from 47% to 51%.Therefore, exporters should use IJEPA plans to increase their export volume to the Japanese market.This indicates the need for Indonesian exporters to increase the use of IJEPA to increase export volume to the Japanese market.
In addition, additional obstacles need to be overcome, such as a limited understanding of Japan's market demands, disparities in trade restrictions, fierce competition from other countries, below-average product quality, and a shortage of skilled labor.This study aims to better understand how the IJEPA Agreement is used to help exporters maximize the amount of Indonesian pineapple exported to Japan.The goal is for Indonesian companies to effectively implement the findings of this research and achieve better success in the Japanese pineapple market.

Research Methods
This study uses three comprehensive data analysis methodologies, namely, RCA (Revealed Comparative Advantage) Analysis, ECI (Export Competitiveness Index) Analysis, and EPD (Export Product Dynamics) Analysis.The chosen methodology aims to assess and measure Indonesia's relative superiority and export competitiveness in the global market, especially in the Japanese market.It will use 2022 data because the data presented is still updated and able to be compared with 2021 and 2023.This is an election that has been considered to strengthen the results of this study.From this, the elaboration of data will start from obtaining variable numbers and then continue with the contents in the outline of the Indonesia-Japan Economic Partnership Agreement (IJEPA).The research also aims to identify the opportunities and challenges faced in this process.Here is a comprehensive explanation of each technique:

RCA (Revealed Comparative Advantage) Analysis
RCA (Revealed Comparative Advantage) analysis is a method used to measure a country's comparative advantage in a commodity.Comparative advantage is the ability of a country to produce a commodity at a lower cost than other countries (Ginting et al., 2022).
RCA analysis was first put forward by Bela Balassa in 1965.Balassa argues that RCA analysis can be used to analyze a country's comparative advantage and to predict that country's future export performance.RCA analysis is conducted by comparing the share of a country's exports to a commodity with the share of other countries' exports to the same commodity.If a country's export share is higher than the export share of other countries, then the country is said to have a comparative advantage over the commodity (Soleh & Darwanto, 2012).
In this case, RCA analysis is used in order to answer the formulation of problems regarding the potential Export of Indonesian pineapple fruit in Japan by knowing the comparative advantage in exporting pineapple to Japan compared to other countries and the factors underlying these advantages, for example, production costs, quality, varieties so that the author can find out how the market potential of pineapple fruit in Japan according to its comparative advantages.The formula used is: RCA=(Xij / Xt) / (Xwj / Xw) Information: • RCA = Comparative advantage index • Xij = Export of commodity i by country j The estimation results using the RCA analysis method are explained as follows: RCA>1; The share of commodity I from country J is greater than the average share of commodity I exports from all countries in the world RCA=1; The share of commodity I from country J is equal to the average share of commodity I exports from all countries in the world RCA<1; The share of commodity I from country J is smaller than the average share of commodity I exports from all countries in the world If the RCA value is greater than 1, it can be concluded that the commodity has comparative competitiveness.On the other hand, if the RCA value is less than 1, it indicates that the commodity lacks comparative competitiveness.When conducting an RCA (Revealed Comparative Advantage) comparison between two or more countries, the country with the highest RCA indicates that the country has greater comparative competitiveness compared to its competitors.

EPD (Export Product Dynamics) Analysis
EPD (Export Product Dynamics) analysis is a method used to measure a country's export performance based on two main indicators, namely an increase in a country's export market share and an increase in the market share of certain products in world trade (Lindung &;Jamil, 2018).
EPD analysis can be used to identify export products that have the potential to grow in the future.This analysis can also be used to assess a country's overall export performance (Zuhdi & Rambe, 2021).
This EPD analysis will answer the question regarding the potential Export of Indonesian pineapple fruit to Japan by determining whether Indonesian pineapple fruit has good export performance or not.
The calculation of EPD analysis can be done using the following formula: EPD=(Xij/Xt)/(Xwj/Xw)*(Xij/Xwj) Description: • EPD = Export product dynamics index • Xij = Export of commodity i by country j • Xt = Total exports of country j • Xwj = Export of commodities i to the rest of the world The above formula can be interpreted as follows: -An EPD value greater than 1 indicates that the product has good export performance.
-An EPD value equal to 1 indicates that the product has stable export performance.
-An EPD value smaller than 1 indicates that the product has poor export performance. -

ECI (Export Competitiveness Index) Analysis
ECI (Export Competitiveness Index) analysis is a method used to measure the export competitiveness of a country.Export competitiveness is the ability of a country to sell its products to the global market at competitive and profitable prices (Pratita & Budiarto, 2021).
ECI analysis is carried out by analyzing factors that affect export competitiveness (Anggraini et al., 2022), namely product quality, product price, service, marketing, production efficiency, and ease of doing business.
The results of this ECI analysis will provide answers to the formulation of problems regarding the potential Export of Indonesian pineapples to Japan in relation to its comparative competitiveness with pineapples from other countries.
The calculation of ECI analysis can be performed using the following formula: ECI = (Xij/Xt) / (Xwj/Xw) * 100 Description: The above formula can be interpreted as follows: • An ECI value greater than 100 indicates that the country has strong export competitiveness.
• An ECI value equal to 100 indicates that the country has neutral export competitiveness.
• An ECI value smaller than 100 indicates that the country has weak export competitiveness.

Results and Discussion
This research will use 2022 data on the grounds that the data presented is still updated and able to be compared with 2021 and 2023.This is an election that has been considered to strengthen the results of this study.From this, the elaboration of data will start from the process of obtaining variable numbers and then continue with the contents in the outline of the Indonesia-Japan Economic Partnership Agreement (IJEPA).
The first is the total Export of pineapples from Indonesia to Japan.This data is taken from the BPS Report with the Code "[08043000] Pineapples fresh or dried" regarding the record of Indonesian pineapple exports to Japan.The data is summarized from 2018 to 2022, and pineapple exports in 2022 amounted to 42,203 Kg.This data will be included in the appendix.This number will be used as a calculation variable for Xij.
The second is the total Export of pineapples from Indonesia to the rest of the world.In this study, the data obtained came from WITS (World Integrated Trade Solution) and was clarified in a CNBC Indonesia article.The total exports recorded in the data are 6,288,310 Kg from WITS statistical data, which is explained as a decrease in export figures in Indonesia compared to the 2021 report by CBNC Indonesia.This number will be used as a calculation variable for Xt.
The third is the total import of pineapples by Japan from all over the world.The data used is table data from WITS (World Integrated Trade Solution) with HS code 080430.According to WITS data, the total imports made by Japan in pineapple fruit commodities totaled 180,518,000 kg.This figure, when Xt: Total pineapple exports from Indonesia to the rest of the world.6,288,310 kg Xwj: Total pineapple imports by Japan from all over the world.180,518,000 kg Xw: Total pineapple exports from all countries to the rest of the world.3,069,502,829 kg Here's the calculation: EPD = (42,203 Kg / 6,288,310 Kg) / (180,518,000 Kg / 3,069,502,829 Kg) x (42,203 Kg / 180,518,000 Kg) EPD = (0.0067) / (0.0589) x (0.00023) EPD = 0.000026 Export Competitiveness Index (ECI) analysis results in an Export Product Dynamics (EPD) score of 0.000026.The lower EPD value indicates that Indonesia's pineapple exports to Japan have less strong dynamics compared to Japan's overall imports from other countries, thus showing difficulties in increasing the competitiveness of Indonesian pineapple products in the Japanese market.

Export Potential of Indonesian Pineapple to Japan
A comprehensive investigation has been conducted to assess the feasibility of Indonesian pineapple exports to Japan.This investigation involves several analyses, including Comparative Advantage Analysis Revealed (RCA), Export Competitiveness Index Analysis (ECI), and Export Product Dynamics Analysis (EPD).RCA Analysis provides insight into Indonesia's relative comparative advantage in pineapple exports to Japan, while ECI Analysis evaluates Indonesia's export competitiveness globally, and EPD Analysis examines the dynamics of Indonesian pineapple exports in global and local markets.Based on this assessment, it is clear that Indonesia has the capacity to increase pineapple exports to Japan.However, there are also several obstacles that need to be overcome to increase the competitiveness of Indonesian pineapple products in the Japanese market.It is important to determine the factors affecting the performance of Indonesian pineapple exports and develop appropriate tactics in this situation.The following is the description of each analysis that has been done: 1. RCA (Revealed Comparative Advantage) Analysis: RCA analysis is a method used to evaluate a country's relative advantage in exporting a particular product compared to total world exports.In the specific scenario of Indonesian pineapple exports to Japan, an RCA score of 0.1136 indicates that Indonesia has a relatively small competitive advantage in exporting pineapples to Japan when compared to global pineapple exports as a whole.This shows that although Indonesia exports pineapples to Japan, its comparative advantage in this field is still very limited.
3. ECI (Export Competitiveness Index) Analysis: ECI analysis is used to measure a country's export competitiveness against the global market.An ECI value of 11.36 indicates that Indonesia has relatively strong export competitiveness in pineapple exports to Japan.However, when viewed in the context of an ECI value lower than 100, this indicates that Indonesia does not yet fully have a dominant competitive advantage in the pineapple export market to Japan.

EPD (Export Product Dynamics)
Analysis: EPD analysis is used to measure the export dynamics of a country based on the growth of its product market share in global and local markets.A low EPD value, which is 0.000026, indicates that Indonesia's pineapple exports to Japan have relatively weak dynamics.This indicates a challenge in increasing the competitiveness of Indonesian pineapple products in the Japanese market, especially in terms of market share growth and current export performance.Based on the findings of these three analyses, it can be concluded that Indonesia has the capacity to expand pineapple exports to Japan.However, additional measures are needed to strengthen its competitive advantage and improve Indonesia's pineapple export performance in the Japanese market.

Utilize the IJEPA agreement to increase the volume of Indonesian pineapple exports to Japan
After analyzing the export potential of pineapple commodities from Indonesia to Japan, we have identified various elements that have an impact on this process.One of them is Indonesia's relative comparative advantage in exporting pineapples to Japan, along with global market dynamics and obstacles in increasing the competitiveness of Indonesian pineapple products in the Japanese market.
Based on RCA's analysis, Indonesia's pineapple exports to Japan show a relatively low level of comparative advantage.According to ECI analysis, Indonesia has a fairly strong export competitiveness in pineapple exports to Japan.However, there is still room for improvement to achieve a dominant competitive advantage in those markets.In addition, a low EPD value indicates that the dynamics of Indonesian pineapple exports to Japan are quite weak, especially in terms of market share growth and current export performance.
This shows that while it is possible for Indonesia to increase pineapple exports to Japan, there are still obstacles that need to be overcome to achieve better success in the market.Additional efforts are needed to strengthen relative advantage, increase product competitiveness, and overcome obstacles related to market dynamics to achieve this goal.
The use of the Indonesia-Japan Economic Partnership Agreement (IJEPA) in this situation can overcome the problem of low volume of Indonesian pineapple exports to Japan.IJEPA aims to strengthen economic ties between the two countries by promoting trade liberalization and facilitating investment.Through this agreement, several concrete steps can be taken: 1. Tariff Liberalization IJEPA removes or reduces tariffs for products traded between Indonesia and Japan.This means that pineapple exports from Indonesia to Japan have the potential to compete better in terms of price, which will increase its competitiveness in the Japanese market.

Trade Facilitation
This agreement streamlines the flow of trade between the two countries, allowing the process of exporting pineapple fruit from Indonesia to Japan to be more efficient.This provides additional incentives for Indonesian pineapple fruit producers to increase their export volumes.

Greater Market Access
IJEPA opens greater market access opportunities for Indonesian goods and services in Japan.This can help increase the visibility and market penetration of Indonesian pineapple fruit in Japan, allowing Indonesian producers to reach more Japanese consumers.

Economic Cooperation
The agreement also stimulates cross-field cooperation, including technology and human resource development.Through this collaboration, Indonesian pineapple producers have the opportunity to improve their quality and production standards.This has the potential to make Indonesian pineapple products more attractive in the Japanese market.
With the utilization of the IJEPA agreement, Indonesia has the opportunity to increase the volume of its pineapple exports to Japan.By reducing trade barriers and improving market access, Indonesian pineapple producers can expand their market share in Japan and tap into greater export potential.In addition, economic cooperation between the two countries can help improve the quality and competitiveness of Indonesian pineapple products in the Japanese market, making Indonesia a leading supplier of pineapple fruit in the international market.

Conclusion
Research shows that Indonesia's pineapple exports to Japan are still hampered by significant challenges.Although Indonesia has a fairly strong global competitiveness, the comparative advantage in pineapple exports to Japan is relatively lower compared to competing countries.This indicates that complex variables affect the dynamics of Indonesian pineapple exports to Japan, prompting the need for strategic steps to overcome these obstacles.Within this framework, the implementation of IJEPA promises opportunities to increase Indonesia's pineapple exports to Japan through closer trade and investment cooperation.IJEPA provides a strong legal foundation for the two countries to enhance their cooperation, with potential measures including tariff liberalization and trade facilitation.These measures could open up new opportunities for Indonesian pineapple farmers to compete better in the Japanese market.In addition, economic cooperation through IJEPA can strengthen the competitiveness of Indonesian pineapple products through technology transfer, knowledge sharing, and joint capacity building.Thus, the implementation of Optimization of Indonesian Pineapple Exports to Japan by Utilizing The Indonesia -Japan Economic Partnership Agreement (IJEPA)Demarsya Putri Ariela• Xt = Total exports of country j• Xwj = Export of commodity I by worldwide• Xw = Total worldwide exports Export of commodity i by country j • Xt = Total exports of country j • Xwj = Export of commodity I by worldwide • Xw = Total worldwide exports

Table 1 .1
Five Main Sectors Affecting Indonesia's Economic GrowthRate (2023) Source: Central Bureau of Statistics

Table 1 .2
Top Ten Provinces In Pineapple Production In 2022

Table 1 . 2
Utilization Percentage of IJEPA Preferential Rate Scheme Source: FTA Center Ministry of TradeResearch data shows that Indonesia and Japan have implemented the IJEPA preferential tariff scheme extensively, benefiting exports and imports between the two countries.Although most of Indonesia's exports to Japan have utilized IJEPA's preferential tariffs, Japan is more actively using the