Optimization of Indonesian Pineapple
Exports to Japan by Utilizing The Indonesia � Japan Economic Partnership
Agreement (IJEPA)
Universitas Padjadjaran
Email: [email protected]
|
Abstract |
|
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.. Keywords: Export, Pineapple,
Japan, Indonesia-Japan Economic Partnership Agreement (IJEPA), RCA analysis,
ECI analysis, EPD analysis. |
Corresponding Author:
Demarsya Putri Ariela
E-mail:
[email protected]
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 Rp20,892.4 trillion 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.
Table
1.1 Five Main Sectors Affecting Indonesia's
Economic Growth Rate (2023)
|
No. |
Data Name |
Percentage of Value to GDP |
|
1 |
Processing
Industry |
18,67% |
|
2 |
Trade |
12,94% |
|
3 |
Agriculture |
12,53% |
|
4 |
Mining |
10,52% |
|
5 |
Construction |
9,92% |
Source: Central Bureau of Statistics
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:
Table 1.2 Top Ten
Provinces In Pineapple Production In 2022
|
No |
Province Name |
Value / Tone |
|
1 |
Lampung |
861.706 |
|
2 |
Sumatera
Selatan |
567.120 |
|
3 |
Jawa
Timur |
357.505 |
|
4 |
Jawa
Tengah |
336.102 |
|
5 |
Riau |
261.769 |
|
6 |
Sumatera
Utara |
165.080 |
|
7 |
Jawa
Barat |
161.359 |
|
8 |
NTB |
135.162 |
|
9 |
Jambi |
119.862 |
|
10 |
Kalimantan
Barat |
87.868 |
Source:
Central Bureau of Statistics
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:
Table 1. 1 Top Ten Pineapple Exporters to
Japan (2022)
|
No |
Country |
Export
Value ( Thousands of US Dollars) |
|
1 |
Filipina |
119.175 |
|
2 |
Taipei |
23.343 |
|
3 |
Kosta Rika |
222 |
|
4 |
Cambodia |
83 |
|
5 |
Thailand |
78 |
|
6 |
Indonesia |
46 |
|
7 |
Uganda |
44 |
|
8 |
Sri Lanka |
41 |
|
9 |
Bangladesh |
33 |
|
10 |
Vietnam |
33 |
Source:
Trademap.org
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.
Table 1. 2 Utilization Percentage of IJEPA
Preferential Rate Scheme
|
Utilization IJEPA(%) |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
Indonesia's exports to Japan |
47.6 |
59.7 |
57.9 |
54.1 |
47.2 |
50.7 |
|
Import Indonesia to Japan |
60.7 |
62.1 |
63.6 |
67.5 |
67.7 |
76.2 |
Source: FTA
Center Ministry of Trade
Research
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 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:
2.1 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
●
Xt = Total exports of country j
●
Xwj = Export of commodity I by worldwide
●
Xw = Total worldwide exports
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.
2.2 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
●
Xw = Total worldwide exports
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.
-
2.3 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:
●
ECI = Export Competitiveness index
●
Xij = Export of commodity i by country j
●
Xt = Total exports of country j
●
Xwj = Export of commodity I by worldwide
●
Xw = Total worldwide exports
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 compared with the total fruit commodities in the code
category 0804 regarding figs, pineapples,
avocados, guavas, mangoes, and mangosteens, overall the total import of
Pineapples in Japan is around 37.7% of the total quantity of imports carried out in the category. This number will be used as a
calculation variable for Xwj.
The
fourth is the total Export of pineapple fruit commodities worldwide. This total
Export is taken from WITS (World Integrated Trade Solution) data with a figure
of 3,069,502,829 Kg. This figure will be used as a calculation variable for Xw.
3.1.1 RCA (Revealed Comparative Advantage) Analysis
RCA is an indicator used to assess
a country's comparative advantage in the Export of a particular product
compared to its total exports to the world. With the data that has been
collected, the following is the calculation of RCA (Revealed Comparative Advantage) for pineapple exports from
Indonesia to Japan:
RCA = (Xij/Xt)/(Xwj/Xw)
Xij:
Total pineapple exports from Indonesia to Japan. 42.203 kg
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:
RCA = (42,203
kg / 6,288,310 kg) / (180,518,000 kg / 3,069,502,829 kg)
RCA =
(0.0067) / (0.0589)
RCA = 0.1136
The calculation results show that
Indonesia has an RCA of 0.1136, which is relatively low in pineapple exports to
Japan compared to overall pineapple exports to the world.
3.1.2 ECI (Export Competitiveness Index) Analysis
The Export
Competitiveness Index (ECI) is a quantitative tool used to evaluate a country's
relative advantage in exporting a particular product compared to exports of the
same product from another country. Export Competitiveness Index (ECI) analysis
is calculated using data collected according to the following procedure:
ECI=(Xij / Xt) / (Xwj /
Xw)
� 100
Xij:
Total pineapple exports from Indonesia to Japan. 42.203 kg
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:
ICE = (42,203 Kg / 6,288,310 Kg) /
(180,518,000 Kg / 3,069,502,829 Kg) x 100
ICE = (0.0067) / (0.0589)
ICE = 11.36
The ECI value
for pineapple exports from Indonesia to Japan is around 11.36. This shows
Indonesia's relative comparative advantage in exporting pineapples to Japan,
taking into account the overall global pineapple trade. Based on ECI value,
Indonesian pineapple exports have a low level of export competitiveness in
terms of exporting pineapples to Japan.
3.1.3 EPD (Export Product Dynamics) Analysis
EPD (Export
Product Dynamics) analysis is an approach to understanding changes in the
export pattern of a product from a country to a particular destination country.
With the data that has been collected, the following is the calculation of the
ECI (Export Competitiveness Index)
Analysis:
EPD = (Xij/Xt) / (Xwj/Xw) * (Xij/Xwj)
Xij: Total pineapple
exports from Indonesia to Japan. 42.203 kg
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.
3.2.1 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.
4.
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.
3.2.2 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.
2.
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.
3.
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.
4.
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 IJEPA can be a strategic step for Indonesia to maximize its
pineapple export capacity to Japan and increase the market share and
competitiveness of Indonesian pineapple products in the Japanese market.
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