Competitiveness Analysis of Exported Indonesian Black Tea in International Market

Abstract

Black tea is processed from tea plant and generated from fermented tea leaves. Black tea has become one of the favourite commodities from Indonesia sub-sector plantation. Research aimed to analyze the structure of world black-tea market, comparative advantage and competitive advantage of Indonesian black tea in world market, and Indonesia’s trading position of black tea commodity from 2010 to 2019. Herfindahl Hirschman Index (HHI), Concentration Ratio (CR), Revealed Comparative Advantadge (RCA),  Export Dynamic Product (EPD) dan Trading Specialization Index (TSI) were the analytical instruments used in this research. Benchmarking countries were Kenya, Sri Lanka, India, and China. Meanwhile, the countries of destination of exported black tea were Malaysia, Russia, Pakistan, Germany, and the USA. Research results are the structure of world market of black tea is moderate oligopoly. Indonesia shows comparative advantage for its black tea in the countries of exporting destination. Indonesian black tea does not show competitive advantage in the countries of exporting destination. Indonesia’s trading position of black tea commodity is as an exporting country.