DOI: 10.36347/sjebm.2017.v04i07.001

Pages: 399-408

Cocoa is an important agricultural commodity in the world economy. Indonesia is the third largest producer of cocoa beans after Ivory Coast and Ghana. Previous research demonstrated that cocoa had many opportunities for market expansion of Indonesian cocoa exports in the world market. Competitiveness analysis as a basic for improvement of commodity market expansion. The objective of this study was to analyze the competitiveness and factors affecting of Indonesian cocoa beans export based on its market share. Data used in this study were secondary data from 1996-2015 for comparison of Indonesian cocoa as the one of major exporter, Comparative Export Performance (CEP), Market share Index (MSI), Export Product Dynamics (EPD), and VECM (Vector Error Correction Model) were calculated. The result showed that as the main exporting country, Indonesian cocoa had comparative advantage in recent years. While MSI analysis showed that Indonesia had the lowest one among them. Indonesia should have to face a strong competition among Ivory Coast and Ghana, caused by they face a same market in Netherlands, USA, Malaysia, and Germany. Based on EPD analysis, Indonesian cocoa had good dynamic performance in Malaysia, China, and Singapore market. These results suggested that to increase competitiveness, some policies are required to maintain availability through increasing production and price so that it can also increase demand and export.