JRSSEM 2022, Vol. 01, No. 8, 996 – 1006
E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494
DOI : 10.36418/jrssem.v1i8.122 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
ANALYSIS OF WEST KALIMANTAN RUBBER EXPORT
COMPETITIVENESS TO CHINA
Endah Kurnia Lestari1
Jessica Felita Pramono2
Yulia Indrawati3
1,2,3Universitas Jember
email: endahkurnia51@gmail.com2, jessicafelita94@gmail.com1, yuliaindrawati2012@gmail.co3
*Correspondence: jessicafelita94@gmail.com
Submitted: 20 February 2022, Revised: 05 February 2022, Accepted: 15 March 2022
Abstract. Trade is the activity of exchanging goods and services between regions or countries. The
purpose of this research is to help the needs of the community by encouraging economic growth.
Increasing exports has an important role for the survival of the country. West Kalimantan also
experienced problems in the trade sector that occurred in 2014. In 2014 West Kalimantan's exports
decreased to 51.65 percent from 2013. The analytical methods used were RCA, RSCA, ISP, ECI, EPD,
CEP and CMS. The result of research based on RCA analysis is 29.48 which means it has
competitiveness and comparative advantage. Based on the RSCA analysis, 0.88 means that it has
competitiveness and comparative advantage. Based on the ISP analysis of 0.91 which means that
West Kalimantan is an exporting country, the ECI analysis produces a value of 1.92 which means
that West Kalimantan has.
Keywords: international trade; competitiveness; trade specialization.
Endah Kurnia Lestari, Jessica Felita Pramono, Yulia Indrawati | 997
DOI : 10.36418/jrssem.v1i8.122 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
INTRODUCTION
Trade is the activity of exchanging
goods and services between regions or
regions. country. Trade is used to help
people's needs by promoting economic
growth. Improved trade performance
boosts economic growth and has an impact
on progress in economic development.
International trade is a cooperative
relationship between countries that is
formed by the existence of transactions of
goods and services so as to help improve
people's welfare (Singh, 2010); (Fisher &
Garner, 2007).
Increasing exports has an important
role for the survival of the country.
Increased exports encourage increased
competitiveness to compete with other
countries in export or international
markets. The key to competition in the
international market is increasing the
productivity of goods and services in the
country (Voinescu & Moisoiu, 2015);
(Dzwigol, Dzwigol-Barosz, & Kwilinski,
2020); (Smit, 2010).
West Kalimantan is one of the provinces
on the island of Borneo. West Kalimantan
has several potential natural resources that
can help the economy, namely oil palm,
rubber and bauxite (Martini, Tjakraatmadja,
Anggoro, Pritasari, & Hutapea, 2012). West
Kalimantan is a strategic province in
international trade because West
Kalimantan is included in the Indonesian
Archipelago Sea Lane (ALKI I) which is
located on the west side and is the gateway
to the East Asia Region. In addition, West
Kalimantan has the international port of
Kijing which will have a positive impact on
the surrounding area and West Kalimantan
as one of the supporters of the inflow and
outflow of goods (Wisnubroto, Ruslan,
Irawan, & Wijayanti, 2021).
West Kalimantan's export development
was supported by the increase in export
value based on market share (export
destination countries). The share of West
Kalimantan's export market that has the
highest value is China. China had the
highest value from 2016 to 2020. The
largest export value of West Kalimantan to
China was in 2020 amounting to 735.2
million US$. Market share can indicate the
level of competitiveness and competitive
position in the export market. The high
level of competitiveness proves that these
products can compete in the export market
and have strong comparative and
competitive advantages. China is
Indonesia's largest trading partner and
export destination and has good bilateral
relations.
West Kalimantan Province is one of the
provinces in the top five provinces with the
largest rubber plantations in Indonesia. The
area of rubber plantations in the five
provinces with the largest land area is
Jambi with an area of 0.9 million Ha and the
second rank is South Sumatra with an area
of 0.86 million Ha. The third rank is North
Sumatra with an area of 0.4 million Ha, the
fourth rank is West Kalimantan with an area
of 0.385 million Ha and finally Riau with a
land area of 0.33 million Ha (Hidayat,
Endris, & Dwiyanti, 2018).
Endah Kurnia Lestari, Jessica Felita Pramono, Yulia Indrawati | 998
METHODS
Revealed Comparative Advantage (RCA)
This analysis is used to determine and
measure the level of product
competitiveness in the export market of a
country or region. RCA analysis can use the
following formula (Satryana and Karmini,
2016):
RCA




Where Xij is the value of West
Kalimantan's rubber exports in the world
market, Xj is the total value of West
Kalimantan's exports in the world market,
Xiw is the value of China's exports of rubber
commodities and Xw is the value of total
Chinese exports. If the RCA equation results
index with a value equal to or more than
one (RCA≥1) means that West Kalimantan
has a comparative advantage above the
average and is highly competitive if the
RCA index shows a value of less than one
(RCA<1) then the competitiveness of a the
product of that country is below the world
average (weak). Since the RCA index is not
proportional on both sides of the neutral
value (ie one) then the RCA index is made
symmetrical, and is known as Revealed
Symmetric Comparative Advantage. So that
the index can be compared with a value
range of minus one to positive one, the
RCA is modified to:
 

RSCA index value can vary from one to
minus one (-1 RSCA 1), RSCA ij value
greater than zero means West Kalimantan
has a comparative advantage in rubber
products. On the other hand, if the RSCA ij
value is less than zero, it indicates that West
Kalimantan does not have a comparative
advantage in rubber products (Paradita and
Setyari, 2018).
Trade (ISP)
Specialization Index Trade Specializatio
n Index (ISP) is a general method used as a
means of measuring the level of
competitiveness. This index is used to see
whether a type of product in a country
tends to become an exporter or an
importer country. The provisions of the ISP
index are between 1 and +1, if the value is
positive (above 0 to 1), then product I has
strong competitiveness and the country
has the potential to export that product.
Vice versa if the ISP index value is negative
(below 0 to -1) then product I does not
have competitiveness, and the country
tends to be an importing country. (Aprilia,
Arifin and Sunarti, 2015). Where Xia is the
value of West Kalimantan's rubber exports
and Mia is the value of West Kalimantan's
rubber imports.
  

Export Competitiveness Index (ECI) ECI
Analysis is used to measure the
competitive advantage of rubber
commodities in West Kalimantan. The ECI
index shows the comparison of the export
share of West Kalimantan's rubber
commodities in a certain period (t) with the
share of West Kalimantan's rubber exports
in the previous period (t-1). The ECI index
shows the ability of certain commodities in
a country to compete with other countries
999 | Analysis of West Kalimantan Rubber Export Competitiveness to China
that are competitors (Lindung & Jamil
2018). Where is the export value of rubber
in West Kalimantan, is the value of rubber
exports in the export market (China), t is the
current period and t-1 is the previous
period.
󰇡
󰇢
󰇡
󰇢
Export Product Dynamic (EPD)
Export Product Dynamic (EPD) is used
to measure the dynamics of West
Kalimantan's rubber market position in
export destination countries (China). The
EPD matrix uses market attractiveness
(measured by demand growth) as the
horizontal axis (X axis) and business
strength (measured bygrowth market
share) as the vertical axis (Y axis), resulting
in 4 categories of market position (Figure 5)
namely rising star, falling star, lost
opportunity, and retreat (Rifin, 2019). The
ideal market position is a rising star which
indicates a country has a high market share
for dynamic products (demand is growing
fast). The lost opportunity position is the
most undesirable market position because
it indicates a country is losing market share
in dynamic products. Theposition is falling
star also undesirable, although it is better
than the lost opportunity because a
country's market share increases for non-
dynamic products. Theposition retreat may
not be desirable, but it can be an input for
switching to other dynamic products
(Gebauer, Paiola, & Saccani, 2013).
The x-axis represents the growth of
business strength or is called the export
market share i:





The y-axis represents the growth in
market attractiveness or is called the
product market share:
󰇡
󰇢󰇡
󰇢


Where Xij is the export value of West
Kalimantan rubber commodities to China,
Wij is the export value of world rubber
commodities to China; Xt is the total value
of West Kalimantan's rubber exports to
China; Wt is the total value of world exports
to China and T is the number of years of
analysis from 2014 to 2020 (Amiti &
Freund, 2010).
Comparative Export Performance (CEP)
CEP is used to evaluate a country's
export specialization on a particular
product. If a country has a CEP value
greater than one, then that country has a
relative advantage in its exports. To
calculate, the following formula is used:

Where is West Kalimantan's rubber
commodity exports, is West Kalimantan's
total exports, is total world exports of
rubber and is total world exports.
Constant Market Share (CMS)
In international trade there are various
factors that affect the growth of a country's
exports. Among these various factors,
factors that affect export growth include
market distribution factors, commodity
composition and competitiveness. Each of
Endah Kurnia Lestari, Jessica Felita Pramono, Yulia Indrawati | 1000
these three factors can be measured how
large the effect on the export growth of a
country. One method to measure the
magnitude of the effect of each factor is the
Constant Market Share method (Wang,
Zheng, Pei, & Jin, 2017). Constant Market
Share (CMS) is a method used to
decompose a country's export growth into
several determinants of that country's
export growth. This method can also
decompose the export growth of certain
commodities from a country (Besedeš &
Prusa, 2011).
1. Standard Growth
2. Effect of Commodity Composition
3. Effect of Market Distribution
4. Effect of Competitiveness
Where Ei is the export value of West
Kalimantan, Eij is the value of West
Kalimantan's rubber exports, t is the current
year and (t-1) is the previous year.
RESULTS AND DISCUSSION
Table 1. Level Export Competitiveness West Kalimantan Rubber Commodity MarketChina
CommodityRubber
Xij
Wij
Xiw
XW
RCA
366.231.
837
2014
23,597,423,9
39
2,342,292,69
6,320 55.76
651,986,
280
2015
274 835
965
565 967 755
20 347.
644 863
2.273.468.22
4.113
54.26
2016
1
44.72
2017
1
27, 91
2018
55,457,
989
1,013,231,57
6
22,276,120
,166
2,494,230,19
4,966
6.13
2019
86,265,
449
1,168,526,64
7
22,160,537
,807
2,498,569,86
5,637
8.32
1001 | Analysis of West Kalimantan Rubber Export Competitiveness to China
CommodityRubber
Xij
Wij
Xiw
XW
RCA
2020
92,928,
771
1,155,832,30
6
22,539,339
,685
2.590.600.66
6.465
9.24
Average
29.48
Results of analysis rubber RCA West
Kalimantan shows that from the year 2014
to 2020 more RCA value of 1 so that it can
be identified that the commodity West
Kalimantan rubber in the Chinese market
has a comparative advantage above the
average and strong competitiveness. The
largest RCA value of West Kalimantan
rubber in the Chinese export market was
55.76 in 2014 and the smallest in 2018 of
6.13. From 2015 to 2018 the RCA value
decreased with each value being 44.72;
27.91 and 6.13. In 2019, the RCA value
increased and was followed by an increase
in 2020 of 9.24. The RCA value which is
more than 1 is also due to the high value of
rubber exports in West Kalimantan. The
results of the RCA analysis are related to the
fact that rubber is the main commodity in
West Kalimantan so that it has high
competitiveness to survive and compete in
the Chinese export market.
Table 2. Index of Export Competitiveness of West Kalimantan Rubber Commodities in China
Market
Year
RCA
RCA - 1
RCA + 1
RSCA
Ket
2014
55.76
54.76
56.76
0.96
RSCA > 0
Has Comparative Advantage
2015
54.26
53.26
55, 26
0.96
RSCA > 0
Has Comparative Advantage
2016
44.72
43.72
45.72
0.96
RSCA > 0
Has Comparative Advantage
2017
27.91
26.91
28.91
0.93
RSCA > 0
Has Comparative Advantage
2018
6 ,13
5.13
7.13
0.72
RSCA > 0
Has Comparative Advantage
2019
8.32
7.32
9.32
0.79
RSCA > 0
Has Comparative Advantage
2020
9.24
8.24
10.24
0.80
RSCA > 0
Has Comparative Advantage
Average
29.48
28.48
30.48
0.88
RSCA > 0
Has Comparative Advantage
The results of the RSCA analysis also
show a positive value, which is 0.88 which
indicates that there is a comparative
advantage for West Kalimantan rubber
commodities. The results of the analysis are
also supported by the fact that West
Kalimantan has great natural potential in
the form of forest areas that have been
converted into plantation areas and has
collaborated with Malaysia (Prabowo,
Maryudi, & Imron, 2017). The rubber
plantation area of West Kalimantan
province in 2019 has an area of 0.385 Ha
and is included in the top five provinces
that have the largest plantations in
Indonesia (Ramdani & Hino, 2013). West
Kalimantan is a province on the island of
Kalimantan with the largest rubber
production. In 2015, West Kalimantan's
rubber production was 275,748 tons and in
Endah Kurnia Lestari, Jessica Felita Pramono, Yulia Indrawati | 1002
2019 it was 247,127.
Table 3. Specialization in Export Trade of West Kalimantan Rubber Commodities in China
Market
Year
Xia-Mia
Xia+Mia
(Xia-Mia)/(Xia+Mia)
Ket
2014
119,215,063
119,356,725
1.00
Exporters
2015
64,298,803
67,645,675
0.95
Exporters
2016
49,036,914
49,036,914
1.00
Exporters
2017
91,142,121
92,504,993
0.99
Exporters
2018
3,150,333
4,049,479
0.78
Exporters
2019
4,174,666
5,652,530
0.74
Exporters
2020
8,148,462
9,187 .050
0.89
Exporters
Average
0.91
Exporters
ISP analysis aims to determine the
position or stages of commodity
development in trade. The ISP value is
measured by a value between -1 to 1 where
if the ISP value is more than 1 then the
country is an exporter country which has
strong competitiveness and potential in
exporting the product. The results of the
ISP research show that the ISP index value
from 2014 to 2020 has a value of more than
0 with a value of 1.00 each; 0.95; 1.00; 0.99;
0.78; 0.74 and 0.89. The results of the ISP
analysis show that West Kalimantan tends
to be an exporting country. The average ISP
index value is 0.91 which is almost close to
1, so that West Kalimantan rubber has a
strong advantage with a tendency as a
rubber commodity exporting country
because domestic supply is greater than
domestic demand. Rubber commodities
are also included in the category of
products that are already in the maturity
stage. The results of the ISP analysis are
supported by the fact that rubber is the
main commodity in West Kalimantan which
has high advantages and competitiveness.
Table 4. Competitive Advantage West Kalimantan Rubber Commodity Markets Chinese
Year
Xij / Xaj
ECI
2014
3.07
2015
4.16
1.36>
1
2016
5.07
1.22>
1
2017
2.29
0.45
<1
2018
15.40
6 ,71
> 1
2019
17.55
1.14
> 1
2020
10.72
0.61
< 1
Average
1.92
> 1
The results of the ECI analysis show that in 2017 and 2019 West Kalimantan's rubber
1003 | Analysis of West Kalimantan Rubber Export Competitiveness to China
commodity has a value of less than 1, which
means in that year there was a tendency to
decrease competitiveness with values of
0.45 and 0.61, respectively. Overall, the ECI
value is more than 1, which is 1.92. The ECI
index value that exceeds 1 indicates that
West Kalimantan's rubber commodity has a
tendency to increase competitiveness. The
results of this study are related to the study
of Protect and Jamil (2018) which examined
Indonesian rubber using ECI analysis. The
results of the analysis show that the ECI
value is greater than 1 so that it has a
tendency to increase competitiveness. The
increase in the competitiveness of rubber
commodities is the result of the
government's efforts to boost export
performance.
Table 5. Dynamics of West Kalimantan Rubber Commodity Market Position in China
Market
Year of
Growth X
Growth Y
EPD
2014
2015
1.10
2.78
Rising Star
2016
0.91
-3.41
Falling Star
2017
-2.78
-1.56
Retreat
2018
13.11
1.29
Rising Star
2019
2.15
-0.95
Falling Star
2020
-6.84
4.25
Lost Opportunity
Average
1.28
0.40
Rising Star
The results of the EPD analysis show
that West Kalimantan in 2015 is in aposition
rising star which is in an ideal market
position which achieves a high market
share for rubber commodities due to high
demand for rubber. In 2016, West
Kalimantan's rubber commodity was in
aposition falling star where market share
increased for non-dynamic products. In
2017 the position of export commodities
experienced a shift to aposition retreat
where in that position they still received
input to switch to other dynamic
commodities. In 2018 there was another
shift to the ideal market, namely the rising
star and in 2019 there was a shift in
theposition falling star. In 2020 the position
shifted again and was in aposition lost
opportunitywhere West Kalimantan rubber
lost its dynamic market share. The average
EPD value shows that West Kalimantan's
rubber commodity is in an overall ideal
market position, namely a rising star where
it gains a high market share for dynamic
products (rubber). Demand for West
Kalimantan rubber in the Chinese export
market increased by 1.28 per year, followed
by an increase in market share of 0.40 per
year. This shows that West Kalimantan's
rubber commodity has strong
competitiveness in the Chinese export
market.
Endah Kurnia Lestari, Jessica Felita Pramono, Yulia Indrawati | 1004
Table 6. Specialization of West Kalimantan Rubber Commodities in China Market
Year
Xib/
Xb Xiw/Xw
CEP
Ket
2014
0.56
0.77
0.73
<1
2015
0.49
0.81
0.60
<1
2016
0.40
0.28
1 ,43
>1
2017
0.25
0.22
1.15
>1
2018
0.05
0.01
4.69
>1
2019
0.07
0.01
7.51
>1
2020
0.08
0.05
1.63
>1
Average
2.53
>1
The results of the CEP analysis show
that in 2014 and 2015 the rubber
commodity had a value of less than 1 with
a value of 0.73 and 0.60 respectively, which
means that in that year the production and
export of Kalimantan rubber commodities
The West is unspecialized. From 2016 to
2020 the CEP value is greater than 1 with an
overall value of 2.53. A CEP value of more
than 1 indicates that the production and
export of West Kalimantan's rubber
commodities are specialized, meaning that
West Kalimantan's rubber commodities are
competitive.
Table 7. Decomposition of Export Growth of West Kalimantan Rubber Commodities in China
Market
Year
CMS
PS
EK
EDP
EDS
2014
2015
-0.447
-0.118
-0.042
-0.211
2016
-0.257
-0.196
-0.017
-0.077
2017
0.873
-0.481
0.061
0.022
2018
-0.961
-0.962
-0.020
-0.821
2019
0.365
0.402
-0.001
0.015
2020
0.764
0.088
0.003
0.010
Average
0.048
-0.211
-0.002
-0.177
The results of the CMS analysis from
2014-2020 experienced fluctuations. The
average value of CMS standard growth is
0.048, meaning that West Kalimantan
rubber has increased exports in the Chinese
export market. The value of the rubber
commodity effect shows a value of -0.211
which means that West Kalimantan's
rubber commodity is less attractive and
tends to have a smaller export value
compared to the total export value for all
West Kalimantan export commodities.
The value of the effect of
competitiveness has a value of -0.177
which means that there is no advantage of
West Kalimantan curry in terms of quality
1005 | Analysis of West Kalimantan Rubber Export Competitiveness to China
and price. The conclusion obtained from
the results of the CMS analysis is that the
most influential factor on export growth is
standard growth and West Kalimantan's
rubber export commodity still has the
ability to increase exports in the Chinese
market. The results of this analysis are
related to research from Heriyanto (2017)
which analyzes using CMS analysis. His
research shows that a positive CMS value is
the effect of competitiveness so that the
commodity still has advantages in terms of
quality and price.
CONCLUSIONS
1) West Kalimantan rubber commodity
has a competitive advantage and
comparative advantage in the China
market. 2) West Kalimantan rubber
commodity specializes in trading as a
rubber exporting country in the China
market. 3) West Kalimantan rubber
commodity has a competitive advantage in
the China market. 4) West Kalimantan
rubber commodity has a dynamic position
rising star where demand high in China
market. 5) West Kalimantan rubber
commodity has export specialty in China
market. 6) West Kalimantan rubber
commodity has standard growth in China
market.
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