Assessing Indonesian Nutmeg Commodity Trade Competitiveness and Developing Sustainable Strategies in the Global Market

Sujianto SujiantoEkwasita Rini PribadiRatna Ayu SaptatiI Gusti Ayu Putu MahendriAgung Budi SantosoJoula Olvy Maya SondakhRonald Timbul Pardamean HutapeaYulia PujihartiZamroni SalimSuci WulandariSaptana SaptanaSaktyanu Kristyantoadi DermoredjoBudi RahardjoHélio Brites da Silva

DOI 10.7160/aol.2024.160309
No 3/2024, September
pp. 121-138

Sujianto, S., Pribaldi, E. R., Saptati, R. A., Mahendri, I. G. A. P., Santoso, A. B., Sondakh, J. O. M. , Hutapea, R. T. P., Pujiharti, Y., Salim, Z., Wulandari, S., Saptana, S., Dermoredjo, S. K., Rahardjo, B. and da Silva, H. B. (2024) "Assessing Indonesian Nutmeg Commodity Trade Competitiveness and Developing Sustainable Strategies in the Global Market", AGRIS on-line Papers in Economics and Informatics, Vol. 16, No. 3, pp. 121-138. ISSN 1804-1930. DOI 10.7160/aol.2024.160309.

Abstract

Nutmeg encounters challenges in productivity, quality, climate change, Covid-19 disruptions, and stagflation, requiring efforts to enhance competitiveness and meet global market demands. This study aims to analyze Indonesian nutmeg trade performance, assess competitive advantage, and formulate essential strategies to increase its competitiveness. Using comprehensive mixed quantitative and qualitative analysis, methods include export-import market share analysis, CAGR, import dependency ratio, import-to-export ratio, RCA, RSCA, RTA, and SWOT/QSPM analysis. The data obtained from in-depth interviews with key stakeholders was used for formulating strategies enhancing nutmeg’s competitiveness. The findings underscore Indonesia's significant dominance in the global nutmeg market, with a considerable 61.6% market share but its export growth rate for nutmeg was less than the import annual growth. The competitiveness indicators demonstrated a robust comparative advantage of Indonesian nutmeg trade in the global market, especially for products categorized as “nutmeg, neither crushed nor ground” and “nutmeg, crushed or ground”. Indonesian also has comparative advantage among other exporter countries. Crucial strategies of internal and external perspectives, such as expanding markets, improving nutmeg quality and productivity through improving farmer capacity, technological adoption, and good agricultural practices are necessary to take into account Indonesia’s nutmeg competitiveness in global markets.

Keywords

Trade performance, competitiveness, comparative advantage, nutmeg

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