Analysis reveals Indonesia's lost comparative advantage in cocoa exports, indicating urgent need for policy support and productivity improvements.
Key Points
Indonesia's cocoa production declined from 734,795 tons in 2019 to 641,741 tons in 2023, highlighting a significant reduction in output.
RCA and RSCA indices show Indonesia lost its comparative advantage, with RCA values falling below one since 2017, contrasting Côte d’Ivoire and Ghana's strong competitiveness.
Market Share Index results indicate Indonesia's global market share diminished from 1.96% in 2014 to 0.15% in 2023, emphasizing its fragile position in the cocoa market.
The findings suggest Indonesia must enhance farm productivity and strengthen its downstream cocoa industry to restore its competitiveness in the global market.