Competitiveness and Determining Factors of Indonesian Shrimp Exports to Main Importer Countries

An archipelagic country, Indonesia has a significant fisheries sector, ranking second as the world's largest producer after China. Shrimp is the commodity with the highest export value in this sector. However, between 2018 and 2022, Indonesia only ranked fifth among the most significant global shrimp exporters, with an average annual export growth of just 1.55%. This study aimed to analyze the competitiveness and determine factors affecting Indonesia's shrimp exports to enhance its competitiveness in the international market. The Revealed Comparative Advantage (RCA) formulation, Export Product Dynamic (EPD), and the X-Model measure comparative advantage, competitiveness, and export potential to key importing countries. Additionally, panel data regression using a gravity model approach is applied to identify the determinants of shrimp exports. The data consist of panel observations on shrimp commodities from 1993 to 2023, covering seven major global importers. The results indicate that Indonesian shrimp demonstrates strong competitiveness and export potential in China, Japan, the United States, and Spain. Conversely, exports to France and Italy show strong competitiveness but limited potential, while exports to South Korea lack both competitiveness and potential. The key factors influencing shrimp exports include Indonesia’s real GDP per capita, the real exchange rate of importers, and distance, which negatively impact exports. On the other hand, the importers’ GDP per capita, Indonesia’s real effective exchange rate, shrimp export prices, and the population size in both Indonesia and importing countries positively influence shrimp exports.