Optimization of Selected Agricultural Export Commodities to Improve Indonesia’s Weaponry Countertrade
DOI:
https://doi.org/10.6000/1929-4409.2021.10.67Keywords:
Exports, superior commodities, trade returns, defense equipmentAbstract
In an increasingly open global economy, international trade, including exports, is an inseparable part of economic activity between countries. This paper aims to analyze the choice of commodities that have the potential to encourage the implementation of defense equipment trade-in Indonesia along with some optimization efforts. Using the literature review and library research by exploring data of national agricultural export and arms trade, this article identifies selected commodities that have the potential to be exchanged with defense equipment in trade returns, and also attempts to optimize exports to encourage the implementation of trade returns themselves. The results showed that trade return is one of the schemes in international trade in the form of two-way sales. The weaponry system is a strategic product that is still imported by Indonesia from abroad so that it has the potential to be implemented in a trade return scheme. On the other hand, Indonesia is known to excel in agricultural products, especially the plantation subsector, and has succeeded in becoming the top exporters for many agricultural commodities in the global market.
References
A. Giles, J., & Williams, C. L. (2000). Export-led growth: a survey of the empirical literature and some non-causality results. Part 1. The Journal of International Trade & Economic Development, 9(3), 261-337. https://doi.org/10.1080/09638190050086177 DOI: https://doi.org/10.1080/09638190050086177
Arifin, Z., Suman, A., & Khusaini, M. (2020). Countertrade Mechanism of Global Arms Trade: Case Study of Indonesia. International Journal of Financial Research, 11(1), 307-317. https://doi.org/10.5430/ijfr.v11n1p307 DOI: https://doi.org/10.5430/ijfr.v11n1p307
Auboin, M. (2004). The trade, debt and finance nexus: at the cross-roads of micro-and macroeconomics (No. 6). WTO Discussion paper.
Avila, C. F. D., Souza, D. R. D., & Guedes, M. A. (2017). Arms transfer policies and international security: The case of Brazilian-Swedish co-operation. Contexto Internacional, 39(1), 135-156. https://doi.org/10.1590/s0102-8529.2017390100007 DOI: https://doi.org/10.1590/s0102-8529.2017390100007
Bangun, R. H. B. (2017). Kajian Potensi Perkebunan Rakyat di Provinsi Sumatera Utara Menggunakan Location Quetiont dan Shift Share. Jurnal Agrica, 10(2), 103-111. https://doi.org/10.31289/agrica.v10i2.1159 DOI: https://doi.org/10.31289/agrica.v10i2.1159
Barker, A. T., & Kaynak, E. (1992). An empirical investigation of the differences between initiating and continuing exporters. European journal of marketing, 26(3), 27-36. https://doi.org/10.1108/EUM0000000000638 DOI: https://doi.org/10.1108/EUM0000000000638
Central Bureau of Statistics. (2018a). Results of the 2018 Inter Census Agriculture Survey (SUTAS), Series A2. Jakarta: Central Bureau of Statistics
Central Bureau of Statistics. (2018b). Indonesian Rubber Statistics 2018. Jakarta: Central Bureau of Statistics
Central Bureau of Statistics. (2018c). Indonesian Coffee Statistics 2018. Jakarta: Central Bureau of Statistics
Central Bureau of Statistics. (2018d). Indonesian Tea Statistics 2018. Jakarta: Central Bureau of Statistics
Crick, D., Chaudhry IV, S., & Batstone, S. (2000). Revisiting the concentration versus spreading debate as a successful export growth strategy: the case of UK SMEs exporting agricultural-related products. Entrepreneurship & Regional Development, 12(1), 49-67. https://doi.org/10.1080/089856200283081 DOI: https://doi.org/10.1080/089856200283081
Czinkota, M. R. (2002). Export promotion: a framework for finding opportunity in change. Thunderbird international business review, 44(3), 315-324. https://doi.org/10.1002/tie.10021
Czinkota, M. R. (2002). Export promotion: a framework for finding opportunity in change. Thunderbird international business review, 44(3), 315-324. https://doi.org/10.1002/tie.10021 DOI: https://doi.org/10.1002/tie.10021
Donoso, G. (2016). Chilean agricultural export promotion experience to advance agricultural trade: legal, regulatory and operational frameworks and impact assessment. FAO, Tech. Rep.
Fletcher, R. (1996). Network theory and countertrade transactions. International Business Review, 5(2), 167-189. https://doi.org/10.1016/0969-5931(96)00004-2 DOI: https://doi.org/10.1016/0969-5931(96)00004-2
Greenaway, D., & Kneller, R. A. (2004). New perspectives on the benefits of exporting. Economie internationale, (4), 99-110. DOI: https://doi.org/10.3917/ecoi.100.0099
Halbach, A. J., & Osterkamp, R. (1989). Countertrade with developing countries: New opportunities for North-South trade?. Intereconomics, 24(1), 17-23. https://doi.org/10.1007/BF02928544 DOI: https://doi.org/10.1007/BF02928544
Harrison, A., & Rodriguez-Clare, A. (2010). From hard to soft industrial policies in developing countries.
Hennart, J. F., & Anderson, E. (1993). Countertrade and the minimization of transaction costs: an empirical examination. JL Econ. & Org., 9, 290.
Hidayat, R. (2013). Analisis Komoditas Unggulan Sub Sektor Perkebunan di Kabupaten Bengkayang Provinsi Kalimantan Barat. Jurnal Social Economic of Agriculture, 2(1). https://doi.org/10.26418/j.sea.v2i1.5119 DOI: https://doi.org/10.26418/j.sea.v2i1.5119
Jensen, K., & Davis, G. (1998). An analysis of export market strategies and barriers perceptions by US agricultural HVP exporters. The International Food and Agribusiness Management Review, 1(4), 509-524. https://doi.org/10.1016/S1096-7508(99)00007-5 DOI: https://doi.org/10.1016/S1096-7508(99)00007-5
Kedia, B. L., & Chhokar, J. (1986). Factors inhibiting export performance of firms: an empirical investigation. Management International Review, 33-43.
Lee, J., & Habte-Giorgis, B. (2004). Empirical approach to the sequential relationships between firm strategy, export activity, and performance in US manufacturing firms. International Business Review, 13(1), 101-129. https://doi.org/10.1016/j.ibusrev.2003.05.003 DOI: https://doi.org/10.1016/j.ibusrev.2003.05.003
Lestari, E. E., Hutabarat, S., & Dewi, N. (2015). Studi Komparatif Perkebunan Kelapa Sawit Rakyat Pola Plasma dan Pola Swadaya dalam Menghadapi Sertifikasi RSPO. Sorot, 10(1), 81-98. https://doi.org/10.31258/sorot.10.1.3206 DOI: https://doi.org/10.31258/sorot.10.1.3206
Listyati, D., Wahyudi, A., & Hasibuan, A. M. (2014). Penguatan kelembagaan untuk peningkatan posisi tawar petani dalam sistem pemasaran kakao. Jurnal Tanaman Industri dan Penyegar, 1(1), 15-28. https://doi.org/10.21082/jtidp.v1n1.2014.p15-28 DOI: https://doi.org/10.21082/jtidp.v1n1.2014.p15-28
Manalu, R. (2018). Pengolahan Biji Kakao Produksi Perkebunan Rakyat untuk Meningkatkan Pendapatan Petani. Jurnal Ekonomi dan Kebijakan Publik, 9(2), 99-112. https://doi.org/10.22212/jekp.v9i2.1006 DOI: https://doi.org/10.22212/jekp.v9i2.1006
Ministry of Industry. (2007). Overview of the Cocoa Industry. Jakarta: Secretariat General of the Ministry of Industry.
Moini, A. H. (1997). Barriers inhibiting export performance of small and medium-sized manufacturing firms. Journal of Global Marketing, 10(4), 67-93. https://doi.org/10.1300/J042v10n04_05 DOI: https://doi.org/10.1300/J042v10n04_05
Morrissey, O., & Filatotchev, I. (2000). Globalisation and trade: the implications for exports from marginalised economies. Journal of Development Studies, 37(2), 1-12. https://doi.org/10.1080/713600066 DOI: https://doi.org/10.1080/713600066
Naidu, G. M., & Rao, T. R. (1993). Public sector promotion of exports: a needs-based approach. Journal of Business Research, 27(1), 85-101. https://doi.org/10.1016/0148-2963(93)90017-J DOI: https://doi.org/10.1016/0148-2963(93)90017-J
Ngaruko, F. (2003). Agricultural export performance in Africa: Elements of comparison with Asia. ESA Working Paper No. 03-09 June 2003.
Nuryati, R., Sulistyowati, L., Setiawan, I., & Noor, T. I. (2018). Keragaman Pola tanam polikultur perkebunan rakyat sebagai kearifan lokal di kabupaten tasikmalaya.
Pierre, A. J. (2014). The global politics of arms sales. Princeton University Press. https://doi.org/10.1515/9781400854271 DOI: https://doi.org/10.1515/9781400854271
Reisman, A., Fuh, D. C., & Li, G. (1988). Achieving an advantage with countertrade. Industrial Marketing Management, 17(1), 55-63. https://doi.org/10.1016/0019-8501(88)90027-2 DOI: https://doi.org/10.1016/0019-8501(88)90027-2
Roundtable on Sustainable Palm Oil Impacts Report 2014. (2014). RSPO
Shoham, A., & Albaum, G. S. (1995). Reducing the impact of barriers to exporting: A managerial perspective. Journal of International Marketing, 3(4), 85-105. https://doi.org/10.1177/1069031X9500300410 DOI: https://doi.org/10.1177/1069031X9500300410
Soliman, T., Lim, F. K. S., Lee, J. S. H., & Carrasco, L. R. (2016). Closing oil palm yield gaps among Indonesian smallholders through industry schemes, pruning, weeding and improved seeds. Royal Society open science, 3(8), 160292. https://doi.org/10.1098/rsos.160292 DOI: https://doi.org/10.1098/rsos.160292
Stoian, M. C., & Rialp-Criado, A. (2010). Analyzing export behavior through managerial characteristics and perceptions: A multiple case-based research. Journal of Global Marketing, 23(4), 333-348. https://doi.org/10.1080/08911762.2010.504522 DOI: https://doi.org/10.1080/08911762.2010.504522
Sultanuzzaman, M. R., Fan, H., Mohamued, E. A., Hossain, M. I., & Islam, M. A. (2019). Effects of export and technology on economic growth: Selected emerging Asian economies. Economic research-Ekonomska istraživanja, 32(1), 2515-2531. https://doi.org/10.1080/1331677X.2019.1650656 DOI: https://doi.org/10.1080/1331677X.2019.1650656
Tambunan, T. T. (2004). Globalisasi dan Perdagangan internasional. Bogor: Ghalia Indonesia
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Policy for Journals/Articles with Open Access
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work
Policy for Journals / Manuscript with Paid Access
Authors who publish with this journal agree to the following terms:
- Publisher retain copyright .
- Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work .
