Competitiveness of the Indonesian Nutmeg Commodity in the International Market
Abstract
This study analyzes the competitiveness of Indonesian nutmeg in domestic and international markets using the Revealed Comparative Advantage (RCA), Acceleration Ratio (AR), Export Product Dynamic (EPD), Product Specialization Index (ISP), and Constant Market Share (CMS) methods. The study results indicate that competitiveness of Indonesian nutmeg is relatively stronger than that of coffee in the domestic market but is less competitive than palm oil, tea, and rubber. In the international market, Guatemala and India dominate nutmeg exports, while Indonesia still has good competitiveness although improvements in infrastructure and supply chains are needed. In export destination countries, such as China, India, the Netherlands, and the United States, Indonesian nutmeg is in the Rising Star position but is facing declining demand in Vietnam. The study results show that Indonesia has an average ISP value of 0.98, indicating a solid position as an exporter with a comparative advantage in nutmeg production and exports. Compared to competing countries such as Guatemala (0.99) and Saudi Arabia (0.91), Indonesia remains competitive despite challenges in maintaining export growth. The CMS analysis describes the effects of commodity composition, market distribution, and competitiveness on exports. Indonesia shows a negative commodity composition effect (-195.725), indicating misalignment with global demand and a negative competitiveness effect (-2.156) due to production constraints, technology access, and infrastructure. Indonesia’s market distribution effect is positive but small, indicating a minimal contribution to changes in export performance. A comparison with Guatemala, which has a positive competitiveness effect (22.545), confirms that export growth is more influenced by efforts to increase internal competitiveness than by growth in global demand. This study recommends improving the infrastructure and quality. Products, distribution efficiency, and diversification of marketing strategies to strengthen the competitiveness of Indonesian nutmeg in the global market.
Keywords: competitiveness, Indonesian nutmeg, international market
DOI：https://doi.org/10.62321/issn.1000-1298.2025.1.1
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