Indonesia Conference Directory


<< Back

The Impact of The Export Tax Imposition on Indonesian Cocoa Beans and Cocoa Import Tariff to The Export Volume of Cocoa Beans and Indonesian Processed Cocoa to The Six Main Destination Countries from 2000-2017
Retno Wulansari (a*) and Nasrudin (a)

a) Statistics, Politeknik Statistika STIS
Jalan Otto Iskandardinata No.64C 1 4, RT.1/RW.4, Bidara Cina, Jatinegara, Kota Jakarta Timur, Daerah Khusus Ibukota Jakarta 13330, Indonesia
*retnowulansari98[at]gmail.com


Abstract

In the last decade, there has been a shift occurs in the dominance of Indonesian cocoa exports from cocoa beans to processed cocoa. The shifting can be seen from 2010, at the time the government start to apply the export tax of cocoa beans. Free trade policy in ASEAN region has led to free-import tariffs on agricultural commodities as well as cocoa commodity. As a result, there was a decrease in export volume and an increase in the volume of Indonesian cocoa imports. This research aims to analyze the impact of the export tax imposition on cocoa beans and cocoa import tariff on the export volume of cocoa beans, cocoa paste, cocoa butter and cocoa powder. Because of the correlation between equations, the Seemingly Unrelated Regression (SUR) method is used. To enrich the analysis, researchers measured the Trade Specialization Index (ISP) and Revealed Symmetric Comparative Advantage (RSCA) of cocoa beans, cocoa paste, cocoa butter and Indonesian cocoa powder. The results of SUR estimation show that the tax export imposition on cocoa beans negatively affects the export volume of Indonesian cocoa beans and positively affects the export volume of Indonesian cocoa paste, cocoa butter and cocoa powder. Cocoa import tariff positively affects on the export volume of cocoa paste, negatively affects on cocoa powder, and not significantly influencing the export of cocoa beans and cocoa butter. Researchers also found that the value of processed cocoa ISP and RSCA increased after the application of tax export of cocoa beans in April 2010. Processed cocoa RSCA values in 2010 averaged 0.56 to 0.7 in 2017, while the average ISP value was 0.76 to 0.78. Therefore, the government must continue to apply the tax export imposition on cocoa beans and imported cocoa tariff to increase the export volume of cocoa paste, cocoa butter and cocoa powder. In addition, the policy can also increase the competitiveness of Indonesian processed cocoa.

Keywords: Export Tax, Import Tariff, ISP, RSCA, SUR

Topic: Trade policies strategic Responses

Link: https://ifory.id/abstract/npJ6UNrvELAz

Conference: The 3rd International Conference on Trade (ICOT 2019)

Plain Format | Corresponding Author (Retno Wulansari)

Featured Events

<< Swipe >>
<< Swipe >>

Embed Logo

If your conference is listed in our system, please put our logo somewhere in your website. Simply copy-paste the HTML code below to your website (ask your web admin):

<a target="_blank" href="https://ifory.id"><img src="https://ifory.id/ifory.png" title="Ifory - Indonesia Conference Directory" width="150" height="" border="0"></a>

Site Stats