BOOSTING INDONESIAN RUBBER EXPORT: A STRATEGY FOR GLOBAL SUCCESS
DOI:
https://doi.org/10.29103/icofeb.v2i-.1075Keywords:
Rubber, Export Optimization, ARDLAbstract
Indonesia is one of the world's largest rubber producers, making it a crucial export commodity for the Indonesian economy. Even though rubber production has increased, rubber exports often experience fluctuations, indicating instability in rubber export performance. This research aims to analyze the role of rubber production and the impact of the exchange rate on rubber exports using the ARDL model, as well as evaluate the effectiveness of government policies regarding rubber exports. The rupiah exchange rate affects the competitiveness of rubber exports. On the other hand, rupiah depreciation can make exports more competitive, although there are several cases where rupiah appreciation does not have a negative impact on exports. The results of the analysis show that in the short term, the rupiah exchange rate has a significant influence on rubber exports, while in the long term, rubber production is the most influential factor. Therefore, efforts and policies must combine increasing production with increasing added value. Government policies regarding rubber exports have developed over the last 30 years and shown progress in increasing competitiveness and added value. However, the main challenge is to turn the increase in export performance into an increase in the welfare of rubber farmers. Existing policies need to be continued with adjustments, especially focusing on empowering small farmers. A holistic approach that includes increasing production capacity, market access, market risk protection, as well as technology and financing for rubber farmers, will be the key to improving farmer welfare and optimizing Indonesian rubber exports in the dynamic global market.
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