Analysis for Increasing The Competitiveness of Indonesian Seaweed Exports to South Korea

Abstract

Background: Indonesia's fisheries and marine sector contributes a small percentage to the national gross domestic product (GDP), with seaweed being a key commodity. However, Indonesian seaweed exports are highly dependent on China, which poses an economic risk. South Korea has emerged as a potential alternative market with increasing demand for seaweed products.
Purpose: This study aimed to analyze the trade performance, comparative advantage, and competitive advantage of Indonesian seaweed exports to South Korea and provide strategic recommendations to enhance competitiveness in the market.
Design/methodology/approach: This study employs secondary data from 2018 to 2022, analyzing trade performance using the Trade Specialization Index (TSI), comparative advantage using the Revealed Comparative Advantage (RCA) index, and competitive advantage using the Export Product Dynamic (EPD) and Porter's Diamond model.
Findings/Results: The analysis shows that Indonesia has strong trade performance in South Korea, holding a significant share of the market and being in the maturity stage of export development. The RCA results indicate that Indonesia has a high comparative advantage over other exporters. The EPD places Indonesia in the "Rising Star" category, confirming its growing competitiveness. However, competition with China remains a challenge. Recommendations include improving production efficiency, increasing investment in seaweed processing, enhancing infrastructure, and strengthening market positioning strategies.
Conclusion: Indonesian seaweed has strong comparative and competitive advantages in South Korea. However, to sustain and further increase competitiveness, strategic improvements in production factors, demand conditions, related industries, and competition structures are necessary.
Originality/Value: This study provides a comprehensive analysis of Indonesia's seaweed export competitiveness in South Korea by integrating multiple analytical frameworks to offer strategic recommendations for sustainable market expansion.

Keywords: competitiveness, export, EPD, RCA, seaweed