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Competitiveness of Indonesian shrimp commodities in the international market

Shrimp is one of Indonesia's fishery commodities that has considerable opportunities to be marketed at home and abroad. Shrimp is obtained from cultivation in ponds in Indonesia. 

Indonesia in 2023 occupied the 6th position as the largest exporter of shrimp to the world market (Trademap, 2024). The main destination countries for Indonesian shrimp exports are the United States, Japan, China, Malaysia, Taipei, Singapore, Hong Kong, Canada, Korea and Russia.

Shrimp (shutterstock.com)

Shrimp is one of the fishery commodities in Indonesia that has a great opportunity to be developed. Types of shrimp exported such as vaname shrimp, tiger shrimp and king prawns. 

To determine whether an export product has competitiveness or not we can calculate or analyze it using the calculation of the Comparative Advantage Index (Revealed Comparative Advantage - RCA) and with the calculation and RSCA (Revealead Symetric Comparative Advantage). 

In addition, to analyze the position or stage of development of a commodity compared to other commodities in a region can be calculated using the Index of Trade Specialization (ISP). This ISP can illustrate whether a commodity can compete in global trade when compared to other commodities. 

The export value of shrimp with HS code 0306 (Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine) from 2014 to 2023 for Indonesia is $15,600,978,000, with an average export value per year of $1,560,097,800. The value of world shrimp exports over the past ten years from 2014 to 2023 amounted to $295,693,221,000 with an average annual export value of $29,569,322,100. The value of non-oil and gas exports for Indonesia is $1,933,192,003,000, -. the total value of world non-oil and gas exports is 194,527,317,542,000, -. Import value of shrimp during 2014 to 2023 for Indonesia amounted to $ 865,709,000, - with an average annual import value of $ 86,570,900. The value of world shrimp imports over the past ten years from 2014 to 2023 amounted to $ 283,162,275,000, with an average annual import value of $ 28,316,227,500, - (Trademap.2024).  

Index of Trade Specialization (ISP).

To be able to analyze the position or stage of development of shrimp commodities can be done by using the calculation of ISP.  We can calculate this ISP by first collecting import-export data of a product either import-export value or import-export volume of a product that we will find the ISP value. The ISP value for shrimp commodities with HS code 0306 for Indonesia, after calculating the data obtained, the ISP value is 0.7 < ISP ≤ 1.0.  The ISP value of shrimp in the country of Indonesia in 2014 to 2023 concluded that the commodity shrimp with HS code 0306 in the country of Indonesia is in the maturation stage in domestic trade or has a very strong competitiveness.

Shrimp (shutterstock.com)

Revealed Comparative Advantage - RCA.

To calculate a commodity whether it has competitiveness or not, it can be done through this RCA calculation. The calculation of the RCA value is calculated for the last 10 years. For the RCA value in Indonesia, the average is 0.09, this shows that the RCA value < 1, this illustrates that the shrimp commodity with HS code 0306 is not competitive.

Revealead Symetric Comparative Advantage-RSCA.

RSCA measures the efficiency of a country in producing and exporting certain products compared to other countries. shrimp commodities with HS code 0306 in Indonesia have RSCA values from 2014 to 2023 below zero, this indicates that these commodities do not have competitiveness.

From the results of the analysis of competitiveness for shrimp commodities in Indonesia, shrimp commodities are still in the maturation stage in domestic trade, then after being calculated with the calculation of RCA and RSCA for shrimp commodities in Indonesia are not competitive.  When viewed from the selling price indeed for this shrimp commodity has a high price so that shrimp can be said to be an expensive fishery product. However, in terms of cultivation in ponds in Indonesia, shrimp cultivation often encounters obstacles during cultivation activities including high feed prices, decreased water quality levels and frequent disease attacks that cause shrimp farmers to fail to harvest. In addition, certain shrimp products such as Lobster shrimp produced from marine capture are often constrained by government regulations whose policies change and we often hear of cases of illegal trade in Lobster shrimp products. 

To overcome this, the government is making efforts through fisheries development with programs such as the blue economy and compiling and regulating shrimp trade regulations, especially for Lobster shrimp towards a better direction.

Shrimp (shutterstock.com)

The Indonesian government's policy towards shrimp exports is as follows:
1. Improve the quality, commodity value and competitiveness of Indonesian shrimp. 
2. Provide data on water quality parameters around the pond
3. Revitalization of ponds, the Ministry of Maritime Affairs and Fisheries (KKP) encourages the revitalization of ponds in shrimp and milkfish production centers. This involves the development of infrastructure and facilities as a pilot shrimp area for the community. In addition, KKP also pays attention to the simplification of shrimp pond business licensing and the development of Shrimp Estate Models for shrimp farming from upstream to downstream.
4. Implementation of International Trade Policy: Indonesia as one of the main shrimp exporters to the European Union is given special policies related to Sanitary and Phytosanitary (SPS) and Technical Barrier to Trade (TBT). The application can be categorized into tariff, non-tariff, and administrative policies.

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