TRANSFORMING INDONESIA’S RUBBER EXPORTS: STRATEGIES FOR GLOBAL COMPETITIVENESS AND MARKET DIVERSIFICATION
Indonesia is one of the largest rubber producers in the world. However, it is very unfortunate that rubber exports have continued to fluctuate over the last 30 years, this shows the unstable performance of rubber exports. The stability of rubber exports must be supported by increased domestic rubber production. However, increasing rubber production does not necessarily increase the value of rubber exports if other factors such as rubber prices on the international market, inflation and exchange rate stabilization do not support it. This research aims to analyze the role of production, international price fluctuations, inflation and exchange rate fluctuations on rubber exports so as to optimize Indonesian rubber exports. In addition, this research analyzes the effectiveness and feasibility of various government policies related to Indonesian rubber exports. The analysis method uses the ARDL model to analyze short-term and long-term relationships and influences between variables. 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, the right strategy to face global competition is to formulate policies that combine increased production with increased added value and accompanied by increased welfare of farmers.
Rubber Export Performance, Policy, Financial Assets.