Record Detail

Basically, there are three groups of Indonesia export commodity, namely mining manufacturing and agriculture. Based on world economic forum report those commodities still has low competitive advantage compare with other Asian Countries. How is about role of Indonesian Export-Import Bank (LPEI) in supporting the competitive advantage? This paper analyze the role of LPEI on three groups of export commoditiy in order to improve the export competitive advantages. Using a economic model created by Yue and Hwa (2002), that is XR=f(GDPP, RER, RCAP, RCAI and RCAT)and inserting role of LPEI, this research concluded that log XR =-6.3 - 0,076 log RCAP + 0,204 log RCAT. It is also that export of agriculture has competitive advantage, but still in low level. Export commodity of manufacture products has high competitive advantage, and export commodity of mining products has low level of competitive advantage. These agriculture and mining products are still in raw materials so that there is no value added. The role of LPEI has a positive enabler actively as moderating variable for exporters as well as for goverment of Indonesia to improve competitive advantage by supporting funding for some potential exporters.