MEASURING INDONESIAN COCOA AGROINDUSTRY COMPETITIVENESS FROM A GLOBAL VALUE CHAIN PERSPECTIVE

Indonesian cocoa products in international trade face challenges in quality, food safety, and environmental requirements. Developing the cocoa agro-industry is essential to meet those global demands. The research aims to analyze the competitiveness of business in Indonesian cocoa products using the Global Value Chain (GVC), Revealed Comparative Advantage (RCA), and Trade Specialization Index (TSI) methodology. Research data uses the time series of Indonesian cocoa product export trade from 2001-2020. From a GVC perspective, the diversity of cocoa product exporters and the same competition drive a significant increase in competitiveness. Market access opportunities and regulatory support will encourage domestic industrial growth by utilizing efficient supply chains and making Indonesia part of the global production network. Cocoa products require economic value, from dry beans to ready-to-consume products. They are improving farmer’s bargaining position towards agro-industry institutions and better stakeholder coordination. The results of RCA show the comparative advantage of Indonesia cocoa exporters for HS code products 1801, 1802, 1803, 1804, and 1805 in the international market. The stages of identification of Indonesian cocoa products are the maturity stage for cocoa beans, the commercial maturity stage for cocoa paste and butter products, and the growth stage for cocoa product powder .


INTRODUCTION
Cocoa is one of Indonesia's potential commodities, which has experienced a downgrade as the third largest cocoa bean-producing country in international trade.Starting from 2016, it decreased to fourth position.Since 2018, Indonesia has been in seventh place, with total production in 2020 reaching 220,000 tons (ICCO, 2021).
The issue of food security befalls international trade in cocoa as a technical trade barrier, trends in environmental issues, and possible causes for Indonesia's position as a cocoa-producing country to decline.
On the other hand, the Indonesian government supports the cocoa agroindustry as a food and beverage industry group, which is included in the priority scale in the Indonesian National

Industrial Development Master Plan
Book for the 2015-2035 period (Kemenperin, 2015).The cocoa product processing industry is an industry that has the potential to be developed to answer the global demand for cocoa approach for more in-depth tool analysis.This approach allows us to depict and assess each step in the cocoa value chain, from production to final consumption.We may use the GVC approach to conduct a more thorough tool analysis by better understanding the statistical data related to cocoa.With this method, we can illustrate and evaluate every stage of the cocoa value chain, from the point of production to the point of consumption.
Value chain analysis is an analytical tool that can inform strategic decisions in dealing with business competition (Gereffi & Fernandez-Stark, 2016).The GVC approach uses the value chain as an organizational structure to visualize industrial studies that cover all production and service activities (Li et al., 2019), from planning to final use (Tien et al., 2019).The GVC approach provides a conceptual framework for describing, understanding, and managing the value chains of multinational corporations (Anderer et al., 2020) that are increasingly dispersed and geographically dispersed (De Marchi et al., 2014).GVC leads to a separation of production processes in the world.
Therefore, to develop the role of Indonesian processed cocoa in the GVC to become products that are reckoned with in the international market, it is necessary to study the potential of the Indonesian cocoa agroindustry from a GVC point of view.
The GVC study of cocoa products should be carried out to identify all value chain elements at the 6-dimensional GVC stage.Most of the GVC dimension categories from other studies only consider the potential for governance, upgrading, ICIO, and geography.This study considers additional dimensions, as  (Nugroho, 2022).In this study, the GVC study of cocoa products considers six dimensions of GVC so that all value chain elements can be identified.This study aims to analyze the competitiveness of trade in Indonesian cocoa products in the international market using the GVC approach, ascertain the types of cocoa products developed through the calculation of the RCA method, and identify the stages of growth of cocoa products in international trade through the Trade Specialization Index (TSI).

METHOD
This study collects data on exports, imports, production, and plantations.
The data is in the form of a data series  The first objective of this study is to conduct a qualitative analysis through the GVC approach to the cocoa agroindustry.The GVC approach has

Competitiveness Cocoa Agroindustry Indonesia
The second objective is to conduct a quantitative analysis using a mathematical approach to measure the potential of Indonesian cocoa products in the global market.To measure the competitiveness of cocoa agroindustry products by calculating RCA and TSI.

Revealed Comparative Advantage (RCA)
RCA is a method that can measure the relative position of a superior country in the world market (Prasada & Dhamira, 2021) Kalchschmidt, 2012).Table 1 shows the mapping of cocoa agroindustry stakeholders and their functions (Nabhani et al., 2015).

Revealed Comparative Advantage (RCA)
The second objective of this study is to analyze the comparative advantage of Indonesian cocoa in beans and processed products as measured by RCA.This analysis will calculate several major exporters of cocoa beans and processed cocoa products to compare their comparative advantages, which industry groups often use for measurement purposes (Serin & Civan, 2008).The RCA values of Indonesian cocoa beans and processed cocoa products will be compared in this analysis.

Based on calculations from
Indonesia's export data for 20 years, the data comes from the time series from 2001 to 2020.The results of the RCA calculations are presented in Table 2.

Trade Specialization Index (TSI)
As the third objective of this study, TSI is a measure to identify the stages of development of a product so that a country's trend can be identified.TSI will review the growth rate of Indonesian cocoa products in international trade.
product consumption.According to world trade data on the cocoa processing industry, cocoa derivative products produced in Indonesia are mainly intermediate products such as cocoa liquor/mass, butter, cake, and powder.Based on data from the Statistics Indonesia (BPS) in 2019, most of these products were exported with a volume of 285,786 tons (81 percent) was obtained from literature studies.The stages of the research can be seen in Figure1.

Figure 1 .
Figure 1.Framework of Research two perspectives: global (top-down) and local (bottom-up).On the global side, determined by industry dynamics at the global level, there are three dimensions: input-output structure,

Figure 2 .
Figure 2. Dimension of Global Value Chain the structure and dynamics of various stakeholders in a particular region(Fernandez-Stark et al., 2011).The input-output structure is carried out by identifying the main activities of the cocoa agroindustry in the GVC.Describes converting raw materials into final products, covering all supply chain segments and value-added activities (research), design, marketing, and support services.The input-output structure begins with determining the main activities to be carried out (from providing input to finished output for the final consumer), determining the actors involved in each process (main activities), and mapping the product flow of each process to describe the product in its entirety.Cocoa agroindustry is a system that involves at least three main actors, namely producers or farmers, marketers or traders, and consumers.Consumer behavior manifested in consumption patterns will determine the quality and quantity of products marketed(Hubacek et al., 2007).The pattern of production carried out by farmers will determine the number of products that can be marketed -output structure of the Indonesian cocoa agribusiness industry(Nussy et al., 2022).

Figure
Figure 3. Cocoa Agroindustry Supply Chain-Farmers to Consumers

Figure
Figure 5. Flow Mechanism in Cocoa Agroindustry supportive policies is critical to the industry's sustainability.The existence of partnerships between the cocoa industry and farmers to obtain high-quality cocoa beans can improve Indonesia's position in the cocoa GVC.It improves the final product's quality, powder is still growing, showing potential for further Measuring Indonesian Cocoa ..., Dianawati, Nastiti S.I, Andes Ismayana, Taufik Djatna, Indah Yuliasih | 151 development.Meanwhile, the low ITS value for chocolate indicates a

Table 1
Nadvi, 2016), Inter-Country Input-Output (ICIO) in pulp & paper (Ahmad et al., 2018) and GVC studies that examine more it has many scopes, namely governance, improvement, and local policy networks on yarn products

Table 1 . Mapping Function of Stakeholders of Cocoa Agroindustry
Source: Processing result.