The Export Competitiveness of Indonesia Wood Charcoal Briquettes

Abstract

This study investigates Indonesia’s competitive advantage in the international wood charcoal briquette market, focusing particularly on its exports to Asian and European regions of markets, as global demand rises for eco-friendly, high-quality fuel alternatives—especially for use in cooking and shisha—the importance of charcoal briquettes has grown. Indonesia benefits from abundant raw materials, especially coconut shells, allowing it to establish a strong presence in this sector. The research applies quantitative trade competitiveness frameworks, including the International Market Share (IMS), Revealed Comparative Advantage (RCA), and Trade Complementarity (TC) indices, alongside Porter’s Diamond Model, to evaluate Indonesia’s position against leading competitors such as China, Poland, the Philippines, and Ukraine. Findings show that Indonesia consistently maintains a high level of export performance and comparative advantage, particularly in the Middle East and parts of Asia. Strategic resource management and supportive industry-government collaboration are identified as critical for sustaining long-term growth in this sector. The study also highlights challenges including supply chain constraints and policy inefficiencies, offering recommendations to strengthen Indonesia’s future export performance.