| Summary: | This study aimed to: evaluate the performance of Indonesia's trade with the Russian
Federation during the period 2004-2008, evaluate the competitiveness of Indonesia's
export products in the Russian Federation, and to know Indonesia's flagship product
for the non-oil exports to the Russian Federation.
The analysis conducted in this study is qualitative and quantitative analysis, in
which: a qualitative analysis is carried out by describing the various problems
associated with the condition and development of Indonesian non-oil exports to the
Russian Federation, while the quantitative analysis carried out by calculating the
level of competitiveness of Indonesian products in the Russian Federation market
using Revealed Comparative Advantage (RCA) and Constant Market Share Analysis
(CMSA) approaches.
The results of the analysis is that the non-oil export performance of Indonesia to the
Russian Federation during the period 2004-2008 is significant when the value of the
non-oil exports reached nearly U.S. $ 350 million in 2008. Indonesia's export
structure to the Russian Federation is dominated by products of industrial and
agricultural sectors with growth rate amounted to 20.63% and 25%. During the
period 2004-2008 Indonesia still has a slight advantage in the market of the Russian
Federation. It is seen from the calculation of RCA that non-oil sector has an average
value of 1. The agricultural sector contributes the largest with a value of 1.8, while
the industrial and mining sectors have a value of 1.03 and 0.03, while the other
sectors have the RCA value of 0.0048. CMS analyses on four non-oil sectors show
positive results. Industry sector has three positive indicators. Meanwhile, Agriculture
and Mining have only one positive indicator which is the adaptation. Other sectors
have only one positive indicator which is competitiveness.
Indonesia has the potential to develop the value and volume of trade with the Russian
Federation through deeper trade cooperation in the form of Preferential Trade
Agreement (PTA) or Free Trade Agreement (FTA). The cooperation can reduce trade
barriers to the entry of Indonesian products to the market of the Russian Federation
as well as compensation for the high cost of transportation/shipping of products from
Indonesia, the transfer of technology from the Russian Federation to Indonesia, and
the market that is not really required products that are environmentally friendly.
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