Opportunities of Indonesia to Export Halal Meat to the World: The Analysis Using RCA Index

Abstract

Every year, the number of Muslims is growing rapidly.Indonesia also has the highest population of Muslims and this is the pull factor of production and the increasing demand for halal meat products. Indonesia has many factors that make it as halal meat exporting countries to the world market because of its land is suitable for the Agribusiness cattle, protein source for cattle feed and low labor costs and the level of confidence in halal certification. This study was conducted to examine the method to compare between Indonesia between several countries such as Thailand, Malaysia and Australia as an exporter of halal meat to the world market by using RCA. MATLAB method is used to view the movement of export halal meat. The study also uses data from 2005 to 2011. The data is obtained that been published by FOASTAT and World Trade Organisation (WTO), and the Badan Pusat Statistik (BPS), Indonesia. Indonesia does not have a comparative advantage because Indonesia RCA index for exports in 2005 until 2011 less than one. Beef export index using MATLAB also showed an increase in export halal meat to Indonesia. The author also suggests that some recommendations and steps to be taken by the relevant authorities in order to realize the goals of Indonesia as halal meat exporters to the world market. Thus, the expectation of future research is should focused more on how to achieve this goal.