How to find out the Indonesian ornamental fish Trade Specialization Index
The Trade Specialization Index is a tool used to analyze the position or stage of development of a commodity compared to other commodities in a region and to be used in analyzing a country's trade specialization related to its trade performance. This index also helps to illustrate whether a product tends to be exported or imported by a country. The calculation of the Trade Specialization Index can illustrate whether a commodity can compete in global trade when compared to other commodities.
In relation to ornamental fish products in Indonesia, the previous article has calculated and analyzed the competitiveness and market share of Indonesian ornamental fish in the global market. From the results of the analysis, it is concluded that for Indonesian freshwater ornamental fish commodities with HS code 030111 (Live ornamental freshwater fish) in 2023 Indonesian freshwater ornamental fish have competitiveness in the international market and for the calculation of market share, it is concluded that Indonesian ornamental fish products have the strength to maintain their market share so that they cannot cause loss of market share.
Freshwater ornamental fish in Indonesia has competitiveness and strength in maintaining global market share this is because that the export value of Indonesian ornamental fish includes having a high export value this is also supported by the many potential ornamental fish in Indonesia. According to data from the Ministry of Maritime Affairs and Fisheries of the Republic of Indonesia, the volume of Indonesian ornamental fish production increases every year on average, data on the volume of ornamental fish production in Indonesia can be seen in the table below.
Production Volume of Ornamental Fish Aquaculture per Province (Thousand Tails)
Source : statistik.kkp.go.id
The data above shows that the volume of ornamental fish production from cultivation, that ornamental fish production for six years, from 2017 to 2022, has increased. The decline in production only occurred in 2022 as can be seen in the graph below. With a total production of 1,477,173,720 ornamental fish in 2022, this is a fairly large potential. The results of ornamental fish production are not only sold in the local market, namely within the country, but also sold to the international market.
Source : statistik.kkp.go.id
Trade Specialization Index = (Xia - Mia) / (Xia + Mia)
Where:
Xia = Volume or value of exports of commodity to - i Indonesia
Mia = Volume or value of imports of commodity to - i Indonesia
The value of Trade Specialization Index is
-1 < Trade Specialization Index ≤ - 0.5: The commodity is at the introduction stage in world trade or has low competitiveness or the country concerned is an importer of a commodity.
-0.5 < Trade Specialization Index ≤ 0 : The commodity is at the import substitution stage in domestic trade.
-0 < Trade Specialization Index ≤ 0.7: The commodity is in the export expansion stage in domestic trade or has strong competitiveness.
-0.7 < Trade Specialization Index ≤ 1.0: The commodity is in the maturation stage in domestic trade or has very strong competitiveness.
In the previous article, we have obtained data on the export value and import value for ornamental fish commodities with HS code 030111 (Live ornamental freshwater fish) in 2023, namely for the export value of US $ 31,807,000, - and for the import value of US $ 1,381,000, -.
By using this data, we can calculate and analyze the value of the Trade Specialization Index. After the calculation, the result of the Trade Specialization Index value is 0.92. The value of the Trade Specialization Index of 0.92 is in the criteria of -0.7 < Trade Specialization Index ≤ 1.0, namely with the result that freshwater ornamental fish commodities for the country of Indonesia are in the maturation stage in domestic trade or have very strong competitiveness.