Research On Indonesia's Seaweed Export Trade With China

Indonesia is the world's largest archipelago country with a coastline of more than 81,000 kilometers and 17,508 islands.Indonesia's sea area is about 58 million square kilometers,including 31 million square kilometers of sea and 27 million square kilometers of the United Nations maritime border.As an archipelago country,Indonesia has great potential for development in Marine resources and biodiversity.In Indonesia,seaweed is one of the main mariculture commodities and one of the fishery commodities for domestic and international trade,which has been exported to more than 30 countries.This commodity is grown simply and requires relatively little investment.In addition,Indonesia is rich in Marine resources and rich in Marine culture,which has great potential for the development of seaweed products.The area of mariculture in Indonesia is about 2.5 million hectares,of which about 836,000 hectares are potential areas for mariculture.Seaweed farming is about 385,000 hectares(4.6%of the potential mariculture area).So far,one of Indonesia's main aquaculture products has been Eucheuma seaweed.The algae is a valuable export for many countries,including China.Seaweed is used in a variety of ways,whether for more complex processing or as a semi-finished product,which can be further processed by downstream industries into finished products that can be directly used(consumed).In terms of consumption,seaweed is a product with many benefits and added value because it can be used as an essential ingredient in food and beverages,cosmetics,agricultural fertilizers,ceramics,paper,pharmaceuticals and biofuels.In addition,seaweed is one of the major fishery commodities in the revitalization plan,because seaweed commodities have extensive export opportunities and can be used as a source of foreign exchange for the export of fishery products.In addition,several other advantages of the commodity include relatively stable prices,the absence of trading quotas for seaweed,and simple cultivation techniques that are easy to master.In addition,the planting cycle is relatively short,so profit turnover occurs quickly and capital requirements are relatively small,including irreplaceable commodities,because they have no synthetic products and are classified as labor-intensive enterprises that can absorb labor.Indonesia's seaweed production and quality are very good,so it can be used as an asset to obtain high export value.However,China is the largest importer of seaweed raw materials from Indonesia,and the increase of China's demand for seaweed accelerates the development of the seaweed industry in Indonesia.The research purpose of this paper is to analyze the factors affecting the export of Indonesian seaweed to China,determine the impact of the export volume of Indonesian seaweed on the development of Indonesia,and finally put forward some opinions or measures to better promote the development of Indonesian seaweed export.Based on relevant theories of international trade and related literatures on seaweed in Indonesia,this paper conducts a descriptive analysis on the planting area,production area and output of seaweed in Indonesia from 1999 to 2016,as well as the seaweed export situation in Indonesia,through tables and statistical charts.Through quantitative analysis,this paper has chosen six estimate variables including Indonesia algae on China's export prices,the real exchange rate,state seaweed production and fake goods,Indonesia seaweed exports and China's gross domestic product,or using least square method in the form of ordinary least squares(OLS)analysis tool,the return of the main components using Microsoft Excel program processing,and use the principal component regression to eliminate the influence factors of multiple linear,and use the principal component regression to eliminate the influence factors of multiple linear.In this way,the variables affecting the export of Indonesian seaweed to China were determined.In addition,the researchers also used descriptive methods to determine the impact of algal exports from Indonesia,algal production from Indonesia,and algal development in China,using a Microsoft Excel 2010 computer program to perform data processing.The data used in this paper are from the ministry of Marine affairs and fisheries(KKP),Indonesia's central bureau of statistics(BPS),the bank of Indonesia(BI),the ministry of trade,the United Nations Commodity Exchange,the United Nations commodity trade statistics database,the Internet and statistics on fisheries export results,as well as supporting journals and other literature.The data are from 1999 to 2016.Based on the ordinary least squares(OLS)quantitative analysis results,obtained six variables(Indonesia algae on China's export prices,the real exchange rate,state seaweed production and fake goods,Indonesia seaweed exports and China's gross domestic product)to Indonesia algae impact on China's exports.Variables that had a positive impact on"Indonesian seaweed exports"included production,the presence of fakes,Indonesian seaweed exports,and Chinese GDP.Meanwhile,the variables that have a negative impact on "Indonesian seaweed export to China" are export price and real exchange rate.According to the analysis,the trend shows that the export volume of Indonesian seaweed to China shows a positive trend(i.e.increase).