Pepper
Pepper
Abstrak
Penelitian ini menganalisis perilaku ekspor lada, terdiri dari lada hitam dan lada putih, ke berbagai
negara tujuan. Hasil penelitian ini menunjukkan bahwa ekspor lada hitam dipengaruhi oleh Penda-
patan domestik bruto (PDB) negara tujuan, harga lada putih, populasi negara tujuan dan nilai tukar
rupiah terhadap dolar. Sementara itu, ekspor lada putih dipengaruhi oleh PDB negara tujuan, popu-
lasi negara tujuan, harga lada hitam, harga lada putih dan nilai tukar rupiah terhadap dolar. Hasil
penelitian juga menunjukkan bahwa lada hitam dan lada putih tidak saling bersubstitusi.
Keywords: Lada, ekspor, PDB, populasi, kurs
JEL Classificaiton Numbers: F14, F19
INTRODUCTION ing worldwide concerns regarding the crop
Pepper is one of the herbal plants that b e- (John, 2012), the consumption (Nwaopara
come one of the most important merchan- et al., 2007, Singletray, 2011), or the trade
dise goods as well as the most important (see Kiong et al., 2010).
spice traded internationally. Pepper is one Indonesia is one of the world's larg-
of the earliest types of spices traded in est producer of pepper. Pepper from Indo-
Europe. Pepper is used primarily in phar- nesia is exported in the form of black pep-
maceuticals and food industries (Ris- per and white pepper. In addition, Indone-
munandar, 2003). Pepper has been a sian pepper also sold in powder, green pep-
worldwide commodity and has been receiv- per and oil pepper. Besides Indonesia, mo-
jor pepper exporting countries are Brazil,
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Vietnam, India and Malaysia. The black also shows that the Indonesian black pep-
pepper exports from major pepper produc- per exports value is lower than that of
ing countries are shown in Table 1 (For Vietnam.
more on production and export perform- Figure 2 shows that from 2003 to
ance of black pepper, please see Yogesh 2008, Indonesia is the largest exporter of
and Mokshapathy, 2013). white pepper in the world. During 2003-
Figure 1 shows that the Indonesian 2012, the average growth of export volume
black pepper exports have increased during decreased by 4.07% per year but the value
the periods. The value of exports from grew by 19.78% per year. In 2009, the
2003 to 2012 increased by 12.58% per number of Indonesian exports of white
year. The decline in the value of exports pepper has been exceeded by the number of
only occurred in 2004, 2005 and 2011. In pepper export from Vietnam. This is an
2011, the value of these exports plummeted alarming condition considering Vietnam is
by 48.38% from the previous year. Figure 1 a new country in spices export basiness.
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production of Indonesian white pepper, and Singapore demand for imports of white
white pepper export amount of the previous pepper are responsive to changes in popula-
year, and the real price of white pepper ex- tion.
ports. Meanwhile, white pepper exports to Different from previous studies, this
the Netherlands are only influenced by the research builds a model for black pepper
real price of white pepper exports. United export and another model for white pepper
States white pepper import demand is af- export. With these two models, the paper
fected by the US real income per capita and will be able to identify the influence of the
the number of the previous year imports of characteristics of export destination coun-
white pepper. Dutch white pepper import tries for the exports. This study focuses on
demand is influenced by the amount of the the influence of external variables of export
previous year imports of white pepper. destinations and testing the substitution
Marlinda (2008) analyzes the value level of black and white peppers. In addi-
of Revealed Comparative Advantage tion, this study uses a variety of observa-
(RCA) to see the competitiveness of pep- tion to answer the latest phenomenon,
per. The results of the research showed that namely a drastic decline in pepper exports
in 2006 the value of Indonesian pepper during 2011-2012. This study also uses a
RCA is 14.32 but its competitiveness is still different model from the previous ones,
lower than that of Vietnam. To improve its namely it uses a panel data model. This
competitiveness, Indonesia needs improve model is expected to be able to show the
the quality and quantity of sales pepper to best export destinations for black and white
develop and increase exports of pepper. peppers.
Triana (2000), using time series
data from the period 1969 to 1998 with the METHODS
simultaneous equations, tests the influence This study uses time series and cross section
of internal and external factors to the de- data. The time series data include annual
mand and supply of white pepper in the data from the period of 2001 to 2012. The
domestic and world markets. She found cross section data include eight of export
that the white pepper production is only destinations. To choose the country, this pa-
responsive to changes in long-term produc- per uses two criteria. First, it chooses coun-
tivity, but is not responsive to changes in tries that continuously trade pepper with In-
the price of pepper, fertilizer prices, wages, donesia for 12 years. Second, it
interest rates, and harvest area. White pep- choosescountries that simultaneously import
per exports to Germany, the Netherlands, black and white peppers. This selection re-
and Singapore are more responsive to sulted in 8 countries, namely the United
changes in production levels compared States, the Netherlands, Hong Kong, India,
with the change in the export price of white Germany, Japan, Singapore, and Taiwan.
and black peppers, exchange rates, interest The variables expected to affect exports of
rates and the volume of re-exports of pep- pepper are real GDP of export destination
per of Singapore. Demand for white pepper countries, the price of real exports of black
imports of United States and the Nether- pepper and white pepper in the destination
lands are more responsive to changes in country, the population of export destination
income compared to change in import countries, and the exchange rate.
prices of white and black peppers, the This paper estimates a panel data
number of inhabitants, and the exchange model, i.e. a model that accommodates a
rate. Japanese white pepper import demand combination of time series and cross sec-
is responsive to changes in the world price tion data. The estimation results of the
of black pepper. Meanwhile, the Germany panel data model is more efficient than that
Prospect of Indonesia … (Supriana and Yanti) 5
of regular models because it uses more ob- for an individual component, a time com-
servations. In addition, the use of panel ponent error and a combined error. The
data models can also reduce the effects of REM equation can formulated as follows:
bias due to the increasing degrees of free-
dom. According to Veerbek (2008), the = + + = + + (2)
availability of repeated observations on the
same unit allows economists to determine where
and estimate the model in a more complex u1 is error cross section component
and a more realistic ways than the model vt is error time-series component
with cross section data only or models with Wit is combined error component
time series data alone.
The approaches used in the analysis To choose the appropriate model, this paper
of panel data covering the pooled ordinary uses three tests, namely the Chow, Haus-
least squares, fixed effect model, and ran- man, and LM tests. Chow test was used to
dom effect model. Pooled least squares choose between the two models, namely
(PLS) models can be estimated using OLS. pooled least squares and fixed effect mod-
PLS assumes that both the intercept and the els. After doing the Chow test, this paper
slope are constant. Such a model does not conducts Hausman test to choose between
accommodate variations in individuals and the two models, namely the fixed effect
time. However, constant intercept and slope model and random effect model. In the last
are less realistic. To overcome these prob- step of model selection, this paper conducts
lems, we can use two types of panel data, a Lagrange Multiplier Test (LM test) to de-
namely the fixed effect model and random termine whether to use REM model or PLS
effect model. To accommodate variability model.
in intercepts, we can use a dummy variable, To analyze the behavior of exports
so the model is also known as a Least of black and white peppers to the destina-
square dummy variable (LSDV) model. tion countries, this paper estimates the fol-
The equation can be written as follows: lowing regression model:
= + + + + XLHijt= a0 + a1Yj+ a2PLHxj+ a3PLPxj+
(1)
+ + + + + a4POPj + a6 ERj + e1 (3)
where where
Yit is dependent variable for ith individual XLHijt is Volume of black pepper export to
at tth time. country j (tons)
Xit is independent variable for ith individ- Yj is GDPof export destination coun-
ual at tth time. try (USD billion)
Wit, Zit is dummy variable PLHxj is Price of black pepper in export
Wit is 1 for indivual i, and Wit = 0 therwise; destination country (USD/ton)
i = 1,2,….,N PLPxj is Price of white pepper in export
Zit is 1; for period t; and Zit = 0 otherwise; destination country (USD/ton)
t is 1,2,……T POPj is Population of export destination
country (juta orang
For the REM method, considering there are ERj is Exchange rates (Rp/USD)
two components that have contributed to t is Periods (year)
the formation of error, i.e. the individual a0 is constant
and time, then the random error in REM ai is koefisien regresi ( i: 1,2,3,....)
also needs to be decomposed into an error e1 is error term
6
The determinant of white pepper export to discussion on panel data, please refer to
the destination countries are Hsiao (2005), among others.
XLPijt =b0+b1Yj+b2PLHxj + b3 PLPxj RESULTS AND DISCUSSIONS
+b4POPj +b5ERj+ e2 (4) Progress of Indonesia Pepper Export
where: Indonesia has been exporting pepper to
XLHijt is Volume of white pepper export to various countries. These countries have a
country j (tons) variety of characters that could affect ex-
Yj is GDP of export destination coun- ports. The pepper importing countries have
try (USD billion) different tastes of the black pepper and
PLHxj is Price of black pepper in export white pepper. This can be inferred from the
destination country (USD/ton) export volumeof to these countries.
PLPxj is Price of white pepper in export
destination country (USD/ton) Black and White Peppers Exports to the
POPj is Population of export destination USA
country (juta orang The USA imports peppers from Indonesia,
ERj is Exchange rates (Rp/USD) Brazil, India, Vietnam and Malaysia. Indo-
t is Periods (year) nesia is a major exporter of pepper to the
a0 is constant United States. The progress of Indonesia
ai is koefisien regresi ( i: 1,2,3,....) black and white peppers exports to the
e2 is error term United States in 2001 to 2012 are presented
in Figure 4.
Panel data includes more information, have Figure 4 shows that the number of
a little collinearity between variables, have black pepper exports exceeds the number
more degree of freedom, as well as more of white pepper exports. Black pepper ex-
efficient, so that a panel data model does ports increased by 10:31% per year, while
not require classical assumptions. For more exports increased by 7.7% of white pepper
per year.
Black and White Peppers Exports to the The progress of Indonesia black and white
Netherlands peppers exports to Hongkong are presented
Netherlands imports peppers from mostly in Figure 6. The number of black and white
Vietnam, Brazil, Indonesia, India, Malay-
Mala pepper exports to Hong Kong experienced a
sia. The progress of Indonesia black and substantial decline in 2002. After 2002, the
white peppers exports to Netherlands are export of pepper tends to increase.
increase The ex-
presented in Figure 5. The number of Indo- ports of black pepper increases by 33.04%
33.04
nesian exports of white pepper to the Neth- per year, while white pepper export increase
erlands tend to fall throughout 2007-2012, only 8.83% per year.
approximately 13.94% % per year. Mean-
while, the number of black pepper exports Black and White Peppers Exports to India
increased by 31.6%
% per year. Eventhough India produces pepper, but In-
dia also imports pepper, mostly, from Sri
Black and White Peppers Exports to Lanka, Indonesia, Vietnam,
Vietnam China, Brazil.
Hongkong The development of Indonesia exports of
Hongkong imports peppers mostly from In- black pepper and white pepper to India are
donesia, Malaysia, India, China, Vietnam. presented in Figure 7.
Hausman test for white pepper ex- Individual Effect of Destination Export
port equation shows the p-value of 0.3176 of Black Pepper
(> 5%) so that H1 is rejected. Thus, the Individual effects (cross section effect)
REM model is better than the FEM model showed the different from each cross sec-
for white pepper export equation. However, tion. Individual effects for each export des-
this result is not consistent with the results tination is obtained by adding the value of
of the estimation. The estimation results the constant equation of black pepper ex-
indicate that the R2 for FEM and PLS portsto each individual coefficient:
models are 59% and 12.1%, respectively.
This indicates that the FEM model is better Individual = Constant + Individual (5)
than the REM model. For such cases, when Effect Coefficient
the number of time series observations is Individual effect of black pepper export
greater than the number of cross section destination country can be seen in table 4.
observations, the recommended approach is The USA and Singapore are coun-
the FEM one. tries with positive individual effects. This
Factors Affecting Export of Black Pepper means that both countries are the most po-
tential black pepper export country destina-
The estimation results for black pepper ex- tions. If we assume that all the independent
ports are presented in Table 3. Variables variables change, or constant, jointly,
significantly affecting black pepper export across countries and over time, the export
to the USA, the Netherlands, Hong Kong, destination country will give individual im-
India, Germany, Japan, Singapore, and pact on Indonesia black pepper export as
Taiwan during 2001-2012 are GDP, the indicated by the value of the individual ef-
price of white pepper, population and ex- fect. The USA and Singapore are the export
change rates. Meanwhile, the price of black destination countries for Indonesia black
pepper does not affect the export of Indo- pepper that will provide a positive individ-
nesian black pepper. The R2 value of 85.4% ual influence, namely 3989.104 and
and the prob(F stat) of 0,00000 indicating 1368.23, respectively.
the the model is a good one.
Table 3: Estimation Result of Factors Affecting Black Pepper Export*
Variable Coefficient Probability
C -1880.053 0.0272
GDP 0.694987 0.0003
Price of Black Pepper Export (PLH) 0.006969 0.8055
Price of White Pepper Export (PLP) -0.053904 0.0035
Population (POP) 12.58262 0.0001
Exchange Rates (ER) 0.043683 0.0050
Fixed Effect (Cross)
The USA 5869.667
The Netherlands 1682.426
Hongkong 1490.113
India -9668.895
Germany -902.0474
Japan -2916.880
Singapore 3248.801
Taiwan 1196.814
R2 = 0.854028, Adjusted R2= 0.832924, Prob (F-Stat) = 0.000
*Notes: FEM Methods with the Weight of Cross Section SUR
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The country with the biggest individual ef- prices in the destination country does not
fect is Singapore, while the country with the significantly influence the Indonesian black
smallest individual effect is the USA. The pepper exports in the destination country.
Netherlands, Hongkong, Germany, Singa- GDP of the destination country, In-
pore and Taiwan have positive individual donesian black pepper prices in the destina-
effects which means that they are the best tion country, and the population of the des-
white pepper export destination countries. tination country have a positive effect on
Indonesia white pepper export. Indonesian
CONCLUSION white pepper prices in the destination coun-
This study found that the Gross Domestic try and exchange rates negatively affect
Product (GDP) of export destination coun- Indonesian white pepper export.
tries, the population of export destination The best export destination coun-
countries, and the exchange rate against the tries for Indonesian black pepper are the
dollar positively affect the export of Indo- USA and Singapore, while the best export
nesian black pepper. Indonesian white pep- destination countries for Indonesian white
per prices in the country of destination pepper are The Netherlands, Hong Kong,
negatively affect Indonesian exports of Germany, Singapore and Taiwan. This pa-
black pepper in the destination country. per also found that black and white peppers
Meanhile, the Indonesian black pepper are not subtitute each other.
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