The Development of Competitive Strategy for Prospective Export Commodities in Jambi

The development policies on Export commodity must be systematic and comprehensive. Hence, it is necessary to have an analysis of the competitive Export commodities affecting factors of development including development models and strategies. Therefore, this research was designed to be a quantitative descriptive research, collaborated with survey method. The analytical models; Time Series Analysis Model, The Indexes of Production and Stability Model Revealed Comparative Advantage (RCA) were used to identify the competitive Export commodities. Simultaneous Equation Analysis Model was used to identify the affecting factors on competitive export commodities development. Ex Post Historical Simulation and Ex-Ante Forecast Model were conducted to identify the commodity development prospect. In conclusion, the analysis results presented that firstly, the two competitive export commodities are CPO and rubber. Second, in terms of supply, the labor productivity, investment level, managerial capability and production technique as internal factor and raw material support, availability of land transportation infrastructure, bank credit, partnership with exporter, support of electric energy and seaport as external factor are the affecting factor from supply side. Whereas in terms of demand, the export commodity price factor, the export commodity price of the competitor, the exchange rate, the national income of the export destination country and the level of investment are the affecting factors that positively affect the demand side. Third, CPO and rubber are the prospective commodities to be developed as a competitive export commodity of Jambi Province.