Will Indonesia's Frozen Cephalopod Commodities Be a Leading Product in China's Market Trade Competition?

Cephalopods are the third most significant export commodity among Indonesian fishery products traded in the Chinese market. This study aimed to improve the competitiveness of Indonesian cephalopod commodities in the Chinese market by applying policy strategies based on Michael Porter's Diamond theory. The analysis utilized multiple linear regression and the Analytical Hierarchy Process (AHP). The results of the multiple regression analysis revealed that industrialization, product strategy, and the role of government significantly impact the competitiveness of Indonesian cephalopods in China. According to the AHP analysis, the first recommended strategy is facilitating regulatory Memoranda of Understanding (MoUs) in destination countries. The second is applying product diversification to increase added value, followed by eliminating cost barriers to enhance export product standards. The fourth strategy involves improving product specification infrastructure, product quality, and sustainability. Finally, the fifth recommendation is the application of Good Hygiene Practices (GHP), Hazard Analysis and Critical Control Points (HACCP) on board and at fish processing units, along with traceability and preventive measures for hazards such as heavy metals and microbes. The results of this study offer new policy recommendations for the Indonesian government to help improve the country’s competitiveness in the cephalopod commodity trade in the Chinese market.