Abstract
Presidential Regulation (Perpres) No. 44/2016 states that in the vegetable and animal crude oil industry, copra industry, coconut oil industry, palm oil industry, foreign ownership is a maximum of 95 percent. These industries are included in the edible oil industry. Several studies show that the large percentage of foreign capital ownership will affect the trading tendency of companies. This study analyzes the effect of the percentage of foreign ownership on the tendency of company trade in the edible oil industry in Indonesia using the Tobit model. The results show that companies with foreign ownership of more than 95 percent have the same export trends with foreign ownership of between 50 and 95 percent. However, the import tendency of companies with foreign ownership is between 50 and 95 percent the lowest compared to other ownership. The government should continue to limit foreign ownership in the edible oil industry in Indonesia because it will not affect the export trend of companies and even reduce imports of raw materials.
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