Crude Palm Oil Export Research Articles

Identification of Agricultural Socioeconomic Factor and Its Relationship with Exports of Palm and Palm Kernel Oils in Indonesia

The research aim was to study the influence of area size consisting of Government Estate (Government Estate), Private Estate (PBS), Smallholder (PR), price and exchange rate on production, and the influence of production, price and Exchange rate on palm oil exports which consists of Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) using panel data for 2000-2022. Whether viewed from CPO or PKO, the results of the analysis show that the Government State has a real negative influence on production where the elasticity of the Government Estate for CPO towards production is lower than for PKO. The increase in production was significantly caused by the increase in PR for both CPO and PKO, where the elasticity of the increase in PR for CPO was higher than the increase in PKO. PBS provides a positive influence on production which is significant for PKO but not significant for CPO, while prices and exchange rates do not have an influence on CPO production, nor on PKO production. CPO and PKO exports are significantly influenced by prices, where CPO's price elasticity is higher than that of PKO. Furthermore, production and exchange rates have no influence on exports of either CPO or PKO, while the increase in CPO exports is determined significantly by PR, where the elasticity of CPO is higher than PKO.

Analysis of Competitiveness and Export Performance: Indonesian Crude Palm Oil (HS 15111000) Commodity against Major Competitor in Indian Market

International trade has become a key pillar in driving a country's economic growth. The stability of international trade is reflected in export-import activities. The amount of exports that exceeds the amount of imports will increase national income and positively affect the country's economic growth. Crude Palm Oil (CPO) is Indonesia's dominant export product that plays a critical role in the country's economic growth. Indonesia's CPO production in 2018 was recorded at 40.57 million tons. India is Indonesia's largest main market in exporting CPO. The purpose of this study is to determine the competitiveness and performance of Indonesia's CPO exports compared to the main competitor countries, namely Malaysia and Thailand. The data analysis process utilizes Revealed Comparative Advantage (RCA), Constant Market Share (CMS), and the Man-Whitney Test with the period of research statistics from 2013-2022.The results show that Indonesia's RCA value has competitiveness and comparative advantage in CPO exports against Thailand, but does not show significant differences with Malaysia in the Indian market. The results of data analysis using Constant Market Shares (CMS) to measure Indonesia's CPO export performance through standard growth, commodity composition effects, market distribution effects and competitiveness effects show that the export performance of CPO commodities against major competitor countries in the Indian market tends to have a positive trend.

A Crude Palm Oil Industry Concentration and Influencing Factors: A Case Study of Indonesia as the World's Largest Producer

The Crude Palm Oil (CPO) industry is one of the plantation commodities that has a strategic role in Indonesia's economic development. The number of companies and CPO production is always increasing, but the concentration of the industry that always decreases every year makes it important to analyze the factors that affect the concentration of the CPO industry in Indonesia. The data period used in this study was from 2001 to 2020. In this study, data sources were obtained from the Central Bureau of Statistics (BPS) Indonesia, Word Bank, and UN Comtrade. The data analysis method used is regression analysis of the Error Correction Model (ECM). The results showed that technical efficiency has a negative and significant relationship both in the long and short term to the concentration of the CPO industry. Competitiveness in the long term has a positive and significant relationship, while in the short term it is negative but not significant to the concentration of the Indonesian CPO industry. In the long run, the relationship between RSPO and Indonesia's CPO industry concentration tends to be negative but not significant, while in the short term it shows a significant influence. World CPO prices, both long-term and short-term, provide a positive and significant correlation to the concentration of the Indonesian CPO Industry. Indonesia's CPO exports in the long and short term have a negative and significant effect on the concentration of the Indonesian CPO industry.

Palm oil-based biodiesel industry sustainability model using dynamic systems to balance food, energy, and export allocations

Indonesia stands as one of the foremost global palm oil producers, contributing to 85 % of the world's total production. Given the substantial output of Crude Palm Oil (CPO), these raw materials find diverse applications in daily life. In a bid to decrease reliance on fossil fuels, Indonesia initiated the blending of fossil fuels with biodiesel in 2006. Beyond energy purposes, CPO raw materials are crucial for both domestic consumption and exportation. However, improper management could lead to raw material shortages. This study employs dynamic system modeling to assess the availability of biodiesel, CPO production, and their equilibrium concerning Indonesia's blended biodiesel target. Key parameters, such as available land, anticipated land expansion, optimized CPO production on less productive land, Indonesian CPO exports, and the mandatory biodiesel program, will be considered. Various scenarios or tests will be applied to gauge the continuity of CPO and biodiesel production. The results will undergo validation using the MAPE method. The simulation's results reveal that the rate of new land expansion and the optimization of unproductive land have negligible effects on meeting the blended diesel target. Intensified optimization of unproductive land, particularly in community plantations, is crucial, necessitating incentives for enhanced replanting funds. A reduction of 8 % in CPO export level, in turn, has a noteworthy impact on achieving the blended diesel target in Indonesia.

New Challenges and Opportunities of Indonesian Crude Palm Oil in International Trade

Indonesia is one of the largest palm oil producers in the world. The palm oil industry must look at the market competition map, starting from competing countries and other export opportunities to absorb palm oil products to increase state revenues. This paper analyzes the new challenges and opportunities for Crude Palm Oil (CPO) in Indonesia in international trade. Analytical tools were Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA), Dynamic Product Export and X-model Potential Export. The results showed that Indonesian and Malaysian palm oil commodities obtained an RCA value of more than 1 and an RSCA value of close to 1. Indonesia is more competitive than Malaysia. The X-model showed that Indonesian CPO market share optimism is only in India and the rest is less potent. Malaysian CPO market share also has less potential. Therefore, Indonesia’s new challenges are export tariffs, obstructed access, insufficient downstream production and a black campaign. The opportunity for participation in the CPO export market is only in India compared to Malaysia, which has less potential. The two countries have less potential in destinations such as the Netherlands, USA, China and Kenya. Indonesia can take external policies by establishing cooperation with export destination countries, such as trade agreements, so that information about Indonesian palm oil is well received. Meanwhile, internal policies strengthen domestic downstream industry policies, such as the food, health, and renewable energy industries, to strengthen the domestic economy and improve the welfare of Indonesian palm oil farmers.

Perbandingan Daya Saing Crude Palm Oil Indonesia dengan Malaysia di Negara Tujuan Utama Ekspor

This study aims to analyze and compare the competitiveness of Indonesian CPO with Malaysia in each of the main export destination countries. This study’s data type is monthly data for the export-import of Crude Palm Oil (CPO) with the code HS-151110. Competitiveness analysis between Indonesia-Malaysia CPO is calculated by RCA and MSI indicators. The development of Indonesia's CPO exports fluctuated from January 2020 to December 2021 with a negative development trend. During the period January 2020 to December 2021, Indonesian CPO has a comparative advantage in the Indian and Spanish markets, while Malaysian CPO has a comparative advantage in Italy and Kenya. Indonesian CPO has a larger market share in India and Spain and Malaysian CPO has a larger market share in Kenya, while in Italy the market share for Indonesian and Malaysian CPO is the same. Indonesia needs to increase CPO production and exports so that Indonesia’s CPO competitiveness and market share can be increased.

ANALYSIS OF FACTORS AFFECTING INDONESIA'S CRUDE PALM OIL (CPO) EXPORTS IN THE GLOBAL MARKET 1992 - 2022

One of the factors that can increase a country's Gross Domestic Product (GDP) is through international trade activities. This study aims to identify the factors that influence Indonesia's Crude Palm Oil (CPO) exports in the global market, focusing on certain variables. The research method used is a quantitative approach using secondary data from sources such as Bank Indonesia, World Bank, UN Comtrade, Statistics Indonesia, and GAPKI. Time series data from 1992 to 2022 was used in this analysis. The analysis was conducted using multiple linear regression models with the E-views 12 analysis tool. The results showed that the exchange rate and international CPO price had a positive and significant influence on Indonesia's CPO export volume. However, the inflation variable was found to have a negative, albeit insignificant, influence on Indonesia's CPO export volume.

Juridical review regarding maladministration of crude palm oil exports in Indonesia

This paper tracks the maladministration of CPO exports by conducting a judicial review of CPO export policies by the Ministry of Trade of the Republic of Indonesia. This study uses a normative legal analysis with a field research approach. The results of the judicial review of this study are that the policy of temporarily stopping the export of Crude Palm Oil by the government is entirely appropriate, considering that previously there was maladministration carried out by individuals at the Ministry of Trade involving palm oil entrepreneurs in three companies, the occurrence of export permits has entered the criteria for maladministration because the three companies The CPO manager does not have an export permit which causes state economic losses due to rising cooking oil prices due to excess CPO being exported.

Pengaruh Harga Internasional, Ekspor, Harga TBS, Dan Volume Produksi Biodiesel Terhadap Harga CPO Domestik

The palm oil industry downstream program supports the development of new energy made from palm oil, namely biodiesel. Biodiesel is used as a blend for fuels such as diesel. One of the goals of developing the biodiesel industry is to produce new renewable energy sources so that it can reduce dependence on fossil energy. With the development of the biodiesel industry, Indonesia's consumption of crude palm oil (CPO) will increase. It is feared that this could lead to an increase in domestic CPO prices. This research was conducted to analyze the impact of developing the biodiesel industry on domestic CPO prices. The data used is secondary data in the form of annual data from 1997-2021. The research analysis used multiple linear regression which is processed with Ordinary Least Square (OLS). The variables in this research are international CPO prices, CPO export volumes, biodiesel production, prices of fresh fruit bunches (FFB), and productivity of oil palm plantations. The real domestic CPO price was significantly affected by international CPO prices, CPO export volume, FFB prices, and the productivity of oil palm plantations. Biodiesel production was not proven to have a significant effect on domestic CPO prices.

Changes in global, domestic, and stock price as a response to Indonesian CPO export ban: An opening door into a worldwide financial distress

In April 2022, Indonesian government decided to implement a policy to ban crude palm oil (CPO) exports due to the scarcity of cooking oil in domestic market, which was revoked after twenty-one days put into effect. Considering the important contribution of CPO trade particularly to food and consumer goods industries, a sudden cessation of CPO supplies might instigate financial distress across the globe. This research aims to measure changes in global and domestic CPO price as well as stock price of IDX-listed CPO companies in response to the enactment of CPO export ban under the Decree 22/2022. At the first stage, a descriptive measurement is employed to analyze the monthly changes in value for each price variable. At the second stage, the Pearson's correlation coefficient is applied to measure the statistical relationship between two price variables. The result shows that the domestic market responded more quickly with a 16.77% price drop in May 2022 while global price increased slightly by 2.03% due to the shortage of CPO supply. Nonetheless, a sharp decline in global price of 12.57% occurred in June 2021 shortly after the export ban policy lifted. A moderately strong correlation is found between domestic and global price, expressing a quite similar fluctuation trends for both. In relation to the stock price, neither global price nor domestic price is significantly correlated with. Notwithstanding, both variables are not significantly correlated with the stock price. Stock price shows a rapid return when the CPO trading reopened. This research may contribute to the development of science in economic and financial risk as well as to the government in making future CPO trade policies. As a relatively new issue, there is no similar scientific study to this research found which can be counted a novelty.

Reaksi Pasar atas Pengumuman Larangan Ekspor Crude Palm Oil dan Produk Turunannya

This research aims to determine the reaction of capital market investors to the announcement of a ban on the export of Crude Palm Oil (CPO) and its derivative products. This research uses an event study approach for 7 days of observation in 2022. Market reactions in this research are measured using Cumulative Abnormal Return (CAR). The population of this research is oil palm plantation companies listed on the Indonesia Stock Exchange in 2022. The sampling method uses a purposive sampling technique. The number of samples obtained was 20 companies. This research uses one sample t-test data analysis techniques. The results of data analysis show that investors in palm oil plantation companies reacted negatively to the announcement of a ban on exports of CPO and its derivative products. This proves that investors pay attention to external events that can influence company performance.
 Keywords: Market Reaction; Event Study; Abnormal Return; CPO Export Ban

Analysis of affecting factors export volume and competitiveness of Indonesian palm oil (Crude Palm Oil)

<p><em>Production of palm oil, especially crude palm oil (CPO) is increasing along with the increase in the number of oil palm plantations. The global market demand for this product has also increased its exports and competitiveness. This study aims (I) to analyze the development of Indonesia's CPO export volume in the period 2000 to 2020 (II) to analyze the factors that affect Indonesia's CPO export volume and (III) to analyze the competitiveness of Indonesia's CPO with Malaysia. The research was conducted in December 2021-February 2022. The research method used was descriptive quantitative method. The type of data used is secondary data in the form of time series for the period 2000-2020. The data used consists of CPO export volume, CPO production volume, international CPO price, sunflower seed oil price, CPO export value and Indonesian export value, CPO export value and Malaysian export value as well as CPO export value and world export value. Data sources were obtained from BPS, World Bank, International Monetary Fund, and FAO. The results showed that the percentage growth of Indonesia's CPO export volume in 2000-2020 was 7% with a percentage growth of 12% export value, simultaneously Indonesia's CPO export volume was influenced by factors of CPO production volume, international CPO prices and sunflower seed oil prices which had an effect real and significant. The volume of CPO production and international CPO prices partially have a real and significant effect on the volume of CPO exports, while the price of sunflower seed oil has no partial effect on the volume of CPO exports. The average RCA index for Malaysia was 2.17 and Indonesia was 2.12, which shows that Malaysia has a competitive advantage and higher CPO export competitiveness than Indonesia.</em></p>

Indonesian Crude Palm Oil (CPO) Exports Through the Gravity Model Approach

Oil palm is one of the plantation crops that provides the largest contribution to Indonesia's foreign exchange with its derivative products in the form of crude palm oil (CPO). The development of CPO consumption as a source of vegetable oil has pushed Indonesia as the largest producer to export CPO to 179 export destination countries in the world and the 10 largest export countries include India, China, Pakistan, the Netherlands, Malaysia, Bangladesh, Egypt, Italy, Spain and Singapore. Indonesia's CPO export volume fluctuates which can disrupt the country's economy. The objectives of this study are: (1) to identify the countries that positively impact Indonesian crude palm oil (CPO) exports among 10 destination countries, namely India, China, Pakistan, the Netherlands, Malaysia, Bangladesh, Egypt, Italy, Spain, and Singapore, (2) to analyse the factors influencing Indonesia's CPO exports to these 10 destination countries, and (3) to examine the impact of geographical distance on Indonesia's CPO exports to these countries. The research was conducted from April to September 2021, using panel data that combines time series and cross-sectional data from 2011 to 2020. The findings indicate that India, China, the Netherlands, and Italy had positive constants, while the remaining six countries had negative constants in terms of Indonesia's CPO exports. The combined effect of Indonesia's gross domestic product (GDP) (X1), geographical distance (X2), and the rupiah exchange rate (X3) significantly increased Indonesia's CPO exports to these 10 destination countries by 73.77%. Geographical distance (X2) had a significant and positive effect, whereas Indonesia's GDP (X1) and the rupiah exchange rate (X3) did not show significant effects and had a negative impact on increasing Indonesia's CPO exports to these destinations

Palm Oil Downstream Strategy: Enhancing Indonesia's Bargaining Position in International Palm Oil Trade

Although Indonesia currently dominates 60% of global palm oil production, Malaysia holds a competitive advantage in certain downstream industries. Indonesia must focus on developing its palm oil industries to process crude palm oil (CPO) into higher-value products, serving both as exports and substitutes for imported goods. This research aimed to highlight the importance of Indonesia's development of downstream palm oil industries. This research employed quantitative methods such as Pearson correlation and Granger causality, as well as qualitative methods. 
 The result showed that the fluctuation of CPO prices in the international market is closely tied to the volume of CPO exports conducted by Indonesia. Achieving higher domestic CPO production by improving the productivity of independent palm oil farmers is crucial. By enhancing their productivity from 2-3 tons per hectare to 5-6 tons per hectare, CPO supply can increase by 8 million tons annually, equivalent to approximately 16% of the total production. Reducing export should be accompanied by increased domestic CPO utilization through downstream programs. 
 By capturing half of Malaysia's current market share of HS code 1516 (animal or vegetable fats and oil, hydrogenated, inter-esterified, re-esterified, or elaidinized, whether or not refined but not further prepared), Indonesia has the potential to earn approximately 1 billion USD per year in foreign exchange. The development of biodiesel, transitioning from B30 to B40, holds the potential to save approximately IDR 200 trillion in foreign exchange. This strategic focus on downstream industries would strengthen Indonesia's position in the international palm oil market.

ANALYSIS THE EFFECT OF CRUDE PALM OIL EXPORTS ON THE INDONESIAN ECONOMY

The purpose of this study is to find out how significant the export of Crude Palm Oil is in influencing the Indonesian economy and how much the contribution of Crude Palm Oilexports is in boosting the economy of the Republic of Indonesia. This study uses the library study method, because literature sources are obtained from journals, research reports, information from social media, statistical data and other sources. The approach in this study uses a quantitative descriptive. The fact is that Crude Palm Oil is a sector that greatly contributes to increasing exports in the country's economic development.

Oil palm boom: its socioeconomic use and abuse

Oil palm cultivation has experienced explosive expansion in recent decades. Although the oil palm boom has serious environmental and socioeconomic consequences, only environmental issues have garnered attention in public discussion and synthesis studies. In this study, we synthesize the literature on the socioeconomic impacts of oil palm expansion across various observation units and spatial and temporal scales, which is of significant relevance to policymakers, researchers, and the wider public. Our review demonstrates that oil palm expansion is a double-edged sword. On the one hand, it has significantly helped both producing and non-producing countries’ economies by facilitating the (re)export of crude palm oil and its byproducts and by creating employment opportunities. This has stimulated rural economies, led to rural poverty reduction, and improved food security and diets for rural households in producer countries. On the other hand, it has increased conflicts and tension between local communities and agro-industrial companies, worsened workers’ conditions, and widened domestic economic inequality between producing and non-producing areas within a given producer country. Monetary quantification of the costs of oil palm’s negative environmental and social impacts indicates that the loss of ecosystem services and social services far outweighs the benefits derived from the increased production of oil palm. The direct income benefits through harvest sales and employment are more evident in the Southeast Asia production frontier, where oil palm cultivation and marketing are relatively advanced and well-integrated into global value chains. The negative outcomes are observed in all oil palm production regions, with more negative effects on food security in the African production frontiers. We propose multiple actionable research and policy recommendations that may jointly lead to inclusive and sustainable socioeconomic (and environmental) outcomes in oil palm cultivation. The socioeconomic consequences of oil palm expansion at the global level, in the African and American production frontiers, and the role of gender in oil palm production systems remain understudied. Hence, studies should be conducted.

Competitiveness, Market Structure, and Energy Policies: A Case Study of the World’s Largest Crude Palm Oil Exporter

Crude Palm Oil (CPO) is the mainstay of Indonesian agricultural products which is the largest CPO producing country in the world. The high market share of Indonesian CPO exports reflects the high competitiveness of Indonesian CPO in the global market. The purpose of this study is to determine the competitiveness of Indonesian CPO, the concentration of the Indonesian CPO industry, and analyze the factors that are suspected to affect the competitiveness of the CPO industry in Indonesia. The data used in this study are secondary data with a five-digit ISIC (10432) using time series data for 2001-2020 and the analytical techniques used in this study include Revealed Competitive Advantage (RCA), Gini Coefficient, and Error Correction Model (ECM). The results showed that Indonesian CPO has high competitiveness in the international market, the Indonesian CPO industry is not concentrated, in the short term the variables that affect competitiveness are CPO prices, subsidized solar prices policy, and industrial concentrations, while in the long term the influential variables are biodiesel policy, subsidized diesel oil policy and industrial concentration

ANALISA INFLASI DAN NILAI TUKAR TERHADAP TINGKAT EKSPOR CRUDE PALM OIL (CPO)

This study aimes to know the influence of inflation and exchange rates on palm oil exports. The data collection method used is a time series from data on export for the period 2018 – 2021, Bank Indonesia, and BAPPENAS. Three hypotheses were built and tested using multiple linear analysis. The data analysis used included autocorrelation test, classical assumption test, multiple linear regression analysis, and hypothesis testing. The results showes that the inflation variable has a negative effect on crude palm oil exports, and the exchange rate has a negative effect on crude palm oil exports. Simultaneously, inflation and the exchange rate have a effect on the export variable of crude palm oil of 67%.

ASEAN-FTA Impact on Rubber and Crude Palm Oil Export: An Empirical Evidence from IMT Countries

This study applies the gravity model to explore whether the establishment and the agreement of the ASEAN Free Trade Area (AFTA) have an impact on the export increase of rubber and crude palm oil commodity trade for the case ASEAN member countries namely, Indonesia-Malaysia-Thailand (IMT). The study uses time-series data, first for Indonesia using the period of 1996-2017 with trading partners as much as 21 countries for crude palm oil (CPO) commodity and 22 countries for rubber commodity. Secondly, the CPO export model for Malaysia using data during 1997-2017 with 23 trading partners countries. Thirdly, export rubber model for Thailand using a period of 1999-2017 with 16 trading partners countries. The estimate the Indonesian and Thailand export model for rubber commodity, and second, the same model also is estimated export CPO for the Indonesian and Malaysian. Generally, we found that the regression results it appears ASEAN member countries have not been fully benefited from the enactment of the AFTA, especially on the export of Indonesia's main commodities such as rubber and crude palm oil which destined for trading partners countries. As for the export of Thailand rubber and Malaysian crude palm oil, both countries are still relatively slightly better because the AFTA agreement has fully benefited. During the study period, the results of this study indicated that these three countries trade both commodities more intensely to the non-ASEAN countries

DETERMINANT EXPORT VOLUME OF CRUDE PALM OIL (CPO) IN INDONESIA AND MALAYSIA IN THE EUROPEAN UNION MARKET

Crude Palm Oil (CPO) is one of the leading export commodities of Indonesia and Malaysia. After India, the European Union has become the top Indonesian and Malaysian CPO export market share. However, Indonesian and Malaysian CPO exports indicate constraints on CPO exports to the European Union (E.U.). In addition, the European Union also issued a Renewable Energy Directive policy that can impact CPO exports. Therefore, this study is at 1) Describes the development of Indonesian and Malaysian CPO export volumes in the European Union from 1990 to 2019. 2) Analyze The determinants of Indonesian and Malaysian CPO export volumes in the EU Market from 1990 to 2019 3) Describe the impact of the Renewable Energy Directive (RED) policy on Indonesian and Malaysian CPO exports in the European Union Market. This study's data type is secondary data in an annual time series with a time range from 1990 to 2019. The study was analyzed descriptively, and the Regression Analysis was multiple. The results showed that the development of Indonesian and Malaysian CPO export volumes in the European Union fluctuated but tended to increase from 1990 to 2019. Indonesia's CPO export volume in the European Union significantly affects International CPO prices, real exchange rates, and RED Policies. In contrast, the volume of Malaysian CPO exports in the European Union significantly influences International CPO prices and real exchange rates. The RED policy positively influenced the volume of Indonesian and Malaysian CPO exports in the European Union before and after enacting the policy. In the future, it is necessary to increase the use of CPO in the country and develop palm oil derivative products to get priority and sustainability.