Crude Palm Oil Export Research Articles

Analysis of Factors Affecting the Competitiveness of Indonesian Crude Palm Oil (CPO) Export in the Global Market

This study aims to: (1) Analyze the development of Indonesian CPO export competitiveness in the global market from 1998 to 2017 (2) Analyze factors affecting the competitiveness of Indonesian CPO export in the global market from 1998 to 2017. The data used is time series spanning 20 years (1998-2017). The competitiveness of Indonesian CPO export in the global market is presented descriptively in the form of images, while affecting factors are analyzed using a multiple linear regression model. The results show that Indonesian CPO has comparative and competitive competitiveness in the global market. The results of multiple linear regression tests indicate that the factors that comparatively affect the competitiveness of Indonesian CPO exports in the global market are domestic CPO production, global CPO prices and petroleum prices while factors that competitively affect competitiveness are ​​oil palm plantation area, Malaysian export volume, soybean oil price and exchange rates. Factors that positively impact Indonesian CPO competitiveness are domestic CPO production, oil prices and the ​​oil palm plantation area. Improving these variables will increase the competitiveness of Indonesian CPO exports, while an increase in global CPO prices, soybean oil prices and the exchange rate will reduce the competitiveness of CPO exports. The variable that has no significant effect is the export volume of Malaysia.

ANALISIS MENGATASI PENURUNAN HARGA TANDAN BUAH SEGAR (TBS) KELAPA SAWIT PETANI SWADAYA DI INDONESIA

Research aims to look for formulations how to overcome the price reduction of fresh fruit bunches (TBS) in Indonesia along with the movement of CPO Price in the international market so that smallholders and palm oil entrepreneurs can keep Revenue stability in its business sustainability. This research uses qualitative methods with descriptive analysis. The result of research obtained is the lack of demand (demand) that led to the accumulation of CPO (supply) in palm oil Mills (MCC). The accumulation of crude palm oil (CPO) becomes among the company's alibi as a justification for buying cheap prices of fresh fruit bunches (TBS) farmer oil palm. The instability of the European and United States economies, along with the time of harvest crops of other vegetable oil products, such AS sunflower, soy, and corn, encourages the decline in the price of CPO exports. The solution to overcome TBS price decline is to build the downstream CPO industry, the establishment of TBS Pengumpus cooperative and diversify by expanding the type of agricultural activities and multiply the type of crops on a land. Keywords: TBS price drop, CPO export price, formulation solution.

Analysis of prospects of crude palm oil (CPO) in west Sumatra province

Crude Palm oil (CPO) exports in West Sumatra have a high potential for competitiveness both in the domestic market and in the international market, as world demand for CPO is still quite high supported by the availability of oil palm, the availability of relatively human resources and the low cost of palm oil maintenance. On the other hand, it shows the competitiveness of CPO from the quality aspect is still quite low. It can be seen that the quality of fruit palm oil from farmers is still far below the quality standards set by the government and foreign standards so that it has implications for the low quality of CPO produced. The purpose of this study is to analyze the existing condition of the current CPO trade in West Sumatra Province, observed from the competitiveness of quality and quantity and the prediction of world demand for West Sumatra CPO. Data collection techniques with primary data were obtained through direct interviews with several CPO processing plants located in West Sumatra Province and secondary data were obtained through the Plantation, Food Crops and Horticulture Services of West Sumatra province. The method used to analyze CPO export competitiveness using the Trade Specialization Index (TSI). The results of this study stated that the value of TSI of CPO in West Sumatra Province show a value close to one which indicated that West Sumatra CPO production is at the maturation stage, in the sense of being in the industrialization stage to downstream products and the development of CPO commodity trade patterns in West Sumatra Province that able to compete with other plantation commodities, both in the domestic and international markets.

FAKTOR PEMBENTUK HARGA JUAL PRODUK CPO ASAL INDONESIA

This study aims to analyze and obtain empirical evidence about the main factors forming the price of one of Indonesia's main export commodities, Crude Palm Oil (CPO). The data of this study are all data of CPO exports subject to export duty from January 2009 to June 2015. The analysis technique used in this study is multiple regression analysis using Eviews 8. Based on the results of the analysis, it can be concluded that the export duty, export standard prices, and international market prices have a positive and significant effect on CPO selling prices, while the inflation rate does not significant effect on CPO selling prices. Based on standardized coefficients, it can be concluded that international market prices have the strongest influence on CPO selling prices

The Efficiency of Palm Oil Fresh Fruit Bunches in West Pasaman, Indonesia (2010-2017)

Palm oil production is important to the economic development of West Pasaman Regency (PASBAR) as most of its village population work in the agricultural sector, particularly in the field of palm oil plantations. The contribution of agricultural sector to Gross Regional Domestic Product (GRDP) is relatively large, approximately 46%, the biggest in comparison with other sectors. Crude Palm Oil (CPO) is one of the main end products from Fresh Fruit Bunches (FFB) processing that is mainly purposed for export. The export of CPO in PASBAR is characterized by two functions, i.e., the exporting and the producing firms. CPO’s factories own nearly all the exporting firms. This paper argues that there is unfair competition between exporting firms and agents or wholesales in buying FFB in the domestic market. The same misconduct occurs between agents or wholesalers when buying FFB from small collectors, who in turn, buy from palm oil farmers. The purpose of this study is to analyze the efficiency in marketing chains from exporting firms to palm oil farmers. The methods used are desk study, field survey, and questionnaires. The dynamic regression model is used as a quantitative approach. The research results indicate that marketing practice is not efficient as the purchasing prices received by palm oil farmers are low and inadequate. Several efficiency indicators determine it, i.e.: (i). Pbi Pmi; (iii) FS average 60 %, its not close to 100 % (iv) ME> 1 (v) Et <1. This implies that the buying price of FFB is less favorable to palm oil farmers. Monopsony in FFB market is one of the main reasons this occurs.

DETERMINANTS OF INDONESIAN CRUDE PALM OIL EXPORT: GRAVITY MODEL APPROACH

Crude Palm Oil (CPO) is a commodity in the agricultural sector with the largest contribution to the value of Indonesian exports. Moreover, since 2006, Indonesia has become the largest CPO producer in the world. Therefore, this research attempts to investigate determinants of In­donesia CPO export to main trading partners using Gravity model approach. This study is conducted to analyze the effect of Indonesia’s GDP, GDP of Indonesia’s four main trading partners, distance, the rupiah exchange rate against US dollar and domestic CPO consumption on Indonesian CPO exports. The analysis technique is used in this research is panel data regression using fixed-effect model. The results of this study indicate that not all variables have significant effect on Indonesian CPO exports. Variables such as Indonesia’s GDP and GDP of major trading partners have positive and significant effect, whereas rupiah exchange rate variable and domestic consumption have negative and significant effect on Indonesian CPO export. In addition, in line with Gravity model, variable of distance has negative and significant effect on Indonesian CPO exports.

ANALISIS PANGSA PASAR DAN DAYA SAING CPO INDONESIA DI UNI EROPA

Commodities of palm oil play a strategic role in the Indonesia’s economy. In this study we concern on the competitiveness of Indonesia’s Crude Palm Oil (CPO) industry and effectiveness of the potential market for Indonesia’s CPO in Uni Europe (UE). The utilization of CPO as biofuels, encouraging an significant increased of demand for CPO in UE. This study is also addressed to determine the Indonesian CPO performance among other palm oil producer country. We used the revealed comparative advantage (RCA) and market share index (MSI) methods in analysing the competitiveness level. Our results showed, in 2014, export performance of Indonesia’s CPO increased. It was showed by the value of RCA1. Indonesia has competitiveness of CPO, because of the increased export volume of CPO and it’s derivates product to the major importer countries, such as UE. However, the average of RCA analysis in 2007-2014 indicate the lower performanceof Indonesia’s CPO exports compared to the other main CPO exporter, Malaysia. Thus, from the MSI analysis we found that Italy is a potential market for Indonesia’s palm oil exports, based on the fact that Indonesia’s CPO dominated the Italian market in the last seven years. The value of Indonesia’s market share was far above the competitor.

PEMODELAN STATISTICAL CONTROL DETECTION ADAPTIVE (SCDA) UNTUK MONITORING DAN PREDIKSI VOLUME PRODUKSI CRUDE PALM OIL (CPO) NASIONAL

Achievement of national palm oil industry as a producer and exporter of crude palm oil (CPO) in the world, it is now giving birth insecurity issues. This is because the growth of upstream and downstream industries of national palm oil that has not been balanced, which in turn encourages the national palm oil industry players to be oriented to the export of CPO which eliminates the added value in the country. On the other hand, though bring in foreign exchange for the country, but is prone commodity export orientation encountered a barriers problem in the international market. It is therefore important to provide a means of monitoring, prediction and assessment to facilitate the formulation of policies more about the marketing of national CPO industry. This research proposed the development of a model framework called adaptive threshold statistical control detection adaptive (SCDA) as a means of monitoring, prediction, and assessment of the movement of national CPO production volume. SCDA idea is to determine the dynamic threshold based mapping pattern historical data and predictions from the aspect of the frequency and trends. SCDA model adapted the techniques of statistical process control (SPC), while the values of the predictions generated from the simulation prediction model developed using the techniques of artificial neural network back propagation (ANN-BP) based on historical data of the national CPO production volume. The data used was the average volume of annual national CPO production period 1967 to 2015. The simulation results showed that the prediction model of national CPO production volume in 2016 until 2018 predicted were31.025 million, 32.214 million, and 34.504 million tons, respectively, while the values of maximum and minimum threshold that was formed in the model predictions SCDA for the period 2016-2018 each sequence were 33,322,065 and 29,246,547, respectively. As far as the literature search results, modeling SCDA has never been done in the research included for monitoring and prediction of national production volume of CPO. Therefore, research on the modeling of SCDA was contributing both to the development of knowledge about modeling as well as in the management of the national supply of CPO. Keywords: adaptive threshold, modelling, artificial neural network, palm oil

Trend Produksi dan Ekspor Minyak Sawit (CPO) Indonesia

This study aims to determine the trend of palm oil production, the trend of the value of production, trends of CPO(crude palm oil) export volume, trend value of Indonesian exports, as well as to determine the factors that influence the Indonesian CPO exports and to know the benefits of Indonesia's CPO. The data that used are annual data which were analyzed using regression analysis to estimate the influential factors, the analysis of RCA (Revealed Comparative Abvantage) and AR (Acceleration Ratio) were used to determine the comparative advantage of the Indonesian palm oil in international market. The results showed that the trend of Indonesian palm oil production on average was increased, while the trend of the value of production, the export volume trend, and the trend of Indonesian CPO export value also increased from year to year. The high productivity of Indonesian palm oil production allows the State Indonesia's CPO to exports to neighboring countries, such as China, India, and the Netherlands. From the results of research on the factors that influence the CPO exports to China state that the International CPO price, exchange rate, per capita income, population, and the price substitution (soybean). Factors affecting the CPO exports to China were the CPO price International, capita income of, population, and the price substitution. Factors that affecting CPO exports to Netherland countries were the domestic price, capita income, population, trend, and subtitusi price. Analysis to determine the comparative advantage to Indonesian CPO market showed that Indonesian CPORCA value was higher than the value of the RCACPO World wide average, while the World RCA value of 1,06, this showed that the market share of Indonesian CPO superior and capableto compete in international market. The growth of Indonesian CPO export has accelerated and higher than other countries in the World (AR =1,009).

IMPACT OF CPO EXPORT DUTIES ON MALAYSIAN PALM OIL INDUSTRY

In January 2013, Malaysia reduced the export duty s tructure to be in line with the Indonesia’s duty structure. Both countries export crude and processe d palm oil. Since Malaysia and Indonesia are close competitors and they compete in the same market, a change in export duty rate in one country will affe ct the other. Indonesia, as the world’s biggest palm oil p roducer, has drastically widened the values between the crude palm oil and refined palm oil export taxes si nce October 2011, to encourage more downstream investments and production of refined palm oil prod ucts. Under the revised export duty structure, crud e palm oil and crude palm kernel oil are cheaper for downstream activities in Indonesia. The new structu re is expected to reduce Malaysia’s competitiveness in th e world market as its export duty is relatively hig her. A high export duty results in high price of crude pal m oil which is the raw material for processed palm oil. The research questions are: (i) What are the likely future trends of crude palm oil exports under the new crude palm oil export duties? Will it increase, red uce or stabilize? (ii) What are the likely future t rends of processed palm oil exports? Will it increase expone ntially, stabilize or reduce? To answer these quest ions, a system dynamics model was developed for the Malaysian palm oil. Application of the system dynamics model provides a framework to understand the feedback structure and how changes in variables impact th e behavior of the palm oil industry. This research su ggests that with low crude palm oil export duties c rude palm oil domestic price, profitability of plantatio n owners, immature crop, mature crop, total planted area, production and exports of crude palm oil increase, however exports of processed palm oil decrease.

Determinants of Indonesian Palm Oil Export: Price and Income Elasticity Estimation

For Indonesian economy, palm oil is considered as one of important commodities. It provides a large amount of export revenue and job opportunities. From year 2000 to 2009, palm oil production in Indonesia has increased every year. In , 2008 about 70% of its production was exported. Recently, Indonesia has become the largest palm oil exporter and has 48% of the worlds market share. The aim of present study was to estimate the determinants of both crude palm oil exports (HS = 151110) and refined palm oil exports (HS = 151190) from Indonesia to the world market. In this study the export demand approach is used as a methodology to estimate price and income elasticity for Indonesian palm oil exports since January 1996 to July 2010. The results found that Indonesian palm oil export is significantly determined by its own export price and foreign countries income. The value of the elasticity of its own export price in the short- run is -0.54 which is larger than the value in the long-run is -0.41. It is similar to the estimated value of foreign countries income elasticity. It has larger value in the short-run (0.61) than in the long-run (0.49). The inelastic income elasticity result indicated Indonesian palm oil export is normal good. The estimated results are supported by in-significant result of world price of soybean oil. In conclusion, Indonesian government should consider the improvement of marketing strategies, trade and domestic policies which support Indonesian palm oil export.

PAJAK EKSPOR DAN PENGARUHNYA TERHADAP CPO INDONESIA

This study aims to analyze the development of national CPO (Crude Palm Oil) export, the influence of the implementation of the export tax for the welfare of producers, and the competiveness of CPO. This study uses primary data and secondary data. The result of the study shows that (1) in tne period 2000-2007, the volume and value of exports of CPO increased were 18.07 and 37.63 % per year, respectively, (2) CPO export tax directly and proportionally reduce the local price of CPO, which in tye end reduce the price of TBS (Tandan Buah Segar). The higher export tax and the more disadvantages CPO producers and overall level of welfare to decrease with the high PE rate of CPO, and (3) Indonesia has a comparative and competitive advantages in the production od CPO, as indicated by the value DRCR &lt; 1 and PCR &lt; 1 (DRC = 0.66 and the PCR = 0.60).

The Effect of Export Tax on Indonesia’s Crude Palm Oil (CPO) Export Competitiveness

Crude palm oil (CPO) is one of the main export commodities of Indonesia. Besides an export commodity, it is also an essential raw material in producing cooking oil. In order to secure the availability of domestic CPO, the government of Indonesia imposed an export tax policy in September 2004. The objective of the export tax was to control the price of cooking oil at an affordable rate. The objective of this study is to describe the export tax policy on CPO imposed by the Indonesian government and to analyse the effect of the export tax on Indonesia's CPO export competitiveness compared with Malaysia, the main competitor. An export ratio equation between Indonesia and Malaysia is constructed using monthly data. The dependent variable is CPO export of both countries, meanwhile the independent variables include price ratio, export tax difference, refined palm oil export ratio, and exchange rate ratio. The result shows that Indonesia's export tax policy will cause CPO export competitiveness to decrease.