Palm Oil Exports Research Articles

Policy Analysis of European Union Deforestation Regulation (EUDR) on Indonesian Palm Oil Exports

This study aims to analyze EUDR policy towards Indonesian palm oil exports. Indonesia is ranked number one as a producer country and as the largest consumer of palm oil in the world. This makes palm oil the largest foreign exchange contributor from palm oil exports and its derivatives. However, EUDR policy states that Indonesian palm oil causes environmental damage or deforestation. Where, the policy focuses on reducing deforestation rates without considering economic aspects including palm oil exports. Of course, this is a challenge for Indonesia because it has an impact on palm oil imports from the European Union. This research is qualitative research using secondary data. The results of this study will answer the sustainability of the condition and impact of Indonesian palm oil exports after the EUDR policy. The recommendation to the next researcher is to be able to follow up this research on a wider scale.

The influence of EU renewable energy directive policy to Indonesian palm oil exports to some EU countries

The objectives of this study are 1) to describe Indonesian palm oil export to some European Union (EU) countries and some export determinant variables, 2) to analyze the implementation of the EU renewable energy Directive (RED) as an instrument to guarantee that the traded products are environmentally friendly and sustainable, and 3) to analyze the effect of the RED on Indonesian palm oil exports. The effect of RED was estimated through the export function behavior of Indonesian palm oil to each selected EU country. The secondary data was used for period of 2000–2021. A simultaneous equation model using the 2SLS method was applied for the analysis. The research result implies that the 2003 Directive, and the rupiah real exchange rate have significant effect on Indonesian export to Spain, Italy and Germany. While the price of palm oil in the EU is significantly affected the Indonesian palm oil export to Italy and Germany, but not to Spain. The strengthening of the rupiah exchange rate caused a decrease in Indonesian palm oil exports to Spain but increased the exports of Indonesian palm oil to Italy and Germany, and also increased the palm oil prices in the EU market.

An Ideational Metafunction Analysis of President Joko Widodo’s Speech on Crude Palm Oil (CPO) Policies

The purpose of this research is explaining the ideational function of the two speeches by President Jokowi about Crude Palm Oil (CPO) Policies. The design of this research was descriptive qualitative research. The data for this study constituted two speeches President Joko Widodo about crude palm oil (CPO) exports on two different occasions at State Secretariat website (https://www.setneg.go.id) that was obtained by copying and pasting. The speeches were analysed by using systemic functional linguistics methods that is focused to ideational metafunction (experiential meaning and logical meaning). The result of the analysis was both of speech Joko Widodo revealing the similarity. Speech A showed mental process dominant in experiential meaning and speech B also showed mental process dominant. Beside the similarity both of speech, Jokowi speech revealed the differential using participant (senser), speech A used word of pemerintah, and on speech B using word of saya. Using word of pemerintah was a form of Jokowi as President not wanting to be blamed when bad things happen in made crude palm oil’s policy. Therefore, using word of saya was imaging form of Jokowi, because his clause gave profit for his electability. Jokowi was very careful in publishing speech, word of very careful reflected as self-righteousness.

ASYMMETRIC EFFECTS OF EXCHANGE RATES ON MALAYSIAN PALM OIL EXPORTS TO CHINA

Fluctuations in exchange rates can induce uncertainty, significantly impacting on a country's exports. The unexpected appreciation or depreciation of a currency can also influence the flow of palm oil exports between Malaysia and China, as it affects the relative prices. The purpose of this study is to investigate whether the effects of exchange rate fluctuations on palm oil exports exhibit symmetric or asymmetric relationship. Additionally, this study endeavors to ascertain the presence of the J-curve phenomenon in explaining the connection between exchange rates and Malaysia's palm oil exports to China. This study employs a quarterly dataset spanning from January 2010 to June 2023 and utilizes the linear and non-linear Autoregressive Distributed Lag approaches. The study's results affirm the presence of asymmetric effects stemming from exchange rate movements on Malaysia's palm oil exports to China. This study found that ringgit depreciation has a positives impact on palm oil exports in the long run. These empirical findings hold significance for policymakers, shedding light on the positive repercussions of palm oil price changes on economic activity, ensuring that all stakeholders in the sector reap the benefits accordingly.

Preparation and Characterization of Activated Palm Kernel Shell/Carboxylated Nitrile Butadiene Rubber (APKS/XNBR) Vulcanizate

Malaysia is one of the most important palm oil producers and exporters in the whole wide world. There has been a rapid development of new palm oil plantations and palm oil mills in this country. The palm oil industry plays a vital role in the economic growth of Malaysia. However, as the palm oil industry grows bigger and wider, a huge amount of palm oil waste is produced which is an alarming issue considering it can cause pollution and have a negative effect on the environment. Raw Palm Kernel Shell (PKS) derived from palm oil waste can be converted into Activated Palm Kernel Shell (APKS) which has the potential to be a value-added biofiller in rubber vulcanizates. Thus, in this study, APKS is prepared through a carbonization process at a temperature of 900 °C and an activation process via steam treatment and used as filler in Carboxylated Nitrile Butadiene Rubber (XNBR). The aim of this study is to evaluate the influence of different loading ratios of APKS on theswelling index measurement, bound rubber content (BRC), abrasion resistance, compression set, and hardness of XNBR vulcanizates. APKS is incorporated in XNBR at different loading ratios, ranging from 0 to 50 phr and these APKS-filled XNBR vulcanizates are prepared with a two-roll mill. The overall physico-mechanical properties of APKS-filled XNBR vulcanizates showed increment in terms of BRC, compression set, and hardness as the loading ratio of APKS increased. XNBR vulcanizates with a higher loading ratio of APKS also showed a decrease in swelling index measurement and volume loss which would indicate high abrasion resistance. These results could be attributed to the porosity of APKS as shown in the morphological analysis which provided a high surface area of contact for crosslinking and mechanical interlocking. This proves APKS could potentially be a semi-reinforcing filler for rubber vulcanizates, especially for XNBR vulcanizates as XNBR vulcanizates were able to achieve high abrasion resistance and high hardness with the incorporation of APKS. With this, the conversion of PKS into APKS could help to reduce palm oil waste and provide an environmentally friendly, sustainable biofiller option to rubber researchers and manufacturers who are looking for an alternative to petroleum-based fillers. This would be very beneficial for both the palm oil industry and the rubber industry.

Synthesis and Characterization of Cellulose Acetate from Oil Palm Empty Fruit Bunches (OPEFB) as Membrane Material

Indonesia is the world’s largest palm oil producer and exporter, can produce 230 kg of OPEFB. The utilization of OPEFB is still at 10%, even though OPEFB is composed of 37.26% cellulose. This research aims to find out how to synthesize and characterize cellulose acetate from OPEFB cellulose into membrane material. The synthesis of cellulose acetate using the acetylation method is carried out in several processes. The activation process expands the surface of the cellulose fibers. The acetylation process is intended to substitute cellulose hydroxyl groups with acetyl groups. The hydrolysis removes some acetyl groups from trimester cellulose and reduces the combination of sulfate esters. In the results of FTIR analysis, carbonyl groups (C=O) and acetyl groups (C-O) have high peak depths in OPEFB cellulose acetate. Based on the calculation of acetyl content, OPEFB cellulose acetate has an acetyl content of 39.82% with a degree of substitution of 2.44. The results of XRD analysis show that OPEFB cellulose acetate has a crystallinity index of 34.5%. In TGA analysis, the thermal stability of cellulose acetate is up to a temperature of 210°C. Based on the research results, OPEFB cellulose can be synthesized into cellulose acetate using the acetylation method.

Influence of land slope and soil depth on weed seedbank in palm oil plantations

Palm oil plantations significantly contribute to economy in Indonesia, with Crude Palm Oil (CPO) exports showing a marked increase of 9.6% from 2017 to 2019. However, weeds compete with palm oil plants for light, nutrients, and space, negatively impacting the growth and yield of palm oils. This study aims to identify weed species in the seedbank at various soil depths and land slopes within an oil palm plantation in West Kalimantan. The research was conducted from January to February 2024 at Gunung Aru Estate using a Complete Randomized Block Design (CRBD). The study examined soil profiles of 0-10 cm, 10-20 cm, and 20-30 cm across flat (0-2°), wavy (2-6°), and steep (>6°) lands, resulting in 27 plots. Soil samples with the size of 0.04 m2 for each sample were collected and analysed in a greenhouse to observe weed germination. The study identified five dominant weed species: Borreria setidens, Ageratum conyzoides, Phyllanthus amarus, Eleusine indica, and Cleome rutidosperma with more weeds Boreria setidens. Results showed significant variations in weed infestation patterns across land slopes and soil depths. Flat land exhibited higher weed counts at greater soil depths (1.47 weeds), while wavy land showed increased weed numbers at shallower depths (1.87 weeds). Steep land had lower overall weed counts. Understanding the influence of land slope and soil depth on weed infestation is essential for developing effective weed management strategies in palm oil plantations.

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.

Palm Oil Exports Increased Due To Rupiah Depreciation, International Price Factors And Government Regulations

Palm oil is a very important export commodity for Indonesia, contributing significantly to the country's economy in terms of both production and export. Fluctuations in the rupiah exchange rate against foreign currencies, especially the US dollar, have been widely studied, which turned out to affect the export of various commodities, including palm oil. However, the linkages to international prices and government regulation have not been studied much. This study aims to examine how much influence international prices, rupiah depreciation, and Indonesian government regulations have on increasing palm oil exports to India. Data collection method through surveys and circulating questionnaires, with a sample of 100 respondents. The analysis method used is multiple linear regression analysis using SPSS. The results of the study obtained based on the partial test (t test) obtained a positive and significant influence between international prices on increasing exports. There is a positive and significant influence between rupiah depreciation and increased exports. There is a positive and significant influence of Indonesian government regulations on increasing exports. The contribution of the percentage contribution of the independent variable of international prices, rupiah depreciation, and Indonesian government regulations to the dependent variable of increasing exports is 0.811 or 81.1%. While the remaining 0.189 or 18.9% was influenced by other variables outside this study.

Price Competition and Shifting Demand: The Relation between Palm and Coconut Oil Exports

Despite having a strong production capacity for fresh coconut, Indonesia has a certain deficiency in coconut processing, particularly coconut oil products, which is reflected in the declining market demand rates. The skyrocketing price of palm kernel oil (PKO) had been observed to impact the shifting demand for coconut oil. The cross-price competition with PKO was estimated to uncover the potential market demand for Indonesian coconut oils, especially during the periods of price discrepancies between 2020 and 2022. Thus, our study aimed to analyze the Indonesian coconut oil and palm kernel oil (PKO) market relationship as the markets reacted during the period of price volatility. This study is essential for Indonesian market evaluation, as both commodities are considered to be perfect substitute goods and are similar substances that contain high levels of lauric acid called “lauric oils”. We deployed an ARDL analysis utilizing secondary data from 1964 to 2022, focusing on the cross-price elasticity between coconut oil and PKO prices with the addition of prominent concerned variables. In the long-term estimations, the observational results indicated that the coconut oil and PKO prices had distinctive impacts on Indonesian coconut oil exports of −1.85% and 1.88%, respectively. In the short-term estimations, we found inverse values: the coconut oil price had positive impacts in the short-term period of 1.29% (D1.) and 2.35% (LD.), while the PKO had a negative impact on Indonesian coconut oil exports of −2.17%. This indicated that a PKO price reduction would increase the demand for Indonesian coconut oil exports due to the PKO price volatility and uncertainty perceived by the buyers in the short term. Our study also observed that rival producers, such as the Philippines, had a negative impact (−1.80%), representing the intense competition between Indonesia and the Philippines. Therefore, the Indonesian government has to elevate its coconut oil competitiveness to acquire the potential to expand the market and compete with other major coconut-producing countries.

Indonesian Palm Oil Export Analysis

Palm oil is a plantation commodity essential to economic occupation in Indonesia due to its capability to make plant-based oil, which is critical to the manufacturing sector. This study aims to analyze the factors affecting Indonesian palm oil exports between 1990-2019. The methods used in this study are testing regression prerequisites (normality and linearity test), classical assumption (multicollinearity, heteroscedasticity, and autocorrelation test), and multiple linear regression (F, t, and R2) to analyze the factors that affect Indonesian palm oil exports. Based on the outcomes of the F test, it is evident that palm oil production, the USD exchange rate against the IDR, and the global palm oil price collectively influence palm oil exports. As per the t-test results, both production levels and global palm oil prices significantly impact Indonesian palm oil exports. However, the US dollar to Indonesian rupiah exchange rate does not significantly affect palm oil exports due to its fluctuating nature in both the short and long term. These fluctuations introduce uncertainty for exporters engaged in long-term trade agreements with foreign nations. According to the R2 test results, palm oil production, the USD exchange rate against the IDR, and the world palm oil price had a 96.5% impact on Indonesian palm oil exports.

Pengaruh Profitabilitas dan Ukuran Perusahaan Terhadap Struktur Modal

In 2022 exports of plantation companies will experience a significant decline in exports, especially in exports of palm oil and rubber. According to GAPKI, exports of palm oil decreased by 0.4%. And according to GAPKINDO stated that rubber exports decreased by 13.03%. This causes inflation in Indonesia and increases the risk of bankruptcy for companies. This study aims to determine whether there is an effect of profitability and firm size on capital structure. The independent variables studied were Profitability (X1) and Firm Size (X2). The independent variable in this study used Capital Structure (Y). This type of research belongs to the type of exploratory descriptive research, using a case study research method with a quantitative approach. The results of the study stated that partially profitability has a negative effect on capital structure, firm size has no effect on capital structure. Simultaneously the profitability and firm size variables together influence the capital structure. The correlation test states that there is a close relationship between the Profitability variable (X1) and the Firm Size variable (X2) on Capital Structure (Y) with an R2 value of 0.764, which means that this research has the model ability to explain the dependent variables of 76, 4% while 0.246% is explained by other variables not discussed in this study.

Indonesian's Position in the World Vegetable Oil Trade

Indonesia's position as the largest vegetable oil producer is very strong in the world trade. Nonetheless, the Netherlands and Malaysia trade the Indonesian palm oil, which leads to a significant generation of profits. This research demonstrates the role of Indonesia in the global trade of vegetable oil. It illustrates the rivalry among vegetable oil producers and exporters and the dependence of vegetable oil importers on Indonesia. The annual volume data of vegetable oil production, export, and import sourced from FAO STAT in 2010-2020 were used. The data were processed and analyzed using descriptive statistics. Palm oil is the most widely acquired vegetable oil. The production of this oil is plentiful, and its price is the most economical compared to other vegetable oils. Soybean oil was the main competitor of palm oil, with the primary producers being China and the United States. The negative campaign against Indonesian palm oil could not weaken Indonesia's competitiveness in the global vegetable oil trade. Indonesia should limit palm oil exports to Europe and Malaysia while increasing exports to countries that only use it for domestic consumption. Coconut oil had the most potential to increase vegetable oil production in Indonesia. Indonesia's prominence in the global trade of edible oil is supreme. However, this preeminent status may be deteriorated by nations engaged in the commerce of Indonesian palm oil. Therefore, Indonesia should continuously update the world vegetable oil trade map to emphasize the point and level of export elevation or reduction. Indonesia should also develop and increase the production of other vegetable oil products to strengthen its position in the world's oil trade.

INDONESIA'S POLICY OF PALM OIL EXPORTS BANNED IN THE CURRENT WORLD ENERGY CRISIS

This paper aims to determine the impact of tariff and non-tariff barriers, the ban on exports of palm oil commodities, and the energy crisis due to the Russia-Ukraine war on the Indonesian and world economies. The research was conducted because it wanted to know the impact of the policies carried out by the Indonesian government as the largest producer of palm oil in the world and whether it produced a spillover effect on the economy. The objective is to examine the policies set by the government, namely tariff or non-tariff barriers, and their impact on trade. The Indonesian government implemented a policy banning palm oil exports from reducing the sharply rising local palm oil prices and meeting domestic demand. The policy was implemented in March 2022 and required further research to analyze its impact. This study used the GTAP database analysis tool in 2011. This study includes shocks in tariff and non-tariff barriers on palm oil commodities. The shock that was included to represent the energy crisis was a ban on exports and imports to Russia and a ban on food exports in Ukraine. The study results using the GTAP analysis tool, namely the determination of the export ban on palm oil commodities, had a positive impact, namely reducing the price of domestic palm oil, but the negative impact was the level of output, and the number of workers fell. Increasing export tariffs is not effective and increases domestic palm oil prices. Government policies that are carried out must ensure that domestic palm oil has stocks that meet consumption at affordable prices. The government must implement policies that protect consumers and producers of palm oil. Policies that the government can carry out are mitigating safety nets and distributing aid directly to affected society.

Implementation of Backpropagation Artificial Neural Network on Forecasting Export of Palm Oil in Indonesia

Export activities are one of the largest revenues in Indonesia with the largest contributor to export is being palm oil. Increasing volume of palm oil exports, it will be able to spur economic growth in Indonesia. In this research, palm oil export forecasting in Indonesia is carried out based on the main destination countries using the Artificial Neural Network (ANN) method with the Backpropagation algorithm. The data used is palm oil export data for 2012-2022 obtained from the Central Statistics Agency (BPS) website. From the data used, the optimal architecture model is 10-1-3-3-1 with a MAPE of 9.68%, which means that this architecture uses 10 input data, 3 hidden layers with the number of each input neuron (1,3,3), and there is 1 output output. From this study, it is estimated that 90% of the results of palm oil export forecasting using the ANN method are close to the actual value.

The influence of biofuel energy production on the exports of the palm oil industry in Malaysia: A panel GMM and robust standard error approach

In recent years, there has been a consistent and significant increase in the consumption of biofuels by countries across the globe. Numerous governments have implemented distinct quotas and objectives aimed at promoting and governing the augmented utilization of biofuels. The demand for biofuel is growing in European countries, which increases the export of biofuel energy in parent countries such as Malaysia. The Malaysian government has suggested receiving different sustainability certifications that are relevant to the biofuel industry. The Malaysian government has made it compulsory to attain environmental sustainability for oil-producing certification. The purpose of this article is to examine the role of biofuel energy production on the exports of the palm oil industry in Malaysia. This study uses the annual data of Malaysian palm oil exporters from 2009 to 2018 and employs the generalized method of moments (GMM) and the robust standard error methodologies. The findings showed that the production of palm oil plays a positive role in the exports of Malaysia’s palm oil industry. This study will serve as a guide for future research in this area and for the authorities when formulating policies regarding exports. It is recommended that these authorities should put extra emphasis on the productivity of the palm oil industry to further enhance Malaysia’s exports of biofuel, and the government needs to implement regulations to protect the environment.

Palm Oil Export and Environmental Pollution in Malaysia: Evidence from ARDL Approach

This paper seeks to identify the effect of palm oil export on environmental pollutants. The National Income (GDP) and Foreign Direct Investment (FDI) were also included in the model as control variables. This study employs the auto-regressive distribution lag (ARDL) econometric technique, and the analysis is based on time series data from 1990 to 2020. The bound F-test and Johansen cointegration tests confirmed that palm oil export significantly accelerates environmental pollution. However, the results from the short-run estimate explore that all the variables are insignificant. This study concludes that Malaysia should control international trade activities to deal with pollution problems.

Analysis of Indonesian Palm Oil Competitiveness in the Main Export Destination Countries

Indonesia is the largest palm oil producing country in the world with a production volume of nearly 43 million tons/year. The high production of Indonesian palm oil is a new opportunity that needs to be developed in this globalization era to compete with its main competitors. Therefore, an analysis is needed in order to discover the competitiveness of Indonesian palm oil commodity in the main export destination countries. Export is an activity conducted by a country by selling its products abroad using the payment system, quality, quantity, and other sales terms that have been agreed upon by the exporting and importing countries. This study aims to analyze the level of competitiveness of Indonesian palm oil exports in the Asian and European markets represented by six countries: India, Malaysia, Singapore, the Netherlands, Italy, and Spain. The analytical method used is Revealed Competitive Advantage (RCA) to see the comparative advantage and to determine whether the performance of Indonesian palm oil products in the main export destination countries increases or decreases by using the Revealed Comparative Advantage Index (RCA Index) calculation. The data used are secondary data in the form of time series during the period of 2014 to 2020 and cross sections of the main export destination countries of Indonesian palm oil. The results of the calculation of the RCA value show that in the period 2014 to 2020 the RCA value of Indonesian palm oil products in the main export destination countries is higher than one (> 1). Thus, Indonesian palm oil products have a comparative advantage in the main exports of destination countries from year to year. In contrast to the RCA index calculation results in this study, Indonesian palm oil products are still able to show a positive trend every year. This is proven by certain years’ RCA index of the main export destination countries: India, Malaysia, Singapore, the Netherlands, Italy, and Spain is still less than one (<1) even though the average RCA index value for each country is higher than one (>1). Hence, it can be said that the performance of Indonesian palm oil products increases or decreases frequently every year in each of the main export destination countries.

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.