Indonesian Palm Oil in The World Vegetable Oil Market in the Period Of 2004-2017: Leader Or Follower?

Fitrianti, Wanti; Syaukat, Yusman; Hartoyo, Sri; Fariyanti, Anna

doi:10.17358/jma.16.1.1

Cited by 4 publications

(4 citation statements)

References 15 publications

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“…So, the macroeconomic factor, especially in the global market (exchange rate and world CPO price), will affect palm oil companies' market performance. It could be through international trade because Indonesia can strengthen its position in the global vegetable oil market (Fitrianti et al 2019). Overall, these results support the results of a number of previous studies in term of the effect of inflation (Issah and Antwi, 2017;Nanda and Panda, 2018), the exchange rates (Odusanya et al 2018;Pacini et al 2017), and the world CPO prices (Shahida et al 2018) on the firm performance.…”

Section: Determinants Of Market Performancesupporting

confidence: 86%

Firm Performance Factors and Efficiency of Indonesian Palm Oil Companies

Suroso¹,

Tandra²,

Najib³

et al. 2020

jma

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The palm oil industry is one of the agricultural, industrial sectors with a strategic role in the national economy, especially in Indonesia. Although this industry has a high contribution in Indonesia, the oil palm plantation companies have not shown satisfactory performance. Internal firm conditions and macroeconomic variables may influence the performance of oil palm plantation companies. Therefore, this study aims to investigate the firm performance determinants and efficiency of oil palm companies in Indonesia. The samples in this research are 12 oil palm companies listed on the Indonesian Stock Exchange (BEI) for the 2014-2019 periods. The panel regression analysis and the Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) are applied in this study. The first result in the panel regression shows that the firm size, exchange rate, and world CPO price affect ROA as the operational performance. Moreover, liquidity, leverage, and inflation do not affect ROA as operational performance. The second result in panel regression shows that inflation, exchange rate, and CPO World Price affect PER as the market performance. However, market performance is not affected by liquidity, leverage, and firm size. The efficiency analysis shows that the firm ranking tends to fluctuate in the observation period. This analysis defines that the oil palm plantation companies in Indonesia, on average, have a similar performance.

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Section: Determinants Of Market Performancesupporting

confidence: 86%

Firm Performance Factors and Efficiency of Indonesian Palm Oil Companies

Suroso¹,

Tandra²,

Najib³

et al. 2020

jma

Self Cite

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“…(Syahril et al, 2017) Transaksi di pasar derivatif dapat dilakukan manajemen risiko karena adanya kontrak dalam menjamin kepastian harga. Berdasarkan analisis (Fitrianti et al, 2019), CPO Indonesia masih di posisi price taker dalam merespon harga CPO dunia dan minyak nabati lainnya. Perdagangan CPO pada pasar derivatif di tingkat internasional merupakan bentuk investasi, sehingga pergerakan harga dan transaksi lebih dinamis (Devaki, 2021;Pradhananga, 2015), sedangkan transaksi derivatif di Indonesia lebih rendah dibanding pasar global.…”

Section: Menurutunclassified

Integrasi Pasar Berjangka Komoditi Crude Palm Oil (CPO) Indonesia Di Masa Pandemi Covid-19

Helbawanti

Bunda

Faqihuddin

2022

AGRICA

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Crude Palm Oil (CPO) commodity trading has been carried out domestically and exported, so that theprice developments formed are domestic trading prices in the spot market and global prices ininternational market level. Price fluctuations in CPO agriculture increased the risk of trade causinguncertainty in the spot market and derivatives market. Price uncertainty was the impact of theinability of a market to follow the price changes in other markets. Research on CPO prices in thederivatives market and spot market was aimed to analyze market cointegration and causality.Johansen Cointegration Test and the Granger Causality Test were applied to this research. TheJohansen Cointegration test results explained that the derivatives market and the spot market ofCrude Palm Oil (CPO) were not long-term cointegrated. The Indonesian CPO market has not been ableto become an international reference market due to derivative transactions and lack of literacy. Thespot market that was unable to follow the movements of the derivatives market might be caused byprice fluctuations due to uncertainty during the Covid-19 pandemic with social restrictions on globaltrade activities. There was one-way causality from the analysis using Granger Causality. The causality test depicted the derivatives market affected the spot market, so that changes or shocks in thederivatives market could be transmited into spot market. The derivatives market at the global levelheading to Rotterdam as a market leader showed price discovery function, while the Indonesian spotmarket became market follower. The demand of CPO in the European market was high for biofuelsand many industral purposes and there were regulations on the use of CPO which have contributedto the influence of the spot market in Indonesia. The derivative market provided future priceinformation intended minimize the uncertainty of price changes.

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“…World rivalry is a popular topic that is usually discussed because it is an unavoidable phenomenon in every country (Rachmi et al 2018). Fitrianti et al (2019) stated in their study, there is fierce competition between the vegetable oil market and Indonesian palm oil prices, following the increase in the prices of Malaysian palm oil, soybean oil and rapeseed oil, but leading the movement of sunflower oil prices. However, the long-term phase of soybean oil prices followed the decline in Indonesian palm oil prices.…”

Section: Introductionmentioning

confidence: 99%

The Analysis of Competition for Indonesian Palm Oil Derivative Products in The Italian Market

Ximenes¹,

Nurmalina

Rifin

2022

jma

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Indonesia is the world's largest producer and exporter of palm oil that has been recognized by foreign countries. Italy is the largest importer of Solid Palm Oil Fraction (SPOF) in the European Union. This article examines the analysis of SPOF Indonesia's competition in the Italian market. The method used is AIDS with a SUR approach that iterates through the application of STATA. The secondary data used is a time series on import value and quantities from 2004 to 2021 by Italy. The results showed that the price elasticity and expenditure of Indonesian SPOF imports were more elastic than Malaysia and the Netherlands. SPOF Indonesia is a luxury good but the price is lower. The elasticity of own price (Hicksian), the Netherlands is more elastic, while Indonesia is Marshallian. Cross price elasticity (Hicksian and Marshallian), the relationship between Indonesia-Malaysia compete by means of substitution. Meanwhile, the Netherlands-Indonesia and the Netherlands-Malaysia complement each other. Therefore, the Indonesian must add quality classes and added value to SPOF products in accordance with the quality of Malaysian and Netherlands products to increase consumer attractiveness. As a result, there will be bilateral cooperation between the two main producing countries of the SPOF in the Italian market to prevent a trade war.

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Indonesian Palm Oil in The World Vegetable Oil Market in the Period Of 2004-2017: Leader Or Follower?

Abstract: This research specifically analyzed the market integration and transmission

Cited by 4 publications

References 15 publications

Firm Performance Factors and Efficiency of Indonesian Palm Oil Companies

Firm Performance Factors and Efficiency of Indonesian Palm Oil Companies

Integrasi Pasar Berjangka Komoditi Crude Palm Oil (CPO) Indonesia Di Masa Pandemi Covid-19

The Analysis of Competition for Indonesian Palm Oil Derivative Products in The Italian Market

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