Modeling policy mix to improve the competitiveness of Indonesian palm oil industry

Abstract

Abstract:Purpose: The purpose of this research is to develop a model that will explain the impact of government policies to the competitiveness of palm oil industry. The model involves two commodities in this industry, namely crude palm oil (CPO) and refined palm oil (RPO), each has different added value.Design/methodology/approach: The model built will define the behavior of government in controlling palm oil industry, and their interactions with macro-environment, in order to improve the competitiveness of the industry. Therefore the first step was to map the main activities in this industry using value chain analysis. After that a conceptual model was built, where the output of the model is competitiveness of the industry based on market share. The third step was model formulation. The model is then utilized to simulate the policy mix given by government in improving the competitiveness of Palm Oil Industry. Findings:The model can accommodate government's policy mix which is then optimized. The model has been built structurally based on hierarchical multi-level system approach, while in the process element, the subprocesses are built using VCA approach. The model can simulate industry performance, and show that such government policy mix can improve the competitiveness of Indonesian palm Oil Industry. Research limitations/implications:The model was developed using only some policies which give direct impact to the competitiveness of the industry. For macro environment input, only price is considered in this model.-231-Journal of Industrial Engineering and Management -http://dx.doi.org/10.3926/jiem.1582 Practical implications: The model can simulate the output of the industry for various government policies mix given to the industry. The techno-economic aspect is also discussed. Originality/value:This research develops a model that can represent the structure and relationship between industry, government and macro environment, using value chain analysis and hierarchical multilevel system approach.

Dampak Kebijakan Tarif terhadap Perdagangan Minyak Sawit Dunia

“…Peningkatan ekspor minyak sawit Indonesia akan meningkatkan total volume ekspor dunia yang menyebabkan harga minyak sawit dunia turun dan harga ekspor minyak sawit Indonesia turun sesuai dengan penelitian Silitonga et al (2016). Menurut Larson(1996), kebijakan perdagangan tarif ekspor minyak sawit mempengaruhi harga domestik dan harga dunia serta akan mempengaruhi harga minyak nabati lainnya.…”

Dampak Kebijakan Perdagangan terhadap Pengembangan Industri Biodiesel Indonesia

“…Di pasar dunia, peningkatan ekspor minyak sawit Indonesia menambah total ekspor dunia dan menurunkan harga minyak sawit. Penurunan harga dunia menyebabkan turunnya harga ekspor Indonesia, sesuai dengan hasil penelitian Silitonga et al (2016). Bagi Indonesia, peningkatan ekspor minyak sawit meningkatkan devisa ekspor sehingga total devisa juga meningkat.…”

The Competitiveness of Indonesian Crude Palm Oil in International Market

“…During the 2013-2016 period, Indonesia's competitiveness was better when compared to Malaysia (Marwa et al, 2018;and Nurkhoiry, 2017). Then, the study was conducted by Rifin (2010) the analysis of the Export Competitiveness of Indonesia's Palm Oil Product aims to determine the competitiveness of Indonesian palm oil in the Asian, European and African markets, by using the Constant Market Share Analysis (CMSA) analysis tool, states that Indonesia has experienced an increase in exports and a significant market share significant during the 1999-2001 and 2005-2007 periods, the increase was due to increased demand and increased export competitiveness compared to Malaysia as well as a stable situation and trade liberalization implemented in the country thereby reducing barriers in the form of import duties (Rifin, 2010;Yahya & Gunawan, 2019;and Silitonga et al, 2016).…”