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European Markets Certification Demands and the Integration to Indonesian Crude Palm Oil Main Export Markets

Banwa Supplements

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Title European Markets Certification Demands and the Integration to Indonesian Crude Palm Oil Main Export Markets
 
Creator Chalil, Diana; Universitas Sumatera Utara
Barus, Riantri; Sekolah Tinggi Ilmu Ekonomi (STIE) Nusa Bangs
 
Description Indonesia is the world largest crude palm oil (CPO) producer in the world, with nearly 80% of production exported. Therefore, Indonesia needs to consider the world market requirements. One of the requirements is the demand for sustainable products, which is certified by the Roundtable Sustainable Palm Oil (RSPO) certificate. The CPO (Certified Sustainable Palm Oil) demands mainly come from European countries, which individually are not the major Indonesian CPO importers but as a group (EU28) constitutes the second-largest importer. This study is conducted to analyze the integration of the European market with Indonesia’s main export markets (India, China, and Bangladesh). The analyses use quarterly data of CPO free on board (f.o.b) and cost, insurance and freight (c.i.f.) prices, and import and export volumes from 2008 to 2014, covering exporter and importer countries, namely, Indonesia, Malaysia, China, India, Bangladesh, the Netherlands, Germany, Italy, and the EU28, with seemingly unrelated regression (SUR) and Eagle-Granger causality method. Estimation results are used to analyze the effect of the European countries’ volume and price changes, both individually and collectively (EU28), to the changes in India’s, China’s, and Bangladesh’s volume and price as the Indonesian CPO major importers, and to the changes in Indonesia’s and Malaysia’s volume and price as major exporters. The analysis is completed with policy implications that are expected to be inputs for relevant stakeholders.
 
Publisher BANWA Supplements
 
Contributor —
 
Date 2015-11-03
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://ojs.upmin.edu.ph/index.php/supplements/article/view/136
 
Source BANWA Supplements; No 1A (2015): ICAEM 2015
1656-3719
 
Language eng
 
Relation http://ojs.upmin.edu.ph/index.php/supplements/article/view/136/150
http://ojs.upmin.edu.ph/index.php/supplements/article/view/136/262
 
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