Analysis of Determinants of Indonesian Crude Palm Oil (CPO) Exports to India
| Authors | ||
| Issue | Vol 7 No 1 (2024): Talenta Conference Series: Local Wisdom, Social, and Arts (LWSA) | |
| Section | Articles | |
| Keywords: | Crude Palm Oil (CPO; Crude Palm Oil (CPO) Exports Exchange Rate Rupiah Exchange Rate against the US Dollar GDP Per Capita India CPO Production | |
| Published | 2024-02-18 |
Abstract
Indonesia's exports play a crucial role in the development of its economy, especially in earning foreign
exchange through the export of natural resources. Crude Palm Oil (CPO) is one of Indonesia's main export
commodities, and India is one of its largest importers, making a significant contribution to the country's
foreign exchange earnings. This study aims to determine the influence of production, exchange rate, and
India's per capita income on the volume of Indonesian Crude Palm Oil (CPO) exports to India from 1991 to
2021, both partially and simultaneously. The type of research used in this study is descriptive research with
a quantitative method approach. This study used secondary data. Secondary data was obtained in the form
of time series data with a period of 30 years (1991- 2021), and the analysis model used in this study is the
multiple linear regression model with the Ordinary Least Square (OLS) method. The analysis tool used was
the SPSS program (Statistical Product and Service Solution). The data sources collected in this study were
from the Central Statistics Agency (BPS), the Plantation Outlook 2019-2021, the Directorate General of
Plantation (Ditjenbun), Bank Indonesia (BI), the World Bank, and a literature review. The results of the
analysis and data obtained from the study on the Determinants of Indonesian Crude Palm Oil (CPO)
Exports to India show that the crude oil production variable has a positive and significant effect on
Indonesian Crude Palm Oil (CPO) exports to India. The exchange rate variable has a negative and
insignificant effect on Indonesian Crude Palm Oil (CPO) exports to India. The per capita income variable
in India has a negative and insignificant effect on Indonesian Crude Palm Oil (CPO) exports to India. This
study recommends increasing Indonesian Crude Palm Oil (CPO) production to meet national and
international demand and increasing Indonesian Crude Palm Oil (CPO) exports, particularly to India, to
help accelerate economic growth.
