The Effect of Export-Related Measures on Indonesian Export of Palm, CPO, and Its Derivative Products

Edy Krismanto Sipayung and Christina Ruth Elisabeth
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Christina Ruth Elisabeth: Universitas Indonesia, Indonesia

Economics and Finance in Indonesia, 2023, vol. 69, 113-127

Abstract: This study investigated the effect of Export-Related Measures (ERMs) imposed by the Government of Indonesia on the export volume and value of palm, Crude Palm Oil (CPO), and its derivatives products utilizing the export data of Indonesia to 194 destination countries in the 2011–2020 period. This study combined the dataset of ERMs from the United Nations Conference on Trade and Development (UNCTAD) database and relevant Indonesian regulations. The results reveal that ERMs have a positive and significant effect on both the export volume and value of Indonesian palm, CPO, and its derivatives products. The price-raising effect or costs of ERMs in these products is relatively high, approximately 38.36%. However, the price-raising effect remains lower than the market-creating effect, as confirmed by the estimation results of indirect country characteristics. This study proposes a policy to strengthen the capacity of exporters to comply with ERMs and to harmonize the ERMs in Indonesia with import measures imposed by export destination countries.

Keywords: AVEs; Conformity assessment institution; Export-Related Measures; Indonesia; Palm; CPO; and its derivatives products (search for similar items in EconPapers)
JEL-codes: I38 O12 O22 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:202308

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