Indonesia Growth of Economics and the Industrialization Biodiesel Based CPO

Faurani Santi Singagerda, Tri Yuni Hendrowati and Anuar Sanusi
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Faurani Santi Singagerda: Faculty of Economics, University of Sang Bumi Ruwa Jurai, Bandar Lampung, Lampung, Indonesia,
Tri Yuni Hendrowati: Pringsewu School of Education, Lampung, Indonesia,
Anuar Sanusi: Darmajaya Institute Informatics and Business, Lampung, Indonesia.

International Journal of Energy Economics and Policy, 2018, vol. 8, issue 5, 319-334

Abstract: This study aimed to analyses the impact of palm oil-based biodiesel development on growth and poverty in Indonesia that combined with government policy using simultaneous equation econometric 2 SLS s models. The result shows that if the export tax, and government expenditure in industry increase; then domestic exchange rate (IDR) and interest rate decrease, those will give positive impact on economy growth and vice versa gives a negative impact to poverty. The simulation may apply to know the impact on economy growth, and poverty in Indonesia by the development. The study found that palm oil-based biodiesel development can create a growth and poverty in Indonesia and CPO biodiesel development can be synergized with the increasing export tax and government expenditure in industry, so growth and poverty-reducing in Indonesia will be better and qualify. However, government must maintain stability of exchange rate fluctuation because the impact can reduce CPO production industry.

Keywords: Crude Palm Oil; Energy; Industry; Economic growth; Poverty (search for similar items in EconPapers)
JEL-codes: C5 E24 E27 O31 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2018-05-41

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