Competitiveness, Market Structure, and Energy Policies: A Case Study of the World s Largest Crude Palm Oil Exporter

Ariodillah Hidayat, Bernadette Robiani, Taufiq Marwa and Suhel Suhel
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Ariodillah Hidayat: Department of Economic and Development, Faculty of Economics, Sriwijaya University, Indonesia.
Bernadette Robiani: Department of Economic and Development, Faculty of Economics, Sriwijaya University, Indonesia.
Taufiq Marwa: Department of Economic and Development, Faculty of Economics, Sriwijaya University, Indonesia.
Suhel Suhel: Department of Economic and Development, Faculty of Economics, Sriwijaya University, Indonesia.

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 3, 111-121

Abstract: Crude Palm Oil (CPO) is the mainstay of Indonesian agricultural products which is the largest CPO producing country in the world. The high market share of Indonesian CPO exports reflects the high competitiveness of Indonesian CPO in the global market. The purpose of this study is to determine the competitiveness of Indonesian CPO, the concentration of the Indonesian CPO industry, and analyze the factors that are suspected to affect the competitiveness of the CPO industry in Indonesia. The data used in this study are secondary data with a five-digit ISIC (10432) using time series data for 2001-2020 and the analytical techniques used in this study include Revealed Competitive Advantage (RCA), Gini Coefficient, and Error Correction Model (ECM). The results showed that Indonesian CPO has high competitiveness in the international market, the Indonesian CPO industry is not concentrated, in the short term the variables that affect competitiveness are CPO prices, subsidized solar prices policy, and industrial concentrations, while in the long term the influential variables are biodiesel policy, subsidized diesel oil policy and industrial concentration

Keywords: Crude Palm Oil; competitiveness; Biodiesel; Subsidy; Energy Industry (search for similar items in EconPapers)
JEL-codes: D24 F62 L11 O13 (search for similar items in EconPapers)
Date: 2023
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