Driving Factors for Indonesian Palm Cooking Oil Exports

Abstract

Several main factors are thought to have caused palm cooking oil exports from Indonesia to increase rapidly recently. Therefore, this research seeks to investigate some of these determinants from a competitive advantage perspective. By using the descriptive statistical method and the ordinary least squares regression method, this research shows that the increase in palm cooking oil exports is not only determined by the product competitiveness factor but is also influenced positively and significantly by the state of market demand in the past, improvements in export prices, and the occurrence of an increasingly deep downstream industry. As a result, Indonesia's palm cooking oil exports have increased rapidly. Apart from that, there is a tendency for Indonesia to prefer producing products that have higher economic value rather than concentrating on producing products that have low economic value.