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Market Share Analysis and Export Performance of Indonesian Crude Palm Oil in the EU Market

Author

Listed:
  • Jamilah Jamilah

    (Department of Agribusiness, Malikussaleh University, Indonesia)

  • Hafni Zahara

    (Department of Agribusiness, Malikussaleh University, Indonesia)

  • Emmia Tambarta Kembaren

    (Department of Agribusiness, Malikussaleh University, Indonesia)

  • Setia Budi

    (Department of Agribusiness, Malikussaleh University, Indonesia)

  • Nurmala Nurmala

    (Department of Economics, Malikussaleh University, Indonesia)

Abstract

This study aims to analyze the market share and export performance of Indonesian Crude Palm Oil (CPO) to the European Union Market, using time series data (2000 2020). The Market Share Index is used to assess the condition of the Indonesian CPO market in export destination countries when compared to its competitors (Malaysia). Analysis of the performance of CPO products in the European Union market using the Constant Market Share (CMS) approach. The results show that the average growth of Indonesia's export standards to Europe is 0.1526, indicating that Indonesia is able to take advantage of CPO export opportunities. Indonesia has been able to meet CPO product specification standards in importing countries, including the Roundtable Sustainable Palm Oil (RSPO) and Hazard Analysis and Critical Control Points (HACCP) certifications as standards for safety and consumer protection. Indonesian CPO is well positioned in Spain (0.000244) and Italy (0.00014), and less well positioned in the Netherlands and Germany. Indonesia does not have good competitiveness against CPO exports in the European Union market, which causes Indonesia to shift the Asian market as the target market for Indonesian CPO.

Suggested Citation

  • Jamilah Jamilah & Hafni Zahara & Emmia Tambarta Kembaren & Setia Budi & Nurmala Nurmala, 2022. "Market Share Analysis and Export Performance of Indonesian Crude Palm Oil in the EU Market," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 218-225, March.
    • Handle: RePEc:eco:journ2:2022-02-24
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    References listed on IDEAS

    as
    1. Cashin, Paul & Cespedes, Luis F. & Sahay, Ratna, 2004. "Commodity currencies and the real exchange rate," Journal of Development Economics, Elsevier, vol. 75(1), pages 239-268, October.
    2. Gan, Peck Yean & Li, Zhi Dong, 2014. "Econometric study on Malaysia׳s palm oil position in the world market to 2035," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 740-747.
    3. Chen, Yu-chin & Rogoff, Kenneth, 2003. "Commodity currencies," Journal of International Economics, Elsevier, vol. 60(1), pages 133-160, May.
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    Cited by:

    1. Ariodillah Hidayat & Bernadette Robiani & Taufiq Marwa & Suhel Suhel, 2023. "Competitiveness, Market Structure, and Energy Policies: A Case Study of the World s Largest Crude Palm Oil Exporter," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 111-121, May.

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    More about this item

    Keywords

    market share; export performance; Crude Palm Oil; EU market;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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