Indonesian palm oil export analysis

This study aims to analyze the factors affecting Indonesian palm oil exports between 1990-2019 and the impact of the COVID-19 pandemic (2020-2021 period) on Indonesian palm oil exports. This study also reveals the structure of Indonesian palm oil exporting companies, identifies the problems of palm oil exporting companies, and proposes solutions to these problems. Primary data was obtained through in-depth interviews with 15 Indonesian palm oil exporters. The study used regression prerequisite testing, classical assumption, and multiple linear regression methods to analyze the factors affecting Indonesian palm oil exports between 1990-2019. A literature review and simple descriptive methods were used to analyze the impact of the COVID-19 pandemic (2020-2021) on Indonesian palm oil exports. Basic statistical methods for comparative interpretation were used to identify Indonesian palm oil export companies' structure, problems, and solutions. According to the results, palm oil production, the USD exchange rate against the IDR, and the world palm oil price had a 96.5% impact on Indonesian palm oil exports. Palm oil production and export volume decreased during the COVID-19 pandemic due to supply chain disruptions, labor limitations, and other constraints. Palm oil companies faced various internal and external challenges, including production, export, and climate issues, high fertilizer prices, global economic uncertainty, export restriction policies, and negative campaigns by environmental and social NGOs on palm oil. Solutions to be implemented by companies include careful fertilization planning, implementation of integrated pest management, market diversification, active participation in industry associations, and compliance with national and international palm oil sustainability standards.