Indonesia Growth of Economics and the Industrialization Biodiesel Based CPO
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, PovertyJEL Classifications: E24, E27, C5, O31Downloads
Download data is not yet available.
Downloads
Published
2018-09-05
How to Cite
Singagerda, F. S., Hendrowati, T. Y., & Sanusi, A. (2018). Indonesia Growth of Economics and the Industrialization Biodiesel Based CPO. International Journal of Energy Economics and Policy, 8(5), 319–334. Retrieved from https://mail.econjournals.com/index.php/ijeep/article/view/6590
Issue
Section
Articles