Dampak Kebijakan Suku Bunga Kredit Terhadap Permintaan Minyak Sawit Dan Produksi Margarin Dan Sabun Di Indonesia

Abstract

Margarine and soap are derivative products of palm oil. As the raw material, crude palm oil is untapped yet for processing margarine and soap. The government role on credit interest rate reduction is expected to increase the production of margarine and soap Indonesia in order to improve these export quantity. The aims of this research are identify factors that influence demand and production of margarine and soap in Indonesia and evaluate the impact of credit interest rate policy change toward demand of crude palm oil and production of margarine and soap. This research was analyzed by using econometric model in the form of simultaneous equations. The model of crude palm oil demand and margarine and soap production divided into 22 equations (16 structural equations and six identity equations). As the result, the implementation of the reduction policy at 20 percent credit interest rate subsidy for margarine and soap industry increase demand of oil palm and production of margarine and soap. The government needs to focus on reduction of credit interest rate to lighten up production cost of margarine and soap for machine revitalization or integrating with palm oil garden.