| dc.description.abstract | Palm Kernel Oil (PKO) is a vegetable oil which is extracted from the kernel of palm oil. Production of PKO in Indonesia unable to fulfill demand of PKO for the downstream industries. Therefore, there is a gap or an imbalance between supply and demand for PKO in Indonesia, so import can not be avoides. The purpose of this research is to analyze factors that influence supply and demand of PKO in Indonesia and to evaluate effect of subsidy investment credit interest rate and increase supply of PKO in Indonesia on supply and demand of PKO in Indonesia. The study used time series data from 1989-2011. Supply and demand of PKO models is to built simultaneous equation system and it is estimated by using two stage least square (2SLS) method. Supply of PKO is a sum of production of PKO, import of PKO, stock of PKO from preceding year and decreased by export of PKO. Production of PKO is multiplying the total area of oil palm yield and productivity of PKO in Indonesia. Productivity of PKO is ainfluenced by Indonesian real plantation sector wages. Demand of PKO is a sum demand of PKO from Cocoa Butter Substitute (CBS) industry as a derived products of PKO and other industries (fatty acid). Demand of PKO by CBS industry is influenced by the CBS production of Indonesia and the demand of PKO by CBS Indonesian Industry from preceding year. Combination of subsidy investment interest rate and increase supply of PKO will increase demand of PKO, demand and supply of downstream industries that is CBS, and will decrease real price of PKO and CBS in Indonesia. | en |
