The Factors Influencing on Consumption of Palm Cooking Oil in Indonesia

• Main Authors: Ermy Teti, Sakti Hutabarat, Asriati Nofionna
• Format: Article
• Language: English
• Published: Universitas Islam Indonesia 2011-09-01
• Series: Economic Journal of Emerging Markets
• Online Access: http://jurnal.uii.ac.id/index.php/JEP/article/view/2279

Cooking oil is one of the most sensitive basic needs in Indonesia. The aims of the research<br />are to analyze factors influencing consumption of cooking oil, the cooking oil price, and the<br />Crude Palm Oil price in Indonesia. Using simultaneous equation model, the study show that<br />palm cooking oil consumption is significantly affected by domestic palm cooking oil price<br />and number of population. Whilst palm cooking oil price is significantly influenced by the<br />cooking palm oil production and the domestic Crude Palm Oil price. Finally, the domestic<br />Crude Palm Oil is significantly affected by international Crude Palm Oil price.<br />Keywords: consumption, cooking oil price, crude palm oil price and cooking oil