DAMPAK PAJAK EKSPOR CPO TERHADAP BEBERAPA ASPEK INDUSTRI CPO INDONESIA: SIMULASI MODEL EKONOMETRIK (IMPACTS OF CPO-EXPORT TAX ON SEVERAL ASPECTS OF INDONESIAN CPO INDUSTRY: SIMULATION OF ECONOMETRIC MODEL)

Abstract

To control domestic supply and price of crude palm oil (CPO) and cooking oil, the
government of Indonesia has imposed CPO-export tax since August 1994. As the CPO industry plays
an important role in Indonesian economy, the imposition of the tax has perceived to have substantial
impacts on various aspects of the industry, such as on investment, production, trade, farm income, and
welfare distribution. In line of this issue, the main objective of this study is to assess these impacts
using an econometric model of the industry.
The results of the study reveal that this export tax policy has inhibited the growth rate of
investment, production, export, and farm income. On the other hand, this policy has been an effective
instrument to control domestic CPO and cocking oil price. Moreover, this policy has caused a
substantial welfare transfer from producers to consumers and the government. To compromise these
conflicting impacts, an alternative CPO tax formula is also proposed within this paper.