Comparative Analysis of the Competitiveness of the Indonesian and Malaysian Palm Oil Industry (original) (raw)

Since 1970s, Malaysia has strengthened its position as the primary producer and exporter of world palm oil. However, during the 1975 - 2001 period, the rates of Malaysia's oil palm estate growth, and palm oil production and exports were lower than those of Indonesia. However, the Indonesian palm oil industry has always been overshadowed by Malaysia's, which is the main producer and exporter of world palm oil. The objectives of this study are to calculate the production cost, to measure the production efficiency and productivity in producing fresh fruit bunches (FFB) and crude palm oil (CPO), to examine the export competitiveness of Indonesia's palm oil and to recommend policy alternatives to improve the competitiveness of Indonesia's palm oil industry. Production costs are analyzed in tabular descriptive manner. Efficiency of production, on the other hand, is analyzed using Banker - Charnes - Cooper (BCC) model, whilst productivity is analyzed using general malmquist...

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