Year: 2018
Type: article
Abstract: This study aimed to analyses the impact of palm oil-based biodiesel development on growth and poverty in Indonesia that combined with government policy using simultaneous equation econometric 2 SLS's models. The result shows that if the export tax, and government expenditure in industry increase; then domestic exchange rate (IDR) and interest rate decrease, those will give positive impact on economy growth and vice versa gives a negative impact to poverty. The simulation may apply to know the impact on economy growth, and poverty in Indonesia by the development. The study found that palm oil-based biodiesel development can create a growth and poverty in Indonesia and CPO biodiesel development can be synergized with the increasing export tax and government expenditure in industry, so growth and poverty-reducing in Indonesia will be better and qualify. However, government must maintain stability of exchange rate fluctuation because the impact can reduce CPO production industry.Keywords: Crude Palm Oil, Energy, Industry, Economic growth, PovertyJEL Classifications: E24, E27, C5, O31
Authors: Faurani Santi Singagerda, Tri Yuni Hendrowati, Anuar Sanusi
Language: English
Subfield: Fuel Technology
Field: Energy
Domain: Physical Sciences
Open Access status: gold
Estimated APC paid: $590
OpenAlex ID: W2948279191