Description:
ABSTRACT
The research aimed to analyze the impact of change in world price and export tax of
crude palm oil on the export and domestic production performance of some selected
economic sectors, as well as households’welfare in Indonesia. The analyses were
carried out by a Computable General Equilibrium (CGE) static model with data taken
from Indonesian Social Accounting Matrix (SAM) 2008. The results showed that the
increase in world price accompanied by the increase in export tax of crude palm oil and
rupiah depreciation have positive impact on the export and domestic production
performance of palm oil manufacture sectors and other related economic sectors.
Prevailing progressive tax on crued palm oil export does not have negative impact
resulted in decreasing palm oil export because export unit price received by producers
remains higher than the price at baseline. Due to the increasing of export performance
and domestic production, production sectors have economic ability to meet the demands
of paying higher value-added upon primary production factors owned by households so
that households’factor income increase and eventually, it leads households’welfare
increase as well.
KEYWORDS
Social Accounting Matrix, computable general equilibrium, crude palm oil, export taxes,
exports, domestic production, welfare