Modeling policy mix to improve the competitiveness of Indonesian palm oil industry
Abstract: The purpose of this
research is to develop a model that will explain the impact of government
policies to the competitiveness of palm oil industry. The model involves two
commodities in this industry, namely crude palm oil (CPO) and refined palm oil
(RPO), each has different added value.
Design/methodology/approach: The model built will define the behavior of
government in controlling palm oil industry, and their interactions with
macro-environment, in order to improve the competitiveness of the industry.
Therefore the first step was to map the main activities in this industry using
value chain analysis. After that a conceptual model was built, where the output
of the model is competitiveness of the industry based on market share. The
third step was model formulation. The model is then utilized to simulate the
policy mix given by government in improving the competitiveness of Palm Oil
Industry.
Research limitations/implications: The model was developed using only
some policies which give direct impact to the competitiveness of the industry.
For macro environment input, only price is considered in this model.
Practical implications: The model can simulate the output of the industry
for various government policies mix given to the industry.
Originality/value: This research develops a model that can represent the
structure and relationship between industry, government and macro environment,
using value chain analysis and hierarchical multilevel system approach.
Author: Roland Y H Silitonga,
Joko Siswanto, Tota Simatupang, Senator Nur Bahagia
Journal Code: jptindustrigg160021
