Abstract:

Despite Indonesia being the world’s largest coconut-producing country, the competitive position of coconut crude oil (CCO) is still weak in the international market. Indonesia should determine a potential market that plays a significant role in the coconut oil industry. The market share and elasticity of demand for Indonesian CCO in the primary market are controvertible in its policies. This study aimed to analyze the Indonesian competitive position in Germany - using the LA/AIDS model. Monthly time series data spanned values and quantities of CCO imported by Germany from 2004 to 2019. The main findings are that Indonesia had a strong market position. As a result of higher own-price elasticity, Indonesia is more sensitive to its price change. There is a weak competitive relationship between Indonesia and the Philippines since the cross-price elasticity is inelastic. Moreover, quantity demand for Indonesia will be higher due to the higher expenditure elasticity.

Keywords:

Coconut Crude Oil, Demand Elasticities, LA/AIDS, Indonesia.

How to Cite:

Imanuel do Rosário Ximenes, Rita Nurmalina and Amzul Rifin. Demand Analysis of Indonesia’s Coconut Crude Oil in Germany. [ref]: vol.19.2021. available at: https://refpress.org/ref-vol19-a39/