Indonesia's CPO Exports and Foreign Exchange Reserves: Evidence From Indonesia and Singapore

(Pages 1973-1982)

Muhammad Fawaiq*
Department of Economics, Universitas Negeri Jakarta.


This study aims to examine the causal relationship between Indonesia's CPO exports (XCPO), Indonesia's foreign exchange reserves (FRI), Singapore's foreign exchange reserves (FRS), and other variables. The research method used is a time series data regression with the Vector Autoregression (VAR) approach. The estimation of this VAR model will be carried out twice, first the VAR model for Singapore and the second the VAR model for Indonesia. The XCPO variable will be included in both models. The research results on the VAR model for Singapore show that XCPO significantly affects FRS. Meanwhile, the VAR model for Indonesia shows that XCPO does not significantly affect FRI. Thus it can be proven statistically that the money from CPO exports does not return to Indonesia but is kept in Singapore. For this reason, the Indonesian government must be able to provide incentives for exporters so that they feel it is profitable to save their money in Indonesia.


Indonesia's CPO Exports, Indonesia's Foreign Exchange Reserves, Singapore's Foreign Exchange Reserves, VAR.

JEL Classification:

E31, F14, F31, F51

How to Cite:

Muhammad Fawaiq. Indonesia's CPO Exports and Foreign Exchange Reserves: Evidence From Indonesia and Singapore. [ref]: vol.21.2023. available at:

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