The Factors Influencing on Consumption of Palm Cooking Oil in Indonesia

Ermy Teti, Sakti Hutabarat, Asriati Nofionna

Abstract

Cooking oil is one of the most sensitive basic needs in Indonesia. The aims of the research
are to analyze factors influencing consumption of cooking oil, the cooking oil price, and the
Crude Palm Oil price in Indonesia. Using simultaneous equation model, the study show that
palm cooking oil consumption is significantly affected by domestic palm cooking oil price
and number of population. Whilst palm cooking oil price is significantly influenced by the
cooking palm oil production and the domestic Crude Palm Oil price. Finally, the domestic
Crude Palm Oil is significantly affected by international Crude Palm Oil price.
Keywords: consumption, cooking oil price, crude palm oil price and cooking oil

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