ANALYSIS OF INDONESIA’S PEPPER IN THE SUPPLY AND DEMAND
No Thumbnail Available
Date
2016-11-30
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Indonesia is second biggest producer and exportir of pepper commodity in the world.
The purposes of this research are: (1) to analyze of Indonesian pepper in the supply
and demand; (2) to analyze the impact of exchange rate, price of world pepper, and
combination among its to Indonesian pepper in the supply and demand. Analysis
method used simultaneous equation with time series data from 1990 till 2013. The
results showed that determinant coefficient (R2) of every equations are 0,51 till 0,86
and F value are 4,67 till 20,16. Indonesian pepper production significantly influenced
by real price of Indonesian pepper, Indonesian pepper export, real interest rate of
Indonesia, and Indonesian pepper production last year. Indonesian pepper demand
significantly influenced by Indonesian population. Indonesian pepper export
significantly influenced by growth of Indonesian pepper demand and Indonesian
pepper export last year. Indonesian pepper price significantly influenced by
Indonesian pepper production, real exchange rate of IDR to USD, inflation rate of
Indonesia, and Indonesian pepper price last year. Real price of Indonesian pepper
isn’t responsive to Indonesian pepper production in short run and responsive in long
run. Indonesian population is responsive to Indonesian pepper demand in short run
and long run. Other exogenous variables aren’t responsive to endogenous variable in
short run and long run. The exchange rate depreciation, the increase price of world
pepper, and combination among its impact to increase of Indonesian pepper price,
export, and production and degradation of Indonesian pepper demand. Development
of pepper agroindustry must intensively to improve domestic demand and give
economic value to pepper commodity.
Description
Keywords
Pepper, supply and demand response, simultaneous equation