Journal of Business and Political Economy: Biannual Review of The Indonesian Economy Review
Vol. 8 No. 1 (2026): Journal of Business and Political Economy: Biannual Review of The Indonesian Ec

The Competitiveness of Indonesian Coconut Oil and Its Determinants: A Time Series Analysis

Mochammad Yusuf (School of Business, IPB University, Bogor)
Ardimansyah Ardimansyah (School of Business, IPB University, Bogor)
Febriann Dedy Syahputra (School of Business, IPB University, Bogor)



Article Info

Publish Date
10 Apr 2026

Abstract

Coconut oil represents one of Indonesia's most significant agricultural export commodities, yet its export performance has exhibited considerable fluctuations over time, reflecting the influence of various domestic and international factors. This study identifies the key determinants of Indonesia's coconut oil export competitiveness, as measured by the Revealed Symmetric Comparative Advantage (RSCA) index, employing the Autoregressive Distributed Lag (ARDL) model over the period 1970 to 2023. The ARDL framework was selected given that all variables are stationary at first difference I(1) under both the Augmented Dickey-Fuller and Phillips-Perron tests, satisfying the preconditions for bounds testing. The results indicate that rural population growth, agricultural trade openness, and coconut oil yield exert a positive and significant influence on export competitiveness, whereas rising coconut oil prices and exchange rate volatility are found to have a detrimental impact on export performance. The findings of this study suggest that targeted policy interventions are warranted, particularly exchange rate stabilization mechanisms administered by Bank Indonesia to mitigate the adverse effects of currency volatility on export competitiveness, fiscal incentives directed at coconut oil processing industries to reduce dependence on primary commodity exports, and strategic investments in agricultural extension programs aimed at enhancing yield productivity among smallholder farmers. Keyword: Autoregressive Distributive Lag (ARDL); Coconut Oil; Competitiveness, International Trade JEL Classification: F14, Q17, C32

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Journal Info

Abbrev

BisnisEkonomiPolitik

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Journal of Business and Political Economy: Biannual Review of The Indonesian Economy Review [P-ISSN 2685-2004] is devoted to the study of political economy, economy, and business issues, focussing on encouraging transparency on the economic decision-making process in Indonesia. The review is ...