THESIS OUTLINE
Export Of Crude Palm Oil (Cpo) From Indonesia To SlovakiaSTUDENT
NAME: AndreasCOUNTRY: INDONESIA STUDENT No.: Thesis
In
International Economic and Trade
presented to the Graduate Faculty
of South China University of Technology
in partial fulfillment of the Requirements for the
Degree of Bachelor of Economics
2015Supervisor of Dissertation
(Xiao Qi, Associate Professor , School of Economics and
Commerce)
School of International Education
Export Of Crude Palm Oil (Cpo) From Indonesia To
SlovakiaCOPYRIGHT STATEMENT Copyright 2015 AndreasThis dissertation
is submitted in partial fulfillment of a requirement for a degree
in International Economics and Trade is a property of the
University. However, the author of this dissertation owns and
retains copyright of the dissertation without any further
registration.
ACKNOWLEDGEMENT
First of all, I would like to thank Almighty God who have
protected and guided me all through my stay in China and even in my
studies, all the honor goes to Him.
My second gratitude goes to my supervisor Xiao Qi, She has been
my inspiration, guide and a lecturer. Her presence has been of help
to me all through this year and especially in writing this paper, I
thank her from my heart for the work she has done to make sure that
this paper is a success. My third and precious gratitude goes to my
family, my Father and Mother who have worked tirelessly to make
sure that all I need is provided for the completion of my studies.
I really appreciate their contribution and prayers in my academic
life through hard and good times.
ABSTRACT
Export Of Crude Palm Oil (CPO) From Indonesia To Slovakia
AndreasAbstract
Study Indonesian crude palm oil exports to Slovak year 2009-2012
is significant increase the last three years as state exporter of
Indonesian CPO and Slovak as importer. CPO is superior product that
has growth prospects for the industry bright and can add income
countries. CPO Indonesian market diversify into related Slovakia
because underlying economic crisis occurred in the middle Europian
Countires. Slovak as potential market to develop marketing
strategies CPO in Europian Union because the cost of accommodating
and logistical cheaper than Rotterdam harbor in Netherlands. The
reason Slovak import CPO for domestic needs as food,
pharmaceutical, biodesel and quality of CPO because feedstock
naturalness and lower cholesterol than other vegetables oil
resources. Another reason is improve the friendship and bilateral
cooperation Slovak and Indonesia. This Cooperation is conducted two
countries based the Memorandum of Understanding on Technical
Cooperation in the Field of Agriculture. To strengthen the
cooperation, the two countries seek to increase trade volume of CPO
in 2011 6.620.000 kilograms became 8.619.240 kilograms in
2012.Keywords: Indonesian, Slovak, CPOTABLE OF CONTENTContents
ICOPYRIGHT STATEMENT
IIACKNOWLEDGEMENT
IIIABSTRACT
1CHAPTER ONE
1INTRODUCTION
2Aim of the study
4CHAPTER TWO
4Literature reviews
4The Concept Of Bilateral Relations
7The concept of international trade
8The theory of comparative advantage (Comparative Advantage)
9Supply and demand Theory
11Research Methods
12CHAPTER THREE
12The CPO Production In Indonesia
14The reason Slovakia Import CPO from Indonesia
14Slovakia's domestic Needs
16The quality or the quality of Indonesia CPO
19Cultivate friendly relations Slovakia Indonesia
20The export of Indonesia CPO to Slovakia in 2009-2012
24CONCLUSION
25BIBLIOGRAPHY
CHAPTER ONEINTRODUCTIONPalm oil plantations is one of the
leading plantation sector in Indonesia is experiencing a pretty
rapid progression. From the year 2000 to 2009 development of the
vast area nearly double that at first 4.158.077 ha 7.125.331 ha and
be accompanied by an increasing number of production (Khudori,
2008).
The development of oil palm plant has been developed in several
areas in Indonesia and became the flagship crop plantations. This
is due to oil palm plantation is a plant with a fairly high
economic value and is one of the plants producing vegetable oils.
In addition the development of palm oil plantations is also
supported by derivative products Palm oil that is multi-faceted and
has many uses. According to Khudori (2008), currently Indonesia is
the country's number one producer of the world's largest CPO above
Malaysia and become the country's largest CPO exporter in the
world.Indonesia is one of the country's CPO producers. Entering the
year 2012, the commodity plantations into a commodity with a great
potential and is promising for Indonesia. With such a large
potential for CPO, Indonesia also has a market share large enough
crude oil, both domestically and abroad. Some of the foreign
markets to which it was Indonesia's CPO India, China and the
European Union, by absorbing 60% Indonesia palm oil exports.
The European Union is one of the goals of market CPO Indonesia.
The tejadi economic crisis in several countries of Central Europe,
such as France, the Netherlands and Belgium led to a demand for CPO
exports declined because of the tight rules against Indonesia CPO
products based in the port of Rotterdam, Netherlands. This led to
the Government of Indonesia to diversify markets through Eastern
European countries that are stable and the cost of accommodating
the economic and logistic is cheaper than Rotterdam
(http://republika.co.id).
One of the Eastern European countries which import the CPO from
Indonesia is Slovakia. Slovakia top CPO demand Indonesia is based
on an agreement between the two countries which are listed in the
Memorandum of Understanding on Technical Cooperation in the Field
of Agriculture or cooperation in the field of agriculture, signed
on January 18, 2009 in Dvory Nad Zitavou.
In 2011, Indonesia has to market their non oil and gas
commodities to the European market in particular to Central Europe
and Eastern Europe. In which Slovakia agreed to invest $ U $ 1
billion in some sectors or areas, including trading of CPO
Indonesia. Such cooperation is the development of a raw material
that biodesel energy comes from Indonesia's CPO and rubber
(www.antaranews.com/).
Slovakia as a country of destination are important exporters of
CPO Indonesia because the country is the production base of the
European countries. With per-capita income is high, projected the
economy will continue to experience an increase in Slovakia and the
country's influence in the EU is increasingly visible in the
investment sector of the economy and become Indonesia's CPO export
markets of the European Union (http://bisnis.news.viva.co.id).Aim
of the study
If the Government of Indonesia and Slovakia did the co-operation
in the production of CPO, the two countries will be able to benefit
from such cooperation. As for the goal of the research is to
explain Indonesia's CPO export and Slovakia and explain the reason
Slovakia import CPO from Indonesia.CHAPTER TWO
Literature reviews
The Concept Of Bilateral RelationsRelations between the Nations
have long existed and continues to grow all the time. Driven by the
needs and desires that cannot be met alone then a country trying to
convene foreign relations with other countries in the concept of
interaction relationship of mutually beneficial cooperation. In
international relations the interactions between countries always
takes place in two types, i.e. an extreme relationship conflict and
harmonious relationship of cooperation. The successive relationship
types as time goes by in the dynamics of international relations,
but rather the relationship between the two countries can make an
impact that could be coloring the dynamics of international
relations.
According to the form of cooperation between countries is made
up of bilateral cooperation and multilateral cooperation. Bilateral
cooperation refers to the relationship of mutual influence between
the two countries. While multilateral cooperation refers to the
relationship of mutual influence which is done by more than two
countries. According to the history of the development of State
relations, bilateral cooperation is one form of relationship
between the oldest and the most countries already happened a long
time ago, before the existence of the agreement Westpalia 1648.
Until recently, along with the rise of multipolarism in
international economic and political system, still felt the
importance of bilateral cooperation especially in creating a
harmonious relationship.
Benefits to convene foreign relations with other countries is
certainly better than being confrontational with the countries.
There is a difference of interests and foreign policy of a country
often become triggers of tension or even conflict between
countries. in international relations a relationship involving two
States referred to bilateral relations. This relationship includes
several fields including economic aspects, political, military,
security and defense. Kusumohamidjoyo (1987) bilateral relations is
defined as:
A form of cooperation between the two countries which are
geographically close together or far away across the sea with the
main target to create peace by observing the commonality of
political, cultural, and economic structures.
So in bilateral cooperation between the two countries far apart
are its geographical location is no longer an obstacle which is
pretty meaningless. An amazing development has allowed all of it.
The increasing interdependence between countries with one another
has made a distant geographical location is no longer a barrier
which means. Relations between the two countries can be done in
various fields of human life such as; Economics, politics, culture
and military. The relationship will be established in accordance
with the specific objectives as well as the specific fields that
serve a benchmark for a country in its relations with other
countries. In the relationship is determined by the result of the
interaction of the two countries in various fields.
Unsettled bilateral cooperation between the two countries is
felt to be very important, because a country cannot meet all its
needs without cooperation with other countries. The utilization of
authorized capital of SDA (natural resources) in the achievement of
the goals and national interests it is absolute, but the
limitations due to the differences in geographical location,
climate conditions and land area of the country is inevitable. This
is what is referred to as the "endowment factor" which is more of a
God's gift to the country.
A country in its interaction with other countries will refer to
its own capabilities and shortcomings. There is a country rich in
natural resources but do not have the ability to process, while on
the other there is a country that is poor in natural resources yet
to be has the ability of technology to offer it, with the
difference that the possibility to interact within the framework of
cooperation is very great, where the results of such cooperation
will bring extensive impact for the life of the countryThe pattern
of reciprocal interactions between the two countries in
international relations in bilateral relationships with select.
Bilateral relations as a concept in international relations, has a
meaning that is more complex and more diverse and contains a number
of terms relating to the dynamics of international relations
itself. In the dictionary of international politics, bilateral
relations simply described as, "... the existence of a relationship
describes the circumstances influence each other or the mutual
relations between the two parties (the two countries) (Didi,
1993)." This contains such limits mean that bilateral relations are
reciprocal relationships and interplay between the two countries.
There are some fields that include these bilateral relations, of
which the most common is the field of trade in social, education
and culture, politics and even Defense Security.The term bilateral
or bilateral relations is to assume a relationship between two
countries that are either close or far apart geographically as
expressed by Kusumohamidjojo (1987) on bilateral relations as
follows; Bilateral relations is a form of cooperation between the
countries, either geographically or in adjacent far across the
seas, with the goal of creating peace by observing the commonality
of political, cultural and economic structures.
The concept of international trade
International trade is defined as an intercompany trade can or
cross country that includes export and import. (Sincere, Heartfelt
Tambunan. 2001, pg.196). According to Tambunan, international trade
was split into two types, namely trade in goods (physical) and
services (non-physical). As for benefits and activities from
international trade include:
1. Helps explain the composition of trade between countries as
well as the effect on the structure of the economy of a country
2. Can indicate the existence of profits arising from such
international trade.
Through international trade of a country's Government is
attempting to optimize the benefits of the relationship to the
performance of the economy being better than the previous. Several
factors that can push the occurrence of international trade
are:
a. each country cannot meet his needs its own
b. every State would have benefited from international trade
compared its own goods produced within the country
c. each State has the distinction of production costs to produce
certain goods
d. each country has different natural resources.
David Ricardo, perfecting the theory of Adam Smith, and argues
that inter-State trade flows are determined by relative price
levels (not absolute) of goods produced. Countries tend to take
specialization to produce commodities with a cheaper price compared
to its competitors. Thus, international trade is not a "a zero-sum
game". International trade based on "absolute advantage" only give
advantage to one party only, and is detrimental to another party.
On the contrary, Ricardo showed free trade, through specialization
based on comparative advantage, giving an advantage to both parties
the culprit. (Robert Gilpin 1987, pg.172-174.)
The theory of comparative advantage (Comparative Advantage)
According to David Ricardo, international trade can basically
provide benefits for each country involved. Ricardo explicitly
posited the theory of comparative advantage to support his
argument. According to David Ricardo, comparative advantages are
the hallmarks of a country or region in producing certain items in
the social costs of producing a country or region in producing such
goods is lower than is done by State or other area or otherwise
exporting products that can be produced more efficiently than any
other country and importing manufactured goods that cost of
production relative more expensive (Tumpal Rumapea. 2000. pg.
75).
The difference in the potential of the natural resources
belonging to each country and each country will tend to specialized
are also in production. Ricardo suggested that should only products
which have comparative advantages that are exported by the State
and instead the country imports goods which could not be produced
at a low cost and is not supported by other factors of production.
Comparative advantage will be achieved if a country is able to
produce more goods and services with costs are cheaper than in
other countries. Comparative advantages possessed by each country
tends to be dynamic. The comparative advantages of each State-owned
in a particular sector is potentially capable and should maintain
and compete with other countries, because the comparative
advantages change over with a factor that affected it.
Supply and demand Theory
The Law Of Demand
Demand is a large number of items requested in a particular
market with a certain price level at a certain income level and in
certain periods. Some factors affecting demand include: (among
others Sukirno. 2006. pg. 83).
1. The price of goods is
2. The price of goods substitution
3. Item substitution
4. The average Income
5. Population/population
6. the Estimation/forecast/forecast
7. Taste, location and distribution.
Law of demand for an item related to the number of requests an
item at a certain price level. Consumers can determine the amount
of goods consumed depends on the price of the item. In General, the
higher the price of an item, then the fewer number of requests such
an item. Conversely, the lower the price of an item, then the
greater number of requests for such goods, if other factors do not
affect (cateris paribus). Such hypothesis is referred to as the law
of demand. Thus, the law of demand (law of demand) is the law that
describes the relationship between the price by the number of
requests for an item (cateris paribus) (wake up, Wilson, 2007. The
Economic Journal, Volume XVI, number 3.)
The Law Of Supply
Quote is the number of goods offered by the seller on a specific
market, in certain periods, and at certain price levels. Wishes the
seller to offer the goods at various price levels are determined by
several factors. The most important are: (among others Sukirno.
2006. pg. 110.)
1. The price
2. the prices of other goods
3. The cost of factors of production
4. Technology
5. The purpose of the company
6. Expectations (forecast)
Law of supply basically says that the higher the price of an
item, the more the number of such items will be offered by the
seller. Conversely, the lower the price of a item, fewer such items
are negotiable.
Mechanism Of Demand And Supply
Variables related to the supply and demand of an item. The
theory of demand stating the nature of the goods to a purchaser's
request, while the theory of the nature of the States offer the
seller in offering an item for sale. By combining the demand of
buyers and seller offer this may set a market price or equilibrium
price and quantity of goods that are bought and traded (among
others Sukirno. 2002. pg.78.).
Research Methods
In this study the author uses descriptive research analytical
type, i.e. give an overview about the export of CPO Indonesia to
Slovakia in 2009-2012. Types of data used in this study is
secondary data, and data collection techniques that writers use in
research is through library research that is based from the book
and internet media. While the data analysis Techniques used are
qualitative content analysis method and study of history that
explains and illustrates the data on the basis of written sources
that exist.
CHAPTER THREEThe CPO Production In Indonesia
Indonesia palm oil plantations are composed of three types of
concessions of the country estates, private estates and plantation.
The production of palm oil in Indonesia was recorded during
1970-2009, development of the vast oil palm plantations area of
Indonesia is rising quite high from 133,30 thousand hectares in
1970 to 7,51 million hectares in 2009 or increased an average 11,
12% per year. When viewed from the company status the average
growth per year after the economic crisis in Indonesia in 1998-2009
is the Plantation (PR) only by State plantations 11,83% (PBN) of +
1.89% and Private Estates (PBS) of 8.34% .Domestic CPO consumption
for most of the cooking oil used by the industry as the main
consumer of CPO in Indonesia. Distribution the use of CPO in 2006
was recorded where for the purposes of export 4,84 million tons
(30.25%) 9,705 million tons of cooking oil (60,65%), the margarine
and shortening 0,695 million tons (4.34%) as well as oleo chemical
0,761 million tons (4,76%) is.Demand for CPO to domestic needs to
be embodied in a commodity of Palm cooking oil strategic value
because it is one of the nine basic commodities Indonesia. Products
produced from Palm oil capital intensity is vast and varied
technologyIn addition, domestic demand for CPO is also exported
abroad due to an increase in prices of CPO. As exporters prefer to
export CPO CPO consumption related overseas world increasing every
year. Indonesia CPO buyers among others, India, Pakistan, China,
and EuropeThe EU is one market destination of Indonesia's CPO where
the exports as long as it is based in the port of Rotterdam
Netherlands. This decline CPO exports in the markets of Western
Europe and Central Europe because of the global economic crisis is
happening and increasingly tight rules of Central European
countries to the products of CPO and its derivatives. While the
countries of Northern Europe and Eastern Europe still remain
accommodating. Some Eastern European countries that still require
the CPO as vegetable oils are Hungary, the Czech Republic, Ukraine
and Slovakia.Slovakia was the target of a potential CPO market due
to the rapid economic growth in the country. Slovakia's economic
growth rose after the official was a member of the European Union
in 2004. The average economic growth in Slovakia in 2007-2008 its
about above 8% per annum and the highest in Europe.On January 18,
2009, Indonesia and Slovakia formally establish bilateral
cooperation with Indonesia in particular in the field of
agricultural cooperation between the two Nations, which Indonesia
will import wheat seed from Slovakia, while Slovakia will import
the CPO from Indonesia. The cooperation the two countries stated in
the Memorandum Of Understanding On Technical Cooperation In The
Field Of Agriculture held in Dvory Nad Zitavou.Bilateral relations
in the political sphere RI-Slovakia during this also has no matter,
even showing a tendency towards increasing. At the international
level of the two countries have conducted mutually support the
candidacy of membership in various international institutions.
Slovakia has been providing support to Indonesia to the election of
Ambassador Nugroho Wisnumurti as a member of the International Law
Commission the period 2007 2011, as members of the SECURITY COUNCIL
are not fixed period 2007/2008, members of the UN HUMAN RIGHTS
Council for the period 2007-2010, Member of the Executive Board of
the WHO period 2007 2010, Board member of the International
Maritime Organization (IMO) category C period of 2009 2011.
Instead, Indonesia also support Slovakia in a variety of ways, one
of which is support for the election of Slovakia as a member of the
Executive Board of the United Nations Educational, Scientific and
Cultural Organization (UNESCO) 2009 2013.In economic relations,
trade and investment of the two countries have shown a positive
value. The value of trade volume of the two countries reached US $
84.5 million or increased by 15, 12% in 2010. The two countries
have shown evidence that the economic relations, trade and
investment of the two countries is developing constructively.
The reason Slovakia Import CPO from Indonesia
The reason Slovakia import CPO from Indonesia was seen from
Comparative Advantage based on economical and political reasons,
namely: domestic needs and quality of CPO Indonesia. For more
lucrative import Slovakia CPO from Indonesia than produce their
own. In addition, the other reason is Slovakia maintain a friendly
relationship with Indonesia in the field of the State (political)
and the wide range of cooperation in the field of economics.
Slovakia's domestic Needs
Based on an increase in total export of Indonesia's CPO
continues to experience increased, Indonesia has a market potential
of CPO in Slovakia. It is becoming one of the alternative
Government of Slovakia in maintaining the supply of CPO in imports
to meet domestic needs. CPO is a source of vegetable oil, which is
priced more cheaply than other vegetable oil sources, lower
cholesterol, and high in carotene content.In addition to the needs
of the pharmaceutical, food and imports of CPO is also used to meet
the needs of biofuel that is utilized for its industrial diesel
engines. In 2010 the use of biofuels of 5.75% and will continue to
increase every year for transportation needs (www.greenpeace.org).
As a manufacturer of car industry is quite advanced, Slovakia make
use of CPO as raw materials and primary processing biodiesel is
developing in his country.In addition to domestic needs, this CPO
by Slovakia are also distributed to other countries who are members
of the European Union because that region is an area that is
developing advanced technologies in the field of diesel
engines.Biodiesel bioenergy as alternative fuel use as a
replacement for FUEL on diesel motor. Biodiesel can be used either
in the form of 100% (B100) or mixed with diesel oil at a certain
concentration level (BXX) like biodiesel mixed with 10% 90% solar
known as B10. A mixture of biodiesel with existing solar market
called bio solar (http://pphp. MOA .gov).Biodiesel utilized to
reduce the consumption of basic material i.e. diesel, palm oil and
the distance of the fence. The making of biodiesel from vegetable
oils is called Transesterification which is the changing shape of
one type into the other esters.In this process it takes a catalyst
to accelerate the reaction used ethanol and methanol catalyst. Oil
Palm seeds squeezed and filtered. From the CPO process can be used
for cooking oil, namely through the purifying it first. Because the
original color of CPO's dark whereas to be fuel, the CPO will be
processed further in the Transesterification process
(http://www.slideshare.net).As for some of the advantages of
biodiesel as follows: (www.slideshare.net).
1. Biodiesel does not have poison, biodegerable, essentially
free of sulfur and carcinogenic benzene, produced from materials
that can be updated, the source of which can be recycled, there is
an accumulation of greenhouse gases.
2. Specific fuel consumption 30% ME, only about 2% higher
compared with pure diesel. And the resulting power biodiesel lower
average reach 118,000 Btu and solar average 130, 500 Btu.3. Devil's
Number biodiesel higher compared to diesel. The average diesel
biodiesel 53 while 42, so it can reduce the detonation on the
operation of the machine.4. Biodiesel is promising as material
alternatively for motor diesel because of the relatively low levels
of smoke and high O2 content can reduce particulate formation.
The quality or the quality of Indonesia CPOIn addition to
domestic needs for food and non-food industry, Slovakia prefer
importing Indonesia CPO since geographically, Indonesia as a
potential producer country very or more supported by factors of
production, namely the abundant raw materials, tropical and has a
fairly large area and convenient for producing good quality with
CPO.Slovakia import CPO associated with the quality or the quality
of a Indonesia CPO. Indonesia CPO is still considered to have its
natural raw material and low cholesterol compared to other
vegetable oil sources as used in countries of Eastern Europe. CPO
has the advantage of quality good enough so that the product still
required particular CPO Slovakia.Product of palm oil as a food
ingredient has two aspects of quality. The first aspect relates to
the level and quality of fatty acids, moisture and dirt levels. The
second aspect relates to the taste, the aroma and the clarity and
purity of the product. Prime-quality Palm (SQ, Special Quality)
contain fatty acids (FFA, Free Fatty Acid) not more than 2% at the
time of shipment. (http://www.kemenperin.go.id/).Quality palm oil
became a factor of consideration for Slovakia in conducting import
CPO from Indonesia. This is due to the cholesterol content of CPO
from Indonesia is lower than other types of vegetable oils such as
sunflower oil and olive oil that has been used both Slovakia and
other countries such as Ukraine. Low content of cholesterol in the
CPO's main CPO became the basis of Indonesia in great demand in
some Eastern European countries such as Slovakia
(http://www.ptpn5.com).CPO sample of 178 factory oil palm (MCC)
from all over Indonesia have been evaluated in terms of: free fatty
acids, dirt, and moisture content of carotene, DOBI and iod number.
Samples come from the province of Nangroe Aceh Darussalam, North
Sumatera, West Sumatera, Riau, Bengkulu, Jambi, South Sumatra,
Lampung, Banten, South Kalimantan, West Kalimantan, East
Kalimantan, Central Kalimantan, Southeast Sulawesi and West
Sulawesi.The levels of free fatty acids (ALB) on 3.15% Indonesia
CPO sample, still far below the maximum limit according to Standard
National Indonesia/SNI (5%). The range of the content of ALB in
each province was below 5% according to SNI except for the
provinces of Lampung (4-97-5.34%), the 3.50-West Kalimantan
(10,66%) and Central Kalimantan (1,71-8.21 percent). Moisture and
dirt on the sample in accordance with the requirements of the SNI
(0.5%) for even < all samples. Average moisture and dirt is
0.03% in the range 0.01-0,19%. Carotene content of the sample is
the average of 554 ppm, still in a range that is in accordance with
the Codex Alimentarius (500-2000 ppm). About 16 MCC does not
produce the above content with CPO 500 ppm.CPO from West Sumatra
and West Kalimantan on average contain carotene below 500 ppm,
range on each 454-528 ppm and 396-577 ppm. Deterioration of
Bleacheability Index (DOBI) as the ratio of secondary oxidation
products of beta-carotene (spectrophotometer UV-VIS), is an
important quality parameters in further use of CPO in industrial
refines and fraksionation.Indonesia has not had a standard for
parameter DOBI, but Malaysia recommend produces a minimal 2.3 DOBI
with CPO. Indonesia CPO sample DOBI still has lower than 2.3 (an
average of 2.24, range 0.9-3.0). An average of more than 2.3 DOBI
found in Nanggroe Aceh Darussalam, North Sumatera, Riau, East
Kalimantan, South Kalimantan and Southeast Sulawesi. Iodine number,
same as DOBI also used for the benefit of plant refines and
fraksionation as it pertains to cooking oil yield is obtained. The
average number of iodine in samples is 51,10 (27.1-71,1 Range),
relative compliance with the minimum standards for manufacturers of
cooking oil that is 51. When the number of Iodine should be more
than 51, about 19% of MCC did not meet these requirements
(http:////repository.usu. ac.id).
Cultivate friendly relations Slovakia Indonesia
Another reason Slovakia import CPO from Indonesia, was wish to
maintain good relations or bilateral friendly relations of the two
countries in terms of politics and economics. Slovakia imported CPO
from Indonesia to develop the activity state of the two
countries.Improvement of friendly relations and bilateral
cooperation between Indonesia and the Republic of Slovakia
continues to be excavated and is enhanced by the two countries. To
improve friendly relations and bilateral cooperation. It also
supported each other in international activities included in the
activities of the UNITED NATIONS proved that the two countries have
excellent bilateral relations, mutual understanding and mutual need
between the two Nations
(www.indonesia.sk/wni/slovakia/cp-SLOVAKIA.pdf.).Efforts to
increase cooperation between the two countries is done through a
State visit, both from Indonesia and Slovakia where bilateral
cooperation a priority in improving the relationship of the two
countries. For the cooperation of the two countries through a wide
range of areas, including the economy and politics. In the fields
of economy, trade and investment of the two countries have shown
positive improvement.Slovakia-RI formed a joint Commission as a
forum to discuss efforts to increase economic cooperation including
cooperation in investment, finance, trade, agriculture, tourism. In
January 2009, Minister of Agriculture of the two countries have
signed a MEMORANDUM of UNDERSTANDING of cooperation in the field of
farmer which is a Memorandum Of Understanding On Technical
Cooperation In The Field Of Agriculture.
(www.indonesia.sk/wni/slovakia/cp-SLOVAKIA.pdf.).
The export of Indonesia CPO to Slovakia in 2009-2012
Indonesia and Slovakia have established close cooperation in
trade between the two countries in various fields that include the
import and export of goods. The establishment of trade cooperation
between the two countries can be seen through the total trade that
has been created between Indonesia Slovakia can be seen in table
1
Table 1 Indonesia Slovakia Trading (thousand USD)
20072008200920102011
Export45.633,739.687,364.324,675.368,354.395,0
Import11.099,423.580,29.064,19.117,811.556,2
Volume56.733,163.267,573.388,784.486,265.951,2
Balance Sheet34.534,316.107,155.260,566.250,542.838,8
Source: Indonesia Ministry Of Trading (Data in thousand USD)
Based table on the above, which looks quite important existence
value of the export trade of the two countries has increased every
year, especially export value from the year 2008 only amounting to
39.687.3 USD into 64.324 .6 USD in 2009 this increase is quite
fantastic for country Indonesia. Experiencing an increase of 60%.
In addition, Indonesia trade balance for both countries continue to
experience a surplus.
From the type of commodity exports to Slovakia, Indonesia CPO
became one of the leading commodity. The export of CPO is targeting
Slovakia as the gate in Central Europe and an increase in export by
20%. This increase in exports as well as to improve the trade
relations of the two countries are believed to export CPO marketing
Indonesia to 27 countries in the European region
(http://www.neraca.co.id). An increase in the value of trade in CPO
Indonesia Slovakia during the last three years can be seen in table
2Table 2 The volume and value of trade in CPO Indonesia Slovakia
over the period of 2010-2012YearsVolume (Kg)Value (US$)
20104,941,862.002,541,208.00
20116,620,000.003,096,950.00
20128,619,240.003,937,836.00
Source: Indonesia Ministry Of Trading
From the table above, it seems that the volume and value of
trade in CPO Indonesia in Slovakia is experiencing a significant
increase in the last three years. In 2010, the export volume
amounted to 4.941.862.00 Kg and CPO export value amounting to,208
and 2,541 in 2011, the volume of exports of CPO export value
amounting to 6.620.000.00 and 3.096.950.00 and in 2012 the export
volume increased again to 8.619.240.00 and CPO export value
3.937.836.
Based on the data of the Ministry of commerce trade value
Indonesia CPO-Slovakia over the period 2010-2012 continues to
experience increased and progress. While the data from the Ministry
of economy of Slovakia, through August 2010, the value of trade of
the two countries reached 94,66 million Euro compared to the
previous period which only 76,73 million euros. The value of
Indonesia's exports in August 2010 reached 87,3 million Euro and
the value of exports from Slovakia only 7.3 million euros
(http://www.neraca.co.id.)
Through trade cooperation Indonesia has done to Slovakia,
indicating that Indonesia working to optimize relationships become
better economic cooperation through the export of CPO. This is one
of the trade policies pursued by the Government in the market the
CPO in Europe, especially in Slovakia. As for things that also
affect this policy include:
1. Slovakia is an alternative entrance in the market of CPO in
European countries especially in Central Europe. Although Indonesia
is targeting growth of trade by 20%, increased ties with Slovakia
will provide larger profits, which made Slovakia an alternative as
a gateway to enter the EU market. This long to enter the EU market
very difficult especially related to standards and quality enhanced
export target to Indonesia by 20% to Slovakia.
(http://www.neraca.co.id).
2. Cost efficiency of logistics. If the export products of
Indonesia made through Slovakia, situated in the central part of
Europe, Indonesia could get the cost efficiency of logistics. If it
is done through Bratislava, capital of Slovakia eight days faster
than through the port of Rotterdam in the Netherlands. Governments
are working to produce palm oil and its derivatives could enter the
EU through Slovakia (http://bisnis.news.viva.co.id/).
3. Slovakia as a potential market. In this respect Slovakia is
an important country of destination Indonesia CPO exporter because
it is a European production base such as automotive production
base, electronic and technological biodiesel. Some European car
brand opens production base in Slovakia such as a. l. Volkswagen
and Peugeot. With per-capita income is high, it is estimated that
the economy will continue to experience an increase in Slovakia and
the country's influence in the EU is increasingly visible in the
investment sector of the economy and become Indonesia's CPO export
markets of the European Union (http://bisnis.news.viva.co.id/).
An increase in the export of CPO Indonesia to Slovakia in
2009-2012 is having a pretty good improvement and very beneficial
for Indonesia. The export of CPO increased due to the domestic
needs of domestic food needs related to Slovakia (oleo food), the
pharmaceutical industry and the increasing production of
automotive, electronic and technology development of biodiesel.
(http://bisnis.news.viva.co.id/).
CPO used as biofuels or biofuel because of CPO is considered as
goods substitution of crude oil in the world. An increase in the
export of CPO is not separated from the concept of bidding
conducted by the Government of Indonesia based on the cost of
production factors, goals, expectations, and the price of
technology (http://www.stabilitas.co.id).
The world's CPO price as the goods substitution reached US $ 850
per ton increase in related world crude oil price reached 1000 US $
per barrel in 2009. In 2010, the price of CPO reached US $ 902 per
ton in 2011 and reach US $ 1,170 per tons. CPO is referred to as
the goods substitution is associated as a biofuel that can be
updated and the price is cheaper while the crude oil that comes
from the fossils cannot be updated and the price is also more
expensive. In this regard, Indonesia's flagship CPO into
commodities as the country's manufacturers offering CPO to
Slovakia.
CONCLUSIONFrom the discussion above, there are a few conclusions
drawn, namely:
1. The export of CPO Indonesia to Slovakia continues to increase
every year. Economically, it is influenced by the needs of domestic
consumption of Slovakia where CPO used for needs of biodiesel,
foodstuffs and pharmaceuticals.
2. This increase is also affected by the quality or the quality
of Indonesia's CPO good enough because its natural raw material and
the content of cholesterol lower CPO compared to other vegetable
oil sources as well as interest in Eastern European countries.
3. Other reasons is the economic and political reasons that
Slovakia's interests to maintain the bilateral relations of the two
countries in the field of the Union as well as an increase in
cooperation in trade, investment and more.
BIBLIOGRAPHY
Bangun, Wilson. 2007. Mengenal Instrumen Pasar Modal di
Indonesia. Jurnal Ekonomi Volume XVI, Nomor 3.
Booming Bio-fuel Eropa bunuh Hutan Indonesia, Dalam
http://www.greenpeace.org/seasia/id/press/releases/boomimg-bio-fuel-eropa-bunuh-h/.
CPO Indonesia diminati di Eropa Timur, dalam
http://www.ptpn5.com/?pilih=lihat&id=809.
Indonesia Incar Eksport Slovakia, dalam
http://bisnis.news.viva.co.id/.
Indonesia naksir Slovakia sebagai pintu pelabuhan ekspor CPO
baru, dalam
http://m.republika.co.id/berita/ekonomi/makro/11/10/14/lt21rh-indonesia-naksir-pelabuhan-ekspor-cpo-baru.
Indonesia, Slovakia Sepakati Investasi Baru 1 Miliar Dollar,
dalam
http://www.antaranews.com/berita/1318327105/indonesia-slowakia-sepakti-investasi-baru-1-miliar-dolar.
Industri Minyak Kelapa sawit, dalam
http://www.slideshare.net/mobile/rimaenggar/cpo-bidesel-presentation.
Kementerian Ekonomi Slovakia. http://www.neraca.co.id.
Kerjasama Indonesia dan slovakia, dalam
http://www.setneg.go.id/index.php?option=com_content&task=view&id=5870&Itemid=29.
Khudori. 24 November 2008. Titik Balik Industri Sawit. Kompas :
6 (kolom 3-7)
Krisna Didi, 1993., Kamus Politik Internasional, PT. Grasindo :
JakartaKusumohamidjojo, Budiono, 1987 Hubungan Internasional :
Kerangka Study Analisis, Bina Cipta : Jakarta
Minyak Kelapa Sawit. dalam
http://www.kemenperin.go.id/download/289/Paket-Informasi-Komoditi-Minyak-Kelapa-sawit.
Profil Kelapa Sawit, dalam http://
pphp.deptan.go.id/xplore/view.php?file=PENGOLAHAN-HASIL/PENGOLAHAN%20HASIL/8-Profil%20Usaha/PROFIL%20INVESTASI%20BIOENERGI/PROFIL%20KELAPA%20FINAL
.doc.
RI Ekspor CPO ke Slovakia, dalam http://www.neraca.co.id
/harian/article/1 109/Tembus.Pasar.Ero pa.RI.Harus.Naikan. Ekspor.
Lewat.SlowakiaRobert, Gilpin.1987. The Political Economy of
International Relations. New Jersey: Princeton University
Press.
Rumapean, Tumpal. 2000. Kamus Lengkap Perdagangan Internasional.
PT Gramedia Pustaka Utama
Saatnya Serius Garap Biofuel, dalam
http://www.stabilitas.co.id.view_articles.php?article_id215&article_type=O&article_category=7.
Sadono, Sukirno. 2002. Makro Ekonomi, Teori pengantar. PT. Raja
Grafindo Pusaka.Sadono, Sukirno. 2006. Makro Ekonomi, Teori
Pengantar. PT. Raja Grafindo Persada.Selayang Pandang Slovakia,
Dalam http www.indonesia.sk/wni/slovakia/cp-SLOVAKIA.pdf.Tambunan,
Tulus. 2001. Perdagangan Internasional dan Neraca Pembayaran
Cetakan I. Jakarta: LP-FEUI.
PAGE STUDY ON THE IMPACT OF EXPORTS IN SOUTH KOREAN ECONOMY
(GDP)