Crude Palm Oil Downstreaming Policy Conceptual Model

Indonesia is the world's largest producer of Crude Palm Oil (CPO) with the Harmonized System code (HS15111000). CPO can be processed into various derivative products offers the opportunity to increase added value by developing the CPO downstreaming, which is essential to Indonesia's long-term development and industrialization strategy. However, guarantees of non-overlapping regulations are needed as a prerequisite for the development of Indonesian CPO downstreaming through a series of policies that have been implemented. The aim of this research is to develop a conceptual model of Indonesia's CPO downstreaming policy. This research uses secondary data related to Indonesian CPO downstreaming policies obtained from various sources. This research produces three conceptual models of CPO downstreaming policies, with the first conceptual model assuming that imports are carried out at the beginning so that they will increase stocks, which will then be allocated for domestic and export needs. For the second conceptual model, it is assumed that stocks will be allocated for domestic needs, then imports will be carried out to meet export needs. Meanwhile, the third conceptual model assumes that exports are carried out at the beginning so that they will reduce stocks, then imports are carried out to meet domestic needs.