What are medium and large manufacturing firms in Indonesia?
The data were collected from the annual survey of medium and large manufacturing firms conducted by Statistics Indonesia (BPS). Medium and large firms are defined as those employing at least 20 workers annually.
How much palm oil is consumed in Indonesia?
Over three decades, in 2019, consumption grew by about 1188 percent, reaching more than 16.75 million tons ( Yuniartha 2021 ). This remarkable growth is in line with its upstream sector, i.e., crude palm oil (CPO), which has contributed to approximately 58.3% of the global CPO production, making Indonesia the largest CPO producer and exporter.
How efficient are palm oil plants in Indonesia?
Empirical studies in Indonesia have estimated the technical efficiency of all subsectors of the manufacturing industry ( Yasin 2021; Ikhsan 2007; Margono and Sharma 2006; Setiawan and Sule 2020 ). However, none of the studies has specifically identified the technical efficiency of crude palm oil plants in Indonesia.
Why is palm oil important in Indonesia?
Palm oil has been a valuable commodity for Indonesia¡¯s economic growth for decades. In 1990, palm oil consumption reached 1.3 million tons, which tripled to approximately 4.87 million tons by 2007 ( Rifin 2010 ). Over three decades, in 2019, consumption grew by about 1188 percent, reaching more than 16.75 million tons ( Yuniartha 2021 ).