The Import Demand Analysis of Indonesian and Malaysian Palm Oil in Italy

Italy is one of the largest importer of palm oil in the EU. Indonesia and Malaysia are the main suppliers of palm oil in Italy. This research aimed to (1) analyze the competition level of Indonesian and Malaysian palm oil in Italy, (2) analyze the factors affecting demand for Indonesian palm oil in Italy, (3) analyze the factors affecting demand for Malaysian palm oil in Italy. This research uses a model approach to AIDS. The results obtained are Indonesian palm oil has a larger share compared with the Malaysian palm oil in Italy. Factors affecting demand for imports of Indonesian palm oil in Italy is Malaysian palm oil prices, the total value of real imports, and imports of palm oil in the previous year. Factors affecting demand for imports of Malaysian palm oil in Italy is Indonesian palm oil prices, Malaysian palm oil prices, dan Rest of World palm oil prices.