Home  /  Signifikan  /  Vol: 11 Núm: 1 Par: PP (2022)  /  Article
ARTICLE
TITLE

Foreign Ownership Shares and Trade Propensity in Indonesian Edible Oil, Vegetable and Animal Fats Industry

SUMMARY

Presidential Regulation (Perpres) No 44/2016 states that in the vegetable and animal crude oil industry, copra industry, coconut oil industry, palm oil industry, foreign ownership is limited at a maximum of 95 percent. These industries are included in the edible oil, vegetable and animal fats industry (ISIC 104). This study analyzes the effect of foreign ownership share on the trade propensity in the edible oil, vegetable and animal fats industry in Indonesia using the Tobit model. The data used are the cross-section data from 2015 Annual Survey of the Manufacturing industry from Statistics Indonesia. The results show that firms with foreign ownership share of more than 95 percent have the same export propensity with foreign ownership of between 50 and 95 percent. However, the import propensity of firms with foreign ownership between 50 and 95 percent is the lowest compared to other ownership. The government should continue to restrict foreign ownerhip shares at the maximum of 95 percent in this industry.How to Cite:Nauly, D. (2022). Foreign Ownership Shares and Trade Propensity in Indonesian Edible Oil, Vegetable and Animal Fats Industry. Signifikan: Jurnal Ilmu Ekonomi, 11(1), 95-106. https://doi.org/10.15408/sjie.v11i1.18408.

 Articles related

Hanum Amalia Budhi Pratiwi,Noer Azam Achsani,Toni Irawan    

This paper investigated the effect of coal prices and foreign ownership on the capital structure of coal companies in the Indonesian stock exchange. This study used debt to equity ratio (DER) to proxy capital structure and control variables, i.e., size, ... see more


Alif Rodhiyan,Sutrisno Trisno,Yeney Widya Prihaningtias    

The paper aims to examine the effect of thin capitalization and foreign ownership structure on tax aggressiveness and the extent to which the independence of commissioners can moderate the effect of thin capitalization and foreign ownership structure on ... see more


Tu DQ Le    

This study investigates the impact of foreign ownership on bank risk in Vietnam between 2006 and 2015. Our findings show that foreign ownership can lower bank risk, suggesting that the State Bank of Vietnam should further remove restrictions on foreign i... see more


Diah Fitri, Nur Hidayat, T. Arsono    

The objective of this research isto prove and explain The Effect  Of TaxManagement, Bonus Mechanism And Foreign Ownership On Transfer Pricing Decisionpartially and simultaneously.This researchused purposive sampling criteria and logistic regression ... see more


Eddy Suranta,Pratana Midiastuty,Hairani Ramayanti Hasibuan    

This study aims to provide empirical evidence of the influence of foreign ownership and foreign board of commissioners on tax avoidance. The dependent variable is tax avoidance, measured using an effective tax rate proxy (ETR), and the independent variab... see more