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All Journal AGRARIS: Journal of Agribusiness and Rural Development Research
Dahlia Nauly
Faculty of Agriculture, University of Muhammadiyah Jakarta
Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Social Sciences

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The Effect of Domestic Consumption on Natural Rubber Farmgate Price in Indonesia Penggawa Pietra Pramananda; Amzul Rifin; Dahlia Nauly
AGRARIS: Journal of Agribusiness and Rural Development Research Vol 8, No 2: July-December 2022
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/agraris.v8i2.12480

Abstract

The decline in natural rubber farmgate prices in recent years directly impacted Indonesia’s natural rubber market. In response to this phenomenon, the government plans to increase natural rubber domestic consumption to raise Indonesia’s rubber price. This study aimed to determine the effect of increasing natural rubber domestic consumption on natural rubber farmgate prices and analyze other factors those influence it. The Error Correction Model was used to identify the variables that significantly affect Indonesia’s natural rubber farmgate price. The data used in this study were monthly data from January 2012 to December 2017. Results showed that natural rubber domestic consumption did not significantly affect the Indonesia natural rubber farmgate price. However, in the long run, Indonesia’s natural rubber farmgate price was influenced by the previous period of Indonesia’s natural rubber prices, world natural rubber prices, world crude oil prices, and exchange rates. While in the short run, Indonesia’s natural rubber farmgate price was influenced by the previous period of Indonesia’s natural rubber prices, world natural rubber prices, and exchange rate.
Co-Authors Amzul Rifin Penggawa Pietra Pramananda