Determinants of macroeconomic variables on the crude palm oil (CPO) prices: Indonesian evidence / Puteri Nur Shuhada Aznam

Crude palm oil (CPO) is the largest agricultural commodity that contributes significantly to the Indonesian economy. Currently, Indonesia has been addressed as a top CPO producer and holds the position as the first-largest exporter in the world. However, the prices of the crude palm oil (CPO) are particularly volatile and may be affected by the Indonesia economy. Therefore, the aim of the study is to examine the impact of macroeconomics on the crude palm oil prices in Indonesia. The study has selected Indonesia stock index (IDX), interest rate, gross domestic product (GDP) and consumer price index (CPI) as the independent variables and the dependent variable is the crude palm oil (CPO) prices. The period of the study is 11 years from 2010 until 2020. The study has collected the data from secondary data and used time series data as a model to analyze the relationship of the variables. The findings revealed that only the stock index has a significant relationship. While other variables do not have a significant relationship with the crude palm oil prices.