THE EFFECT OF PRODUCTION, PRICE, AND USD EXCHANGE RATE ON THE CPO EXPORTS VOLUME IN THE PERIOD OF 1990-2019 IN INDONESIA

ABSTRACT: International trade is important for a country to drive economic growth. Export is one of theinternational trade activities carried out by Indonesia, namely the export of CPO commodities. The developmentof CPO production and exports every year increases, so that the cultivation of oil palm plantations increases buthas a negative impact on the environment and decreases the total production of other plantations because mostfarmers choose to cultivate oil palm. The development of oil palm plantation cultivation also has a positiveimpact that is the absorption of labor. CPO provides benefits to the country in the form of foreign exchangethrough exports. The purpose of this research is to find out how the production, price, and USD exchange rateaffect the volume of Indonesian CPO export. Data collection was carried out using non-participant techniques inthe form of studying the descriptions of books, theses, articles and websites. Data were analyzed using multiplelinear regression. The results of this study found that simultaneouslythe production variable1, price 2, and theUSD exchange rate 3 had a significant effect on Indonesia’s CPO export volume. The production 1 partiallyhas a positive and significant effect on the CPO exports volume. Price 2 and USD Exchange Rate 3 partiallyhave a positive but not significant effect on the CPO exports volume.

KEYWORDS: CPO Export, Production, Price, USD Exchange Rate, Environment