Journal of Agribusiness Management and Development, Vol 2 No 2, September 2021, Page 1-9 ISSN 2775-0248 (Print) ISSN 2775-0256 (Online) Available at https://journal.ugm.ac.id/v3/JAMADEV/ 1 THE PERFORMANCE OF INDONESIAN CRUDE PALM OIL EXPORT Baginda Mora Fortius Prabowo 1 , Suhatmini Hardyastuti 2 & Dwidjono Hadi Darwanto 2 1,2 Department of Agricultural Socio-Economics, Faculty of Agriculture, Universitas Gadjah Mada Corresponding author: dwidjonohd.sosek@ugm.ac.id Received : 15 May 2021 Accepted : 15 August 2021 Published : 25 September 2021 ABSTRACT This research aims: (1) to examine Indonesia’s CPO production and CPO export trends in the international market, (2) to analyze Indonesia’s CPO comparative advantages compare to other main exporters, (3) to find out which export target the country has the best market share to expand between main export target countries and (4) to know the factors that affect export volume. This research used descriptive analytics with CPO related time-series data from 2006 until 2016. The research showed that (1) Indonesia’s production and export trends are expected to increase each year (2) Indonesia has better comparative advantages compared to other main export country and on maturity stage (3) The best CPO market share to expand is China compare to other export target countries (4) Factors affecting export volume are CPO international price, Indonesia’s GDP and total population. Keywords: CPO, comparative advantage, constant market share, export performance, trend INTRODUCTION The agricultural sector plays a crucial role in the Indonesian economy. It can be seen from the agricultural sector’s contribution to Indonesia’s Gross Domestic Product (GDP). The agricultural sector until 2016 contributed 13.52% or was the second largest contributor to GDP after the manufacturing sector. When viewed from the percentage of contributions from each sub-sector in the agricultural sector, the plantation sub-sector is the largest contributor to the agricultural sub- sector, which amounted to 3.57% in 2016. One of the commodities that support the plantation sub- sector is the oil palm commodity. Oil palm is a commodity in the plantation sub-sector, which annually experiences growth in terms of production. Based on Kementrian Pertanian (2017) data, oil palm commodities in 2015 experienced a production growth of 6.12% and a productivity growth of 0.65%. Several factors can cause the rapid development of oil palm in Indonesia. The first factor is Indonesia’s natural conditions that support the growth of oil palm commodities. The second factor is the high population growth in Indonesia. The third factor is the increasing trend among farmers who see palm oil as a commodity with a stable price and will always be needed in the international market. According to Salvatore (1993), international trade occurrence due to price differences between countries can be analyzed through a partial balance analysis. The relative equilibrium price of a commodity in international trade is determined by the power of supply and demand for the commodity in international markets. Ermawati & Saptia (2013) analyze of the export performance of Indonesian Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) by comparing the competitiveness of palm oil exports both CPO and KPO with palm oil-producing countries and comparing the performance of Indonesia’s CPO and PKO exports to several destination countries main export. The results showed that the export performance of Indonesian CPO and PKO was lower than that of Malaysia and Thailand, but the same as Colombia and the export performance of CPO and PKO tended to decline compared to the growth in exports world products. Kuwornu et al. (2009) research the factors that can affect palm oil exports’ performance in the form of CPO in Ghana. The study found that the real domestic palm oil price influenced the export demand for Ghanaian palm oil, the real export price of palm oil, the real export price of Malaysian palm oil (as a competitor), and the exchange rate of the Ghanaian currency. Alatas (2015) research is focused on production trends and export competitiveness of Indonesian palm oil (CPO). The results showed the factors that influence India’s CPO exports: international CPO prices, rupiah exchange rates, per capita income, population, and substitution prices. Then, international prices, state income, population, and substitution prices influenced CPO exports to China. Meanwhile, domestic prices, state income, population, trends, and substitution prices are influenced by CPO exports to the