WIBOWO, Rio Rizky (2018) Factors Affecting Indonesia Milk Import in 1995-2015. Skripsi thesis, Universitas Jenderal Soedirman.

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Abstract

The development of agricultural industry is the priority for the government of Indonesia to achieve self-sufficiency. Milk is an important industrial sub-sector with over 100,000 dairy farmers and over 800,000 tons milk production. Importing milk is done because domestic milk production has not been able to meet domestic milk demand. The availability of milk in Indonesia is 79.63 percent is supplied from import, as the domestic milk production contributes only 20.37 percent. This research examines to identify the key determinants of Indonesia milk import demand in 1995-2015 by the changes of Indonesia milk consumption, milk production, milk price, Rupiah exchange rate and Indonesia GNI per capita. The type of this research is associative research. The analysis technique is multiple linear regression analysis. The dependent variable is Indonesia milk import. The independent variables are Indonesia milk consumption, Indonesia milk production, Indonesia milk price, Rupiah exchange rate and Indonesia GNI per capita. The findings of this research are: 1) The variables that have significant effects on Indonesia milk import in 1995-2015 are Indonesia milk consumption, Rupiah exchange rate and Indonesia GNI per capita. Meanwhile, the variables that have insignificant effects are Indonesia milk production and Indonesia milk price. 2) The variable that has the most influential effect on Indonesia milk import in 1995-2015 is Indonesia milk consumption. The implications that may be implied as the recommendations for milk industry policy are: 1) The Government of Indonesia should develop a comprehensive blueprint for milk industry development with the related institutions (IPS, GKSI and dairy farmers) with the aim of increasing partnerships to create a conducive business climate to overcome the high demand of milk. 2) The government needs to encourage the optimization of existing production capacity and investment on supporting factors (employment, raw materials, energy and infrastructures) in order to increase the competitiveness of domestic milk industry.

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