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Analisis of Factors Affecting The Salt Import And Demand

In Indonesia

1
2
Safrida , I Sulaiman , and I Afriani 1
1 Study Program of Agribusiness, Faculty of Agriculture, Universitas Syiah Kuala
2 Department of Agricultural Product Technology, Faculty of Agriculture, Universitas
Syiah Kuala

E-mail: safrida@unsyiah.ac.id

Abstract. Indonesia has a long coastline, which has a great potential to be self-sufficient in
domestic salt needs, and can even become an exporter country. Salt is one of the needs for
household consumption and industrial raw materials. Along with the increase of the domestic
population and the number of industries, the salt demand will also be increasing. However, this
demand is not followed by an increase in quantity and quality of salt production. This occurrence
obliges the government to issues the policy to import the salt to meet domestic needs. This
research aims to determine the factors affecting salt import and demand in Indonesia. The type
of data used is secondary data in the form of time series with the period of 2003-2017. The
analysis was conducted by using a simultaneous equation which consists of two equations and
an analysis instrument of 2SLS (Two-Stage Least Square). The result of the research on the
equation shows that the volume of salt import in Indonesia influenced significantly by the
domestic salt price, imported salt price, and total number of populations. This condition
indicates that salt is one of the main food materials that are needed every time.

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