THE EXPORT ACTIVITY OF INDONESIA PETROLEUM PARTLY REFINED TO SINGAPORE 2005 – 2009

Abstract

This study is about to find the relationship and influence of export activity of Indonesia petroleum partly refined to Singapore. The richness of Indonesia natural resources of petroleum, gold, nipple, and other resources like coffee, tea, spices which made other countries hijacked Indonesia in the past suppose to push the export activity from Indonesia to another develop countries such as Singapore. Therefore, Indonesia government can increase the amount of devisa. From the data found in Indonesia statistic office, the export of petroleum partly refined to Singapore decline within five years, 2005 to 2009. Where one of the richness natural resources, petroleum should have been exported more to another country.

Researcher wants to find the significancy of the declining export activity of Indonesia petroleum partly refined to Singapore by using quantitative method, secondary data from Indonesia Statictic Office (BPS – Badan Pusat Statistik) from 2005 to 2009, internet resources, and books was processed using SPSS to find the regression, where both the relationship and influence of export quantity represented by the export activity of Indonesia petroleum partly refined to Singapore can be figured out. This research has found out with a strong relationship or significancy of export activity to Singapore between domestic product price from Indonesia, exchange rate of Singapore dollar to United State dollar, competitive product price from Malaysia, world oil price, Singapore inflation rate, Singapore import price index, and Singapore industrial index to export quantity from Indonesia. The overall test by using f distribution, only one independent variable shows a significant which is import price index (0.036) from Singapore with a fair correlation (0.483). And other variables show the model used is not significant or means the overall independent variables that affect export activity to Singapore with the significant model is Singapore import price index. In detailed, the t test shows that competitive price from Malaysia and world oil price show a very weak correlation; domestic product price from Indonesia, Singapore inflation rate, Singapore import price index, and Singapore industrial index show a weak correlation; and while exchange rate shows a strong correlation.

From the research findings, researcher suggests for Indonesia goverments to push the export activity to Singapore, as the closest country from Indonesia. Develop the technology and labor skills in finding natural resource, refinery, and others. For improvement in future research, it is suggested to take another field in substitute product or other forces that involve in export activity to get different perspective and response that will broadening knowledge in academy and government application.