[ABSTRACT
A number of studies have examined the relationship between the oil palm plantation area and the poverty alleviation. Most of this study are conducted based on local research and, mainly, do not involve econometrics analysis to find the relationship. Palm oil is one of commoditiesthat is widely produced in Indonesia that makes this country the world leader of palm oil producers. With the large amount of oil palm plantation area in Indonesia, then it may have an effect on economic growth,which may relieve the poverty. Using panel data set of 33 province in Indonesia between 2006 and 2012, this paper tries to examine the effect of oil palm plantation on poverty alleviation in Indonesia.Moreover, this paper also aims to examine factors that may affect the expansion of oil palm plantation. In order to answer this objective, descriptive analysis is employed to discuss the determinant of oil palm expansion. Whereas, pooled OLS, fixed effect panel data model and random effect panel data model are employed in this paper, to asnwer the main objective.The results shows that govenment intervention is more likely to influence the expansion of oil palm plantation. Meanwhile, demand for palm oil product may have impact on the expansion in Indonesia. Empirical findings show that oil palm plantation has negatively significant effect on the number of poor people. This means that increasing oil palm plantation area may reduce the poverty level in Indonesia. In addition, regional per capita income, education, access on electriciy and population size also have negative relationship with the poverty. Mostly, the result supports the empirical evidence that an increase of the variables may reduce the poverty level.;A number of studies have examined the relationship between the oil palm plantation area and the poverty alleviation. Most of this study are conducted based on local research and, mainly, do not involve econometrics analysis to find the relationship. Palm oil is one of commoditiesthat is widely produced in Indonesia that makes this country the world leader of palm oil producers. With the large amount of oil palm plantation area in Indonesia, then it may have an effect on economic growth,which may relieve the poverty. Using panel data set of 33 province in Indonesia between 2006 and 2012, this paper tries to examine the effect of oil palm plantation on poverty alleviation in Indonesia.Moreover, this paper also aims to examine factors that may affect the expansion of oil palm plantation. In order to answer this objective, descriptive analysis is employed to discuss the determinant of oil palm expansion. Whereas, pooled OLS, fixed effect panel data model and random effect panel data model are employed in this paper, to asnwer the main objective. The results shows that govenment intervention is more likely to influence the expansion of oil palm plantation. Meanwhile, demand for palm oil product may have impact on the expansion in Indonesia. Empirical findings show that oil palm plantation has negatively significant effect on the number of poor people. This means that increasing oil palm plantation area may reduce the poverty level in Indonesia. In addition, regional per capita income, education, access on electriciy and population size also have negative relationship with the poverty. Mostly, the result supports the empirical evidence that an increase of the variables may reduce the poverty level.;A number of studies have examined the relationship between the oil palm plantation area and the poverty alleviation. Most of this study are conducted based on local research and, mainly, do not involve econometrics analysis to find the relationship. Palm oil is one of commoditiesthat is widely produced in Indonesia that makes this country the world leader of palm oil producers. With the large amount of oil palm plantation area in Indonesia, then it may have an effect on economic growth,which may relieve the poverty. Using panel data set of 33 province in Indonesia between 2006 and 2012, this paper tries to examine the effect of oil palm plantation on poverty alleviation in Indonesia.Moreover, this paper also aims to examine factors that may affect the expansion of oil palm plantation. In order to answer this objective, descriptive analysis is employed to discuss the determinant of oil palm expansion. Whereas, pooled OLS, fixed effect panel data model and random effect panel data model are employed in this paper, to asnwer the main objective.The results shows that govenment intervention is more likely to influence the expansion of oil palm plantation. Meanwhile, demand for palm oil product may have impact on the expansion in Indonesia. Empirical findings show that oil palm plantation has negatively significant effect on the number of poor people. This means that increasing oil palm plantation area may reduce the poverty level in Indonesia. In addition, regional per capita income, education, access on electriciy and population size also have negative relationship with the poverty. Mostly, the result supports the empirical evidence that an increase of the variables may reduce the poverty level.;A number of studies have examined the relationship between the oil palm plantation area and the poverty alleviation. Most of this study are conducted based on local research and, mainly, do not involve econometrics analysis to find the relationship. Palm oil is one of commoditiesthat is widely produced in Indonesia that makes this country the world leader of palm oil producers. With the large amount of oil palm plantation area in Indonesia, then it may have an effect on economic growth,which may relieve the poverty. Using panel data set of 33 province in Indonesia between 2006 and 2012, this paper tries to examine the effect of oil palm plantation on poverty alleviation in Indonesia.Moreover, this paper also aims to examine factors that may affect the expansion of oil palm plantation. In order to answer this objective, descriptive analysis is employed to discuss the determinant of oil palm expansion. Whereas, pooled OLS, fixed effect panel data model and random effect panel data model are employed in this paper, to asnwer the main objective.The results shows that govenment intervention is more likely to influence the expansion of oil palm plantation. Meanwhile, demand for palm oil product may have impact on the expansion in Indonesia. Empirical findings show that oil palm plantation has negatively significant effect on the number of poor people. This means that increasing oil palm plantation area may reduce the poverty level in Indonesia. In addition, regional per capita income, education, access on electriciy and population size also have negative relationship with the poverty. Mostly, the result supports the empirical evidence that an increase of the variables may reduce the poverty level.;A number of studies have examined the relationship between the oil palm plantation area and the poverty alleviation. Most of this study are conducted based on local research and, mainly, do not involve econometrics analysis to find the relationship. Palm oil is one of commoditiesthat is widely produced in Indonesia that makes this country the world leader of palm oil producers. With the large amount of oil palm plantation area in Indonesia, then it may have an effect on economic growth,which may relieve the poverty. Using panel data set of 33 province in Indonesia between 2006 and 2012, this paper tries to examine the effect of oil palm plantation on poverty alleviation in Indonesia.Moreover, this paper also aims to examine factors that may affect the expansion of oil palm plantation. In order to answer this objective, descriptive analysis is employed to discuss the determinant of oil palm expansion. Whereas, pooled OLS, fixed effect panel data model and random effect panel data model are employed in this paper, to asnwer the main objective.The results shows that govenment intervention is more likely to influence the expansion of oil palm plantation. Meanwhile, demand for palm oil product may have impact on the expansion in Indonesia. Empirical findings show that oil palm plantation has negatively significant effect on the number of poor people. This means that increasing oil palm plantation area may reduce the poverty level in Indonesia. In addition, regional per capita income, education, access on electriciy and population size also have negative relationship with the poverty. Mostly, the result supports the empirical evidence that an increase of the variables may reduce the poverty level., A number of studies have examined the relationship between the oil palm plantation area and the poverty alleviation. Most of this study are conducted based on local research and, mainly, do not involve econometrics analysis to find the relationship. Palm oil is one of commoditiesthat is widely produced in Indonesia that makes this country the world leader of palm oil producers. With the large amount of oil palm plantation area in Indonesia, then it may have an effect on economic growth,which may relieve the poverty. Using panel data set of 33 province in Indonesia between 2006 and 2012, this paper tries to examine the effect of oil palm plantation on poverty alleviation in Indonesia.Moreover, this paper also aims to examine factors that may affect the expansion of oil palm plantation. In order to answer this objective, descriptive analysis is employed to discuss the determinant of oil palm expansion. Whereas, pooled OLS, fixed effect panel data model and random effect panel data model are employed in this paper, to asnwer the main objective.The results shows that govenment intervention is more likely to influence the expansion of oil palm plantation. Meanwhile, demand for palm oil product may have impact on the expansion in Indonesia. Empirical findings show that oil palm plantation has negatively significant effect on the number of poor people. This means that increasing oil palm plantation area may reduce the poverty level in Indonesia. In addition, regional per capita income, education, access on electriciy and population size also have negative relationship with the poverty. Mostly, the result supports the empirical evidence that an increase of the variables may reduce the poverty level.]