THE INFLUENCE OF EUROPEAN UNION’S CRUDE PALM OIL (CPO) BOYCOTT POLICY ON LISTED PALM OIL PRODUCING COMPANY IN INDONESIA AND MALAYSIA STOCK MARKET

• Main Author: Tua Gabriel Panjaita, Alexander
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49543
• Institution: Institut Teknologi Bandung

Palm oil has been the vital commodity of world trade, as it is utilized into many products such as cooking oil, margarine, cosmetic, pharmaceutical, and bio-fuel. European Union as the second-largest palm oil importers, enacted a regulation requiring that every palm oil and its derivative must comply with the sustainable standard of RSPO, and the commissioner also established their plan to stop using palm oil completely by 2030. Although the regulation is far from effectively in motion, palm oil’s market in producer countries around the world become uncertain becomes more volatile. In this research, the author will be examined the influence of EU regulation using the stock market price of listed palm-oil producer companies in Indonesia and Malaysia. This research conducted using the event study method with the market-adjusted model approach. The observation period will be made into three periods of three main events determined prior. The author will analyze the data using statistical analysis on Abnormal Return and Trading Volume Activity using paired sample t-test and Wilcoxon signed-rank test with an observation period of 10 days, 5 days prior and 5 days after. The research outcome will show whether the EU regulation resembles three events determined is influencing the palm oil market in Indonesia and Malaysia represented by the listed company on the stock market. the influence indicator will be decided by the result of the analysis method used, whether abnormal return and trading volume activity of the listed company in the corresponded period shows a significant difference or not. If significant difference achieved, thus the regulation influencing the marke