The impact of global red chili price, global oil price, and Indonesian rupiah exchange rate on the domestic price of red chili in Indonesia / Muhammad Ilham Riyadh

• Main Author: Riyadh, Muhammad Ilham
• Format: Book Section
• Language: English
• Published: Division of Research, Industrial Linkages and Alumni, UiTM Cawangan Melaka 2023
• Subjects: Finance and cycles. Financial crises. Convergence (Economics)
• Online Access: https://ir.uitm.edu.my/id/eprint/81871/1/81871.pdf; https://ir.uitm.edu.my/id/eprint/81871/; https://www.mic3st.com/
• Institution: Universiti Teknologi Mara

The research aims to address the following questions: (1) Does the fluctuation in world oil prices affect the price of Red Chili in Indonesia? (2) Does the fluctuation in the Indonesian exchange rate influence the price of Red Chili in Indonesia? (3) Does the world price of Red Chili affect the domestic price of Red Chili in Indonesia? The research utilizes secondary time series data from 1980 to 2021, focusing on the commodity of Red Chili. The estimation results indicate that international factors, such as world oil prices, have a significant positive impact on the domestic price of Red Chili. The exchange rate of the Indonesian Rupiah also has a significant positive influence on Red Chili prices in Indonesia. However, the world price of Red Chili has a negative and insignificant effect on domestic prices.