The Impact of Bio-Ethanol Conversion and Global Climate Change on Corn Economic Performanve of Indonesia

Abstract

Many studies conclude that the rise in global food pricesdue to higher demand from the development of biofuels,climate anomalies, and increased of oil prices. Not onlythe food commodity index rose more than 60 percent, nonfoodcommodity price index also rose over 60 percent andcrude oil price index has increased even further above 60percent. The purpose of this study is to analyze the impact ofbio-ethanol conversion and global climate change on corneconomic performance of Indonesia. The results showed thatthe food crisis caused by climate anomalies lead the worldcorn prices rose 50 percent, impact on Indonesia corn importsfell by 11.86 percent. And the other hand, the energy crisisthat caused the corn used as feedstock for ethanol that causedU.S. corn exports only 20 percent of their products have animpact on Indonesia on maize imports fell 32.4 percent.