Asymmetric Price Transmission of Some Basic Commodities in Indonesia

The prices of these international goods, world oil prices, exchange rates, and government policies, always influence developments in the current global era that drive domestic commodity prices. This study aims to analyze effect asymmetric price transmission on several Indonesian commodities. Asymmetric occurs if speed adjustment above or below trend is not same. Positive negative changes occur trend. Under dynamic conditions, each will adjust long-term level. applies error correction model (ECM) method capture following involves see adjustments. Econometric testing through used determine how much adjustments are when there an increase decrease for essential results showed increased decreased wheat flour, granulated sugar, soybeans, beef, broiler meat. Based coefficient significance level, was no rice chicken eggs. Policy implications include providing input policymakers determining so market stable line with people's purchasing power.