Does Sugarcane Field Expansion Increase Sugar Production?
13 Pages Posted: 23 Oct 2017
Date Written: October 12, 2017
Indonesia has been heading on lack of sugar in the country since 1967 thus it has been importing sugar for long periods and the import increases year by year. One of the suspected reason is, the availability of sugarcane field didn't support sugar production as sugarcane is one of the inputs for the sugar outcome. There was the reason it is a need to hold a research if sugarcane field expansion will support sugar production. The methodology of the research is used the econometric system with time series data 1982-2013, with the simultaneous process and it continued with the simulation of 20 % sugarcane field expansion and 20 % of sugarcane productivity. The result showed, the expansion of sugarcane field 20 % and a rise of 20 % productivity can support sugar production in the country and both can be utilized as alternatives to policy in order to increase sugar production.
Keywords: sugarcane, sugar, expansion, production
JEL Classification: D24, P20
Suggested Citation: Suggested Citation