Factors Influence Sugarcane Field Expansion in Indonesia

IJMIE Volume 5, Issue 4, April 2015

11 Pages Posted: 31 Mar 2020

See all articles by Dyana Sari

Dyana Sari

University of Tribhuwana Tunggadewi

Wahib Muhaimin

University of Brawijaya

Nuhfil Hanani

University of Brawijaya

Syafrial .

affiliation not provided to SSRN

Date Written: April 22, 2015

Abstract

Sugarcane field in Indonesia has been developing over 20 years, but the rising field is not numerous improvement. That’s the reason that sugar production is low in growth. There should have been factors influenced by the sugarcane field expansion in Indonesia. That’s the reason there is a need to conduct research on what factors influence sugarcane field expansion in Indonesia.

The result of research said the price of sugar is the factor influences sugarcane field in Indonesia. The higher price of sugar the more opportunity for sugarcane field to expand with coefficient regression of 18.67. Farmers grow sugarcane have liberated decision which doesn’t depend on the prices of paddy and maize, either on the lending of the interest rate. After the factor has been found, the research is continued with the scenario of how if the farmer’s floor price is increased 30 % in order to raise the price of sugar. The result gave effect on raising of sugar price of 14.4 %, and both sugarcane and sugar production will rise by 4.7 %. It measures that increasing floor price can be made use of government policy instrument to build up sugar price which links to sugarcane field expansion as well as sugarcane and sugar production improvement.

Keywords: Sugarcane field expansion, sugarcane production, sugar production, sugar, sugarcane

JEL Classification: Q24

Suggested Citation

Sari, Dyana and Muhaimin, Wahib and Hanani, Nuhfil and ., Syafrial, Factors Influence Sugarcane Field Expansion in Indonesia (April 22, 2015). IJMIE Volume 5, Issue 4, April 2015, Available at SSRN: https://ssrn.com/abstract=3407742

Dyana Sari (Contact Author)

University of Tribhuwana Tunggadewi ( email )

Jalan Telaga Warna Blok C, Tlogomas
Malang, East Java 61655
Indonesia
+6281327296424 (Phone)

Wahib Muhaimin

University of Brawijaya ( email )

MT. Haryono 165
Jalan Veteran, Malang, Jawa Timur 65145, Indonesia
Malang, IN East Java 65145
Indonesia

Nuhfil Hanani

University of Brawijaya ( email )

Jalan Veteran
Malang, East Java
Indonesia

Syafrial .

affiliation not provided to SSRN

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