Impact of Domestic Policies on Indonesia’s Sugar Competitiveness

Baida Soraya, Sri Hartoyo, Hermanto Siregar, . Harianto

Abstract


Indonesia as one of the most populous countries has high sugar consumption rate. Indonesia sugar consumption rate is continue to surging. In contrast, domestic production could not satisfy the demand and Indonesia need to import sugar. In 2020, Indonesia is predicted to proceed import 4400 thousand MT raw sugar. Indonesia will continue to import sugar because sugarcane output is predicted to fall in 2019/20 due to dwindling land availability. In addition, the majority of Indonesia’s sugarmills is over than a hundred year and lead to low sugar’s extraction rate to only 6.9%. This research examines Indonesia’s sugar competitiveness using Policy Analysis Matrix. Indonesia’s Domestic Cost Ratio is 2.04. The number means that Indonesia’s domestic sugar production, compared to foreign country, is twice costly. Social price of sugar in Indonesia was half of retail sugar price in domestic market. The total social loss of the Indonesian sugar sector was 16 128 thousand rupiahs per hectare per planting season. Farmers, consumers, and the government all have to subsidize the production of domestic sugar. If the domestic price of sugar is equal to world price, consumers do not have to pay 11 772 thousand rupiahs more to meet their sugar needs. Policy scenario of sugarmills revitalization which could increase sugar extraction rate up to 10%, compared to usual rate at 6.9%, could double both private and social revenue of a sugarcane plantation.

 


Keywords


PAM Analysis, Sugar Competitiveness, Sugar Extraction Rate, Import, Production

Full Text:

PDF

References


[BPS]a Badan Pusat Statistik. 2017. Statistik Tebu Indonesia. Jakarta: BPS.

_____b. 2017. Statistik Indonesia, Jakarta:BPS

Brooks dan Matthews 2015. Trade dimensions of food security. OECD Food, Agriculture and Fisheries Papers No. 77. Paris (FR): OECD Publishing. doi:10.1787/5js65xn790nv-en.

Ernawati L dan Suryani E. 2013. Analisis faktor produktivitas gula Nasional dan Pengaruhnya Terhadap Harga Gula Domestik dan Permintaan Gula Impor dengan Menggunakan Sistem Dinamik. Jurnal Teknik Pomits, 1(1): 1-7. Tersedia di http://digilib.its.ac.id/public/ITS-paper-28604-5209100085-Paper.pdf

Farsund AA, Daugbjerg C, Langhelle O. 2015. Food security and trade: reconciling discourses in the Food and Agriculture Organization and the World Trade Organization. Food Security. 7(2):383–391.doi:10.1007/s12571-015-0428-y

Gillespie S, van den Bold M. 2017. Agriculture, food systems, and nutrition: meeting the challenge. Global Challenges. 1(3):34-56.doi:10.1002/gch2.2016 00002

Kementerian Pertanian. 2016. Outlook Tebu Komoditas Pertanian Subsektor Perkebunan, Pusat Data dan Sistem Informasi Pertanian Sekertariat Jendral, ISSN 1907-1507, 2016, Jakarta.

Kis-Katos K, Sparrow R. 2015. Poverty, labor markets and trade liberalization in Indonesia. Journal of development Economics. 117:94-106.doi: 10.1016/j.jdev eco.2015.07.005

Martin W. 2017. Agricultural trade and food security. ADBI Working Paper Series No. 664. https://www.adb.org/sites/default/files/publication/228906/adbi-wp664.pdf

McDonald G, Meylinah. 2019. Indonesian Sugar Annual Report 2019, GAIN report No. ID1908, 11 April 2019, USDA (US).

Nelson GC dan Panggabean M. 1991. The Costs of Indonesian Sugar Policy: A Policy Analysis Matrix Approach. American Journal of Agricultural Economics. 73(3).doi: 10.2307/1242822

Nyberg J. 2006. Sugar International Profile, FAO, (US)

Rahman ME. 2019. Perilaku Impor Gula di Pasar Dunia dan Dampak Kebijakan Tarif Impor Terhadap Industri Gula Indonesia. Disertasi. [Draft]. Bogor:IPB

Slimane MB, Huchet-Bourdon M, Zitouna H. 2016. The role of sectoral FDI in promoting agricultural production and improving food security. International Economics. 145:50-65.doi:10.1016/j.inteco.2015.06.001

Subiyakto S dan Mulyaningsih S. 2014. Strategi Peningkatan Produktivitas dan Rendemen Tebu. Jurnal Penelitian dan Pengembangan, 33(3). doi: 10.21082/jp3.v33n3.2014.p95-104

Tinta AA, Sarpong DB, Ouedraogo IM, Al Hassan R, Mensah-Bonsu A, Onumah, EE. 2018. Assessing the impact of Regional Integration and International Trade on Economic Growth and Food Security in ECOWAS. Global Journal of Management And Business Research. 18(2):32-34. https://globaljournals.org /GJMBR_Volume18/4-Assessing-the-Impact-of-Regional.pdf. [8 Juli 2018

Wright T, Meylinah. 2016. Indonesian Sugar Annual Report 2016, GAIN report No. ID1614, 21 Maret 2016, USDA (US).


Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 Baida Soraya, Sri Hartoyo, Hermanto Siregar, . Harianto

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.