SIMULASI KEBIJAKAN PRODUKSI DAN PERDAGANGAN INDONESIA TERHADAP INDUSTRI GULA DOMESTIK
Abstract
Sugar is one of the important commodities for Indonesia due to its various uses for households and industries. This study aims to assess the condition of the sugar industry related to the factors that influence the demand for and supply in Indonesia. The method utilized the simultaneous method to estimate Two-Stage Least Squares (2SLS) between 2003 and 2020. This study found that domestic and international sugar prices impacted the magnitude of plantation harvests. Additionally, the Gross Domestic Product (GDP) variable has a significant effect on household consumption. Stockpiles of sugar and falling prices are the two main variables affecting Indonesia's imports from the global market. The policy simulation results show that implementing a strategy of increasing land area while reducing imports can help Indonesia's sugar sector compete.
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