Efforts to Achieve Beyond Sugar in lndonesia

Tayibnapis, Ahmad Zafrullah and Wuryaningsih, Lucia Endang and Sundari, Hj. Made Siti (2016) Efforts to Achieve Beyond Sugar in lndonesia. IJMBS International Journal of Management and Business Studies, 6 (4). pp. 14-22. ISSN 2230-9519 (Online) | ISSN : 2231-2463 (Print)

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Abstract

Thed evelopment of a more meaningful sugarcane-based industry in Indonesia has not been realized yet because of incapability of over coming a variety of fundamental problems, such as high operating costs,low sucrose content of sugarcane crop, less maximum engine performance,importation of suqar which is not in accordance with domestic demand causing excessive in market, and others. The development of a meaningful sugarcane based industry in Indonesia is very difficult to realize until the next 5 years because there has been no synergy among ministries/agencies which eventually leads to conflict of interest. In addition, sugar commodity is a highly regulated business. Therefore, it is difficult to build a complex and integrated sugarcane-based industry in Indonesia. The results indicate that the costs of sugar production are very uneconomical. In efficiency stretches from cultivation to production process in the factory which results in the difficulty to gain profit margins. The target of being sugar self-sufficiency and beyond sugar could not be achieved because this industry is highly regulated has no synergy and tends to raise conflict of interest among ministries or agencies. Internal conflicts often occur among sugar mills and there is disharmony between sugarcane growers and sugar mill officials.

Item Type: Article
Uncontrolled Keywords: Sugarcane Based Industry, Upstrean-Downstream, Profit Margin, Strategy.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Business and Economic > Department of Economic
Depositing User: Ester Sri W. 196039
Date Deposited: 30 Sep 2019 04:09
Last Modified: 27 May 2022 04:31
URI: http://repository.ubaya.ac.id/id/eprint/36412

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