Abstract
This research is set out to determine the effect of welfare distribution the respect to import duty on the government revenue, consumer expenditures, producer revenues, and efficiency losses (in production, in consumption and net effect), and the level of competitiveness of cane sugar in Indonesia by calculating the Domestic Resource Cost (DRC). The research used secondary data from related preceding researches and other references such as magazines, journals, bulletins and the like. The research result showed that the government revenue, change of consumer surplus, producer surplus, economic net loss in production and consumption and exchange gaineconomization, are influenced by the import tariff and elasticity price toward supply and demand. It also showed that sugar product competitiveness in Indonesia is higher than the same product from other countries as the value of DRC is less than one.Key word: Sugar, Welfare Distribution, Domestic Resource Cost (DRC), Import tariff.
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