Abstract

ABSTRACTThe 1930s was the heyday of the Indonesian sugar industry that is capable of exporting to many countries and has become the country an exporter of sugar to two after Cuba, but the situation is reversed since 1967 in which Indonesia would import sugar from Brazil, India, and Thailand in order to meet the needs raw material consumption and food and beverage industry. The results showed that the cost of sugar production is very uneconomical because of inefficiency that stretches from the cultivation to processing in the factory so difficult to obtain profit margins. Target and beyond sugar self-sufficiency can not be achieved because highly regulated, there is no synergy and tends to conflicts of interests among ministries or agencies, and internal conflicts often occur between the sugar mill and the disharmony between sugarcane farmers by the sugar mill officials.In the competition of the sugar industry are more stringent, in the era of the Asean Economic Community, it means the level of efficiency of sugar factories in the country need special attention, the same thing also applies to industrial users of sugar, and sugar as a raw material components contribute to the creation of products food and beverage efficient so as to compete with similar products from other countries. Observing how the intense competition in the Asean Economic Community is based on free trade, the yield of sugar that’s a cost efficient production is very important and urgent at this time, including work to improve the welfare of farmers.

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