Efficiency Production of National Sugar Mills.

Abstract

The sugar factory is one of the strategic industries in Indonesia because of the sugar mill output can meet the basic food needs, the needs of other industries, and providing jobs. In fact the national sugar production can not meet national sugar consumption. Sugar mills can not increase the production of sugar because sucrose levels which are necessary for the production of sugar lost. Loss of sucrose as seen from yield of sugarcane based on information from other studies due to the machines are old, relatively low production capacity, raw materials predominantly owned by the people, and infertile land outside Java. Therefore, the purpose of this study was to measure the efficiency of the national sugar factories, tracing factors and determinants measure the efficiency of the national sugar mill. To answer these objectives, this study uses panel data from 26 sugar factories by the use of data envelopment analysis models (DEA) and random effects. The results showed the national sugar factory is inefficient due to the inefficiency of 6.70 percent from 2006 to 2011. Inefficient sugar mills which shows the ratio of input and output is relatively higher than other sugar mills. Sugar mill production capacity of small and medium production capacity is not efficient when compared with large production capacity. That is because the use of the cane, labor, production capacity, and the fuel is relatively high in both sugar factory. Relatively high input use also occurs at the sugar factory machine age of 30 years instead of the sugar mill sugar mill machinery under the age of 30 years. Sugar factories outside Java is more efficient than the sugar mills of Java in terms of employment and low fuel. However, the issue of fertile land in Java is not proven because the yield of sugarcane is not any difference in both the sugar factory.Assessment of managerial factors influence the machine age factor, the yield of sugarcane/sugarcane itself is negatively related to production capacity efficiencies while factors are positively related to efficiency. Factors that do not affect the efficiency of the sugar contained in the plant site. It is stated that the location of the sugar mills in Java and outside Java no relationship with efficiency. Efforts to increase the efficiency can be done by the turn of the engine and increased production capacity simultaneously. However, the effort if done synchronously definitely face great problems in funding and procurement of sugarcane. Therefore, efforts to increase the efficiency of the two lies only at the turn of the engine. Substitution is done with a machine that is a picture of the target input in the sugar factory managers in using the input. Sugar factories belonging to the people of the dominant raw material can increase the yield of sugarcane planting schedule and milled if done simultaneously and the use of seed cane that keprasan maximum of three times. It is based on sugarcane cultivation techniques clue owned sugar mills.