Study of Agroindustry Development of Sugar Cane As Efforts to Achieve Self-Sufficiency of Sugar

Abstract

Indonesia isone of the producersas well as importers of sugar.Based on thisfact, Indonesia should pay attention on the development of sugar cane agro-industry to ensure the fulfillment of sugar demand in the country.As a matter of fact,sugar is a strategic commodity toincreasefarmers’ prosperity andalsoinfavour of consumers’ sensitivity to sugar pricevolatility. There fore, a thorough review of various stake holders in sugar industry to develop policies for real contribution to the national economy needs to be taken.The research deployed survey method, data collection (primary and secondary data) through field survey (observation), question naires, interview and literature study. Development strategy analysis method uses a tiered decision technique known as Analytical Hierarchy Process (AHP).The results of strategy analysis to achieve selfsufficiency of sugar with the development of sugar agro-industry showed that off-farm and institutional factors follow on farm factoron top priority to ahcieve self-sufficiency of sugar.Furthe rmore, on farm criteria have several alternatives with thepriority of land ownership, sugar cane productivity and price stability.