Menuju Swasembada Gula Nasional: Model Kebijakan untuk Meningkatkan Produksi Gula Dan Pendapatan Petani Tebu di Jawa Timur (Achieving National Sugar Self-Sufficiency: A Policy Model to Increase Sugar Production and Boost Sugar Cane Farmer's Income in East Java)

Abstract

The central government fully expects East Java Province to support national program of sugar self-sufficiency by setting 1.65 million tons target on plantation of white sugar production. To address this problem, this study aims to (i) assess the possibility of rising the production of sugarcane in East Java and boost the income of sugarcane’s farmer without the National Sugar Industry policy (RIGN), (ii) propose policies to achieve national self-sufficiency sugarcane target and boost farmers' income with RIGN policy, and (iii) formulate a perspective of economic policy on sugar to support the success of national self-sufficiency sugarcane target and boost farmers' income. This study uses secondary data and dynamic system approach. The simulation, which is carried out in the period of 2010-2025, reveals that sugar production in East Java has not been able to meet the target set by the central government. Farmer’s income reach the highest through improvement of rendement policy. Policy to increase agricultural area, productivity and rendement in a simultaneous way can possibly reach a target set by the government in 2015 on the production of sugar in East Java to reach sugar self-sufficiency through alternative scenario. The perspective in the policy of sugar self-sufficiency to boost farmer’s income can be applied on and off farm by making policies on development of production facilities; availability and access to production facilities; institutional development and PG integration and sugarcane farmers; productivity improvement and competitiveness on sugarcane industry; policies on sugar protection; promotion and harmonization of data on supply as the basis of national self-sufficiency policy formulation.