The Impact of the Sugar-Revitalization Policy in East Java, Indonesia: A Dynamic-System Approach

Duwi Yunitasari

Duwi Yunitasari Universitas Jember

Keywords: bioethanol development, sugar-production achievement, regional economy, and dynamic system

Abstract

East Java is the largest producer of sugarcane (sugar-producing plants) in Indonesia. However, the achievement target of sugar production and bioethanol has not been reached. This research aims to analyze the policy of revitalizing the national sugar industry toward the achievement of sugar production and the development of bioethanol as a renewable source of energy. The study uses secondary data and analyzed them using the dynamic system.

The findings demonstrate the fact that the policy of revitalizing the national sugar industry managed to increase bioethanol and sugar production. Further, it is evidenced that the economic condition of East Java increased, particularly during scenario 3 (an increase of rendement) of 5.4%. The rendement increase of sugarcane is expected to support the national self-supporting sugar production and increase bioethanol production as renewable energy.

Author Biography

Duwi Yunitasari, Universitas Jember

Duwi Yunitasari is a lecturer of Fakultas Economi of University of Jember. She earned her master's degree in Economics from Brawijaya University in Malang, Indonesia and Doctor in Economics degree at Bogor Agricultural University in Bogor, Indonesia. Her research interests are in regional economy, economic development, and regional planning.