Demand of Indonesian Sugar

Abstract

Domestic sugar demand is important to know as Indonesia now has been the largest economics country in South East Asia. With the world's fourth largest population, Indonesia's sugar demand is certainly fascinating. Therefore, research is needed, what factors influence the demand for Indonesian sugar. The research used secondary data from BPS, USDA, FAO, World Bank, AGI, from 1983 – 2013, processed by SAS version 9. The results of this study showed, demand for sugar in Indonesia is affected by sugar price, population, and the level of income and demand for sugar in the previous year. Estimated price parameters obtained to demand is 199,762 and the sugar category is from elasticity of demand sugar is very elastic. Estimated population parameter is 0.010763. Estimated level of income parameters for sugar demand is equal to - 0.017 and the sugar category from the elasticity of sugar demand to the level income is inelastic.