Effect of Import Tariff Implementation Policy on Refined Sugar Products Competitiveness in Indonesia

Abstract

This research is aimed at determining: (a) the effect of welfare distribution with applied import tariff on the government revenue, consumer expenditures, producer revenues, and efficiency losses (in production, in consumption and net effect), and (b) the level of competitiveness of sugar cane in Indonesia by calculating the Domestic Resource Cost (DRC). The research using library research method, that is collecting data from the related preceding researches and other references such as magazines, journals, bulletins and the like. The research result showed that : (a) the government revenue, change of consumer surplus, producer surplus, economic net loss in production, consumption and exchange gain economization, are influenced by the import tariff and elasticity price toward supply and demand, such that the welfare distribution value will be
bigger; (b) sugar product competitiveness in Indonesia by knowing that cane field calculation in East Java in the wet and dry fields is higher than the same
product from other countries as it is shown by the value DRC<1.

Key word: Sugar, Welfare Distribution, Domestic Resource Cost (DRC),
Import tariff