Technical Efficiency of Coconut Sugar Agroindustry in Pangandaran District, West Java Province, Indonesia

Abstract

The study was carried out with the aim to determine the factors that influence production, the level of technical efficiency achieved, and the factors that influence technical inefficiency in coconut sugar agroindustry in Pangandaran District, West Java Province, Indonesia. Research samples were 100 agroindustry. Data analysis was carried out using a stochastic frontier production function where data processing used Front41 with TE effect model. The results of the study show that raw materials, firewood and labor have a positive and significant effect on coconut sugar production in Pangandaran District. The efficiency level achieved ranges from 0.59 to 0.99 with an average of 0.70. Education, experience, family size, and number of tapped coconut trees have a significant effect on technical inefficiency; while age has no significant effect.

Keywords: Coconut sugar, Agroindustry, Technical Efficiency, Technical Inefficiency