Professional Documents
Culture Documents
Economic of Aren
Economic of Aren
WEKA WIDAYATI
Faculty of Geograpy
Universitas Halu Oleo
Kampus Hijau Bumi Tridharma Anduonohu, Kendari 93232
INDONESIA
weka_widayati@yahoo.com http://uho.ac.id
WA KUASA BAKA
Faculty of Culture Science
Universitas Halu Oleo
Kampus Hijau Bumi Tridharma Anduonohu, Kendari 93232
INDONESIA
pplhunhalu@gmail.com http://uho.ac.id
EDI CAHYONO
Faculty of Mathematics and Natural Science
Universitas Halu Oleo
Kampus Hijau Bumi Tridharma Anduonohu, Kendari 93232
INDONESIA
edi_cahyono@innov-center.org.com http://uho.ac.id
Abstract: This study about limited supply of aren brown sugar that is beneficial as organic sweetener and
valuable health. This study aims to describe the aren brown sugar production process, and to examine
factors that influence the supply of aren brown sugar in Southeast Sulawesi. This study describe that there
were seven activities in aren brown sugar production process, namely tapping preparation, sap tapping,
sap cooking, molding, packaging, storage, marketing. We found that factors influencing supply of aren
brown sugar are the age of the aren brown sugar farmer, business experiences, labour, quantity of aren tree,
and dummy for risk, while dependent of family, and price of aren brown sugar were not influence it. Age of
the aren brown sugar farmer have a negative effect, while business experiences, labour, quantity of aren tree,
and dummy for risk, has a positive effect on the supply of aren brown sugar. This study has implications for
exploring the promotion of palm sugar as an organic sweetener products in terms of raw materials and
production processes, as well as to explore the factors that can increase the number of aren brown
supply in the Indonesian and to scale the world trade.
Key-Words: mathematical model, aren brown sugar, existence and development of aren brown sugar
business, sap, aren brown sugar farmer, risk factors, feasibility
b0 = intercept
A = age of aren brown sugar farmer (year)
E = business experiences (year) (5)
F = dependent of family (person) The model is quite good (fit) if the value of R2
L = labour (person) closer to one.
P = price of aren brown sugar ($) F test was done, next:
Plm = Quantity of aren tree (tree)
(6)
D = dummy for risk, 1 = high risk; 0 = less risk
e = error term where:
Ho : ri = 0 =
Ha : ri ≠ 0
Testing criteria:
(7)
- If significant value of tstat where at (α = 5%) > 0,
The goodness fit of model was shown by
H0 is accepted. It means supply of aren brown
significance Fstat.
sugar is not influenced by age of respondent,
Regression coefficients for the factors that influence
business experiences, dependent of family, labour,
supply of aren brown sugar were got from formulas
price of aren brown sugar , quantity of aren tree,
below:
and risk.
- If significant value of tstat where at (α = 5%) < 0, (8)
H0 is rejected. It means supply of aren brown where ,
sugar is influenced by age of respondent, business
and
experiences, dependent of family, labour, price of
aren brown sugar , quantity of aren tree, and risk.
There some of the problems that arise in the
linear regression analysis are whether there is 3 Problem Solution
autocorrelation, heteroscedasticity, and
multicollinearity. This is known as the classical 3.1 Testing of Classic Assumption
assumption [11]. Autocorrelation problems often Linear regression has to test about classic
found when we use time series data. This study used assumptions. Significant violations of the classical
cross section data, so autocorrelation problem assumptions will lead to predictions become biased.
testing is not necessary, but heteroscedasticity, and Multicollinearity and heteroscedastic testing
multicollinearity testing is important. consecutive shown in Table 3 and Figure 1 as
Heteroscedasticity arise in the event of an error below.
or residual of the observed models do not have a Table 3 showed that correlation value of
constant variance of an observation to other independent variables in this study lower than 0.50,
observations, [12]. Heteroscedasticity testing except the correlation between A and E variable
performed by seeing whether there is a specific (0.883). It indicated that there was multicolinearity
pattern on a graph of the relationship between the indication but it was not serious.
residual value of the regression model with the Tabel 3. Multicollinearity test with correlation
predicted value of the dependent variable [13]. between independent variable
Correlation of
There is Heteroscedasticity If there is a pattern Independent Variables
D Plm A P F E
visible on the graph (scater plot). D 1.000 0.088 -0.056 0.350 -0.281 0.085
Multicolinearity is a linear relationship between the Plm 0.088 1.000 -0.085 -0.228 -0.246 0.090
independent variables in the regression [14]. There A -0.056 -0.085 1.000 -0.217 0.265 -0.883
is multicolinearity if r > 0.85.
P 0.350 -0.228 -0.217 1.000 -0.372 0.171
– (3) F -0.281 -0.246 0.265 -0.372 1.000 -0.084
(4)
4
woods so there is no cost incurred.
Tapping activities carried out by the aren brown
2
sugar farmer, without labor rent. Sap tapping
process begins with the setting up of cisterns or
0
bamboo tube on the flowers bunches that have been
cut edges. Furthermore, the skin incision of flowers
-2
bunches as thin as possible by using a very sharp
knife. Tapping process is carried out twice in one
-2 -1 0 1 2
day, that morning around at 7 to 8 am and in the
Regression Standardized Predicted Value
afternoon around 4 to 5 pm.
3.3 Factors Influencing the Supply of Aren significance 0.000. This indicates that all variables
Brown Sugar significantly affect the consumption of aren brown
sugar.
Aren brown sugar trade in Indonesia as producer c. T-test
country is still local-scale, as well as in Southeast T-test is used to determine the level of
Sulawesi [16]. It could be explained that most aren significance of each independent variable to
brown sugar processing was done by household. dependent variable. The results of the analysis of
This condition causes aren brown sugar supply was regression showed that fourth independent variables
only sufficient local market [17]. Several factors on α 5% between six variable that affect the supply
were be analyzed about their effect on the supply of of aren brown sugar on, significantly.
aren brown sugar in Southeast Sulawesi, include Age of respondent
age of respondent, business experiences, dependent Age of respondent have significant influence (α
of family, labour, price of aren brown sugar, 15%) to supply of aren brown sugar. Coefficient
quantity of aren tree, and dummy for risk. Results regression of this variable was -0.047 (see Table 4).
of the regression analysis are presented in the Table Negative sign indicated that aren brown sugar
4 below. supply will be reduced if the age of the respondent
Table 4. Factors influencing the supply of aren increases. Sugar processing requires a lot of time
brown sugar and energy. Meanwhile, after aren brown sugar
Independent variables Coefficient SE Tstat Sig. farmer passed their productive age who were
constant (C) -2.989 1.704 -1.754 0.093
age (A) -0.047 0.031 -1.522 **
0.142
getting older, their energy will decrease and so their
business experiences 0.070
0.029 2.434 **
0.023
ability to supply aren brown sugar availability in
(E)
dependent of family 0.178
the market.
0.186 0.957 0.349
(F)
**
Regression coefficients value was very small. It
labour (L) 3.126 0.420 7.436 0.000
price of aren brown 0.001
showed that in an effort to supply aren brown sugar,
0.000 0.535 0.598
sugar (P) although the older age of the respondent, their
quantity of aren tree 1.657
(Plm)
0.239 6.941 **
0.000 produce did not much changed. It can be explained
dummy for risk (D) 0.906 0.408 2.220 **
0.037 that they has been so used to process aren brown
R-Squared 0.930
Adjusted R-Squared 0.909 sugar hereditary.
Fstat 43.558 Business experiences
Sig. 0.000
Business experience has significant influence (α
*significance at α 5% 5%) to supply of aren brown sugar. Coefficient
*significance at α 15% regression of this variable was 0.070 (see Table 4).
Positive sign indicated that aren brown sugar supply
Based on Table 4, mathematical model of factors will be increase if business experiences increase.
influencing the supply of aren brown sugar, as People who have more experienced will knower the
below: ins and outs of his business. It will increasingly
Qs = -2.989 -.047 A + 0.070 E + 0.178 F + attempt to allow it to be more productive.
3.126L + 0.001 P + 1.657 Plm Regression coefficients value of business experience
+ 0.906 D + e (9) was very small. Business experience increased one
Hypothesis testing was done with statistical tests year then aren brown sugar supply will increase
performed with less adjusted R2, F-test and T-test 0.07 kg, only. It could be explained that aren brown
below. sugar business was a traditional business and
a. Adjusted (R2) without rent labor. Therefore, it was difficult to
The resulting regression models in Table 4 have more increase the supply of aren brown sugar even
the Adjusted R-Square value of 0.909. It means that though respondent have enough experience.
approximately 9.1% factors that influence the Labour
supply aren brown sugar commodity is not Labour has significant influence (α 5%) to
analyzed. Independent variables in the regression is supply of aren brown sugar. Coefficient regression
only able to explain about 90.9% of all the factors of this variable was 3.126 (see Table 4). Positive
which affect the consumption of sugar. sign indicated that aren brown sugar supply will be
b. F-test increase if labour increase. The addition of the labor
F-test is used to determine the overall will increase by 3 kg of aren brown sugar supply.
significance level of the independent variables Aren brown sugar processing business consists of
simultaneously to the dependent variable. The three types of activity, namely the process of
results showed F-test equal to 43.558 with tapping the sap from aren tree in the morning and
evening, the cooking process takes 3 to 5 hours, and (1) Accidents on tapping process. Work
marketing. Therefore aren brown sugar processing accidents could impact death or lifelong
requires a lot of labor so that aren brown sugar disability if the rrequirement about skills
supply could be improved. and health of the palm tapper is not
Quantity of aren tree fulfilled.
Quantities of aren tree have significant influence (2) The fluctuation of the amount of sap as the
(α 5%) to supply of aren brown sugar. Coefficient main material for aren brown sugar. It is
regression of this variable was 1.657 (see Table 4). influenced by the season (rainy season, dry
Positive sign indicated that aren brown sugar supply season), tapping routines, cutting techniques
will be increase if quantity of aren tree increase. of mayang (bunches), laying container
Aren tree produces sap which is the main source of roomie, and the use of tools can affect the
raw material for aren brown sugar commodity. Thus amount of sap that can be tapped. Blunt
the number of tapped aren tree that will determine knife will make the a little sap and bunches
the amount of aren brown sugar produced. tapped die quickly before they run out.
Dummy of Risk (3) The quality of sap namely durability and
Risks in aren brown sugar processing business viscosity was strongly influenced by the
are very important to be considered in this study for cleanliness of the nature container and the
the existence and development of business scale and characteristic of sap that very easily sour
its quality in the future. This is in line with [18] who (stale).
said that business risk is fundamental to the long c. Sap Cooking
term success of a company and the achievement of (1) Quality of aren brown sugar. How to stir,
its goals. We can make a developing strategy of and fuel quality greatly affects the quality of
aren brown sugar business by identifying the risk of aren brown sugar. It certainly can affect the
this small business. Risks can be classified in price of aren brown sugar.
various ways. There are basic categories of risk such (2) Type and quality of firewood can affect
as production risk, and market risk. whether or not a fire heat to cook the sap.
Dummy of risk have significant influence (α 5%) The less heat fire causes wastage of time in
to the supply of aren brown sugar by the aren cooking sap.
brown sugar farmer. It could be explained that the Otherwise the fire did not also be too big to
most of respondent said that there was some risk in fit into the skillet and lick and burn the
activities of aren brown sugar processing. Some sugar was being cooked. This can lead to
respondents did not process the aren brown sugar burnt aren brown sugar, bitter taste and the
continuously or just make it as a side job because it color black.
considers the high-risk job. (3) The amount of firewood used was also a
We can identify the risks in aren brown sugar source of risk.
processing business by attention to the stages of One of the major problems faced in
aren brown sugar processing as shown on Figure 2. processing of aren brown sugar was high
Stages of aren brown sugar processing were fuel consumption. Aren brown sugar
including; tapping preparation, sap tapping, cooking processing needed fuel supplies from
the sap, packaging, storage, and marketing. There outside the system.
were some risks in each d. Another source of risk to the neatness molding
Base on Figure 2, production risks were at and packing of aren brown sugar that can affect
tapping preparation, tapping, sap cooking, printing, the durability of aren brown sugar and its price.
and packaging activities, while marketing risks were e. Storage activities either by the processor or
at storage and marketing activities. Some risks in merchant of aren brown sugar may pose a risk,
the aren brown sugar processing clearly, namely: like a decrease in the quality of aren brown
a. Tapping preparation sugar and a drop in price. The aren brown
This activity will determine the success of the sugar durability was only about 2-3 months
subsequent process of tapping. Tapping since it has been molded.
preparation include cleaning aren tree and The risk of a decline in the quality of aren
beating bunches that will be tapped. Cleaning brown sugar is its color changing (become
aren trees should be done carefully. Aren tree darker) and its texture becomes soft.
has a lot of fibers in its trunk. These shall be f. Marketing
cleaned carefully. Price uncertainty was a risk, especially at the
b. Tapping process of sap level of aren brown sugar farmer. Decline of
aren brown sugar’s market price were be Journal of Finance and Econimics. 4(2006):
received by aren brown sugar farmer more 70-77.
quickly than the rise of aren brown sugar’s [3] Direktorat Jenderal Perkebunan. Kebutuhan
price. This also leads to aren brown sugar Gula Nasional mencapai 5700 juta ton Tahun
farmer s receive low prices longer than high 2014.
prices. http://ditjenbun.pertanian.go.id/setditjenbun/b
These risks should be minimized so that the aren erita-172-dirjenbun--kebutuhan-gula-nasional-
brown sugar farmer has an incentive to process aren mencapai-5700-juta-ton-tahun-2014.html.
brown sugar more intensively. Thus the supply of Download: January 2015.
aren brown sugar can be improved also, so that aren [4] Abdullah W.G, et al. 2014. Potency of Natural
brown sugar cannot meet the local market only but Sweetener: Brown Sugar. AENSI Journals.
international market also. Moreover, it can even Advances in Enviromental Biology. 10(4).
develop product diversification of aren brown http://www.aensiweb.com/old/aeb_October-
sugar. _2014.html
Dependent of family and price of aren brown [5] Wa Kuasa, et al. 2014. Analysis of
sugar were not influence aren brown sugar supply. Correlation between Brown Sugar Attributes
It could be explained that respondents have other and the Consumer Preference. Proceedings of
work to meet the needs of his families. Price of the 2nd International Conference on
aren brown sugar was not an incentive for Mathematical, Computational and Statistical
respondent to meet the supply of aren brown sugar. Sciences (MCSS’14):367-374.
They more consider about the risk in aren brown [6] Akuba, R. H. Prospek Pengembangan Aren di
sugar processing. Irian Jaya. Balitka Dok.420/VIII/93. (In
Indonesian), 1993
4 Conclusion [7] Cardona, J.M., J. Andreu, and S. Cano. A new
Several things can be concluded in this study. This Risk History: The Eastern Europe Case.
study describe that there were seven activities in WSEAS Transactions on Business and
Economics. Vol. 11. 2014, pp. 188-198.
aren brown sugar production process, namely
[8] BPS Sulawesi Tenggara. Sulawesi Tenggara
tapping preparation, sap tapping, sap cooking, dalam Angka. BPS. (In Indonesian), 2011.
molding, packaging, storage, marketing. Factors [9] Abdullah, W.G, et al. Mathematical Model of
influencing supply of aren brown sugar in Factors Influencing the Consumption of Aren
Southeast Sulawesi are the age of the respondent, brown sugar in Southeast Sulawesi. 2nd
business experiences, labour, quantity of aren tree, International Conference Mathematical,
and dummy for risk, while dependent of family, and Computational and Statistical Sciences
price of aren brown sugar are not influence it. Age (MCSS’14). May 15-17. Proceeding. Gdansk,
of the respondent have a negative effect on aren 2014.
brown sugar supply, while business experiences, [10] Kantnerova, L., S. Kucera. Investment in
labour, quantity of aren tree, and dummy for risk, Today’s Turbulent Markets. WSEAS
has a positive effect on the supply of aren brown Transactions on Business and Economics.
sugar. Vol. 11. 2014, pp. 1-11.
This study has implications for exploring the [11] Kuncoro, M. Metode Kuantitatif. Teori dan
promotion of palm sugar as an organic Aplikasi untuk Bisnis dan Ekonomi. Edisi
sweetener products in terms of raw materials kedua. UPP AMP YKPN. Yogyakarta, (In
and production processes, as well as to explore Indonesian), 2004.
the factors that can increase the number of aren [12] Hanke, J.E., and Reitsch, A. G. “Business
brown supply in the Indonesian and to scale the Forecasting”, 6th Edition, London, Prentice
world trade. Hall International Ltd, 1998.
[13] Santoso, S. 2014. Statistik Parametrik.
References: Konsep dan Aplikasi dengan SPSS. Edisi
[1] Baron, P. Thinking Outsidee the Barrel. 4th Revisi. PT. Elex Media Komputindo. Jakarta.
Dubai Sugar Conference. 3-5 February. [14] Widarjono, A. Ekonometrika. Teori dan
Dubai. 2008 Aplikasi untuk Ekonomi dan Bisnis. (In
[2] Husaain, M.F., Anwar, S., and Hussain, Z. Indonesian), 2005.
2006. Economic of Sugarcane in Pakistan: A [15] Gujarati, D., S. Zain. Ekonometrika Dasar.
Price Risk Analysis. International Research Erlangga. Jakarta. (In Indonesian), 1997.