COMPETITIVENESS AND MINIMUM REGIONAL PRICE OF ARENGA PALM SUGAR (Case Study of Small Palm Sugar In dust ries in Rejang Lebong Regency, Bengkulu Province)

This Research is aimed to determine the competitiveness and estimate the minimum regional price of palm sugar in Rejang Lebong Regency. This research is conducted in Agust 2011 at Air Meles Atas in Subdistrict of Selupu Rejang and Sindang Jaya in Subdistrict Sindang Kelingi in Rejang Lebong Regency. Respondents in this research are 86 palm sugar producers selected using simple random sampling and who are inteviewed to collect primary data. Analysis method used are cost unit approach to measure competitiveness level as proposed by Coocburn and Siggel (1998) and Minimum Regional Price as suggested by Darwis (2011) to detemine minimum regional price of palm sugar. The research shows the average of unit cost ratio of palm sugar is less than 1, that is, 0.41. This indicates that palm sugar in Rejang Lebong has high competitiveness degree. The research also find that with current price, the palm sugarproducers still get profits even if their production decrease 10 %, or the production cost increase 20 %. With the current production, their businesses are still profitable. Even if these three simulations accour simultaneously, the palm sugar industries are still profitable. With these conditions, governments are unnecessary to intervene. The MRP of palm sugar in Rejang lebong is Rp. 8,176.87 with assumption of 30 % profit level. Since the MRP is far below the current amrket price, It is unnecessary government to intervene. It is better that price is formed under market mechanism