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December 29, 2020
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February 4, 2021
Published
February 28, 2021
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Abstract

This study investigates the efficiency of energy use and technology gap in the Indonesian sugar industry and the factors influencing energy efficiency. Using the firm-level data of sugar mills in 42 regencies in Indonesia from 2010 to 2014, this study applies the meta stochastic frontier based on the input distance function. The metafrontier analysis is applied in sugar mills in the East Java province and other provinces in Indonesia.  All the data used in this study are the secondary data taken from the Indonesian Central Board of Statistics. The results reveal that there is a large room to save energy consumption in this industry. The mills in East Java provinces have higher energy efficiency, technology gap ratio, and metafrontier energy efficiency compared to the mills in other provinces. According to the metafrontier energy efficiency, energy inefficiencies in both groups come from operational inefficiency and technology gap. The size of the mills and age of the mills have a positive relationship with the energy efficiency of sugar mills and the size of the mills is positively related to the technology gap ratio. Meanwhile, the productivity of labor and the types of ownership do not affect the energy efficiency and technology gap.

Keywords

Energy Efficiency Input distance function Metafrontier Sugar industry the Technology gap

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Copyright (c) 2021 Thinzar Win, Dyah Wulan Sari, Tri Haryanto

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Author Biographies

Thinzar Win, Airlangga University and Mandalay University

Lecturer at Mandalay University Myanmar and Ph.D candidate at Airlangga University

Dyah Wulan Sari, Airlangga University

Associate Professor at Department of Economics Airlangga University

Tri Haryanto, Airlangga University

Associate Professor at Department of Economics Airlangga University
How to Cite
Win, T., Sari, D. W., & Haryanto, T. (2021). ENERGY EFFICIENCY OF INDONESIA’S SUGAR INDUSTRY BASED ON ECONOMIC FRAMEWORK: STOCHASTIC METAFRONTIER ANALYSIS. Jurnal Akuntansi, 11(1), 53–66. https://doi.org/10.33369/j.akuntansi.11.1.53-66
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