Factors Affecting Granulated Sugar Demand in Indonesia

Sugar is one of the staple food commodities that has a strategic position toward the basic needs of the community. The high dependence on granulated sugar consumption is due to the small tendency of the public to substitute granulated sugar with other sweeteners. The high demand for granulated sugar is not accompanied by an increase in cane sugar production. The imbalance between the production and consumption of granulated sugar requires Indonesia to take action to fulfill instant needs by importing sugar. This study aims to (1) determine the development of consumption of granulated sugar in Indonesia during 2011-2020. (2) Analyze the factors that influence the demand for sugar in Indonesia. The data used in this study is secondary data and processed using descriptive statistical analysis, and multiple linear regression analysis. The results of this study are: (1) the development of sugar demand in Indonesia during the period 2011-2020 has a pattern that tends to increase. (2) The population has a partial and significant effect on the demand for granulated sugar, while the price of granulated sugar, tea, and coffee prices had no partial effect on sugar demand. The coefficient of determination (Adjusted R-Square) shows that 93.5% of the variation in the variable demand for granulated sugar can be explained by independent variables, namely the population, the price of sugar, the price of tea, and the price of coffee. While, the remaining 6.5% is explained by other variables outside the equation model. Keywords: sugar, demand, population, prices