Dampak Penerapan Harga Acuan Pembelian (HAP) Gula di Tingkat Eceran Terhadap Harga Gula Petani dan Stabilitas Harga Gula

The Government strives to keep price stability of staple food through price policy, the so-called “Harga Acuan Pembelian (HAP) for sugar”. During its implementation, the policy has given negative impact on farm gate price. This study aims to analyze the effect of HAP for sugar to farm gate price which is reflected in auction price as well as its impact to price stabilization, and formulate effective policy recommendations on HAP for sugar. Using Error Correction Model (ECM), the study shown that HAP for sugar significantly impacted the auction price yet in the short term. While for the long term, the auction price of sugar was more affected by import sugar price, national sugar stock, and sugar auction price in previous period. Moreover, the implementation of value added tax (VAT) on sugar affected significantly to the auction price. The study recommended the HAP for sugar can be consistently implemented with periodic evaluation. Accordingly, the Government can maintain the prevailing HAP at Rp 12.500/kg which has to be supported by forgoing the VAT policy on sugar; monitoring the role of task force; and strongly supervising the domestic sugar market that is favourable to farmers, sugar millers, and consumers.