An Evaluation Of Administrative Procedures an Taxpayers Compliance: A Case Study of The Indonesian Urban Property Tax
Santoso, Makmur Palal (Adv.: Thomas C Lowinger), Thomas C Lowinger
The Study is an empirical investigation of supply response of sugar cane farmers and millers, and cost functions of millers. The supply response of farmers and millers is analyzed using nerloves approach. Returns-to-scale on sugar processing by millers are examined using a cost function approach.
An important finding shows farmers to be responsive to price while millers are not. Using the cost fuction approach, the study finds that sugar mills face increasing returns to scale of production. Futher investigation shows that sugar mills can not take advantage of the economies of scale because they face cane supply constraint resulting from restriction on reting of land and a hesitance of farmers to send their cane to th e mills for processing.
The study ventures three points with regard to sugar policy in the future. First, if the government wishes to increase cane production, it can increase the producer price of sugar without increasing the consumer price, by cutting taxes on sugar. Second, rehabilitation in java must be accompanied by a reduction of the number of sugar mills operating near each other to gain economies of scale and save land. Third , an appropriate short-run strategy which will result in substantial savings in resources is to import at the low world price. In the long-run. Indonesia must strive to improve productivity and efficiency in domestic sugar production.
Kata Kunci : Efficiency and productivity of domestic sugar production, sugar mills, sugar policy, producer price, consumer price.
