HUBUNGAN ANTARA BIAYA MADYA DENGAN EFISIENSI INDUSTRI GULA PASIR DI INDONESIA (ISIC 15421)
This research was aimed at identifying the relationship between the production cost and the efficiency level of sugar industry in Indonesia. This research used secondary data, that is, data on the development of production cost, value added, and output value within the period of 2001 - 2009, and efficiency theory. The research results show that the relationship was a negative kind. Such trend was caused by increased production cost; coefficient value of the cost was - 1.94 meaning that a 1% production cost increase caused a 1.94% efficiency decrease. This negative relationship was caused by the cost of raw material s and support materials.