Efficiency of Production Factors at Agroindustry Palm Sugars

Rural agro-industry as an industry plays an important role in supporting the economy and employment expansion. In Indonesia, local resource-based industries proved able to survive amid the crisis that hit the economy since 1997. One of the industries that thrive in rural areas are palm sugar agro-industry. Based on the ability to absorb labor palm sugar craft industry has the ability to absorb labor up to 68% of the total workforce available in rural. Agroindustry of Household palm sugar strongly supports the economy. When resources are limited supporting process production palm sugar, such as a limited number of productive palm juice, labor scarce, firewood supplies depleted, then the sustainability of palm sugar industry will be threatened. If conditions agroindustry of palm sugars threatened, would threaten the management of household economy. It is therefore necessary to develop agroindustry of palm sugars. Therefore with Cobb-Douglas production function can know strategy to efficiency the use of production factors.