ANALISIS EFISIENSI INDUSTRI PENGOLAHAN SUSU BUBUK DAN SUSU KENTAL DI INDONESIA (ISIC 10520) PENDEKATAN STOCHASTIC FRONTIER

The objectives of this research to analyze the production factors which affect the production and determining the level of technical efficiency of processing of powdered milk and condensed milk industry in Indonesia from 2001 to 2017. The data used are secondary data.. The method of data analysis used stochastic frontier production function. The results showed that the processing of powdered milk and condensed milk industry in Indonesia was technically inefficient with an average technical efficiency value of 0.99. The capital variable has a significant effect on the output value, while the labor variable has no significant effect on the output value in the powdered milk and condensed milk processing industry in Indonesia.