ANALYSIS OF DETERMINING LOCATION INDUSTRY SUGAR FACTORY IN THE DISTRICT BLITAR

Abstract

In industrial activities, selecting the right location has an important impact on expenses both production costs and marketing costs. Development of the agricultural industry such as sugarcane production is a strategic development in Indonesia. It is important to think what should be considered to optimize the sugarcane production for supplying raw materials to the sugar factories. This study aims to analyze the important factors of location selection and to determine potential locations in Blitar. The data analyses used are factor analysis and factor rating. The results showed that the factors affecting the location selection of the sugar factory are spatial concentration, sugarcane production as a raw material for sugar factory, and physical infrastructure. Other potential locations for the construction of the sugar factory in Blitar are including the District of Nglegok, Ponggok, Binangun, Kanigoro and Wonotirto.