Revitalization Dynamics of State-owned Sugar Mills: An Institutionalization Process

This article explains the process of revitalization of the state-owned sugar mills to improve productivity. The dynamics of revitalization was portrayed through institutionalization theory. Sugar cane industry faces heavy pressure since government policies control sugar prices through trade system which intrudes institutional relationship between sugar mills and cane growers. The management strives to maintain professional attitude between government and farmers, as well as its legitimacy. The findings indicate that Krebet Rajawali Sugar mill revitalization is running slow. Management has made compromises to deal with technical and non-technical constraints in order to maintain the viability of sugar cane-based factory.