Conditions of the Agricultural Sector in Potential Provinces on the Sumatra Island Post Covid-19 Pandemic
Conference
65th ISI World Statistics Congress 2025
Format: CPS Abstract - WSC 2025
Keywords: agricultural, economic, indonesia, sector
Session: CPS 42 - Agricultural Statistics — Policy Evaluation
Tuesday 7 October 5:10 p.m. - 6:10 p.m. (Europe/Amsterdam)
Abstract
The agricultural sector is one of the resilient economic sectors during the Covid-19 pandemic in Indonesia. Based on data from BPS-Statistics Indonesia, growth in the agricultural sector at the start of the Covid-19 pandemic or the second quarter of 2020 was 2.19 percent, at a time when other economic sectors experienced contraction. This positive growth will continue until the end of 2023, namely 1.3 percent. The contribution of the agricultural sector in Indonesia is dominated by provinces on Java and Sumatra Island. Researcher focus on conducting research on several potential provinces on the Sumatra Island (Aceh, North Sumatra, West Sumatra, South Sumatra and Lampung) because development in the economic sector (including agriculture) is still more focused on the Java Island or what is usually called “Java-centric”. By conducting Location Quotient and Shift Share analysis, researcher want to analyze the condition of the agricultural sector in several potential provinces on the Sumatra Island as well as what alternative economic sectors can be used as development catalysts in these provinces. Based on the results of analysis using Gross Regional Domestic Product data, we found that the agricultural sector is still part of the basic sector, but has slow growth. Then, when compared with the agricultural conditions in Indonesia in general, the agricultural sector in Aceh, North Sumatra, West Sumatra and South Sumatra province still has good competitiveness, while the condition of the agricultural sector in Lampung Province is not competitive. From the results of research using four quadrants shift share, it is also clear that agricultural sector in Aceh, North Sumatra, West Sumatra and South Sumatra Province are facing challenges, because even though the agricultural sector has regional competitive advantages, its growth is slower than the national agricultural sector. On the other hand, the agricultural sector in Lampung Province is in a less competitive condition, so evaluation and intervention from the government is urgently needed. In general, alternative economic sectors in the province that are growing more rapidly and competitively compared to the national average are the Provision Accommodation and Food and Drink Sector and Wholesale and Retail Trade; Car and Motorcycle Repair Sector. The research results show that although the five provinces have potential in the agricultural sector, conditions are still relatively slow and less competitive when compared to the national average. Therefore, the government as a policy maker should be able to intervene in the conditions of the agricultural sector in each province. Apart from that, the government can also start preparing alternative economic sectors that can support or even collaborate with the agricultural sector in strengthening regional economic conditions.