Indonesia's Position and Participation in The Global Value Chain of The Agriculture Sector

Background: The agricultural sector in Indonesia, contributing 13.7% to GDP and employing 30% of the workforce, is critical to the nation's economy. Despite its importance, the country's participation in the agricultural global value chain (GVC) faces persistent challenges, particularly in advancing agro-processing and integrating into high-value production. Purpose: This study analyzes Indonesia's GVC position and participation from 2007 to 2021, using the UIBE GVC Index and ADB ICIO data.Design/Methodology/Approach: Descriptive statistics and linear regression methods are used to assess Indonesia's forward and backward GVC participation compared to that of 62 other countries worldwide.Findings/Result: Findings reveal significant declines in Indonesia's backward participation, reflecting progress toward self-sufficiency, yet limited participation in complex forward and backward linkages underscores deficiencies in technological infrastructure and value-added exports. Moderate engagement in simple forward linkages highlights the need for targeted investments to boost competitiveness. Strategic interventions in infrastructure, advanced inputs, capacity-building, and global collaborations are essential for strengthening Indonesia's agricultural GVC role. Conclusion: To enhance GVC participation, Indonesia must address technological, infrastructure, and policy gaps. Strategic investments in agro-processing, advanced inputs, supply chain modernization, and international partnerships are critical to boosting competitiveness and export performance. Originality/Value (State of the Art): This study provides comprehensive insights for policymakers and stakeholders, emphasizing innovative strategies to enhance Indonesia’s global agricultural presence and achieve sustainable growth. Keywords: Agriculture, GVC Position, GVC Participation, Global Value Chain (GVC), UIBE GVC Index.

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Publication Details

Journal
Jurnal Manajemen dan Agribisnis
Published
2025-03-26
DOI
https://doi.org/10.17358/jma.22.1.105
Citations
1
Primary Topic
Global trade and economics
Type
article
Field-Weighted Citation Impact
3.09
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article

Indonesia's Position and Participation in The Global Value Chain of The Agriculture Sector

Arif Imam Suroso, Herry Nugraha, Noer Azam Achsani, Rita Nurmalina et al.
1 citations
Jurnal Manajemen dan Agribisnis
Global trade and economics
3.09
article

Indonesia's Position and Participation in The Global Value Chain of The Agriculture Sector

Arif Imam Suroso, Herry Nugraha, Noer Azam Achsani, Rita Nurmalina, Suprehatin Suprehatin
article en
1 citations

Abstract

Background: The agricultural sector in Indonesia, contributing 13.7% to GDP and employing 30% of the workforce, is critical to the nation's economy. Despite its importance, the country's participation in the agricultural global value chain (GVC) faces persistent challenges, particularly in advancing agro-processing and integrating into high-value production. Purpose: This study analyzes Indonesia's GVC position and participation from 2007 to 2021, using the UIBE GVC Index and ADB ICIO data.Design/Methodology/Approach: Descriptive statistics and linear regression methods are used to assess Indonesia's forward and backward GVC participation compared to that of 62 other countries worldwide.Findings/Result: Findings reveal significant declines in Indonesia's backward participation, reflecting progress toward self-sufficiency, yet limited participation in complex forward and backward linkages underscores deficiencies in technological infrastructure and value-added exports. Moderate engagement in simple forward linkages highlights the need for targeted investments to boost competitiveness. Strategic interventions in infrastructure, advanced inputs, capacity-building, and global collaborations are essential for strengthening Indonesia's agricultural GVC role. Conclusion: To enhance GVC participation, Indonesia must address technological, infrastructure, and policy gaps. Strategic investments in agro-processing, advanced inputs, supply chain modernization, and international partnerships are critical to boosting competitiveness and export performance. Originality/Value (State of the Art): This study provides comprehensive insights for policymakers and stakeholders, emphasizing innovative strategies to enhance Indonesia’s global agricultural presence and achieve sustainable growth. Keywords: Agriculture, GVC Position, GVC Participation, Global Value Chain (GVC), UIBE GVC Index.

Jurnal Manajemen dan AgribisnisVol. 22(1)
IPB University (ID)
Openalex Percentile: Top 11%
Global trade and economics
3.09
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