THE LINKAGES AND IMPACT OF PLANTATION-BASED SECTORS ON ECONOMY AND POVERTY IN JAMBI PROVINCE, INDONESIA: MIYAZAWA’S INPUT-OUTPUT MODEL

Abstract

Purpose. This study aims to analyze the linkages and impacts of the plantation-based sector on the economy and poverty. Methodology / approach. The method used in this study is the Miyazawa Input Output (I-O) analysis. Foster-Greer-Thorbecke Poverty Index Analysis is used to view poverty as the impact of changes in output in the economic sector and comparative analysis using the Wilcoxon test. Results. The leading sectors in the plantation-based sectors of Jambi Province are the food and beverage industry sector (CPO processing industry) and the rubber industry sector, materials from rubber. The percentage of poverty (P0) in the plantation sub-sector is lower than the other agricultural sub-sectors, but the poverty depth index (P1) and poverty severity index (P2) in the plantation sub-sector are greater than the other agricultural sub-sectors. Another result is the addition of final requests, impact on output, value added, labor and income in the plantation-based sectors and other economic sectors and income of poor households. The downstream policy of the rubber industry, oil palm replanting and down streaming of the oil palm industry can be done because it has a similar impact on output and additional income for poor households is higher than replanting rubber Originality / scientific novelty. Research using the I-O Miyazawa for Jambi province updated 2015 with the 2010 base year and the System of National Account (SNA 2008). This study recommends an improvement or suggestion in making policy priorities that must be done in the plantation-based sectors, especially in alleviating poverty or increasing community welfare and increasing better quality economic growth. Practical value / implications. The policy implication that can be done based on the priority scale that has the greatest impact on the output of all economic sectors is by making a policy of down streaming the rubber industry. Likewise with the policy implications that have the greatest impact on the economic impact of all economic sectors and income of poor households is the down streaming of the rubber industry.