Analysis of the Role of Agribusiness in the Indonesian Economy

Abstract

Agribusiness is an important support in national economic development. This research aims to determine the complete agribusiness system that is interrelated with economic activities. This research methodology is a literature review which is based on Indonesian government regulations. The results of this research show that agribusiness has a strategic role in the formation of GDP, employment, international trade, regional economic development, national food security, environmental preservation, and equal distribution of development results. In the development and implementation of agribusiness that is already underway, there are still many obstacles. To solve very complex economic problems, especially in the agricultural sector, Indonesia requires sharpening (focusing) economic development strategies which are expected to be able to provide solutions to existing problems. So synergy is needed in the agribusiness sector, namely between agriculture, plantations, animal husbandry, fisheries, and forestry with the development of upstream and downstream agricultural industries as well as the development of related service sectors therein.