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Unmasking the Hidden Hero: Strengthening North Sumatra’s Iconic Commodities through Financial Services Sitohang, Gresia Septina; Oktania, Ainur; Manihuruk, Frido Evindey
Jurnal Inovasi Ekonomi Vol. 10 No. 01 (2025): April
Publisher : Center for Economics, Business and Entrepreneurship Development Faculty of Economics and Business, Universitas Muhammadiyah Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22219/jiko.v10i01.39049

Abstract

This study reveals the fascinating story behind North Sumatra's iconic commodities and how the financial services sector can act as a hidden hero to strengthen their development. Through multiple regression analysis on rubber, arabica coffee, and palm oil production data as well as the 2010-2023 agricultural sector GRDP obtained from the North Sumatra Central Bureau of Statistics, it was found that arabica coffee and rubber significantly boosted regional economic growth, while the potential of palm oil has not been maximized. Like a masked hero, the financial services sector, which includes banks, micro institutions, and fintech, has the ability to provide “superpowers” for North Sumatra's leading commodities. By providing effective access to finance, they can help improve the productivity, quality, and competitiveness of these iconic products. This research proposes smart policy recommendations to strengthen the synergy between the financial services sector and commodity development, bringing North Sumatra towards more inclusive and sustainable economic growth.
Unmasking the Hidden Hero: Strengthening North Sumatra’s Iconic Commodities through Financial Services Sitohang, Gresia Septina; Oktania, Ainur; Manihuruk, Frido Evindey
Jurnal Inovasi Ekonomi Vol. 10 No. 01 (2025): April
Publisher : Center for Economics, Business and Entrepreneurship Development Faculty of Economics and Business, Universitas Muhammadiyah Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22219/jiko.v10i01.39049

Abstract

This study reveals the fascinating story behind North Sumatra's iconic commodities and how the financial services sector can act as a hidden hero to strengthen their development. Through multiple regression analysis on rubber, arabica coffee, and palm oil production data as well as the 2010-2023 agricultural sector GRDP obtained from the North Sumatra Central Bureau of Statistics, it was found that arabica coffee and rubber significantly boosted regional economic growth, while the potential of palm oil has not been maximized. Like a masked hero, the financial services sector, which includes banks, micro institutions, and fintech, has the ability to provide “superpowers” for North Sumatra's leading commodities. By providing effective access to finance, they can help improve the productivity, quality, and competitiveness of these iconic products. This research proposes smart policy recommendations to strengthen the synergy between the financial services sector and commodity development, bringing North Sumatra towards more inclusive and sustainable economic growth.