SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
SIJDEB, Vol. 8, No. 2, June 2024

Impact of Cost Structure on Indonesia Food Industry Value Added

Robiani, Bernadette (Unknown)
Mukhlis, Mukhlis (Unknown)
Hamira, Hamira (Unknown)
Apriani, Deassy (Unknown)



Article Info

Publish Date
15 Oct 2024

Abstract

The food industry is a consistently growing sector, even in challenging economic conditions, driven by population growth and increased demand. Recognizing its importance, the Indonesian government has identified the food and beverage industry as a key sector in its Industry 4.0 roadmap. However, challenges such as reliance on imported raw materials and high labor absorption rates persist. This study analyzes the impact of cost structure on the value-added in Indonesia's food industry from 2017 to 2021, using data from Indonesia Statistics on large and medium industries. The Panel Data Regression results reveal that raw material costs and fixed capital costs positively and significantly affect value-added. These findings suggest that effective cost management, innovation, and the use of advanced technology are crucial for optimizing value-added in this sector. 

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Journal Info

Abbrev

SIJDEB

Publisher

Subject

Economics, Econometrics & Finance

Description

The SIJDEB invites manuscripts in the various topics include, but not limited to functional areas of Financial Management, Marketing Management, Human Resource Management, Entrepreneurship, Strategic Management, Public Economics, Monetary Economics, Industrial Economics, Human Resource Economics, ...