Jurnal Manajemen dan Agribisnis
Vol. 22 No. 1 (2025): JMA, Vol. 22 No. 1, March 2025

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

Nugraha, Herry (Unknown)
Nurmalina, Rita (Unknown)
Achsani, Noer Azam (Unknown)
Suroso, Arif Imam (Unknown)
Suprehatin, Suprehatin (Unknown)



Article Info

Publish Date
26 Mar 2025

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.

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Journal Info

Abbrev

jmagr

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

Description

Jurnal Manajemen & Agribisnis memuat informasi hasil kegiatan penelitian, pemikiran konseptual dan review bidang ilmu manajemen agribisnis. Jurnal ilmiah ini diterbitkan oleh Program Studi Manajemen dan Bisnis, Sekolah Pascasarjana, Institut Pertanian Bogor bekerjasama Perhimpunan Ekonomi Pertanian ...