Analysis of the Influence of Oil Palm Plantations on the GDP of Riau Province

Ahmad Rifai (University of Bengkulu)
Azansyah Azansyah (University of Bengkulu)

Formosa Journal of Science and Technology (FJST)
Vol. 4 No. 7 (2025): July 2025

This study examines how oil palm plantations affect the Gross Regional Domestic Product (GRDP) of Riau Province during the 2020-2021 period. A panel data regression approach, considering common effect, fixed effect, and random effect models, was chosen as the methodology to analyze cross-section data (districts/cities) and time-series data (2020-2021). This research utilized secondary data obtained from the Central Statistics Agency of Riau Province and the Information and Documentation Management Officer of Riau Province. It was found that land area has a positive impact on Riau Province's GRDP. Conversely, production showed a negative influence on Riau Province's GRDP. In terms of labor, the findings did not indicate a significant impact on Riau Province's GRDP.