Analyzing determinants of economic growth on agricultural sector in Indonesia

Despite the crucial role of agriculture in safeguarding Indonesia’s economy, some attention has given to the nation’s agricultural development, banking dynamics, and macroeconomic landscape pre- and post-COVID-19 era. This study employs quarterly data spanning from 2010 to 2021, using multiple Ordin...

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Main Authors: Bagus Wiranatakusuma Dimas, Fairuztama Rafif, Aprizal Anggi
Format: Article
Language:English
Published: EDP Sciences 2024-01-01
Series:E3S Web of Conferences
Online Access:https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/125/e3sconf_iconard2024_01006.pdf
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author Bagus Wiranatakusuma Dimas
Fairuztama Rafif
Aprizal Anggi
author_facet Bagus Wiranatakusuma Dimas
Fairuztama Rafif
Aprizal Anggi
author_sort Bagus Wiranatakusuma Dimas
collection DOAJ
description Despite the crucial role of agriculture in safeguarding Indonesia’s economy, some attention has given to the nation’s agricultural development, banking dynamics, and macroeconomic landscape pre- and post-COVID-19 era. This study employs quarterly data spanning from 2010 to 2021, using multiple Ordinary Least Squares (OLS) regression techniques to analyse various variables. Key variables examined include the growth of agriculture’s GDP shares over total GDP (GGDPRGDPT), agriculture’s financing and total time deposits in Islamic banks (GFinPDT), Islamic banks’ margin in agriculture (MARGIN), agriculture’s financing and GDP in agriculture (GCPGDPP), inflation, and food prices. The findings underscore the imperative for Indonesia’s agriculture sector to embark on a transformative journey toward enhanced productivity. Moreover, sustained support from the banking sector is considered essential for fostering financial deepening, causing a higher allocation of deposited funds towards agricultural financing. Amidst pandemics and crises, the resilience of Indonesia’s agriculture sector is underscored by the indispensability of its products. However, collaborative efforts between farmers and financial institutions are called for, alongside proactive measures by banks to channel deposited funds into agricultural financing instruments. The sustainable growth of Indonesia’s agricultural sector hinges upon robust macroeconomic conditions, effective management practices, and unwavering support from the banking sector.
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spelling doaj-art-e0e4810c36e04defa3003d10957c47a22025-08-20T02:31:29ZengEDP SciencesE3S Web of Conferences2267-12422024-01-015950100610.1051/e3sconf/202459501006e3sconf_iconard2024_01006Analyzing determinants of economic growth on agricultural sector in IndonesiaBagus Wiranatakusuma Dimas0Fairuztama Rafif1Aprizal Anggi2Department of Economics, Faculty of Economics and Business, Universitas Muhammadiyah YogyakartaBachelor of Economics, Faculty of Economics and Business, Universitas Muhammadiyah YogyakartaMaster of Economics, Postgraduate Program, Universitas Muhammadiyah YogyakartaDespite the crucial role of agriculture in safeguarding Indonesia’s economy, some attention has given to the nation’s agricultural development, banking dynamics, and macroeconomic landscape pre- and post-COVID-19 era. This study employs quarterly data spanning from 2010 to 2021, using multiple Ordinary Least Squares (OLS) regression techniques to analyse various variables. Key variables examined include the growth of agriculture’s GDP shares over total GDP (GGDPRGDPT), agriculture’s financing and total time deposits in Islamic banks (GFinPDT), Islamic banks’ margin in agriculture (MARGIN), agriculture’s financing and GDP in agriculture (GCPGDPP), inflation, and food prices. The findings underscore the imperative for Indonesia’s agriculture sector to embark on a transformative journey toward enhanced productivity. Moreover, sustained support from the banking sector is considered essential for fostering financial deepening, causing a higher allocation of deposited funds towards agricultural financing. Amidst pandemics and crises, the resilience of Indonesia’s agriculture sector is underscored by the indispensability of its products. However, collaborative efforts between farmers and financial institutions are called for, alongside proactive measures by banks to channel deposited funds into agricultural financing instruments. The sustainable growth of Indonesia’s agricultural sector hinges upon robust macroeconomic conditions, effective management practices, and unwavering support from the banking sector.https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/125/e3sconf_iconard2024_01006.pdf
spellingShingle Bagus Wiranatakusuma Dimas
Fairuztama Rafif
Aprizal Anggi
Analyzing determinants of economic growth on agricultural sector in Indonesia
E3S Web of Conferences
title Analyzing determinants of economic growth on agricultural sector in Indonesia
title_full Analyzing determinants of economic growth on agricultural sector in Indonesia
title_fullStr Analyzing determinants of economic growth on agricultural sector in Indonesia
title_full_unstemmed Analyzing determinants of economic growth on agricultural sector in Indonesia
title_short Analyzing determinants of economic growth on agricultural sector in Indonesia
title_sort analyzing determinants of economic growth on agricultural sector in indonesia
url https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/125/e3sconf_iconard2024_01006.pdf
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