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The Analysis of Leading Subsector Paddy Commodities in South Sumatera Province (LQ Analysis)

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The Analysis of Leading Subsector Paddy Commodities in South Sumatera Province (LQ Analysis) The Analysis of Leading Subsector Paddy Commodities in South Sumatera Province (LQ Analysis) Siti Rohima, Anna Yulianita, Nengsi Puspita Dewi Faculty of Economics, Universitas Sriwijaya, Palembang, Indonesia Keywords: Leading Commodity, Location Quotient, Base Sector, Non-Base Sector Abstract: The purpose of this study to analyze the leading commodities of paddy plants in the South Sumatera Province. In this study refers to two types of paddy plants, which are Wetland paddy and Dryland paddy.. The method is using (LQ) analysis and secondary data. With the LQ formula, an index will be produced to determine a regency/city including base or non-base on paddy plants, if LQ> 1 (Leading Sector), LQ = 1 (Self-Sufficiency), LQ <1 (non-Leading sector). The results of study show that regencies or cities that have a low total of wetland paddy production included in the basic categories are: Lahat Regency, Musi Rawas Regency, East OKU Regency, Ogan Ilir Regency, Empat Lawang Regency, Palembang City, Pagaralam City. Non-Base Sector categories are OKI, Muara Enim, Musi Banyuasin, South OKU, and Lubuklinggau City. The category of base-sector for Dryland paddy production is Ogan Komering Ilir Regency, then Ogan Komering Ulu Regency, Muara Enim Regency, Prabumulih City, Musi Banyuasin Regency and Lahat Regency. Non-base sector categories are South OKU Regency, Musi Rawas Regency, Banyuasin Regency, East OKU Regency, Ogan Ilir Regency, Empat Lawang Regency, LubukLinggau City, Palembang City, Pagaralam City. 1 INTRODUCTION leading commodities must also consider the contribution of a commodity to economic growth 1.1 Background and aspects of equitable development in an area (Syahroni, 2005) The agricultural sector is an important sector and Leading commodities in the agricultural sector, is a major driver in the economy of regencies/cities especially paddy, can be used as a basis for determining the priority of agricultural development. in South Sumatra Province. One strategy that can be used in regional economic development through the Agricultural development aims to improve the yield development of paddy leading commodities. The and quality of production, increase income and living standards of the community. The aim of development of leading commodity-based regions is expected to spur the growth of a region which in decent agricultural development is placed as a top turn can increase people's income. Utilizing superior priority for the achievement of food self-sufficiency. Agricultural development strives to develop the regional potential, optimally and integrated potential is a condition that needs to be considered so that the existing potential, namely utilizing natural resources welfare and prosperity of the community can be optimally. Main commodity in a region different, with excellent potential areas can be illustrated by achieved (Mubyarto, 2000). Determination of commodity as a leading the region's ability to produce, create value, commodity in regional must be adjusted to the utilization of resources in real time, provide employment, generate income for the community, potential of natural resources and human resources owned by the region. Commodities selected as have prospects for improving productivity and investment as well as having the power sai ng high regional leading commodities are commodities that (Bappeda, 2014) . The agricultural sector has an have high productivity and can provide added value so that they have a positive impact on people's important role both at the national and regional levels, such as in economic development in a welfare. In addition, the determination of regional country while most of the Indonesian population still 133 Rohima, S., Yulianita, A. and Puspita Dewi, N. The Analysis of Leading Subsector Paddy Commodities in South Sumatera Province (LQ Analysis). DOI: 10.5220/0008437601330140 In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2018), pages 133-140 ISBN: 978-989-758-387-2 Copyright c 2019 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved SEABC 2018 - 4th Sriwijaya Economics, Accounting, and Business Conference depend on their lives. This is because the are the mainstay commodities that have a strategic agricultural sector contributes significantly to position to be developed in an area. This strategic national income and national food providers. Food position is based on technical considerations (soil as one type of physiological needs occupies the first and climate conditions), socio-economic and herarchy in the types of basic human needs. Food is institutional conditions. (Handayana, 2003). said to be a basic need for every human being This determination is important considering that everywhere, because it is related to human survival, the availability and capability of resources (natural, growth and development. capital and human) to produce and market all Location Quotient (LQ) is a method based on commodities that can be produced in a region sector theory base to calculate relative comparisons simultaneously is relatively limited. On the other of value added contribution of a sector in a region to hand, in the current free market era, at the local, the value added contribution of the sector concerned national and global market level, only commodities nationally or to a higher level (Rusastra et al. 2000). that are cultivated efficiently in terms of technology The use of the LQ method can find out the value of and socio-economics and have comparative and the added value of each sector that represents competitive advantages that are able to compete whether the sector is a superior commodity or not. sustainably with the same commodities from other The concept of LQ states that the quantity of LQ regions. In simpler terms what is meant by superior on a commodity is greater than one (LQ> 1) then the commodities is a commodity that is feasible to commodity is a base commodity that has the cultivate because it provides benefits to farmers both advantage of meeting the needs of other regions. biophysically, socially and economically. Certain This commodity has the potential to be developed commodities are said to be biophysically feasible if and can become a foundation for regional economic the commodity is cultivated in accordance with the development. Conversely, if the LQ is smaller than agroecological zone, socially feasible if the one (LQ<1), it indicates that the commodity is non commodity provides opportunities for business, can leading commodities. These commodities do not be done and accepted by the local community so that have advantages and tend to import from other it has an impact on employment. While regions because they do not meet the needs of their economically feasible means that the commodity is own regions. profitable. 1.2 Research purposes 1.3.2 Location Quotient (LQ) Analyze leading commodities of paddy plants in Some methods for sorting between base activities regencies / cities in South Sumatra Province. and non-base activities are direct methods, indirect methods, mixed methods, and location quotient 1.3 Literature Review methods (Tarigan R, 2005). In this study, the location quotient (LQ) method is used, this LQ 1.3.1 Featured Commodities method is a comparison between the relative share of "i" commodity production at the provincial level The comparative advantage of a commodity for a to the total production in the Province with the country or region is that the commodity is relatively relative share of "i" commodity production at the leading to other commodities in the region national level against total production in National (Mawardi, 1997). In this case, the definition of level. If you want to describe it to the district level, it leading commodity is in the form of comparison and means that the commodity "i" at the district level not in the form of real added value. The comperative compared to the total production in the district is advantage is an economic activity that is then compared again with the production of "i" comparatively more profitable for regional commodities at the Provincial level against the total development. While the leading sector is a sector production at the Provincial level, and so on. that has comparative advantages and competitive Secondary data analysis from the Central Statistics advantages with similar sector products from other Agency (BPS) included data on production, regions and provides great value for benefits. harvested area, area of immature plantations, planted Leading sectors also provide large value-added and area , old / damaged plants. Production is the main production, have a large multiplier effect on other indicator in LQ calculation, because the production economies, and have high demand both in local of a commodity is the final resultant of all markets and export markets. Excellent commodities cultivation systems. If the production of a 134 The Analysis of Leading Subsector Paddy Commodities in South Sumatera Province (LQ Analysis) commodity is high and tends to increase every year, N_ Ber Sum = Number of provincial then it is assumed that the commodity is in great rice food commodity production demand by the community, which has an impact on N t _ Sum Pngn = Total Province real income increases. High interest in this commodity food production commodity will certainly be followed by better care With the LQ formula, an index will be produced than other commodities with lower production. to determine a sub-district including base or non- base in a food crop sector. if LQ> 1 (Base Sector), LQ = 1 (Self-Sufficiency), LQ <1 (Non-Base 2 METHODOLOGY Sector). For determining, the selection of an area for the development of a rice crop, the government needs to 3 DISCUSSION study the potential of each region, using this rice sector base sector can help in decision making. The The role of the agricultural sector can help method used in this study is a method of analyzing improve the economic growth of an area, moreover secondary data using Location Quotient (LQ) it is one of the most dominant food commodities for analysis and in-depth interviews.
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