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

Authors

  • Herry Nugraha Program Doktor Ilmu Ekonomi Pertanian FEM IPB
  • Rita Nurmalina Department of Agribusiness, Faculty of Economics and Management, IPB University
  • Noer Azam Achsani School of Business, IPB University, Indonesia
  • Arif Imam Suroso School of Business, IPB University, Indonesia
  • Suprehatin Suprehatin Department of Agribusiness, Faculty of Economics and Management, IPB University

DOI:

https://doi.org/10.17358/jma.22.1.105

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.

Downloads

Download data is not yet available.

Downloads

Published

2025-03-26

Issue

Vol. 22 No. 1 (2025): JMA, Vol. 22 No. 1, March 2025

Section

Articles

License

Authors who publish with this journal agree to the following terms:


    1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

    1. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

  1. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

How to Cite

Nugraha, H., Nurmalina, R. ., Achsani, N. A. ., Suroso, A. I. ., & Suprehatin, S. (2025). Indonesia’s Position and Participation in The Global Value Chain of The Agriculture Sector. Jurnal Manajemen Dan Agribisnis, 22(1), 105. https://doi.org/10.17358/jma.22.1.105

Most read articles by the same author(s)

1 2 > >>