This analysis investigates output and income multipliers within Indonesia's agricultural sector, suggesting its limited economic contribution.
The agricultural sector has faced many problems to date. However, the agricultural sector can contribute to GDP, although only slightly. The purpose of this study is to analyze the output multiplier and income multiplier of the agricultural sector and other economic sectors (8 sectors) in the Indonesian economy based on the 2016 Indonesian Input-Output Table. The data used are Indonesian Input-Output Table data on Domestic Transactions at Producer Prices (17 business fields) in 2016. Of the 17 sectors classified and focused on 9 sectors are directly related to the agricultural sector from the perspective of agribusiness as a system. The analysis uses multiplier analysis, namely the output multiplier and income multiplier. The largest output multiplier value is the transportation and warehousing sector of 1.7852. Meanwhile, the value of the agriculture, forestry and fisheries sector was 1.2854, which was in the lowest position compared to the other eight sectors. The largest income multiplier value is the financial services and insurance sector of 0.4271. Meanwhile, the value of the agriculture, forestry and fisheries sector was 0.3984, which was in the third largest position compared to other sectors. The contribution and role of the agricultural sector to the Indonesian economy are not too large.
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Putri et al. (2023) studied this question.
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