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Paper ID: 187

Impact of The Agricultural Sector on The Indonesian Economy: An Input-Output Model

T R Putro and D Prasetyani

Universitas Sebelas Maret, Jl. Ir. Sutami 36 A Surakarta 57126, Jawa Tengah Indonesia



Currently, the development of the agricultural sector has always been an exciting topic of discussion in Indonesia. First, food security. It means that if we are to feed the world’s growing population, we need to produce more food than today. Second, the use of chemical fertilizers will increase resistance from plant pests; third, the risk factor for CO2 emissions to the environment. Globalization that is happening now brings the impact of demographic changes, especially rural-urban migration, on a large scale. The existing rural workforce and working in the agricultural sector rapidly experience a reduction in the number of workers and an increasingly aging age. Globalization was likely to have a significant impact on the current agricultural sector. This study will use the input-output model of the agricultural sector in Indonesia. Multiplier value, which shows the multiplier impact of agricultural sector activities on the entire economy. The indirect feedback effect of the agricultural sector on the non-agricultural sector in Indonesia economy plays an important role.

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