THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY
Indonesia has abundant forest resources, reaching 120 million hectares of forest area. However, the forestry sector's contribution to the national economy continues to decline. The low performance of the forestry sector cannot be separated from the limited availability of round-wood materials f...
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| Format: | Article |
| Language: | English |
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Ministry of Environment and Forestry
2022-10-01
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| Series: | Indonesian Journal of Forestry Research |
| Subjects: | |
| Online Access: | http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876 |
| _version_ | 1811246680555651072 |
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| author | Sahara Sahara Wildan Nur Arrasyiid Sane Pratinda Deden Djaenudin |
| author_facet | Sahara Sahara Wildan Nur Arrasyiid Sane Pratinda Deden Djaenudin |
| author_sort | Sahara Sahara |
| collection | DOAJ |
| description | Indonesia has abundant forest resources, reaching 120 million hectares of forest area. However, the forestry sector's contribution to the national economy continues to decline. The low performance of the forestry sector cannot be separated from the limited availability of round-wood materials for its processing industries and insufficient development of the multi-businesses activities among the forestry companies. Therefore, increasing the forestry sector's productivity is necessary through raising investment. This study investigates the impacts of investment in the forestry sector on Indonesian economic performance, including output, income, employment, and import, using the Input-Output (I-O) Model. The results show that investment in the forestry sector will increase output, income, and labour in the forestry sector and its related sectors. However, with the increase in its output, the demand for inputs, including round-wood materials, will also increase, encouraging a rise in imports. Thus, an increase in investment in the forestry sector needs to be balanced with the availability of roundwood materials and other associated inputs in Indonesia. For the follow-up research, it is important to separate the investment into upstream and downstream activities along the forestry value chain and include a regional aspect in the analysis. |
| first_indexed | 2024-04-12T14:56:57Z |
| format | Article |
| id | doaj.art-328c5e6c12b0494a81f8c23b73c6417e |
| institution | Directory Open Access Journal |
| issn | 2355-7079 2406-8195 |
| language | English |
| last_indexed | 2024-04-12T14:56:57Z |
| publishDate | 2022-10-01 |
| publisher | Ministry of Environment and Forestry |
| record_format | Article |
| series | Indonesian Journal of Forestry Research |
| spelling | doaj.art-328c5e6c12b0494a81f8c23b73c6417e2022-12-22T03:28:12ZengMinistry of Environment and ForestryIndonesian Journal of Forestry Research2355-70792406-81952022-10-019225126310.20886/ijfr.2022.9.2.251-2634556THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMYSahara Sahara0Wildan Nur Arrasyiid Sane Pratinda1Deden Djaenudin2Department of Economics, Faculty of Economics and Management, IPB University. Jl Agatis Kampus IPB Dramaga, Bogor, West Java, 16680 IndonesiaDepartment of Economics, Faculty of Economics and Management, IPB University. Jl Agatis Kampus IPB Dramaga, Bogor, West Java, 16680 IndonesiaResearch Center for Behavioral and Circular Economics, National Research and Innovation Agency. Gedung Widya Graha Lt 4. Jalan Jenderal Gatot Subroto No. 10 Jakarta Selatan, 12710 IndonesiaIndonesia has abundant forest resources, reaching 120 million hectares of forest area. However, the forestry sector's contribution to the national economy continues to decline. The low performance of the forestry sector cannot be separated from the limited availability of round-wood materials for its processing industries and insufficient development of the multi-businesses activities among the forestry companies. Therefore, increasing the forestry sector's productivity is necessary through raising investment. This study investigates the impacts of investment in the forestry sector on Indonesian economic performance, including output, income, employment, and import, using the Input-Output (I-O) Model. The results show that investment in the forestry sector will increase output, income, and labour in the forestry sector and its related sectors. However, with the increase in its output, the demand for inputs, including round-wood materials, will also increase, encouraging a rise in imports. Thus, an increase in investment in the forestry sector needs to be balanced with the availability of roundwood materials and other associated inputs in Indonesia. For the follow-up research, it is important to separate the investment into upstream and downstream activities along the forestry value chain and include a regional aspect in the analysis.http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876backward linkagesfordward linkagesimportinput-outputmultiplier |
| spellingShingle | Sahara Sahara Wildan Nur Arrasyiid Sane Pratinda Deden Djaenudin THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY Indonesian Journal of Forestry Research backward linkages fordward linkages import input-output multiplier |
| title | THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY |
| title_full | THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY |
| title_fullStr | THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY |
| title_full_unstemmed | THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY |
| title_short | THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY |
| title_sort | impacts of investment in the forestry sector on the indonesian economy |
| topic | backward linkages fordward linkages import input-output multiplier |
| url | http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876 |
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