The Agricultural Sector in Indonesia Amidst COVID-19: Crisis or Opportunity?

The proliferation of COVID-19 has led to a decline in commercial operations and economic performance, along with a shrinkage in output. Globally, the agricultural sector appears to be more resilient to pandemic-induced disruptions. This sector tends to have a more stable demand compared to industria...

Full description

Bibliographic Details
Main Authors: Fadhlan Musyaffa Nadhif, Radi Myarta Lalu, Kusuma Paksi Arie, Dian Iswari Rani
Format: Article
Language:English
Published: EDP Sciences 2023-01-01
Series:E3S Web of Conferences
Online Access:https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/81/e3sconf_iconard2023_02054.pdf
_version_ 1797345548258246656
author Fadhlan Musyaffa Nadhif
Radi Myarta Lalu
Kusuma Paksi Arie
Dian Iswari Rani
author_facet Fadhlan Musyaffa Nadhif
Radi Myarta Lalu
Kusuma Paksi Arie
Dian Iswari Rani
author_sort Fadhlan Musyaffa Nadhif
collection DOAJ
description The proliferation of COVID-19 has led to a decline in commercial operations and economic performance, along with a shrinkage in output. Globally, the agricultural sector appears to be more resilient to pandemic-induced disruptions. This sector tends to have a more stable demand compared to industrial goods. Utilizing datasets spanning from 2013 to 2022, sourced from seven different Indonesian governmental departments, we evaluate the influence of fluctuations in agricultural output on the real Gross Domestic Product (GDP) of Indonesia. Our findings reveal that the impacts are fairly consistently dispersed across all four financial quarters, suggesting that any lockdown measures affecting agriculture could have prolonged ramifications on the country’s GDP. Despite its resilience, the agricultural sector faced significant operational hurdles due to production cutbacks, market and border closures, and canceled transactions. Additionally, the financial accessibility for farmers was compromised due to the economic downturn. However, our qualitative analysis indicates that the COVID-19 situation has also unearthed new growth avenues for Indonesia’s agriculture. These include the acceleration and broadening of digital transformation, market expansion for exported goods, and an influx of both skilled and unskilled labor. In light of these findings, we put forth five strategic recommendations aimed at ensuring the long-term sustainability of Indonesia’s agricultural sector.
first_indexed 2024-03-08T11:19:15Z
format Article
id doaj.art-4a06857a596542938296a97c64af04da
institution Directory Open Access Journal
issn 2267-1242
language English
last_indexed 2024-03-08T11:19:15Z
publishDate 2023-01-01
publisher EDP Sciences
record_format Article
series E3S Web of Conferences
spelling doaj.art-4a06857a596542938296a97c64af04da2024-01-26T10:27:40ZengEDP SciencesE3S Web of Conferences2267-12422023-01-014440205410.1051/e3sconf/202344402054e3sconf_iconard2023_02054The Agricultural Sector in Indonesia Amidst COVID-19: Crisis or Opportunity?Fadhlan Musyaffa Nadhif0Radi Myarta Lalu1Kusuma Paksi Arie2Dian Iswari Rani3Department of International Relations, Faculty of Social and Political Science, Universitas Muhammadiyah YogyakartaDepartment of International Relations, Faculty of Social and Political Science, Universitas Muhammadiyah YogyakartaDepartment of International Relations, Faculty of Social and Political Science, Universitas Muhammadiyah YogyakartaDepartment of International Relations, Faculty of Social and Political Science, Universitas Muhammadiyah YogyakartaThe proliferation of COVID-19 has led to a decline in commercial operations and economic performance, along with a shrinkage in output. Globally, the agricultural sector appears to be more resilient to pandemic-induced disruptions. This sector tends to have a more stable demand compared to industrial goods. Utilizing datasets spanning from 2013 to 2022, sourced from seven different Indonesian governmental departments, we evaluate the influence of fluctuations in agricultural output on the real Gross Domestic Product (GDP) of Indonesia. Our findings reveal that the impacts are fairly consistently dispersed across all four financial quarters, suggesting that any lockdown measures affecting agriculture could have prolonged ramifications on the country’s GDP. Despite its resilience, the agricultural sector faced significant operational hurdles due to production cutbacks, market and border closures, and canceled transactions. Additionally, the financial accessibility for farmers was compromised due to the economic downturn. However, our qualitative analysis indicates that the COVID-19 situation has also unearthed new growth avenues for Indonesia’s agriculture. These include the acceleration and broadening of digital transformation, market expansion for exported goods, and an influx of both skilled and unskilled labor. In light of these findings, we put forth five strategic recommendations aimed at ensuring the long-term sustainability of Indonesia’s agricultural sector.https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/81/e3sconf_iconard2023_02054.pdf
spellingShingle Fadhlan Musyaffa Nadhif
Radi Myarta Lalu
Kusuma Paksi Arie
Dian Iswari Rani
The Agricultural Sector in Indonesia Amidst COVID-19: Crisis or Opportunity?
E3S Web of Conferences
title The Agricultural Sector in Indonesia Amidst COVID-19: Crisis or Opportunity?
title_full The Agricultural Sector in Indonesia Amidst COVID-19: Crisis or Opportunity?
title_fullStr The Agricultural Sector in Indonesia Amidst COVID-19: Crisis or Opportunity?
title_full_unstemmed The Agricultural Sector in Indonesia Amidst COVID-19: Crisis or Opportunity?
title_short The Agricultural Sector in Indonesia Amidst COVID-19: Crisis or Opportunity?
title_sort agricultural sector in indonesia amidst covid 19 crisis or opportunity
url https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/81/e3sconf_iconard2023_02054.pdf
work_keys_str_mv AT fadhlanmusyaffanadhif theagriculturalsectorinindonesiaamidstcovid19crisisoropportunity
AT radimyartalalu theagriculturalsectorinindonesiaamidstcovid19crisisoropportunity
AT kusumapaksiarie theagriculturalsectorinindonesiaamidstcovid19crisisoropportunity
AT dianiswarirani theagriculturalsectorinindonesiaamidstcovid19crisisoropportunity
AT fadhlanmusyaffanadhif agriculturalsectorinindonesiaamidstcovid19crisisoropportunity
AT radimyartalalu agriculturalsectorinindonesiaamidstcovid19crisisoropportunity
AT kusumapaksiarie agriculturalsectorinindonesiaamidstcovid19crisisoropportunity
AT dianiswarirani agriculturalsectorinindonesiaamidstcovid19crisisoropportunity