What Driving Gross Domestic Product of Agriculture? Lessons from Indonesia (2014-2021)

Abstract

Developing markets such as Indonesia are now concentrating open agriculture, which is actualized in the share of global agro-industry. At the same time, the existence of dependence on agricultural products between one nation and another, is articulated as an opportunity and a competitive advantage. This paper evaluating the factors driving the GDP of agriculture in Indonesia. Data duration is 2014-2021. The construction of the analysis is framed by linear regression. It was found that employment in agriculture, precipitation, arable land, crop production, food production, livestock production, and fertilizer have a simultaneous impact on GDP of agriculture. Then, employment in agriculture, precipitation, food production, livestock production, and fertilizer have a partial impact on the GDP of Agriculture. Unfortunately, arable land and crop production do not have a partial impact on the GDP of Agriculture. Long-term prospects consider dimensions that are not influential to be developed holistically. Another point is also considering the GDP of agriculture in a more competitive exploration. Weaknesses of this scientific paper are highlighted for academic contributions and practical compilations. In the future, limitations on data extraction can be developed. Furthermore, practical policy elaboration as the primary key in agricultural institutions, strengthening farmer innovation, and protecting agricultural land from the threat of increasingly extreme temperature depletion and massive settlement development.