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THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY

Main Authors: Sahara, Sahara, Pratinda, Wildan Nur Arrasyiid Sane, Djaenudin, Deden
Format: Article info application/pdf eJournal
Bahasa: eng
Terbitan: Secretariat of Agency for Standardization of Environment and Forestry Instruments , 2022
Subjects:
backward linkages
fordward linkages
import
input-output
multiplier
Online Access: http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876
http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876/5856
http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/downloadSuppFile/6876/1175
http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/downloadSuppFile/6876/1176
ctrlnum --ejournal.forda-mof.org-ejournal-litbang-index.php-index-oai?verb=ListSets:article-6876
fullrecord <?xml version="1.0"?> <dc schemaLocation="http://www.openarchives.org/OAI/2.0/oai_dc/ http://www.openarchives.org/OAI/2.0/oai_dc.xsd"><title lang="en-US">THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY</title><creator>Sahara, Sahara</creator><creator>Pratinda, Wildan Nur Arrasyiid Sane</creator><creator>Djaenudin, Deden</creator><subject lang="en-US">backward linkages; fordward linkages; import; input-output; multiplier</subject><description lang="en-US">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.</description><publisher lang="en-US">Secretariat of Agency for Standardization of Environment and Forestry Instruments</publisher><contributor lang="en-US"/><date>2022-10-31</date><type>Journal:Article</type><type>Other:info:eu-repo/semantics/publishedVersion</type><type>Other:</type><type>File:application/pdf</type><identifier>http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876</identifier><identifier>10.20886/ijfr.2022.9.2.251-263</identifier><source lang="en-US">Indonesian Journal of Forestry Research; Vol 9, No 2 (2022): Indonesian Journal of Forestry Research; 251-263</source><source>2406-8195</source><source>2355-7079</source><language>eng</language><relation>http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876/5856</relation><relation>http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/downloadSuppFile/6876/1175</relation><relation>http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/downloadSuppFile/6876/1176</relation><rights lang="en-US">Copyright (c) 2022 Indonesian Journal of Forestry Research</rights><rights lang="en-US">http://creativecommons.org/licenses/by-nc-sa/4.0</rights><recordID>--ejournal.forda-mof.org-ejournal-litbang-index.php-index-oai?verb=ListSets:article-6876</recordID></dc>
language eng
format Journal:Article
Journal
Other:info:eu-repo/semantics/publishedVersion
Other
Other:
File:application/pdf
File
Journal:eJournal
author Sahara, Sahara
Pratinda, Wildan Nur Arrasyiid Sane
Djaenudin, Deden
title THE IMPACTS OF INVESTMENT IN THE FORESTRY SECTOR ON THE INDONESIAN ECONOMY
publisher Secretariat of Agency for Standardization of Environment and Forestry Instruments
publishDate 2022
topic backward linkages
fordward linkages
import
input-output
multiplier
url http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876
http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/view/6876/5856
http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/downloadSuppFile/6876/1175
http://ejournal.forda-mof.org/ejournal-litbang/index.php/IJFR/article/downloadSuppFile/6876/1176
contents 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.
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