Forestry Sector Impact on the Economy of Central Java, Indonesia

Firmansyah Firmansyah, Akhmad Syakir Kurnia, Shanty Oktavilia, Ryan Prayogi

Abstract


In 2016, the forestry sector produced a Gross Regional Domestic Product (GRDP) of Rp. 3.8 trillion or around 0.45% of the total GRDP of the province of Central Java, Indonesia (BPS Central Java, 2017). The Forestry Sector growth has increased, but the role of the sector shows a downward trend in GRDP. By employing the Input-Output analysis, this study intends to identify the structure of the Central Java forestry sector, through backward and forward linkages and mapping the path of the impact of the forestry sector's economic activities through simulations, toward the economy and sectoral income levels in Central Java. This study finds that the forestry sector is intermediate ouput that is used by other sectors to become their production inputs, so this sector has a good multiplier for the economy.


Keywords


Input-output, forestry, Economic impact, Backward linkages, Forward linkage.

Full Text:

PDF

References


Atyi R.E. 1998. Cameroon's Logging Industry: Structure, Economic Importance and Effects of Devaluation. CIFOR in the Tropenbos Foundation and The Tropenbos Cameroon Program collaboration with the Tropenbos. OCCASIONAL PAPER NO. 14. Jakarta

Central Bureau of Statistics. 2000. Framework for Theory and Analysis of Input-Output. Jakarta: BPS

Central Bureau of Statistics. 2015. Indonesia Input-Output Table 2010. Jakarta: BPS

Central Java Central Bureau of Statistics. 2014. Central Java 2013 Input-Output Table. Semarang: BPS

Central Java Central Bureau of Statistics. 2017. Central Java in Figures 2017. Semarang: BPS

Central Java Central Bureau of Statistics. 2018a. Central Java in Figures 2018. Semarang: BPS

Central Java BPS. 2018b. Central Java GRDP at Current Prices According to Business Fields (Million Rupiah), 2010 - 2017. https://jateng.bps.go.id/ statictable/2017/11/06/1684/-seri-2010-pdrb-jawa- middle-top-base-price- valid-according to-field-of-business-million-rupiah-2010 --- 2017.html

Cheney, P. 2018. Considerations of contribution analysis. IMPLAN Helpdesk. Available online: https://implanhelp.zendesk.com/ hc / en-us / articles / 115002801513-Considerations-of-Contribution -Analysis; last accessed June 22, 2018.

Office of Public Works Water Resources and Spatial Planning (Pusdataru) of Central Java Province. (2018). OPEN DATA PUSDATARU Central Java Province, downloaded at http://pusdataru .jatengprov.go.id

Central Java Investment and Integrated Services Office. 2018. Central Java (Online) Investment and One-Stop Integrated Services Statistics. Downloaded on page http://www.dpmptsp.jatengprov .go.id/statistik_perizinan/

Central Java Investment and Integrated Services Office. (https://jateng.bps.go.id/statictable/2017/10/29/1604/realization-nilai-investasi-dan-tenaga-kerja-penanaman-modal-dalam-negeri-pmdn-menurut-sektor-di -provincial-java-middle-2016.html)

Firmansyah. 2006. Matrix Operations and Input-Output Analysis (IO) for Economics - Practical Applications with Microsoft Excel and MATLAB. Semarang: BP Undip and LSKE FE-UNDIP.

Haeruman Js. H. 1993. Wisdom and problems in the development of industrial plantation systems. Discussion about HTI of the Ministry of Forestry. Not published

Henderson, J.E., and I.A. Munn. 2013. Economic importance of forest products to Mississippi counties: A publication series to help the forestry of community educators and local government officials. J. For. 111 (6): 388–394.

Henderson J.E, Standiford R.B., Evans S.G. 2016. Economic Contribution of Timber Harvesting and Manufacturing to the North Coast Redwood Region Counties. Proceedings of the Coast Redwood Science Symposium. Albany

Henderson, J.E., G.K. Evans. 2017. Single and multiple economic industries analysis contribution using IMPLAN. Forest and Wildlife Research Center, Research Bulletin FO468, Mississippi State University. 12 p.

Henderson, James E., Omkar Joshi., Shaun Tanger., Leslie Boby., William Hubbard., Matthew Pelkki., David W. Hughes., T. Eric McConnell., Wayne Miller., Jarek Nowak., Charles Becker., Tim Adams., Clay Altizer., Rick Cantrell., Jesse Daystar., Ben Jackson., James Jeuck., Sayeed Mehmood., Phil Tappe. 2017. a. Standard procedures and methods for economic impact and contribution analysis in the forest products sector. J. For. 115 (2): 112–116

Joshi, O., D.L. Grebner, J.E. Henderson, S.C. Grado, And I. A. Munn. 2012. Input-output of bioenergy industries in wood-based modeling in Mississippi. For Prod. J. 62 (7/8): 528–537.

Joshi, O., J.E., Henderson S.M. Tanger, L. Boby, M. Pellki, and E. Taylor. 2017. A synopsis of methodological variations in economic contribution analysis for forestry and forest-related industries in US South. J. For. 115 (2): 80–85.

Kuncoro, Mudrajad. 2012. Planning to Build Local Economy, Cities and Regions, Jakarta: Salemba Empat Publishers, South Jakarta

. Lebedys and Y. Li. 2014. Contribution of forest sector to national economies, 1990-2011, A Fores Finance Working Paper FSFM / ACC / 09. FAO, Rome.

Miller, R. and Blair, P. 1985. Input-Output Analysis: Foundations and Extensions. New Jersey: Prentice-Hall, Inc.

Nasendi, B.D. Indonesian Forestry Economy in a National Development Policy Perspective from Time to Time. Bogor: Postgraduate Faculty of Bogor Agricultural Institute, 1988. (not published)

Nurrochmat et.al.2015. Changing policies for Jepara, Indonesia. JMHT Vol. XXI, (1): 36-44, April 2015

Central Java Government. 2018. Draft RPJMD of Central Java Province 2018-2023. Downloaded on page http://bappeda.jatengprov.go.id/2016/download-materi/

Central Java Provincial Government. 2016. Forest Timber Production by Type of Production in Central Java Province (m3) 2012-2016. https://jateng.bps.go.id/ statictable/2017/10/27/1552/production-kayu-hutan-menurut-jenis-pasilan-di-provinsi-jawa-tengah-m3-2012-2016.html

Central Java Provincial Government. 2016. Realization of Investment Value and Domestic Investment Workforce (PMDN) by Sector in Central Java Province 2016. https://jateng.bps.go.id/statictable /2017/10/29/1604/realization-valuation -investment -and-labor-work-capital-investment-in-the-country-according to sector-in-province-java-middle-2016.html.

Central Java Provincial Government. 2017. Wide Area of Community Forest Cover of Forest Land and Production of Logs. http://data.jatengprov.go.id/ dataset/b2df9dfa-d9ce-4d1f-b70b-9b26f74a383c/resource/63d9 34bff795-4cfe-99a5-287352df9efb/download/lh-hut.xlsx

Central Java Provincial Government. 2018a. Forestry and Environment Data. http://data.jatengprov.go.id /dataset/b2df9dfa-d9ce-4d1f-b70b-9b26f74 a383 c/resource/63d934bf-f795-4cfe-99a5-287352 df9efb/download/lh-hut.xlsx

Central Java Provincial Government. 2018b. Statistics (Online) of Central Java GRDP at Current Prices by Business Field (Million Rupiah), 2010 - 2017 (https: //jateng.bps.go. id / statictable / 2017 / 11/06/1684/-series-2010-pdrb-jawa-tengah-on-basis-price-valid-according to-field-of-business-million-rupiah-2010 --- 2017.html)

Perum Perhutani Regional Division I Central Java. 2018. Forestry Statistics. (https://jateng.bps. go.id/statictable /2017/10/27/1552/production-kayu-hutan-menurut-jenis-p produksi-di-provinsi-jawa-tengah-m3-2012-2016.html )

Schminke. 1995. Forest Industries: Crucial for Overall Socio-economic Development. FAO. An International Journal of Forestry and Forest Industries vol 46

Saryono. 1984. Indonesian Forestry Economy. CV Yasaguna

Thanger S.M. 2014. Economic Impact of Forestry and Forestry Products on Louisiana's Congressional Districts. Louisiana State University Agricultural Center.

Watson, P., S. Cooke, D. Kay, and G. Alward. 2015. A improving economic contribution studies method for regional analysis. J. Reg. Anal. Policy. 45 (1): 1–15.




DOI: https://doi.org/10.15294/jejak.v12i1.18575

Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.