The Role Of Agricultural Sector In The Economy Of Nusa Tenggara Timur Province

Abstract

Agricultural sector is still becoming the superior sector in the economy of Nusa Tenggara Timur (NTT) Province due to its significant contribution towards Gross Regional Domestic Product (PDRB) and labor absorption; however, this sector has not been the major source of economic growth. These study aimed are to analyze: (1) the role of the agricultural sector in the economy of NTT Province, (2) interrelation among agricultural sector with various other sectors in NTT Province, and (3) the impact on final demand changes in agricultural sector towards the output, income, and work force in NTT Province. This study used Input-Output (I-O) Method by conducting analysis on Input-Output Table of NTT Province in 2009. The result of the study show that: (1) sub-sector of animal husbandry and animal slaughtering, corn commodities, food-crop plant sub-sector, and fishery sub-sector play an immense role in the economy, (2) rice commodity, animal husbandry and animal slaughtering sub-sector, plantation sub-sector, and food crop plant sub-sector own a relatively enormous capability in supporting the output growth of their related sectors, and (3) poultry commodity and its products as well as coffee commodity posses output multiplier value, household income, and relatively large work force absorption. In order to increase the role of agricultural sector in the economy, agricultural sector growth is domestically oriented from the output side covering rice commodity, animal husbandry and animal slaughtering sub-sector, plantation plants sub-sector, as well as food crop plants sub-sector can be considered as development priority. Moreover, the government needs to carry out efforts to increase allocation for investment on animal husbandry and animal slaughtering sub-sector.