Analysis of Leading Commodities on The Sumatra Island

Abstract

Commodity identification in each province is required so that business sector development is more efficient, adds value, and produces optimal results. The purpose of this research is to examine the leading commodities and provinces on the Sumatra Island that have a comparative advantage in the agriculture, forestry, and fishery sectors. PDB, PDRB, and Sub-Sector PDRB in 2015-2021 data from agencies such as BPS, BI, and Bappenas are used, with the Location Quotient (LQ) and Revealed Comparative Advantage (RCA) methods. The results show that all of the data passed the classical assumption test. The highest LQ value for each province on the Sumatra Island differs, but agriculture, forestry, and fisheries are the basic sectors in all provinces. The RCA value of the agriculture, forestry, and fishery sectors demonstrates that all provinces on the Sumatra Island have high competitiveness because they can meet their own regional needs and even export outside the region.

Identification Of Leading Sectors In Batam: LQ, DLQ, and Shift-Share Analysis

“…The period of data used in this study is too narrow, only from 2 nd quarter of 2019 to 2 nd quarter of 2020. (Mardiyah et al, 2022) found similar results where Mining and Quarrying, Processing Industry, Water Supply, Waste Management, Waste and Recycling, and Construction are leading sectors in Riau Islands.…”