Structural Transformation of the Agricultural Sector and Influencing Factors in Sumatra Island

Abstract

The objective of this research is to determine whether there has been a transformation in Sumatra Island during the period from 2010 to 2022 and to identify the influencing factors. The data utilized in this study is secondary data obtained from official sources such as the Central Statistics Agency. The collected data includes Gross Regional Domestic Product (GRDP), poverty rate, open unemployment rate, investment data, and average years of schooling. The findings reveal that over the 12-year period, Sumatra Island did not experience a significant transformation, despite the agricultural sector being its primary contributor. The island only underwent a shift of 0.62, a value smaller than that of the mining sector. The factors influencing the shift in the agricultural sector in Sumatra Island include the unemployment rate, poverty rate, investment, and average years of schooling.