The Strategy of Growing the Rubber Processing Industry Subsector as a Competitive Agro Industry Commodity for the Regional Economy of Jambi Province

Abstract

The growth of the processing industrial sector in Jambi province shows a decline, where the
contribution of the industrial sector is quite worrying considering that the industrial sector is
expected to play a role in encouraging economic growth, alleviating poverty, and creating jobs
to reduce the high level of unemployment. Regional industrial development efforts mean that
each region has superior commodities that illustrate the region's potential or ability to produce
products, create added value, utilize resources, provide employment opportunities, generate
income for the community and local government, and have prospects for increasing
productivity and investment. The decline in contribution and the relatively small growth of
industry must receive special attention from the government to encourage the industry again
and prevent deindustrialization Jambi Province is the fourth largest rubber-producing region
in the country, after South Sumatra, North Sumatra, and Riau. In 2021, land use in Jambi
Province will still be dominated by plantation commodities with a contribution of 21.3 percent.
Rubber production in Jambi will be 310 thousand tons in 2021. In 2021, the number of rubber
farmers in Jambi Province will be 154,834 people, (National Leading Plantation Statistics,
2019-2021) this research aims to analyze the determinants of growth and development of the
rubber processing industry subsector as a competitive agro-industry commodity for the
regional economy of Jambi Province and to analyze the competitiveness of the rubber
processing industry sub-sector as an agro-industry commodity for the regional economy of
Jambi Province and its growth strategy. The analytical tools used to analyze the determinants
of growth and development of the rubber processing industry subsector in the Jambi area are
the Simultaneous Equation Model, Simple Regression, Revealed Comparative Advantage
(RCA), and the Analytical Network Process (ANP) Method