Strategy for The Growth of Leading Processing Industry Subsectors Based on The Commodity of The Agro Industry Region of Jambi Province

Abstract

This study investigates the growth potential of the Food and Beverage Industry, Paper Goods Industry, and Rubber and Plastic Goods Industry in Jambi Province as promising sectors for processing industries. It identifies challenges in expanding and leveraging the processing industry to benefit the regional economy. Urgent strategies and policies are proposed to overcome these obstacles, focusing on the agro-industrial commodity-based processing industry in Jambi. Using the Simultaneous Equation Model (SEM) and the Analytical Network Process (ANP), the study identifies key factors influencing the growth of each subsector. The results highlight the significant impact of variables such as Industrial Investment, Production Value, Labour Productivity, Industrial Raw Materials, Budget Allocation, and Manpower. By employing the ANP method, the study determines the most influential strategy for the development of the leading processing industry. The optimization of the government's role in policies and funding emerges as the key factor for successful strategy selection. Implementing the recommended strategies and policies will foster growth, maximize the industry's contribution, and strengthen the regional economy in Jambi Province.