The Impact of Oil Palm Plantations on Economic Growth of Batanghari Regency

Abstract

This study aims to analyze the position and impact of oil palm plantations on economic growth in Batanghari Regency. This study uses time-series data for the 2010-2019 period which was collected from related agencies. The analysis method uses location quotient, multiplier effect, and shift-share analysis. The results showed that oil palm plantations are the basic sector in the economy of Batanghari Regency in terms of GDRP at Constant prices and employment (LQ > 1). The shift-share values from the aspects of GDRP at Constant prices, GDRP at Current Prices, and labor absorption indicate that oil palm plantations are a potential economic sector to be developed. The value of the multiplier effect generated by oil palm plantations is quite large from the aspect of GDRP at Constant prices of 35.53 and employment of 10.44.