ANALISIS PENENTUAN INDIKATOR UTAMA PEMBANGUNAN SEKTOR PERTANIAN DI INDONESIA: PENDEKATAN ANALISIS KOMPONEN UTAMA

Abstract

One of the main problems in recent agricultural development is difficulty in getting
fast, accurate information. This indicators choice is important to guide the government in
implementing agricultural development successfully. This paper aims at obtaining the main
indicators explaining agricultural development performance. Using PCA (Principle
Component Analysis), there were eight main indicators out of 38 variables, namely: (1)
irrigated land areas growth (%/year); (2) ratio of rural/urban labor in agricultural sector; (3)
ratio of rural/urban labor in non-agricultural sector; (4) Food Security Index (energy and
protein) trend; (5) Agricultural sector’s GRDP growth (%/year); (6) Agricultural sector’s
share in GRDP (%/year); (7) use of agricultural inputs (seed, fertilizer, and pesticide); and
(8) farm business productivity. The results showed that farmers’ incomes and agricultural
commodities’ competitiveness (based on export and import trends) were not the main
indicators of agricultural development. Therefore, targets of agricultural development are
not farmers’ incomes improvement, but farm business productivity improvement through
increase in agricultural inputs use.