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Jurnal Hexagro. Vol. 8. No. 1.

February 2024 P-ISSN: 2459-269E-ISSN: 2686-3316


DOI: 10.36423/hexagro.v8i1.1515

LEADING COMMODITIES AND COMPETITIVENESS


AGRICULTURAL SECTOR OF WEST PASAMAN DISTRICT

Syahrial1*, Angelia Leovita1, Haslinda Simangunsong1

1Agribusiness Study Program, Faculty of Agriculture, Tamansiswa University

Corresponding author : arialdm@gmail.com

Submitted: 21st November 2023; Revised: 4th February 20234 Published: 9th February 2024

ABSTRACT

The Agricultural Sector is the dominant business sector in gross regional domestic product
(GRDP) in improving the economy of West Pasaman Regency. This research aims to 1) analyze
essential superior commodities, 2) analyze the economic competitiveness of the agricultural
sector in West Pasaman Regency, and 3) analyze trends in superior commodities in the future.
The analytical tools used are Location Quotient, Localization Quotient, Specialization Quotient,
Shift Share, and Dynamic Location Quotient. The results showed that 1) West Pasaman Regency
had 40 percent of the 15 commodities base commodities, 2) the food crops, horticulture, and
plantation subsector had competitors with increased growth, and 3) there are 47 percent of the 15
commodities with potential and future trends. The West Pasaman Regency government must
also look at what factors support several commodities, such as commodities that are not basic,
not developed, or underdeveloped, so that these commodities in the future can compete and
become prime commodities in the region so that they can encourage regional growth and
economics.

Keywords: Commodities, commodity trends, competitiveness

ABSTRAK

Sektor pertanian merupakan lapangan usaha yang dominan pada Produk Domestik Regional
Bruto (PDRB) dalam meningkatkan perekonomian Kabupaten Pasaman Barat. Penelitian ini
bertujuan untuk 1) menganalisis komoditas unggulan basis 2) menganalisis daya saing
perekonomian sektor pertanian di Kabupaten Pasaman Barat dan 3) menganalisis tren komoditas
unggulan di masa mendatang. Alat analisis yang digunakan adalah Location Quotient, Kuosien
Lokalisasi, Kuosien Spesialisasi, Shift Share dan Dynamic Location Quotient. Hasil penelitian
menunjukkan 1) Kabupaten Pasaman Barat memiliki komoditas yang basis sebanyak 40 persen
dari 15 komoditas 2) subsektor tanaman pangan, hortikultura dan perkebunan memiliki daya
saing dengan pertumbuhan yang meningkat dan 3) terdapat 47 persen dari 15 komoditas yang
potensial dan tren dimasa mendatang. Pemerintah Kabupaten Pasaman Barat juga harus melihat
faktor apa saja yang menjadi pendukung pada beberapa komoditas seperti komoditas yang tidak
basis, tidak berkembang atau terbelakang sehingga komoditas tersebut di masa mendatang
mampu bersaing dan menjadi komoditas prima pada wilayah tersebut sehingga dapat
mendorong pertumbuhan dan perekonomian wilayah.
Kata kunci: Komoditas, Daya Saing, Tren Komoditas

INTRODUCTION challenges. Regional economic


Economic development in the era disparities are an unresolved problem
of regional autonomy faces various impacting low-income levels and

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Jurnal Hexagro. Vol. 8. No. 1. February 2024 P-ISSN: 2459-269E-ISSN: 2686-3316
DOI: 10.36423/hexagro.v8i1.1515

poverty (Yolamalinda, 2015). Economic food, horticulture, and plantation


development can be expressed by subsectors experienced an increase in
increasing economic growth. The that year. As the district resulting from
increase in GRDP value was caused by the expansion of West Pasaman
increased production in sectors, Regency ranks fifth with the most
including the agricultural industry. significant contribution in the Province
Agricultural development supports of West Sumatra, surpassing the district
economic growth. Increasing that expanded it, the agricultural sector
agricultural productivity is in West Pasaman Regency is very likely
accompanied by increased agrarian to be developed to become a driver of
sector labor income, employment the community's economy. Based on the
opportunities, and purchasing power description, it is necessary to research
(Nurmayenti et al., 2022). Determining the development and structure of
rural development strategies in regional economic growth in the West
economic recovery means selecting Pasaman Regency. Research objectives:
agricultural sectors that are superior 1) Analyze the commodities that are the
regional commodities by the region's basis for the agricultural sector, 2)
potential natural resources and human Competitiveness of the agricultural
resources (Nuraini et al ., 2023). sector in West Pasaman Regency, and 3)
Data on the growth rate in PDRB Trends in the agricultural sector in the
ADHK and the growth rate in the future.
agricultural sector in West Pasaman RESEARCH METHODS
Regency fluctuated. In 2017-2020, the The research was carried out
GDP growth rate decreased by 4 percent from February to July 2023. The research
and rose again in 2021 to 2.41 percent, location was taken in West Pasaman
while the growth rate in the agricultural Regency, West Sumatra Province. The
sector from 2017-2018 increased by 1.54 type of data in this research uses
percent; in 2018-2020, there was a secondary data with panel data, namely
decrease of 3.83 percent and will rise data that is a combination of cross data
again in 2021 to 2.46 percent. The lowest section or data at a particular time and
decline in the growth rate in GRDP and data time series or time series data 2017-
the growth rate in the agricultural sector 2021. Data sources from the Central
was in 2020. However, production in the Statistics Agency (BPS) include data on

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Jurnal Hexagro. Vol. 8. No. 1. February 2024 P-ISSN: 2459-269E-ISSN: 2686-3316
DOI: 10.36423/hexagro.v8i1.1515

the food subsector, horticulture level, tl is the ending year point, and t0
subsector, plantation subsector, regional is the starting year point
description data, workforce, land area,
3. To analyze superior commodities in
and other data related to research, as
the future, use the following formula:
well as data from the Agriculture
(1+𝑔𝑖𝑘)/(1+𝑔𝑘)
Service of West Sumatra Province and DLQ = ⌊ ⌋t .................. (3)
(1+𝐺𝑖𝑝)/(1+𝐺𝑝)

West Pasaman Regency. Where: gik is the average growth in


Data analysis the value of commodity i in the district

1. To analyze the essential superior area, gk is the average growth in the

commodities, the following formula is total value of selected commodities in

used: the district area, Gip is the average


𝑝𝑖/𝑝𝑡 growth in the value of commodity i in
LQ = .............................................. (1)
𝑃𝑖/𝑃𝑡
the provincial area, Gp is the average
Where pi is the production of growth in the total value of selected
commodity I at the district level, pt is the commodities in the region province, and
total production of commodity groups t is the difference between the final year
at the district level, Pi is a commodity I and the initial year.
at the provincial level, and Pt is the total
RESULTS AND DISCUSSION
production of commodity groups at the
Leading Agricultural Sector
local level.
Commodities
Location Analysis Quotient (LQ)
2. To analyze the competitiveness of the
is an analytical tool for identifying
agricultural sector, the following
superior commodities based on the
formula is used:
agricultural sector in West Pasaman
𝑥..(𝑡1) 𝑥..(𝑡1) 𝑥..(𝑡1)
SSA = ( − 1)+ ( − )+ Regency, calculating the value of
𝑥..(𝑡0) 𝑥..(𝑡0) 𝑥..(𝑡0)
𝑥𝑖𝑗(𝑡1) 𝑥..(𝑡1)
( − ).............................. (2) commodity production in 2017-2021
𝑥𝑖𝑗(𝑡0) 𝑥..(𝑡0)
with a comparison of West Sumatra
Where: X is the total production value
province. Jumiyanti (2018) states that if
of all superior commodities, X.i is the
the LQ is higher than one base
total production value of one of the
commodity, the comparative
leading commodities at the provincial
commodity makes it possible to meet
level, Xij is the total production of one
regional needs and be exported outside
of the top commodities at the district
the region. However, if the LQ value =

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Jurnal Hexagro. Vol. 8. No. 1. February 2024 P-ISSN: 2459-269E-ISSN: 2686-3316
DOI: 10.36423/hexagro.v8i1.1515

1, the commodity is categorized as non- optional because the production of the


basic because it does not have a peanut commodity in that year needed
comparative advantage. Production is to meet regional needs. Maradona and
only enough to meet the region's needs Leovita (2018) state that corn is one of
and cannot be exported. If the LQ value the leading food crop commodities in
is < 1, then the commodity is also West Sumatra Province. This showed
categorized as non-basic because its that corn is a commodity with the
production cannot meet its own needs, opportunity to meet regional needs and
requiring supplies/imports from be able to help the economic growth of
outside. the West Pasaman district. According to
research conducted by Khairad et al.
Table 1 shows that in the food
(2020), peanuts are the leading
subsector, the essential commodities in
commodity in the food subsector in
West Pasaman Regency are corn and
Agam Regency. Apart from corn,
peanuts because they have an LQ value
peanuts are also an essential commodity
> 1. Corn production has the highest LQ
in West Pasaman Regency because they
value, with an average of 2.44, and
can meet the region's needs.
peanuts, an average of 1.10. However,
the peanut commodity in 2017 was
Table 1. Sector LQ value Agriculture in the Regency West Pasaman 2017-2021
LQ Agricultural Sector
Year
No Commodity Average Information
2017 2018 2019 2020 2021
Food
1 Rice Fields 0.39 0.29 0.21 0.27 0.29 0.29 Non Base
2 Corn 2.99 2.29 2.46 2.29 2.18 2.44 Base
3 Peanuts 1.05 0.95 1.12 1.18 1.22 1.10 Base
4 Cassava 0.30 0.23 0.36 0.25 0.27 0.28 Non Base
Sweet
Non Base
5 potato 0.17 0.63 1.00 0.38 0.00 0.42
Horticulture
6 Big chili 0.39 0.75 0.70 1.23 1.48 0.91 Non Base
7 Eggplant 0.65 0.77 0.98 1.55 2.60 1.31 Base
8 Banana 1.54 0.41 0.83 0.23 0.54 0.71 Non Base
9 Orange 1.43 2.34 1.92 1.45 0.44 1.52 Base
10 Avocado 0.13 0.20 0.32 0.59 7.47 1.74 Base
Plantation
11 Rubber 0.07 0.12 0.12 0.12 0.10 0.11 Non Base

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Jurnal Hexagro. Vol. 8. No. 1. February 2024 P-ISSN: 2459-269E-ISSN: 2686-3316
DOI: 10.36423/hexagro.v8i1.1515

LQ Agricultural Sector
Year
No Commodity Average Information
2017 2018 2019 2020 2021
Coconut
Non Base
12 inside 0.04 0.07 0.07 0.08 0.04 0.06
13 Palm oil 1.57 1.50 1.51 1.52 1.39 1.50 Base
14 Cocoa 0.23 0.42 0.42 0.39 0.26 0.34 Non Base
15 Coffee 0.11 0.21 0.16 0.18 0.09 0.15 Non Base
Source: processed from 2023 secondary data

In the horticulture subsector, basis because these commodities cannot


eggplant, oranges, and avocados are the meet regional needs.
leading commodities with an LQ value The results of calculating the LQ
>1. According to research by Hildawati value in the plantation subsector show
et al. (2018), Factors influencing that the only base commodity with an
commodities into basic and non-basic LQ value >1 is oil palm, with an average
are supported by production factors, of 1.50. According to research conducted
workforce experience, land area, capital, by Ramadhani et al. (2022), palm oil
facilities and infrastructure, climate commodity is the leading commodity in
conditions, selling prices, and Pesisir Selatan Regency because it has an
government policies. Subsector base LQ value >1 with an average of 1.30,
commodities horticulture in West palm oil commodity in Pesisir Selatan
Pasaman Regency, namely eggplant, Regency is the commodity with the most
oranges, and avocados, with an average significant amount of production in the
of 1.31, 1.52, and 1.74. This shows that plantation subsector. In West Pasaman
the three commodity productions have Regency, palm oil is also a commodity
advantages compared to the output of that has substantial production in the
the same commodities at the provincial plantation subsector in addition to high
level in meeting regional needs. production of palm oil as an export
However, several commodities in the commodity to improve the economy of
horticultural subsector, such as eggplant the West Pasaman Regency region.
commodities in 2017-2019, are not Competitiveness of the agricultural
sector
essential, orange commodities in 2021
Shift Analysis Share to see the
are not primary, and avocado
current competitiveness of commodities
commodities from 2017-2020 are not a
in a district and Province. Mulyono and

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DOI: 10.36423/hexagro.v8i1.1515

Munibah (2016) use LQ analysis to improve and strengthen LQ analysis to


identify base and non-base identify a sector with excellent
commodities. However, some competition. Pranadi et al ., (2022). A
researchers also use the method to show sector's superiority is competitive if
the commodity has a superior growth at the regional level is superior
comparative advantage. Sunoto (2014) to growth at the upper regional level.
suggests that shift analysis is required to
Table 2. SSA Value of the Agricultural Sector in West Pasaman Regency 2017-2021Source:
SSA value
No Commodity Regional Proportional Differential
Shifts Share
Shifts Shift shifts
Food
1 Rice Fields -0.37 -0.16 -0.06 -0.59
2 Corn -0.37 0.33 -0.13 -0.17
3 Peanuts -0.37 0.46 0.41 0.50
4 Cassava -0.37 0.11 0.04 -0.22
5 Sweet Potato -0.37 0.48 1.93 2.03
Horticulture
6 Big chili 3.08 -2.87 1.42 1.63
7 Eggplant 3.08 -2.24 2.36 3.20
8 Banana 3.08 -3.02 -0.85 -0.79
9 Orange 3.08 9.63 -11.29 1.43
10 Avocado 3.08 -2.15 61.16 62.09
Plantation
11 Rubber 0.03 -0.10 -0.12 -0.19
12 Coconut inside 0.03 0.42 -0.54 -0.09
13 Palm oil 0.03 0.38 -0.68 -0.27
14 Cocoa 0.03 -0.38 -0.22 -0.57
15 Coffee 0.03 -0.23 -0.44 -0.64
Source: processed from 2023 secondary data

According to research Proportional Components Shift (PS) is


conducted by Setiawan (2019), shift- used to see the role of provincial
share analysis is determined by three economic growth in the role of district
components, namely Regional Share (RS), growth. Differential Components Shift
which is used to determine changes in (DS) is used to examine the growth role
district production due to changes in of several sectors in the Province. Table
provincial production; these changes are 4 shows SSA in 2017-2021 in the food,
caused by internal policies that affect the horticulture and plantation subsectors.
sectoral or regional economy. On Regional Shift positively, the

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Jurnal Hexagro. Vol. 8. No. 1. February 2024 P-ISSN: 2459-269E-ISSN: 2686-3316
DOI: 10.36423/hexagro.v8i1.1515

horticulture and plantation subsector is superior to the district level, which


more dominant and prominent in West causes the rice commodity to be unable
Pasaman Regency, which means that to compete with the superiority of the
commodity growth in West Sumatra same commodity at the provincial level.
Province has an impact on commodity In the horticulture subsector, the
growth in the horticulture and results show that no one got both
plantation subsector in West Pasaman components, which means that the
Regency. Meanwhile, the negative production of commodities in
Regional Shift obtained by food crops horticulture cannot meet the district and
shows that commodity growth in West provincial levels. Among the five
Sumatra Province does not affect commodities in the horticulture
growth in West Pasaman Regency. subsector, oranges get a positive value
In the food crop subsector, three in the proportional component shift,
commodities have proportional value meaning oranges stand out only at the
positive and differential positive shifts: provincial level. On the differential shift,
peanuts, cassava, and sweet potatoes. three commodities get positive scores,
This showed that the three superior namely large chilies, eggplants, and
commodities in the Province and avocados, which means that the three
Regency areas can also dominate commodities are only able to meet the
growth. The three commodities can district level and are not yet able to meet
excel in the two regions because the the provincial level. The banana
amount of production is equal to meet commodity is said not to stand out
the needs of each region. The rice because each component gets a negative
commodity received a negative value score. Hindersah and Suminar (2019)
for each component, meaning that the stated that the main problem with
rice commodity did not stand out in the banana production is that planting
two areas because the growth of rice patterns need to be regularly corrected,
commodity production had decreased and using banana seeds still needs
in the last three years. The corn improvement. This shows that
commodity has a positive value in the production in the horticulture subsector
proportional component shift where has yet to be able to cover the districts
corn is prominent only in the provincial and provinces. One of the production
area; corn production at the local level is factors is land area. At the same time, the

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Jurnal Hexagro. Vol. 8. No. 1. February 2024 P-ISSN: 2459-269E-ISSN: 2686-3316
DOI: 10.36423/hexagro.v8i1.1515

land area of the horticulture subsector is indicates that the commodity has the
the lowest compared to the food and opportunity to become potential in the
plantation subsector, with an average of future.
31,016 Ha.
Table 5 shows that the commodity that
In the plantation subsector, no
gets a score of >1 in the food subsector is
commodities receive positive scores on
sweet potato. Research conducted by
either component. Domestic coconut
Destiningsih (2016) shows that the sweet
and palm oil commodities have a
potato commodity has low production.
positive proportional value shift,
However, the sweet potato commodity
meaning both commodities stand out at
can still be developed in several sub-
the provincial level only. On differential
district and district areas. Sweet
components shift, there are no
potatoes are a non-basic commodity in
commodities that get positive results.
West Pasaman Regency, but the growth
This showed that only some
rate of sweet potatoes in the district is
commodities in the plantation subsector
faster than the provincial growth rate.
can cover the district area. In Bangun's
This shows that sweet potatoes are a
(2017) research, palm oil commodities
potential commodity worth developing
and several commodities in the
in the future because sweet potato
plantation subsector received differential
production has experienced a significant
scores that shifted negative, indicating
increase in 2018. The horticulture
that the growth of the commodity is
subsector, likely commodities are large
growing more slowly and has low
chilies, eggplant, bananas, and
competitiveness at the national level.
avocados; these four commodities have
value. DLQ > 1 in West Pasaman
Leading commodities in the future
Regency due to the excellent growth rate
DLQ analysis is used to see the
of commodities. Irmayadi et al. (2016)
position of commodities from potential
stated that eggplant is one of the
base commodities to non-base or non-
commodities from the horticulture
potential commodities in the future.
subsector with prominent growth in
This analysis uses the growth rate of
Menpawah Regency.
commodities, where a DLQ value of > 1
Table 3. DLQ Value for the Agricultural Sector in West Pasaman Regency 2017-2021

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DOI: 10.36423/hexagro.v8i1.1515

No Commodity DLQ value Information

Food
1 Rice Fields 0.00 Non Potential
2 Corn 0.00 Non Potential
3 Peanuts 0.01 Non Potential
4 Cassava 0.00 Non Potential
5 Sweet Potato 47,601,203.57 Potential
Horticulture
6 Big chili 219.46 Potential
7 Eggplant 8,726,724.57 Potential
8 Banana 222.49 Potential
9 Orange 0.04 Non Potential
10 Avocado 1.65 Potential
Plantation
11 Rubber 5.59 Potential
12 Coconut inside 0.00 Non Potential
13 Palm oil 0.00 Non Potential

14 Cocoa 0.02 Non Potential


15 Coffee 7.25 Potential
Source: processed from 2023 secondary data

et al. (2017) Coffee production factors


In West Pasaman Regency,
in Humbang Regency Hasundutan
the commodity with the highest
are labor, land area, and age of
DLQ value is eggplant because
coffee. Sunardi et al. (2014) said that
eggplant commodities have
even though a commodity has a
increased every year from 2017-2021,
significant export value, this
so the growth rate of eggplant
commodity does not necessarily
commodities can make this
have fast export growth from year to
commodity suitable for
year, so commodities with a rapid
development in the future. In the
growth rate can be considered
plantation subsector, rubber and
potential commodities. This shows
coffee have a DLQ value >1. Ginting

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Jurnal Hexagro. Vol. 8. No. 1. February 2024 P-ISSN: 2459-269E-ISSN: 2686-3316
DOI: 10.36423/hexagro.v8i1.1515

that rubber and coffee commodities commodities, production every year


get DLQ results >1 due to good is on a stable average, and both
commodity growth. Even though commodities are worthy of
both commodities are not base development.

Table 4. Comparison of LQ and DLQ in the Agricultural Sector 2017-2021


No LQ ( Location Quotient ) DLQ ( Dynamic Location )
Commodity Weight Commodity Weight Information
Food
1 Rice Fields 0.29 Rice Fields 0.00 Still
Nonsuperior
2 2.44 0.00
Corn Corn repositioning
Nonsuperior
3 1.10 0.01
Peanuts Peanuts repositioning
4 Cassava 0.28 Cassava 0.00 Still
Sweet Sweet Superior
5 0.42 47,601,203.57
potato potato repositioning
Horticulture
Superior
6 Big chili 0.91 Big chili 219.46
repositioning
7 Eggplant 1.31 Eggplant 8,726,724.57 Still
Superior
8 Banana 0.71 Banana 222.49
repositioning
Nonsuperior
9 Orange 1.52 Orange 0.04
repositioning
10 Avocado 1.74 Avocado 1.65 Still
Plantation
Superior
11 Rubber 0.11 Rubber 5.59
repositioning
Coconut Coconut
12 0.06 0.00 Still
inside inside
Nonsuperior
13 Palm oil 1.50 Palm oil 0.00
repositioning
14 Cocoa 0.34 Cocoa 0.02 Still
Superior
15 Coffee 0.15 Coffee 7.25
repositioning
Source: processed from secondary 2023
After knowing the potential positions, in this case, repositioning in
commodities in the future, the LQ and the form of changes from base
DLQ are then combined to see changes commodities to non-base or non-base
in the repositioning of agricultural commodities to base. In the future.
sector commodities. Repositioning can Table 4 above compares LQ and
be interpreted as placing different DLQ values; the sweet potato

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DOI: 10.36423/hexagro.v8i1.1515

commodity has obtained a superior cause of the two commodities becoming


position in the food subsector. This superior.
research results differ from Hamsir et
al.'s (2019) research, which stated that CONCLUSION
sweet potatoes have kept their role the a The essential commodities of the
same, meaning that the current essential agricultural sector in West
commodity will remain the primary Pasaman Regency in the crop
commodity in the future. The sweet subsector are corn and peanuts,
potato food subsector in West Pasaman the horticulture subsector is
experienced a superior repositioning eggplant, oranges, and avocado,
because LQ<1 was 0.42 and DLQ>1 was and the plantation subsector is
47601203.57. Large chilies and bananas oil palm.
have gained a prominent position in the b Commodities competitive in the
horticulture subsector. Puspitasari et al. food crop subsector are peanuts
(2022), the banana commodity is and sweet potatoes, and the
experiencing a change in its role from a horticulture subsector is large
non-base commodity today to a base chilies, eggplant, oranges, and
commodity in the future. Large chilies avocados.
and bananas experienced a shift in role c The agricultural sector
because the LQ <1 was 0.91 and 0.71, commodities expected from the
and the DLQ values of large chilies and food subsector are sweet
bananas >1 were 219.46 and 222.49. In potatoes, the horticulture
the rubber and coffee plantation subsector is large chilies,
subsectors, they achieved a superior eggplant, bananas, and
position. In research conducted by avocados, and the commodity
Nuraini et al. (2022), rubber in Padang plantation subsector is rubber
Pariaman changes its role from non- and coffee.
basic to basic because LQ<1 and DLQ>1.
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