Structural Transformation and Agribusiness Marginalization Amid LNG Industry Expansion in Teluk Bintuni Regency

Herpina Herpina; Ian Immanuel Homer; Grace  Stella S R Manusaway; Beby Murba Ningsih Saragih

doi:10.63922/ijebir.v5i04.4209

Herpina Herpina Program Studi Agribisnis, Fakultas Sains dan Teknologi, Universitas Muhammadiyah Teluk Bintuni, Indonesia.
Ian Immanuel Homer Program Studi Agribisnis, Fakultas Sains dan Teknologi, Universitas Muhammadiyah Teluk Bintuni, Indonesia.
Grace Stella S R Manusaway Program Studi Agribisnis, Fakultas Sains dan Teknologi, Universitas Muhammadiyah Teluk Bintuni, Indonesia.
Beby Murba Ningsih Saragih Program Studi Teknologi Produksi Ternak, Jurusan Peternakan dan Kesehatan Hewan Politeknik Pertanian Negeri Payakumbuh, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i04.4209

Keywords: Structural transformation, agribusiness marginalization, LNG industry, Location Quotient

Abstract

This study examines the structural transformation of the economy in Teluk Bintuni Regency caused by the expansion of the Liquefied Natural Gas (LNG) industry and its effects on the agribusiness sector from 2020 to 2024. Using a descriptive quantitative approach with secondary data on Gross Regional Domestic Product (GRDP) at current prices (ADHB) and constant 2010 prices (ADHK), the study applies growth analysis, Location Quotient (LQ), and shift-share methods. Findings reveal the increasing dominance of the LNG sector, rising from 86.48% in 2020 to 94.05% in 2024, while agribusiness contribution declined from 3.51% to 2.17%, with LQ values below one, indicating structural marginalization. The gap between overall economic growth and agribusiness reached 28.17% in 2024, reflecting a growth paradox. Real agribusiness value decreased from IDR 640.52 billion to IDR 611.10 billion in 2023, with only slight recovery in 2024. The study underscores the need for policies to enhance agribusiness productivity, integrate it with modern sectors, and develop local value-added activities for inclusive and sustainable growth.

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