Formation of production centers

Oct 13, 2025 by magicalceylontours.com 1 views

Analysis of the Economic Base in Improving the Economy of the Saribudolok Village, Silimakuta District, Simalungun Regency

Introduction

The Saribudolok Village, located in Silimakuta District, Simalungun Regency, is a rural area that has been facing economic challenges for a long time. The village economy is heavily dependent on agriculture, and the main commodities produced are potatoes, cabbage, beans, tomatoes, and shallots. However, the village economy is still struggling to achieve sustainable growth and provide maximum benefits for the local community. This research aims to identify the economic sectors that are the basis in an effort to improve the economy of Saribudolok Village.

Methodology

This research uses the Glasson and Richardson approach to identify the basis and non-basis economic activities in Saribudolok Village. The Location Quotient method is applied to identify the basis economic activities, and a special survey is conducted to gather data on the economic sectors. In addition, the analysis of the impact of employment from the base sector is calculated using the Basic Service Ratio analysis, and the investment feasibility in base sectors is evaluated using the Net Present Value (NPV) analysis.

Results

The results of the Location Quotient analysis show that the main economic sector in Saribudolok Village is the agricultural sector, with superior commodities in the form of potatoes. In 1999, the LQ value for potatoes showed numbers above 1 throughout the environment of Saribudolok Village. Other agricultural commodities that also have a significant contribution to the village economy include cabbage, beans, tomatoes, and shallots.

The Net Present Value (NPV) analysis shows that potatoes have the largest NPV value, which is Rp. 4,474,814,110,- with a Benefit Cost Ratio of 1,166. This figure indicates that investment in this commodity is very profitable. The Basic Service Ratio analysis shows an average of 23%, which indicates that any labor changes of 1% in the base sector can affect changes in non-base labor by 23%.

Discussion

The results of the analysis show that the agricultural sector, especially potato commodities, has great potential to improve the village economy. The formation of production centers in each village environment is recommended to function as a center for the collection and marketing of agricultural products. With this center, cost savings can be achieved through economy scale (economies of scale).

In addition, the determination of basic prices (floor price) is very important to stimulate farmers in increasing their production. Price control also needs to be done through the determination of the price of a roof (ceiling price) to prevent price discrimination and unhealthy competition between the environment in Saribudolok Village.

Conclusion

In conclusion, an economic base analysis in Saribudolok Village revealed that the agricultural sector, especially potato commodities, has great potential to improve the village economy. Through planned development and appropriate strategies, this village can achieve significant economic progress and provide welfare for its citizens.

Recommendations

Based on the results of the analysis, the following recommendations are made:

Formation of production centers: The formation of production centers in each village environment is recommended to function as a center for the collection and marketing of agricultural products.
Determination of basic prices: The determination of basic prices (floor price) is very important to stimulate farmers in increasing their production.
Price control: Price control also needs to be done through the determination of the price of a roof (ceiling price) to prevent price discrimination and unhealthy competition between the environment in Saribudolok Village.

Limitations

This research has several limitations, including:

Data availability: The data used in this research is limited to the year 1999, and it may not reflect the current situation in Saribudolok Village.
Methodology: The Location Quotient method used in this research may not be the most suitable method for identifying the basis economic activities in Saribudolok Village.
Sample size: The sample size used in this research is limited, and it may not be representative of the entire village.

Future Research

Future research should focus on:

Updating the data: The data used in this research should be updated to reflect the current situation in Saribudolok Village.
Using alternative methodologies: Alternative methodologies, such as the Input-Output analysis, should be used to identify the basis economic activities in Saribudolok Village.
Increasing the sample size: The sample size used in this research should be increased to ensure that it is representative of the entire village.

References

Glasson, J. R., & Richardson, A. J. (1996). Urban and regional economics. London: Routledge.
Saribudolok Village Government. (1999). Saribudolok Village Development Plan.
Simalungun Regency Government. (1999). Simalungun Regency Development Plan.
Q&A: Analysis of the Economic Base in Improving the Economy of the Saribudolok Village, Silimakuta District, Simalungun Regency

Q: What is the main economic sector in Saribudolok Village?

A: The main economic sector in Saribudolok Village is the agricultural sector, with superior commodities in the form of potatoes.

Q: What is the significance of potatoes in the village economy?

A: Potatoes have the largest Net Present Value (NPV) value, which is Rp. 4,474,814,110,- with a Benefit Cost Ratio of 1,166. This figure indicates that investment in this commodity is very profitable.

Q: What are the other agricultural commodities that contribute significantly to the village economy?

A: Other agricultural commodities that also have a significant contribution to the village economy include cabbage, beans, tomatoes, and shallots.

Q: What is the Basic Service Ratio analysis, and what does it indicate?

A: The Basic Service Ratio analysis shows an average of 23%, which indicates that any labor changes of 1% in the base sector can affect changes in non-base labor by 23%.

Q: What are the recommendations for improving the village economy?

A: The recommendations include:

Formation of production centers: The formation of production centers in each village environment is recommended to function as a center for the collection and marketing of agricultural products.
Determination of basic prices: The determination of basic prices (floor price) is very important to stimulate farmers in increasing their production.
Price control: Price control also needs to be done through the determination of the price of a roof (ceiling price) to prevent price discrimination and unhealthy competition between the environment in Saribudolok Village.

Q: What are the limitations of this research?

A: The limitations of this research include:

Data availability: The data used in this research is limited to the year 1999, and it may not reflect the current situation in Saribudolok Village.
Methodology: The Location Quotient method used in this research may not be the most suitable method for identifying the basis economic activities in Saribudolok Village.
Sample size: The sample size used in this research is limited, and it may not be representative of the entire village.

Q: What are the future research directions?

A: Future research should focus on:

Updating the data: The data used in this research should be updated to reflect the current situation in Saribudolok Village.
Using alternative methodologies: Alternative methodologies, such as the Input-Output analysis, should be used to identify the basis economic activities in Saribudolok Village.
Increasing the sample size: The sample size used in this research should be increased to ensure that it is representative of the entire village.

Q: What are the implications of this research for policymakers and stakeholders?

A: The implications of this research for policymakers and stakeholders are:

Prioritizing agricultural development: Policymakers and stakeholders should prioritize agricultural development in Saribudolok Village, particularly in the production of potatoes and other agricultural commodities.
Implementing policies to support farmers: Policies should be implemented to support farmers, such as providing training and access to markets, to increase their productivity and income.
Monitoring and evaluating the impact of policies: The impact of policies should be monitored and evaluated regularly to ensure that they are effective in improving the village economy.

Q: What are the potential benefits of this research for the local community?

A: The potential benefits of this research for the local community are:

Improved economic opportunities: The research can provide insights on how to improve economic opportunities for the local community, particularly in the agricultural sector.
Increased income and employment: The research can help to increase income and employment opportunities for the local community.
Improved living standards: The research can contribute to improving living standards for the local community by providing them with access to better economic opportunities.