The Economic Development of Impoverished Provinces in Indonesia based on Pajale Commodities

Abstract

Indonesia has several provinces that have relatively high poverty rates. Those provinces are Papua, West Papua, East Nusa Tenggara, Maluku, and Gorontalo. The government through the Ministry of Agriculture issued policy No. 14 of 2015 to accelerate food self-sufficiency. Each province has its own economics potential. So that, it's necessary to identify the potential food commodities for economic development of those provinces. This research aims (1) to identify potential Pajale commodity of each province with relatively high poverty rates, (2) to analyse specialization and localization of Pajale commodity for each province with relatively high poverty rates, and (3) to analyse the priority of Pajale commodity for economic development with relatively high poverty rates. The data used are secondary data from 2013 - 2017. The result shown that rice and soybean commodities were the basis in each province with relatively high poverty rates while maize being only a commodity base in Gorontalo and East Nusa Tenggara. Pajale commodities are not specialized and concentrated in those provinces. Only maize which become priority for economic development in Gorontalo and East Nusa Tenggara.