Indonesian Rice-Corn Agricultural Sector
Business Regulation Analysis and CAGR-Based Performance 2020–2024
DOI:
https://doi.org/10.63892/aletheia.2.2025.27-37Keywords:
Business Regulation, CAGR, Agricultural Sector Performance, Rice, CornAbstract
The Indonesian agricultural sector faces complex business regulations in achieving optimal performance in rice and corn production as strategic commodities. This study analyzes the effectiveness of business regulations and the performance of the Indonesian rice-corn agricultural sector for the 2020-2024 period based on CAGR. A research gap is identified in the lack of studies integrating business regulation analysis with sector performance using a qualitative approach. The question is: how effective are business regulations in supporting the performance of the rice-corn agricultural sector? The objective of the research is to analyze the business regulatory framework and sector performance based on CAGR, identify growth disparities, and formulate optimization recommendations. The methodology uses library research with CAGR analysis of time series data from Statistics Indonesia (BPS Indonesia) and a review of several scientific publications. The findings reveal the phenomenon of "Different Fates of Rice and Corn," where rice experienced contraction (production CAGR -0.70%) while corn showed solid expansion (production CAGR +4.02%). The analysis of business regulations identified disparities in effectiveness which formulated the concept of increasing productivity to compensate for the decline in harvested area. The novelty of the research lies in the development of a multidimensional analysis framework that integrates 10 dimensions of business regulations with CAGR-based performance measurement. The conclusion shows the effectiveness of different business regulations across commodities, with 7 out of 10 dimensions demonstrating superior effectiveness in the corn sector. Digitalization and the utilization of IoT, Big Data, and AI optimization are crucial in the era of precision agriculture to achieve farmer welfare. It is recommended that the government and regional governments adopt performance-metric-based subsidy system reforms, strengthen business regulatory compliance mechanisms, and finance innovative development based on performance metrics for the sustainability of agricultural transformation in Indonesia.
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