Proceedings of the 3rd Multidisciplinary International Conference, MIC 2023, 28 October 2023, Jakarta, Indonesia

Research Article

Determinants of MSME Investment in the Agricultural Sector and Its Implications for Labor Absorption and Poverty in West Java Province

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  • @INPROCEEDINGS{10.4108/eai.28-10-2023.2341646,
        author={Meirinaldi  Meirinaldi and Indah  Megahwati},
        title={Determinants of MSME Investment in the Agricultural Sector and Its Implications for Labor Absorption and Poverty in West Java Province},
        proceedings={Proceedings of the 3rd Multidisciplinary International Conference, MIC 2023, 28 October 2023, Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={MIC},
        year={2023},
        month={12},
        keywords={investment msme agriculture},
        doi={10.4108/eai.28-10-2023.2341646}
    }
    
  • Meirinaldi Meirinaldi
    Indah Megahwati
    Year: 2023
    Determinants of MSME Investment in the Agricultural Sector and Its Implications for Labor Absorption and Poverty in West Java Province
    MIC
    EAI
    DOI: 10.4108/eai.28-10-2023.2341646
Meirinaldi Meirinaldi1, Indah Megahwati1,*
  • 1: Universitas Borobudur
*Contact email: indahmegahwati01@gmail.com

Abstract

The study aims to analyze the determinants of investment in MSMEs in the agricultural sector in West Java Province and identify the implications for employment and poverty levels. The data used in this study came from various sources, namely statistical data and related literature reviews. The analysis results show that several factors influence MSME investment in the agricultural sector in West Java Province, which include investment, infrastructure, accessibility to information technology, HDI, and poverty. This research also reveals that Investing in MSMEs in agriculture boosts employment and drives economic growth by supporting local businesses. With greater investment, MSMEs tend to employ more local workers. This study identified that increased investment in agricultural MSMEs also has the potential to reduce poverty rates in West Java Province. By creating new jobs and increasing household income through growing MSMEs, it is possible to significantly reduce the poverty rate. The results of this study can become a basis for the government, financial institutions, and other stakeholders in designing policies that support the growth of investment in MSME in the agricultural sector in West Java Province, with the hope that this will have a positive impact on employment and reduce poverty rates in that region.