AGRICULTURAL SECTOR AND PROCESSING INDUSTRY SECTOR IMPLICATIONS: INCREASING ECONOMIC GROWTH

Regional development based on the region's potential, condition, and characteristics will increase regional competitiveness and economic growth. This study determines the advantages of agricultural and manufacturing sectors to support economic growth in Southeast Sulawesi Province. Using descriptive-quantitative analysis, this research data are GRDP values of 12 (twelve) Regencies/Cities in Southeast Sulawesi Province in 2016-2021. The analysis model used is the analysis of LQ, DLQ, and MRP methods. The results of the study found that the agricultural sector in regencies/cities except Kendari City plays a leading industry, meaning that it makes the most significant contribution to economic growth but has slow growth because the productivity of agricultural products decreases from year to year. The manufacturing sector in regencies/cities is a non-base sector, and change is not dominant, so it has a low contribution to the economic growth of regencies/cities and Southeast Sulawesi Province, except for the Konawe Regency. The manufacturing sector in Southeast Sulawesi had a soft gift because it is dominated by the food and beverage industry with low production value, resulting in slow growth. Competitiveness-based development policies according to regional potential will encourage the performance of all economic sectors. Programs to increase agricultural productivity, the primary industry, boost economic growth, and support added value in the manufacturing sector.


INTRODUCTION
The economic sector plays a role in the economic growth of a region as measured by the value of each financial sector's Gross Regional Domestic Product (GRDP) contribution as the basis for sectoral planning for the implementation of economic development in a region.The economic development of Southeast Sulawesi Province based on the financial structure in 2021 will make the most significant contribution, namely the agriculture, fishery, and forestry sector by 24.08 percent and the manufacturing sector by 7.39%.
The agricultural sector was the highest source of growth before and after the covid-19 pandemic in 2021, which was 33.34%, an increase compared to 2019 of 34.88%, meaning that agriculture could sustain supporting the economy during the covid-19 pandemic in Southeast Sulawesi Province.According to (Purba et al., 2020), the agricultural sector was the least affected during the covid-19 pandemic compared to the manufacturing sector in the third quarter, which contracted -6.19 percent, while the farm sector had a positive level of 0.29 percent.
The agriculture sectors are the largest source of labor in Southeast Sulawesi Province compared to the manufacturing industry sector.In 2016, the agriculture sector contributed 38.92% to the workforce, and the manufacturing industry contributed 7.42%.In 2021, the force in the agricultural sector will be 33.34%, and the manufacturing industry sector will be 7.43%.This is due to a shift in the workforce from the agriculture sector to the manufacturing industry sector.
The manufacturing sector has a significant role in economic growth because it can create more jobs, increase people's income and increase foreign exchange.Still, this sector has not been able to become the leading sector in the Economy of Southeast Sulawesi Province due to the lack of attractiveness of investors in the agricultural product processing industry, so it is less absorb employment from the agricultural sector to the manufacturing sector.
According to (Colmer, 2020), industrial to absorb labor and be able problems of agricultural productivity (Purwasih & Soesatyo, 2017), the growth of the industrial sector had a significant positive effect on employment in Sidoarjo Regency from 2009-2015, then (Indrawati, 2021)).The manufacturing sector had a significant impact on improving the economy.According to (to Murti & Destiningsih, 2020), the industry increased employment in Magelang Regency.(Bashir et al., 2019) industrial added value and economic growth affect the added value of agriculture in the short and long term.(Niyimbanira, 2018) show that The agricultural and mining sectors are significant in four provinces, have a comparative advantage, and create employment growth.
Research results (Subramaniam & Reed, 2017)found that the long-term relationship between the industrial and agricultural sectors and the industrial sector positively contributed to the farming industry in Poland.In the long term, the industrial sector harmed the farm sector.In a short time, it positively affected the industrial industry in Romania , then (Widyawati, 2017) found that the manufacturing have forward linkages with agriculture.(Nadziroh, 2020) The agricultural sector is the most significant contributor to labor and forms the largest GRDP in Magetang Regency (Suputra, 2021).The manufacturing sector increases the production of other sectors in North Sulawesi.Previous research investigated the role of the agricultural industry, with the manufacturing sector having a substantial role in supporting the economies of several regions.
The agricultural sector has made the most significant contribution to the economic growth of Southeast Sulawesi Province.Still, the trend has decreased from year to year.Then the manufacturing sector experienced an increasing growth rate yearly.Still, its contribution is relatively small to economic growth.Based on these conditions, this study aims to analyze the advantages of the agricultural and manufacturing sector in supporting the economic development of Southeast Sulawesi Province.

MATERIALS AND METHODS
This study was conducted in July -September 2022 in Southeast Sulawesi.The method used is qualitative research.Data used is secondary data, namely the value of the GRDP of the agricultural sector and the manufacturing sector in 2016 -2021.The research variable is the value of the GRDP of the farming sector/manufacturing sector in 12 (twelve) regencies/cities ( , GRDP total in the Regency/City .GRDP value of the agricultural sector/manufacturing sector in Southeast Sulawesi Province ), Total GRDP in Southeast Sulawesi Province , GRDP growth rate in the agricultural sector/manufacturing sector in 12 (twelve) Regency/Cities ( ) GRDP total growth rate regency/city , GRDP growth rate in the Agriculture sector/manufacturing sector in Southeast Sulawesi Province , GRDP growth rate in Southeast Sulawesi Province The analysis used According to (Bendavid-Val, 1991), namely LQ analysis, with The criteria for LQ analysis are as follows.The requirements for the results of LQ analysis are (LQ > 1), meaning subsector basic.Conversely, if the results show (LQ <1), the sector is non-base.
The Dynamic Location Quotient (DLQ) method, the formula The = change in the value of the GRDP of the agricultural sector/manufacturing industry in districts/cities) period t and t+n.n = Number of years, Changes in the value of GRDP in the agricultural sector/manufacturing industry in Sulawesi Province Southeast.
= the GRDP value of the agricultural sector/manufacturing industry in the district/city.
= the GRDP value of the agricultural sector/manufacturing industry in Southeast Sulawesi Province.

RESULTS AND DISCUSSION
The growth rate of the agricultural sector and the manufacturing sector in Sulawesi Province Southeast The agricultural sector contributes the largest to the sectoral economic growth in Southeast Sulawesi Province.However, the growth rate of the farm sector has decreased from year to year, but the most significant decline occurred in 2020 due to the covid-19 pandemic.It is resulting in a slowdown in the growth of the agricultural sector.The following is an overview of the growth rate of the farming sector. Figure 2. Shows that the agricultural sector experienced a declining growth rate.In 2016, the growth rate was 7.66%, which decreased by 2.55% in 2021.This was due to the reduced productivity of all agricultural sub-sectors.In contrast, the sector that makes a small contribution to the GRDP of Southeast Sulawesi Province is the processing industry.
Southeast Sulawesi Province experienced growth in the industrial sector, which increased yearly compared to other industries.The growth rate of manufacturing has increased due to an increased contribution of the base metal processing industry located in Konawe Regency, thus encouraging significant growth in the processing industry in Southeast Sulawesi Province.However, due to the global crisis of the Covid 19 pandemic, one of the impacts was the processing industry because exports of mining products were hampered due to social restrictions that apply to all countries.Other industrial subsectors experienced a small contribution and experienced a decline, among others, agricultural products.The agricultural sector's role in economic growth can be seen through the results of the Location Quotient (LQ) analysis and the results of the Dynamic Location Quotient (DLQ) and MRP analysis.
The results of the Location Quotient (LQ) and DLQ analysis in Table 2 show that the agricultural sector in regencies/cities in 2016-2021 in Southeast Sulawesi Province is a base sector with LQ> except for Kendari City, which means that agricultural production in the Regency/City can meet consumers in the local area as well as other regions, while the agricultural sector is a non-base sector for the city of Kendari as the provincial capital, dominated by economic activities in the service and industrial sectors.
Furthermore, the results of the DLQ analysis show that most districts/cities experience slow agricultural sector development with DLQ<1, this is due to the decline in agricultural productivity in most towns/communities in Southeast Sulawesi Province, except Kendari City.Muna Regency and Wakatobi Regency.The results of the analysis (LQ) and DLQ of the processing industry sector are in table.2.shows that the processing industry sector in regencies/cities in Southeast Sulawesi is eISSN: 2527-273X classified as non-base and does not have prospects due to the low production value of the processing industry in each region, except for Kendari City and Konawe Regency as industrial areas, namely the largest fishery product processing industry is in Kendari City, while Konawe Regency as a producer of primary metal processing industry The results of the MRP analysis will obtain a description of potential economic activities at the district/city level, which consists of four classifications, namely: a. Classification 1, namely the value of RPR (+) and RPS (+), means that these activities at the provincial and district/city levels have dominant growth b.Classification 2, namely RPR (+) and RPS (-), means that these activities at the provincial level have dominant growth, and at the district/city level have not grown dominant c.Classification 3, namely the value of RPR (-) and RPS (+), means that the activity at the provincial level did not experience dominant growth and at the district/city level prevalent growth (Bendavid -Val, 1991in (Gafur et al., 2016) To see a comparison of the average growth of the district/city agricultural sector with the average growth of the farming sector in Southeast Sulawesi Province can be seen in the following Table 3.The analysis of the growth ratio model (MRP) is in table.3.Agricultural sector showed the most significant growth in Southeast Sulawesi Province and regencies/cities, namely Kendari City, Bau-bau City, South Konawe, North Konawe, Kolaka, Buton, Bombana and Wakatobi.In contrast, Muna, North Kolaka, and Konawe Regencies showed non-dominant growth.Growth of the manufacturing sector was not dominant in the regency/city and Southeast Sulawesi Province, except in Konawe Regency, because the existence of a base metal processing industry increased the growth of the manufacturing sector.Furthermore, overlay analysis to see descriptions of economic activities that have the potential to support economic growth in Southeast Sulawesi Province based on growth criteria (MRP) and contribution criteria (LQ) can be seen in the following table :

Overlay analysis of the agricultural sector and the manufacturing sector in the district Cities in Southeast Sulawesi Province based on MRP and LQ
Based on the overlay analysis in Table 4.The agricultural sector dramatically contributes to the GRDP growth of districts/cities in Southeast Sulawesi Province.Still, it has slow growth in all districts/cities except Kendari City, meaning the agricultural sector has great potential to support economic growth.Still, productivity has decreased, so the district/city agricultural sector's growth has slowed.According to (Isbah & Iyan, 2016), the economy and employment depend highly on the farming sector.However, agricultural commodities are experiencing decreased demand due to globalization.Then according to (Loizou et al., 2019), agriculture is the main factor of growth in all regions, contributing to an increase in local gross output (Degu & Adisu, 2019).The industrial and agricultural sectors have a relationship.The development of the farming industry plays a role in determining economic growth through its linkages with the industrial sector.
The role of the agricultural product processing industry can increase added value, (b) produce products that can be marketed or used, or eaten.Then (Sihombing, 2021).The results of the study show that the agricultural sector plays a role in efforts to reduce poverty in rural areas.Then (Zuhdi, 2021) found that the agricultural sector is the base sector and is growing faster in Kampar Regency than in Riau Province.The study's results (Pasaribu et al., 2020) show that the agricultural sector is no longer a source of economic growth for Bengkulu.Based on previous studies, the farm sector, which is the primary sector in various regions, including Southeast Sulawesi Province, is facing the problem of declining growth due to low agricultural productivity.(Devi & Darsana, 2019) The agricultural and manufacturing sector are the primary sectors in Bangli Regency.Preliminary analysis shows that the manufacturing industry sector has a small contribution and slow growth in all Regencies/Cities in the Southeast Sulawesi Province except Konawe Regency.What is relevant is the finding (Hutapea et al., 2020) Manufacturing sector is a non-base sector in Medan City.Still, different results (Jumiyanti, 2018) the processing industry sector and the primary service sector on increasing GRDP of Gorontalo Regency, then (Rahardjanto, 2020) found that the leading sectors of Jambi City were: Wholesale and retail trade; industry processing, then (Muljanto, 2021) that the eISSN: 2527-273X Manufacturing Industry sector is a priority sector in accelerating economic growth in Sidoarjo Regency.The growth of the processing industry sector in Southeast Sulawesi is different from other regions due to various economic characteristics.The processing industry is dominated by small industries that process agricultural products with relatively low added value, so the manufacturing sector's contribution to Southeast Sulawesi's GRDP is below 10% from year to year.Obstacles to the development of the agricultural product processing industry include the availability of raw materials that are not guaranteed, limited capital, low-quality human resources, and limited marketing.According to (Ernawati et al., 2020) that the weakness of the fishery product processing industry in South Konawe Regency is raw materials that are still fluctuating, and the local market dominates marketing (Nuryadi et al., 2017) states that the backwardness of seaweed cultivators is due to the management of seaweed Marine only focuses on the production aspect and is not yet oriented towards agribusiness as a whole, this is one of the reasons for the underdevelopment of agro-industry in Southeast Sulawesi.The increasing role of the manufacturing sector must be supported by the availability of raw materials for sustainable agricultural products, improving the quality of human resources in adopting technology and entrepreneurship, ease of access to marketing, and the comfort of bureaucracy.

CONCLUSIONS AND SUGGESTIONS
The agricultural sector makes the most significant contribution to the economic growth of Southeast Sulawesi Province, but its growth is slow due to the decline in agricultural productivity.The manufacturing industry sector has a small contribution to economic growth and slow growth in all districts/cities except Konawe Regency.Therefore, the policy of the Southeast Sulawesi Provincial government is to increase the sector in terms of contribution and have power capabilities, high competitiveness, and excellence competitive.The agricultural sector in each district/city is superior, but its growth is slow.Increasing agricultural productivity as a leading sector is a priority program in addition to supporting economic growth and increasing the added value of the farm product processing industry.Increasing agricultural productivity through programs to provide agrarian production facilities and infrastructure, programs to increase the role of marketing institutions, capital ease programs for farmers/industry players, technology adoption and entrepreneurship training programs for farmers and industry players, and reducing the conversion of agricultural land.
criteria for the DLQ values obtained are: If DLQ > 1, this sector has the potential for faster development than other districts within the province.If DLQ < 1, then this sector has more development potential slow compared to other districts within the province.If DLQ = 1, then this sector has the potential for development as fast as other districts within the province Growth ratio method eISSN: 2527

Table . 2
. Classification of the calculation value of LQ and DLQ of the agricultural sector on economic

Table . 3
. The agricultural sector growth model for economic growth in Southeast Sulawesi Province