Spillover Effect of Human Capital and Human Development in Shaping Agricultural Productivity—Scope of Indonesian Capital City (IKN)
Yıl 2025,
Cilt: 22 Sayı: 4, 942 - 955, 03.10.2025
Agus Junaidi
,
Arfiah Busari
,
Erwin Kurniawan A.
,
Irwan Gani
,
Dio Caisar Darma
Öz
Penajam Paser Utara (PPU) is recognized as a region rich in natural resources, with agriculture serving as its primary sector. Concurrently, the Indonesian government has relocated the administrative center from Jakarta to PPU. Given that PPU is situated in the center of Indonesia, the primary rationale for moving the Indonesian Capital City (IKN) is to equalize infrastructure and integrate the economy across all regional levels. In addition to undertaking complex developmental improvements, PPU faces new challenges in maintaining its existing agricultural prospects while transitioning into a comprehensive IKN development zone. Despite overlapping economic policies, PPU must implement concrete strategies to establish itself as a significant agricultural commodity-producing region for East Kalimantan, particularly for IKN. This study aims to explore the relationship between investment, labor, Information and Communication Technology (ICT), and the Farmer's Exchange Rate (NTP) on agricultural productivity, irrespective of the involvement of human capital and human development. The dataset covers the period from 2015 to 2023 and is processed using Moderated Regression Analysis (MRA). The objectivity of the study is on PPU as an IKN. Empirical evidence indicates that ICT has a significant impact on human development (p < 1%). Both labor and ICT significantly influence agricultural productivity (p < 5%). Furthermore, while human capital was unable to serve as a moderating variable, human development significantly moderated the relationship between labor and agricultural productivity (p < 5%). The novelty of this study lies in identifying a gap not addressed by previous research, thereby contributing to the advancement of fresher thinking in the formulation of agricultural productivity models. The study's findings offer practical recommendations for the government to enhance agricultural productivity through the support of intensive investment programs. By implementing effective investment policies, it is anticipated that technological advancements will be revitalized. The adoption of technology is essential for developing human capital and fostering human development, which, in turn, shapes labor skills and promotes prosperity in the agricultural sector.
Etik Beyan
There is no need to obtain permission from the ethics committee for this study.
Destekleyen Kurum
Universitas Mulawarman
Teşekkür
The authors would like to thank the Faculty of Economics and Business - Universitas Mulawarman for supporting this work through grant support in 2024.
Kaynakça
-
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Azis, M., Hidayati, T., Abidin, Z. and Jaafar, M. S. (2024). Currency exchange rate volatility as a moderating effect of the gold and coal price against fund age and mutual fund in Indonesia. ECONOMICS - Innovative and Economics Research Journal, 12(3): 257–278. https://doi.org/10.2478/eoik-2024-0041
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Bala, U. and Shuaibu, I. (2024). The impact of foreign direct investment, capital formation and technology on agricultural output in Nigeria. International Journal of Intellectual Discourse, 7(1): 456–465.
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Barkah, T. T., Rusgianto, S. and Wardhana, A. K. (2022). Impact of agricultural land and the output of agricultural products moderated with internet users toward the total export of agricultural product in three Islamic South East Asian countries. Media Agribisnis, 6(1): 11–22. https://doi.org/10.35326/agribisnis.v6i1.2261
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Bashir, A., Susetyo, D., Suhel, S. and Azwardi, A. (2018). The relationship between economic growth, human capital, and agriculture sector: Empirical evidence from Indonesia. International Journal of Food and Agricultural Economics, 6(4): 35–52.
-
Blanco, C. and Raurich, X. (2022). Agricultural composition and labor productivity. Journal of Development Economics, 158: 102934. https://doi.org/10.1016/j.jdeveco.2022.102934
-
Busari, A., Darma, S., Priyagus, P., Hidayati, T., Darmawan, D., Darma, D. C., & Rizkuna, A. (2025). Navigating a sustainable agricultural economy in Indonesia’s new capital city. Sustinere: Journal of Environment and Sustainability, 9(2), 225–238. https://doi.org/10.22515/sustinere.jes.v9i2.490
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Spillover Effect of Human Capital and Human Development in Shaping Agricultural Productivity—Scope of Indonesian Capital City (IKN)
Yıl 2025,
Cilt: 22 Sayı: 4, 942 - 955, 03.10.2025
Agus Junaidi
,
Arfiah Busari
,
Erwin Kurniawan A.
,
Irwan Gani
,
Dio Caisar Darma
Öz
Penajam Paser Utara (PPU) is recognized as a region rich in natural resources, with agriculture serving as its primary sector. Concurrently, the Indonesian government has relocated the administrative center from Jakarta to PPU. Given that PPU is situated in the center of Indonesia, the primary rationale for moving the Indonesian Capital City (IKN) is to equalize infrastructure and integrate the economy across all regional levels. In addition to undertaking complex developmental improvements, PPU faces new challenges in maintaining its existing agricultural prospects while transitioning into a comprehensive IKN development zone. Despite overlapping economic policies, PPU must implement concrete strategies to establish itself as a significant agricultural commodity-producing region for East Kalimantan, particularly for IKN. This study aims to explore the relationship between investment, labor, Information and Communication Technology (ICT), and the Farmer's Exchange Rate (NTP) on agricultural productivity, irrespective of the involvement of human capital and human development. The dataset covers the period from 2015 to 2023 and is processed using Moderated Regression Analysis (MRA). The objectivity of the study is on PPU as an IKN. Empirical evidence indicates that ICT has a significant impact on human development (p < 1%). Both labor and ICT significantly influence agricultural productivity (p < 5%). Furthermore, while human capital was unable to serve as a moderating variable, human development significantly moderated the relationship between labor and agricultural productivity (p < 5%). The novelty of this study lies in identifying a gap not addressed by previous research, thereby contributing to the advancement of fresher thinking in the formulation of agricultural productivity models. The study's findings offer practical recommendations for the government to enhance agricultural productivity through the support of intensive investment programs. By implementing effective investment policies, it is anticipated that technological advancements will be revitalized. The adoption of technology is essential for developing human capital and fostering human development, which, in turn, shapes labor skills and promotes prosperity in the agricultural sector.
Etik Beyan
There is no need to obtain permission from the ethics committee for this study.
Destekleyen Kurum
Universitas Mulawarman
Teşekkür
The authors would like to thank the Faculty of Economics and Business - Universitas Mulawarman for supporting this work through grant support in 2024.
Kaynakça
-
Adriansyah, J. and Gultom, Y. M. L. (2023). Is complete land property rights increase productivity of rice farming? BHUMI: Jurnal Agraria dan Pertanahan, 8(2): 124–142. https://doi.org/10.31292/bhumi.v8i2.536
-
Alawamleh, M., Ismail, L. B., Aqeel, D. and Alawamleh, K. J. (2019). The bilateral relationship between human capital investment and innovation in Jordan. Journal of Innovation and Entrepreneurship, 8(1): 6. https://doi.org/10.1186/s13731-019-0101-3
-
Ansah, I. G. K., Kotu, B. H., Manda, J., Muthoni, F. and Azzarri, C. (2023). Mediation and moderation roles of resilience capacity in the shock–food-security nexus in northern Ghana. Ecological Economics, 211: 107894. https://doi.org/10.1016/j.ecolecon.2023.107894
-
Azam, A., Shafique, M., Rafiq, M. and Ateeq, M. (2023). Moving toward sustainable agriculture: The nexus between clean energy, ICT, human capital and environmental degradation under SDG policies in European Countries. Energy Strategy Reviews, 50: 101252. https://doi.org/10.1016/j.esr.2023.101252
-
Azis, M., Hidayati, T., Abidin, Z. and Jaafar, M. S. (2024). Currency exchange rate volatility as a moderating effect of the gold and coal price against fund age and mutual fund in Indonesia. ECONOMICS - Innovative and Economics Research Journal, 12(3): 257–278. https://doi.org/10.2478/eoik-2024-0041
-
Bala, U. and Shuaibu, I. (2024). The impact of foreign direct investment, capital formation and technology on agricultural output in Nigeria. International Journal of Intellectual Discourse, 7(1): 456–465.
-
Barkah, T. T., Rusgianto, S. and Wardhana, A. K. (2022). Impact of agricultural land and the output of agricultural products moderated with internet users toward the total export of agricultural product in three Islamic South East Asian countries. Media Agribisnis, 6(1): 11–22. https://doi.org/10.35326/agribisnis.v6i1.2261
-
Bashir, A., Susetyo, D., Suhel, S. and Azwardi, A. (2018). The relationship between economic growth, human capital, and agriculture sector: Empirical evidence from Indonesia. International Journal of Food and Agricultural Economics, 6(4): 35–52.
-
Blanco, C. and Raurich, X. (2022). Agricultural composition and labor productivity. Journal of Development Economics, 158: 102934. https://doi.org/10.1016/j.jdeveco.2022.102934
-
Busari, A., Darma, S., Priyagus, P., Hidayati, T., Darmawan, D., Darma, D. C., & Rizkuna, A. (2025). Navigating a sustainable agricultural economy in Indonesia’s new capital city. Sustinere: Journal of Environment and Sustainability, 9(2), 225–238. https://doi.org/10.22515/sustinere.jes.v9i2.490
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