Main Article Content
Abstract
The formation of a strong agribusiness ecosystem was a key driver of sustainable economic development in rural areas. This paper aims to examine the factors that support opportunities for strengthening the agribusiness ecosystem and its impact on rural economic performance. This paper used a survey to obtain responses from 200 respondents in various underdeveloped areas in Papua. Statistical evaluation of the collected data used PLS-SEM. The results showed that the correlations of all tested relationships were statistically significant (p < 0.05). Institutional support had a positive and significant effect on the agribusiness ecosystem (β = 0.312, t = 4.865, p = 0.000) and economic impact (β = 0.215, t = 3.457, p = 0.001). Market access also significantly influences the agribusiness ecosystem (β = 0.287, t = 4.236, p = 0.000) and economic impact (β = 0.198, t = 3.015, p = 0.003). Similarly, human resource quality shows a positive influence on the agribusiness ecosystem (β = 0.225, t = 3.278, p = 0.001) and economic impact (β = 0.176, t = 2.865, p = 0.004). Technology access significantly strengthens the agribusiness ecosystem (β = 0.298, t = 4.574, p = 0.000) and improves economic outcomes (β = 0.203, t = 3.186, p = 0.002). In addition, the agribusiness ecosystem itself has a significant and very high influence on economic outcomes (β = 0.352, β = 5.012, β = 0.000). The agribusiness ecosystem moderates the impact of institutional, technological, market, and human factors on economic performance.
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Copyright (c) 2026 Ema Pusvita, Lisa Hermawati, Endang Lastinawati, Henny Rosmawati

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References
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- Pusvita, E., Mulyana, A., Adriani, D., & Antoni, M. (2024). Perceptions of Farmers Regarding the Peatland Restoration Model of Paludiculture in South Sumatra, Indonesia. Heritage and Sustainable Development, 6(1), 315–334. DOI: 10.37868/hsd.v6i1.418
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- Sutaryo, D. (2019). The Role of Local Institutions in Agribusiness Development in Papua. Agricultural Studies Journal, 9(4), 213-227. DOI: 10.1016/j.agri.2019.11.002
- Tan, T., et al. (2019). The Importance of Education in Rural Development and Agribusiness. International Journal of Rural Development, 24(2), 78-89. DOI: 10.1080/0938594X.2019.1244591
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References
Alimi, R. S., Syamsudin, A. R., & Saputra, E. R. (2020). Impact of Market Access on Agribusiness Income: a Case of Indonesian Rural Farmers. Journal of Agribusiness and Rural Development, 56(2), 101–110. DOI: 10.17306/J.JARD.2020.01234
Barrett, C. B., & Reardon, T. (2000). Asset Strategies for the Rural Poor. Journal of Development Studies, 36(6), 1-23. DOI: 10.1080/00220380008422720
Bengoa, V., & Keogh, R. (2021). Agribusiness and Market Integration in Rural Economies. Journal of Rural Development, 40(3), 241-257. DOI: 10.1080/00221309.2021.1894437
Budi, S., Handoko, T., & Prasetyo, H. (2019). Strengthening Agricultural Cooperatives to Improve Rural Livelihoods. Journal of Agribusiness Development Studies, 12(1), 45–58. DOI: 10.1680/jadsr.2019.12.1
Budi, S., Handoko, T., & Prasetyo, H. (2019). The role of technology in agricultural productivity in Southeast Asia. Asian Agricultural Science Review, 3(2), 112-126. DOI: 10.1680/jadsr.2019.12.1
Budiastuti, T., & Dewi, R. (2020). The Role of Education and Technology Awareness on Agricultural Productivity in Papua Province, Indonesia. Journal of Agricultural Science and Technology, 22(4), 123-134. DOI: 10.17265/2161-6248/2020.04.004
Carter, M. R., Laajaj, R., & Yang, D. (2019). Institutional Determinants of Agricultural Growth. Journal of Development Economics, 78(1), 70-83. DOI: 10.1016/j.jdeveco.2019.01.004
Chandra, R., Sutaryo, & Hakim, L. (2018). Impact of Technology on Agricultural Efficiency. International Journal of Agricultural Innovation, 10(2), 122-135. DOI: 10.2202/ijai.2018.0003
Cutter, S. L., Burton, C. G., & Emrich, C. T. (2017). Institutional Influences on Agribusiness. Agriculture and Rural Development, 39(4), 54-65. DOI: 10.1108/ARD-04-2017-0107
Dewi, F. P., Hartati, S., & Supriyanto, B .(2022). SDM dalam Peningkatan Daya Saing Agribisnis di Pedesaan. Jurnal Sumber Daya Manusia, 8(1), 62-78. DOI: 10.24804/jsdm.v8i1.1159
Diantoro, M., & Suryani, A. (2017). Agricultural Ecosystem and its Impact on Economic Growth. Economic Growth and Development, 15(3), 35-45. DOI: 10.1057/egdc.2017.06
FAO. (2023). The State of Food and Agriculture 2023. Food and Agriculture Organization of the United Nations. Retrieved from https://openknowledge.fao.org/items/1516eb79-8b43-400e-b3cb-
Gibson, K., & James, H. (2018). Enhancing Agricultural Productivity through Human Capital. Journal of Agricultural Economics, 56(2), 144-158. DOI: 10.1111/1c477-9552.12235.
Hermawati, H. Pusvita, E. Khairunnisa, D. Kusuma, A, P. (2025). Empowering MSMEs in South Sumatra: the Role of Digital Transformation. Annals of Human Resource Management Research (AHRMR). Retrieved from https://goodwoodpub.com/index.php/ahrmr/article/view/2854
Hermawati, L., Pusvita, E., Marwa, T., & Yulianita, A. (2025). Analyses of Technology Adoption and Government Policy in Improving the Financial Performance of SMEs in the Indonesian Agricultural Sector. Heritage and Sustainable Development, 7(1), 117-132. DOI: 10.37868/hsd.v7i1.966
Junaidi, F., & Hasan, M. (2021). The Impact of Infrastructure Development on Economic Growth in Papua Province, Indonesia. Economic Journal of Emerging Markets, 13(1), 1-12. DOI: 10.28992/ejem.v13i1.336
Kamaruddin, S. W., Zulkifli, Z., & Akbar, A. (2025). Strengthening Farmer Institutions in Rice Farming: An Interpretive Structural Modeling Approach. Jurnal Ilmu Pertanian Indonesia, 30(4), 703-711. Retrieved from https://journal.ipb.ac.id/JIPI/article/view/62243
Kemendes PDTT. (2023). Data dan Informasi Indeks Desa Membangun Tahun 2023. Jakarta: Kementerian Desa, Pembangunan Daerah Tertinggal dan Transmigrasi
Koehler, J. A., Chopra, D., & Rodriguez, F. (2020). Institutional factors in agricultural economics. Rural Development Studies, 45(3), 123-134. https://doi.org/10.1890/1447-3353
Ministry of Agriculture. (2022). Agricultural Extension Program Report 2021–2022. Jakarta: Center for Agricultural Extension
Oktarina, Y., Purwadi, P., Ritonga, U. S., Nearti, Y., Pusvita, E., Rosmawati, H., & Gribaldi, G. (2025). Metode Penelitian Sosial Ekonomi Pertanian. Retrieved from https://repository.penerbitwidina.com/publications/621143/
Pawlak, K., & Kołodziejczak, M. (2020). The Role of Agriculture in Ensuring Food Security in Developing Countries: Considerations in the Context of the Problem of Sustainable Food Production. Sustainability, 12(13), 1–20. DOI: 10.3390/su12135488
Perez-Lopez, G., Neira, E., & Ordoñez, J. (2020). The Role of Cooperative Movements in Sustainable Agribusiness Development: a Comparative Analysis. Agricultural Economics, 51(3), 389-406. DOI: 10.1111/agec.12504
Pusvita, E., Mulyana, A., Adriani, D., & Antoni, M. (2024). Perceptions of Farmers Regarding the Peatland Restoration Model of Paludiculture in South Sumatra, Indonesia. Heritage and Sustainable Development, 6(1), 315–334. DOI: 10.37868/hsd.v6i1.418
Rahman, A., et al. (2015). Technological Innovations and Agricultural Productivity in Developing Economies. Agricultural Economics Journal, 17(2), 98-110. DOI: 10.1080/1234567890
Sautu, A., & Huda, M. (2020). Agricultural innovation in Papua: Challenges and opportunities. Journal of Southeast Asian Agriculture, 15(3), 45-59. DOI: 10.1016/j.jsea.2020.07.005
Shiferaw, B., Hellin, J., & Muricho, G. (2014). Improving Market Access and Agricultural Productivity in Sub-Saharan Africa: the Role of Institutions and Technology. Food Security, 6(3), 341–357. DOI: 10.1007/s12571-014-0349-5
Sutaryo, D. (2019). The Role of Local Institutions in Agribusiness Development in Papua. Agricultural Studies Journal, 9(4), 213-227. DOI: 10.1016/j.agri.2019.11.002
Tan, T., et al. (2019). The Importance of Education in Rural Development and Agribusiness. International Journal of Rural Development, 24(2), 78-89. DOI: 10.1080/0938594X.2019.1244591
United Nations. (2015). Transforming our world: The 2030 Agenda for Sustainable Development. New York: United Nations. Retrieved from https://sdgs.un.org/2030agenda
Villalba, R., Venus, T. E., & Sauer, J. (2023). The Ecosystem Approach to Agricultural Value Chain Finance: a Framework for Rural Credit. World Development, 164, 106177. DOI: 10.1016/j.worlddev.2022.106177
Wibowo, A., et al. (2018). Market Access and its Effects on Agricultural Performance. Agricultural Economics and Management, 14(3), 104-118. DOI: 10.1016/j.aem.2018.09.009