THE EFFECT OF RUBBER PLANTATIONS INVESTMENT ON THE LABOR ABSORPTION IN SOUTH SUMATRA

Abstract

Labor absorption in the rubber plantation sector in South Sumatra indicates a decrease in contribution along with the decline in the contribution of the rubber plantation sector to Gross Regional Domestic Product. However, in terms of the amount of labor absorption this sector is still included in the very large category i.e. 4.2 million workers. The main objective of this research was to find out the effect of the rubber plantation investment on the labor absorption in South Sumatera, Indonesia. The data used in this study were secondary data based on time series data of South Sumatera in 2014-2018 on the basis employment data. The data were analyzed by using regression analysis. The results of this research indicate that is a significant effect on the rubber plantation investment against labor absorption. This meant that the rubber plantation still had to be one of the priorities in the investment climate in South Sumatera.