Gender-inclusive agribusiness transformation in Indonesia: the interplay of policy, institutions and investments in rural development
Rika Reviza Rachmawati, Aldho Riski IrawanPurpose
This study examines the interplay of gender roles, policy frameworks, institutional mechanisms and investment strategies in driving rural transformation in Indonesia. It focuses on the transition from traditional food crop agriculture to high-value commodities (HVCs) and non-agricultural livelihoods. It aims to identify gender-specific barriers and opportunities in agribusiness development and evaluate how institutions, policies and investments (IPIs) shape equitable outcomes in rural economies.
Design/methodology/approach
Employing a quantitative secondary data analysis and statistical modeling – specifically, logistic regression approach, the research analyzes village-level data from Indonesia's 2010 and 2020 Village Potential (Podes) andNational Labor Force Survey (Sakernas). Logistic regression models assess the probability of villages transitioning from agriculture to HVCs or non-agricultural sectors, incorporating variables such as access to credit, infrastructure quality, land availability and women's labour participation. The study integrates socio-economic, geographic and gender-disaggregated data across 39,475 villages transitioning to HVCs and 63,110 villages shifting to non-agriculture.
Findings
Proximity to administrative centers, access to collective credit, and land availability significantly drive rural transformation, while reliance on irrigation systems and poor road infrastructure hinder it. Women's economic participation – measured through employment rates, working hours and wages – emerges as a critical lever for diversification, yet persistent gender disparities in resource access limit equitable benefits. Individual business credit alone shows negligible impact, underscoring the need for complementary interventions like market linkages and skills training.
Research limitations/implications
The study's limitations include reliance on secondary data from Indonesia's 2010 and 2020 Village Potential and National Labor Force Surveys, which may not capture nuanced socio-cultural factors influencing gender roles in rural transformation. Additionally, the focus on Indonesia limits generalizability to other regions. The study primarily uses quantitative methods, potentially overlooking qualitative insights. Policy implications suggest that rural development should prioritize gender-sensitive financial products, infrastructure improvements and legal frameworks that ensure women's access to resources. Addressing traditional gender roles and promoting women's participation in both agricultural and non-agricultural sectors are crucial for sustainable rural development.
Social implications
The social implications of this manuscript center on the imperative to dismantle entrenched gender inequalities as a prerequisite for effective rural development. The findings demonstrate that empowering women – through secure land rights, collective financing mechanisms and vocational training – is not merely a social goal but a critical economic catalyst. Transforming restrictive patriarchal norms and social institutions is essential for achieving equitable rural transformation, enhancing household resilience and fostering more inclusive and sustainable communities in Indonesia's evolving agribusiness sector.
Originality/value
This study presents significant findings that are highly relevant to the field of gender studies and rural development. It sheds light on the gendered dimensions of rural transformation in Indonesia, filling crucial gaps in the existing literature that often overlook institutional and socio-cultural mediators. By contextualizing the role of IPIs within a gender-inclusive framework, this study offers actionable policy recommendations to enhance women's agency, optimize infrastructure investments and foster inclusive agribusiness growth. The findings are not only relevant but also engaging for scholars, policymakers and practitioners interested in gender studies and rural development in emerging economies.