The utilisation of IJAH analytics in determining the main superior medicinal plant derivatives as an effort for equitable community welfare and regional development
Keywords:Agro-industry, bio-pharmaceutical plants, Disease, TMSB/TMBB, welfare distribution
The first steps in improving the welfare of farmers and driving regional development are the determination of the main superior medicinal plants and precise market segmentation. North Sumatra Province is the third-highest province in Indonesia that uses traditional medicine, although it has not been able to increase the value of farmers' welfare. The medicinal plant industry cannot thrive because the products of medicinal plants and the demands of the market are not in harmony. This research was therefore conducted to determine the main superior medicinal plants and their derivatives according to market needs to create an equitable distribution of community welfare and regional development. The study employed quantitative and qualitative analyses with location quotient (LQ), shift-share (SS), IJAH analytics and descriptive analytical methods. The results of the LQ and SS analyses revealed that there were four main superior plants (Zingiber officinale, Kaempferia galangal, Ammomum cardamomum, and Morinda citrifolia). According to the outcome of the IJAH Analytics, three of the four main superior medicinal plants (Z. officinale, K. galangal, and M. citrifolia) can treat 615,625 patients with 57 type and 17 different diseases group. The determination of the main superior medicinal plant derivatives and knowing the presence of disease sufferers are potential consumers that will increase economic transactions for farmers, the primary and secondary industries of medicinal plants. Increased economic activity results in more demand for derivatives of medicinal plants, which raises the value of Farmer Exchange Rate (FER). It also raises investment value, increases labour absorption, facilitates easier access to capital, facilitates market segmentation and clarifies consumer characteristics, all of which support equitable welfare distribution and successful regional development.