Optimizing the utilization of interregional input-output table in measuring the distribution of value-added exports between regions in the regional value chain scheme: Application to the food and beverage industry.

The article focuses on analyzing the regional value chain (RVC) participation of Indonesia’s food and beverage industry using the 2016 Interregional Input-Output (IRIO) Table. It examines the distribution of value-added across provinces, highlighting backward participation (foreign value-added incorporated into exports) and forward participation (domestic value-added embodied in other regions’ exports). The study finds that provinces with high export foreign value-added (FVA), such as Jawa Timur and Sulawesi Selatan, also generate significant domestic value-added (DVA), positioning them as central hubs linking the Western and Eastern regions of Indonesia. The food and beverage industry’s backward participation is largely supported by agricultural sectors, while forward participation is mainly driven by the industry itself, underscoring its critical role in interprovincial economic integration and export activities.