Indonesia Conference Directory

Abstract The purpose of this study was to analyze the role of the plantation sub-sector to develop the region in North Sumatra for the period 2015-2017, analyze local government policies and analyze the description of plantations in North Sumatra in the context of the area and the level of production. This research was conducted in 2018, and the data collected was cited from PT Perkebunan Nusantara III (Persero), the Central Bureau of Statistics in North Sumatra. The data were analyzed using the Location Quetient (LQ) analysis method. The results showed that the Indonesian economy, specifically in North Sumatra received support from the plantation sector. One of the factors that influence the improvement of regional development from various sectors is the primary plantation export activities that contribute in the form of tax revenues and dividends, both directly and indirectly. The existence of plantation companies is involved in regional development efforts which have an impact on the progress of society both in the economic and social fields, such as the development of business partners through the Manufacture of Small Business and Cooperative Program, increase in society income earned from employees- salary, and the availability of employment opportunities that can attract large numbers of workers. The contribution of plantations to the Central Government in the form of central tax payments, to the Local Government payments of regional taxes / retribution are carried out every year.