Research on World Agricultural Economy

Dynamic Integration in Agent-Based Modeling: Strategies for Optimizing Land-Use Change Policies in Peri-Urban Areas through Interactive Simulation

Muhammad Fauzi

Department of Agribusiness/Agricultural Economics, Faculty of Agriculture, Universitas Lambung Mangkurat, Banjarbaru 70714, Indonesia

Yudi Ferrianta

Department of Agribusiness/Agricultural Economics, Faculty of Agriculture, Universitas Lambung Mangkurat, Banjarbaru 70714, Indonesia

Muhammad Firdaus

Faculty of Economics and Business, Institut Teknologi dan Sains Mandala, Jember 68121, Indonesia

DOI: https://doi.org/10.36956/rwae.v7i1.2451

Received: 11 July 2025 | Revised: 20 August 2025 | Accepted: 19 September 2025 | Published Online: 2 February 2026

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Abstract

ABSTRACT

Land-use conversion in peri-urban areas poses significant social, economic, and environmental challenges, often threatening agricultural livelihoods and community stability. This study aims to analyze the dynamics of land-use change and the interactions among key stakeholders, informing sustainable land management strategies. An agent-based simulation model was developed, integrating social, economic, and environmental variables. The model simulates interactions among farmers, urban developers, NGOs, and government entities in three agricultural regions of South Kalimantan Province, Indonesia. Variables such as social trust, distress levels, economic incentives, policy interventions, and weather conditions were incorporated to reflect real-world complexity. Simulation results indicate that strong social trust and NGO support substantially reduce distress among farmers, thereby fostering greater resilience. Conversely, profit-driven urban developers increase pressure on farmers, especially in scenarios lacking effective government regulation. Participatory and adaptive government policies are shown to balance economic development with environmental and social sustainability. These findings highlight the critical role of social dynamics and policy frameworks in managing land-use transitions and mitigating conflicts. The study concludes that multi-stakeholder engagement and adaptive governance are essential for sustainable peri-urban development. The agent-based model provides a practical tool for policymakers to test policy scenarios safely, enabling evidence-based strategies to protect agricultural communities and promote sustainable land use in rapidly urbanizing regions.

Keywords: Land‑Use Change; Agent‑Based Simulation; Social Trust; Government Policy; Environmental Sustain‑ ability

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