Vol. 4, Issue 1 (2019)
Sectoral analysis of the regional potential as an effort to increase the economic growth
Author(s): Yuni Hartati, Ahmad Yunani, Muhammad Anshar Nur
Abstract: This study was aimed to determine the potentials of the economic sectors as the consideration in deciding the sector that is prioritized to develop to stimulate the economic growth and support the regional economy in Kotawaringin Timur, Central Kalimantan Province, Indonesia. The research method used was descriptive-quantitative. The data used were sourced from secondary data (books, regulations, and other official documents) and primary data (filling in questionnaire and interviews with the respondents). The data analysis techniques included Location Quotients (LQ) to identify potential sectors that affects the economic growth; Shift Share (SS) to analyze relative changes in the structures of economy by looking at fast-growing and highly competitive sectors; and Analytical Hierarchy Process (AHP) to facilitate making decisions and prioritized policies. The result of the study showed that there were 3 (three) sectors which would be focused on determining the order of priority sectors that would be developed as potential sectors in Kotawaringin Timur Regency, since it got aggregately higher LQ score in period 2012-2016, which were Wholesale and Retail Trades, Car and Motorcycle Repair sectors; Manufacturing Industry sector; and Transportation and Warehousing sectors. The development of these base sectors became the main consideration for the local government especially in setting the prioritized policies, planning of the programs and budgeting, to determine the direction of developing local potential appropriately with the aim to stimulate the regional economic growth.