ECONOMIC DEVELOPMENT ANALYSIS FOR IMPROVING PORT THROUGHPUT AND REGIONAL ECONOMIC GROWTH IN EAST JAVA PROVINCE, INDONESIA

Abstract

Development of the ocean economy (particularly port) is one of the important components in improving regional and national economic competitiveness in Indonesia as an archipelagic state. East Java Province as a major contributor to the national economy has not been able to optimize the port's potential. This can be seen from the East Java 2017 trade balance which has a deficit. Whereas the Port (sea transportation sector) in East Java Province, which is one of the sectors with the second largest multiplier, is 2,178. This study aims to identify leading economic sectors that can encourage increased port throughput activities. Export activities related to the port throughput that can improve the trade balance deficit in East Java. The method used in this research is Shift Share Analysis (SSA) and Location Quotient (LQ) using secondary data from GRDP 2014 - 2018. The results of the SSA analysis show that the highest NEij, IMij, and CEij components are manufacturing (NEij = 80977.5), information and communication (IMij = 12730.5), and manufacturing industries (CEij = 25566.1). Based on LQ analysis, the basic sectors in East Java Province with LQ values > 1 are wholesale and retail trade (1.67), manufacturing industries (1.64), Accomodation and food services (1.54). The five main export commodities in the economic sector in East Java Province include agriculture (fish and shrimp, oily seeds, animal product), mining (crude oil), manufacturing industries ( jewelry, copper, wood, animal fat). The development of economic policy in East Java needs to foster comparative and competitive advantages such as investment, efficiency and technology, and minimize imported content.