Abstract
The aim of this research was to provide the evidence of economic benefits resulted from development of APT Pranoto airport towards East Kalimantan which will strengthen the support of the development of the new airport from various stakeholders. This research applied input-output, analysis to estimate the economic impact i.e impact of expenditure on construction phase. Direct impact includes the increase in gross value added as well as income from tax payment and create new employment. Indirect impact includes increase in capital spending of the workers and more money circulated within the area of East Kalimantan. This study conclude that there are direct and indirect impacts from APT Pranoto airport during construction phase within the period of 5 years. The findings can be used to emphasize APT Pranoto Airport Project in gaining funding and acceptance from local economy.
Highlights
In order to accelerate and strengthen economic development, the Indonesian government, which plays the role of planner and implementer of economic development today, made initiative to increase the development of infrastructure in areas outside of Java to become centers of new economic growth
To gain more moral and financial supports from citizens and investors, as well to estimate the impact the airport brings to the region (East Kalimantan), this paper aims to estimate the impact of the construction of the APT Pranoto Airport on the economy of East Kalimantan
This study provides an estimate of additional value-added statewide benefits that East Kalimantan experiences from the development of APT Pranoto Airport during construction phase of 2013-2018
Summary
In order to accelerate and strengthen economic development, the Indonesian government, which plays the role of planner and implementer of economic development today, made initiative to increase the development of infrastructure in areas outside of Java to become centers of new economic growth. The creation of equitable development in other regions in Indonesia, especially outside Java, can be achieved. The effect of development of infrastructures are supported by previous research who pointed out evidences of the role of infrastructure towards economic growth (Banerjee & Esther Duflo, 2012; Darmawan, 2012; Luke & Walters, 2010). The relationship between appropriate infrastructure provision and economic growth is commonly recognized in academic literature (Azam, 2017; Darmawan, 2012; Haider, Amjad, Ullah, & Naveed, 2012; Luke & Walters, 2010). Improved infrastructure will contribute to the regional productivity growth in particular and to the overall aggregate output of the country in general and will largely improve welfare of the society
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