Abstract
This study aimed to analyze the economic structure changes of regencies and cities in West Kalimantan after a massive expansion of oil palm plantations, to analyze the economic sectors that have competitive advantages, and to analyze the impact of various changes on social welfare. The study was conducted by collecting data about employment and some welfare indicators at the statistic central bureau. Data were analyzed by using the shift-and-share and also descriptive method. This study concludes that regional autonomy and oil palm expansion policy have a positive impact on economic structure changes either in regencies or Pontianak. The economic sectors that have a competitive advantage in the regencies are agriculture, electric/gas/water, transport and communication, trade/hotel/restaurant, and services. Meanwhile, in Pontianak, there are agriculture, transport and communication, manufacturing industry, and electric/gas/water sectors. Economic structure changes also show positive impacts on social welfare. It is marked by the decline of poverty rate in Pontianak and the province as a whole. In addition, it is also signalled by the improvement of Human Development Index (HDI) and Gross Regional Domestic Product (GRDP) per capita in the regencies, Pontianak, and the province. Meanwhile, its impact toward poverty reduction in regency level does not show significant results yet.
Highlights
The economic crisis of Indonesia in 1998 caused a great contraction, it can be recovered in the periods by a rapid economic growth (Elias and Noone, 2011)
In West Kalimantan province, since the political change in the form of regional autonomy in 2004, the important role of agricultural sector is very prominent characterized by the massive expansion of oil palm plantations
A regional autonomy policy that was initiated by central government in 2004 influenced the natural resources management in each region in Indonesia
Summary
The economic crisis of Indonesia in 1998 caused a great contraction, it can be recovered in the periods by a rapid economic growth (Elias and Noone, 2011). It is no doubt that one of some factors is due to the expansion of oil palm plantations, especially in Sumatera, Kalimantan, Sulawesi, and Papua. It means that the agricultural sector still plays a strategic role in driving the economic development of Indonesia. The opening of oil palm plantations has a negative impact on the environment (Obidzinski et al, 2012), the implication for rural economic development is very impressive (Budidarsono et al, 2012a; Budidarsono et al, 2012b; Budidarsono et al, 2013; PASPI, 2016; Susila, 2004; Syahza, 2011; World Growth, 2011)
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