Effect of regional planning on social welfare in the Islands and mainland of Aceh Province

Abstract

ABSTRACT The aim of the study is to analyze the effect of regional planning on social welfare in Sabang Islands and mainland Aceh Tengah of Aceh Province. From the statistical results, a mathematical model was obtained for Sabang City: Y = 0.742 + 0.409 X2, while for Central Aceh it was: Y = 2,667–0.167 X2. It is used to interprete the variables that have influence on the HDI of archipelagic cities in Aceh Province as well as that of the plains. Apart from health variable, the other variables constantly have negative effects on the HDI of the Islands. It can be interpreted that the average contribution of other variables outside the model have negative effect on the HDI of the province. This is evidenced by the GRDP (Gross Regional Domestic Product) economic structure and GRDP growth rate based on the business sector of Sabang City. The most dominant is the construction companies that absorb 31% and 8.5% human resources. This indicates that the HDI of Sabang City, which is the administration area of the Islands, is 75.77; while the mainland of Central Aceh even without compulsory basic service variables has a positive constant value. Though lack of basic service variables can negatively affect its HDI. This is because its economic structure is based on the business sector and the rate of PDRB which affects the large-scale trade and transportation sector. However, the mainland region of Central Aceh is very industrious, does not depend on government programs and service and has high mobility and accessibility to businesses.