Abstract
To achieve the purpose of regional economic development, there is a need for development policy that is based on the characteristics of the region. Kalimantan is the centre of development in Eastern Indonesia which has strategic position for cooperation region. This study aimed to identify the potential leading sectors to develop and determine the regencies grouping and the characteristics of each group based on welfare indicators. The secondary data were collected from socio-economic data of 56 regencies during 2010-2016. This study used descriptive quantitative method and several analysis theories namely Klassen’s Typology, factor and cluster, Location Quotient, Shift Share, and Overlay analysis. The results of study showed that: (1) the economic structure of Kalimantan had shifted because a change of economic contribution from agriculture to industrial sector; (2) the mining and quarrying, water supply, waste management and recycling sector were the leading sectors in Kalimantan; (3) Kalimantan was classified into four clusters based on 13 economic social indicators: agricultural, urban, disadvantaged, and wealth cluster; (4) the priority of development in each cluster were economic, social, and educational issues.
Highlights
Development aims to improve the welfare of human's lives, increase the economic growth and the regional competitiveness in various sectors, and reduce the regional disparities
The economy of Kalimantan is dominated by East Kalimantan Province by controlling 52.31% of the total oil and gas GRDP and 50.39% of nonoil and gas GRDP in 2017
Based on Location Quotient (LQ) analysis and Klassen’s typology, it was known that mining and quarrying sector, and water supply, waste management, waste and recycling sector were the basic and prominent sectors of Kalimantan economy
Summary
Development aims to improve the welfare of human's lives, increase the economic growth and the regional competitiveness in various sectors, and reduce the regional disparities. Since the role of natural resources is dominant, the economy in East Kalimantan Province is very sensitive to the fluctuation, especially in the mining and quarrying sector. As a sector that strongly dominates the regional economy, the fluctuation in the mining sector has a considerable impact on the regional economy It causes the rate of economic growth in Kalimantan to decline over the last four years. Kalimantan is inferred experiencing an economic transformation It can be seen from the change of mining and the electricity procurement sector contribution to the GRDP of Kalimantan. Its growth was less fast compared to from the mining and quarrying sector tended to the growth of the electricity and gas procurement decline, while the contribution of the electricity sector.One indicator of the development program and gas procurement sector tended to increase. success is the accuracy of identifying the regions
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