Influence analysis of regional loans on basic infrastructure establishment to recover economy during the Covid-19 Pandemic in Sikka Regency, East Nusa Tenggara, Indonesia

Abstract

Abstract The decline at economic activities in Sikka Regency, resulted in a decrease in the regional income. Consequently, the Government needed additional funds to meet basic infrastructure needs obtained from the Regional Loans Program. This study aimed to examine the effects of Regional Loans on the growth of other sectors as a trickle-down effect that can restore the economy in Sikka Regency. This research employed qualitative and quantitative approaches. The secondary data were obtained from the Sikka Government. there were four types of health infrastructure, six types of clean water infrastructure activities, and five types of road and bridge constructions to be built in Sikka Regency. Regarding the sectors that affect the basic infrastructure there was one type of essential sector impacted, namely the financial and banking sector. Meanwhile, in the critical sector, five types of sectors were influenced, namely logistics and transportation, cement, construction, basic utilities (electricity and water), and basic daily needs. In the critical sector, road infrastructure contributed the highest percentage of influence of 55%, followed by clean water infrastructure of 23%, and health infrastructure of 14%. the socio-economic effects in health factor 0,03%, clean water 0,9%, and road infrastructures 2,65% of households.