Abstract
Research is divided into three sections that contribute to analyse the optimization of employment on large productive population in Magelang, First, to identify the spatial pattern and concentration based on MSME’s sector by considering comparative benefits. Secondly, to analyse the opportunity in its association with employments in MSMEs. Thirdly, the determinants of employment in MSMEs based on the field of industry, trading and service. This research employs quantitative approach by using Location Quotient and Economic Base Model as analysis for local and regional economic, as well as multiple linier regression analysis. The research indicates that each area demonstrates distinctive spatial pattern and concentration, in terms of industrial sector, trading and service. The opportunity for employment could be notified from basic employment and basic multiplier that exist in each area. There are certain areas that have high potential in new employments once the jobs are available in the sector of industry, trading and service. The determinants of employment of above three sectors have distinctive behaviour in responding the addition of new MSMEs and the addition of revenue. Hence, the appropriate stimulus could be formulated to optimize absorption of productive labour population based on the findings.
Highlights
Magelang City is the smallest area in Central Java Province (0.06 percent out of total area in Central Java)
This mapping is assigned to identify the spatial concentration of MSMEs in Magelang City based on employment by utilizing calculation results of Location Quotient (LQ)
The role of MSMEs as the economic driving force must be supported in dealing with opportunity regional economic development and productive human resources, in Magelang City
Summary
Magelang City is the smallest area in Central Java Province (0.06 percent out of total area in Central Java). The width of Magelang area only reaches 18.12 km out of total width of Central Java Province, which is 3.25 million of km. Its strategic location that situated between Semarang on the north side and Yogyakarta on the south, gives Magelang the potency for high traffic of economic activities. Strategic location and with small area provide Magelang with the opportunity for area development to enhance and align people’s welfare and regional progress. One of the ongoing area developments is Kawasan Strategis Pariwisata Nasional (KSPN) of Borobudur Temple in Magelang Regency. It could open certain opportunity that can be utilized by Magelang Regency. By considering how strategic the program is, as many as 2 million of foreign tourists and 11 million domestic tourists are targeted to increase regional revenue (Sofianto, 2018)
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