Sumatra Island Economic Cluster

Abstract

The growth of a region cannot be released from its position in a larger urban system. Interactions in urban systems manifest in various forms such as population migration, trade, and information exchange. These interactions then have an influence on other regions. One of the expected outcomes of urban interaction is economic growth. However, not all regions can have a positive influence in their interactions in urban systems. This influence can be seen through spatial spreads that occur in existing economic indicators. This research seeks to look at clusters of economic activity on Sumatra Island because of the urban interactions that occur. This research uses the LISA method on economic data of 172 districts under the administrative area of the island of Sumatra. It is seen that the spatial distribution of economic activity is not random. There are several clusters of economic activity following the concentration of the population on the island of Sumatra namely in the area around Medan and Lampung. This spatial arrangement has no significant change between the two years of observation. While population and quality of transportation have a strong relationship, but these two variables do not appear to have a relationship with the GDRP of transportation