The Influence of the Port to the Economical Growth of the Batam Island

Abstract

Abstract It is widely assumed that export activities on ports will have an impact on the economical growth of the area. The main objective of this study is to describe the correlation and interrelationship between the export activities at the Batam Island port in conjunction to the nine GRDP sectors. On the other hand, the general opinion of the Batam sea port user is also studied. It is suggested that the export growth at this sea port will positively influence the economical development of the Batam city. The secondary data collection is originated from BPS sources. These data were further elaborated to extract the relationship between the export activity and the nine GRDP sectors. The method chosen was the multiple regression technique. Preliminary findings showed that the industrial activities of the Batam Island had a positive impact to the industrial, construction, transportation and trade segments. Additionally, primary data were accessed from the port users. These data were processed by the factor analysis methodology. The findings indicate that the larger the terminal, storage facilities and transportation networks were at the port, the higher the attraction factor becomes to the user. Further, this would, in turn, influence the economic growth and increase the capital income of the surrounding population.