THE IMPACT OF TRANS TOLL INFRASTRUCTURE ON THE NEAREST CITIES’ ECONOMY IN THE JAVA PROVINCES

• Main Author: Wijaya, Indra
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68551
• Institution: Institut Teknologi Bandung

Infrastructure development is one of the driving wheels of the economy that encourages increased production, creates jobs and reduces the number of poor people. One of the government's focuses in the infrastructure sector is the Trans Java Toll Road which connects the entire island of Java from Jakarta to Surabaya. The purpose of this study is to analyze the impact of the operation of the Trans Java Toll Road which began in part since 2015, 2017, 2018 and 2019 on the regional economy of the Regency/City, especially on the Regency/City area that is passed by the Trans Java Toll Road. Regional economic indicators studied in this study are GRDP per capita and poverty. The researcher employs OLS approach to address this question, using data from 119 regencies/cities across six provinces on the Java island from 2015 to 2019. The estimation results show that the operation of the Trans Java toll road does not have a significant impact on increasing GRDP per capita, and decreasing level of poverty. The insignificant of the effect of the Trans Java toll road is suspected because the analysis is still carried out in the short term, where generally the effect of the new toll road is seen in the long term.