ANALYSIS OF THE ROLE OF THE MINING SECTOR ON ECONOMIC GROW AND POVERTY: A CASE STUDY OF EAST KALIMANTAN PROVINCE

• Main Author: Van Deni, Andri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75337
• Institution: Institut Teknologi Bandung

High economic growth and zero poverty are goals in development. The primary sector is a sector that dominates the economy in East Kalimantan, one of which is mining. However, its characteristics which are not labor-intensive and its multiplier effect which tends to be small is actually a problem. fluctuations in market prices, social and environmental impacts, continue to be a bad stigma attached to the mining sector. However, it should be noted that almost all basic human needs are highly dependent on mining commodities. This research wanis to know how the primary sector affecis the economy and poverty in East Kalimantan. GRDP of 17 business sectors is used as a variable that influences economic growth, while the rate of economic growih, human development, fiscal decentralization and labor force participation rate are used as determinanis of poverty in East Kalimantan. The analytical method used is panel data regression in 9 urban districts using the Fix Effect model. The results show that the primary sector is influential in increasing the pace of the economy in East Kalimantan along with the secondary and tertiary sectors. Meanwhile, economic growth has a positive effect on poverty, in another sense that economic growth is not yet inclusive enough s0 that the distribution of income is still uneven, but the role of the mining sector as seen from regional income from revenue-sharing funds for the mining sector has an effect on reducing the poverty rate in East Kalimantan, this can also be seen from the relatively low poverty rate in East Kalimantan which is below the national average.