THE INFLUENCE OF THE METAL MINERAL MINING SECTOR AND BASIC METAL PROCESSING INDUSTRY ON THE INTERCONNECTION OF ECONOMIC SECTORS IN NORTH MALUKU

• Main Author: Arif Fadhlurrahman, M
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75338
• Institution: Institut Teknologi Bandung

The mining sector is one of the mainstays of the Indonesian economy. North Maluku has abundant reserves of metal minerals, one of which is nickel. In addition, the government is committed to increasing the value-added of mining commodities. Nickel smelter processing industries began operating in North Maluku in 2021 and 2022, leading to a 22.4% increase in economic growth in the region. This has caused a change in the economic structure of North Maluku province. Based on the 2022 Input-Output (I-O) table projections, it can be observed that there have been changes in the economic structure of North Maluku. Looking at the changes in output multipliers between 2016 and 2022, the mining sector experienced a decrease of -3.05%, and the basic metal processing industry decreased by -0.1%. These figures indicate that the interconnection between the metal mineral mining sector and the basic metal processing industry has not undergone significant changes due to the high economic growth rate. The mining sector remains in quadrant IV in the Klassen Typology, which means it has a value of Forward Linkage and Backward Linkage below one. This implies that the mining sector has not yet provided a strong interconnection effect among economic sectors. On the other hand, the basic metal processing industry has moved from quadrant IV to quadrant II, indicating that it has become a potential sector for development. Other potential sectors for development include information and communication, agriculture, and construction sectors, which experienced the greatest changes in output multipliers and forward linkages. This suggests that the high growth rate, caused by increased exports from the smelter industry, has positively affected infrastructure development in the region.