THE INFLUENCE OF THE MINING SECTOR ON ECONOMIC CONVERGENCE BETWEEN DISTRICTS/CITIES IN SOUTH SUMATERA PROVINCE

• Main Author: Rif'at, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75340
• Institution: Institut Teknologi Bandung

This study aims to analyze the influence of the mining sector on economic convergence among regencies/cities in South Sumatra Province. The province is abundant in natural resources, particularly in the mining sector, such as coal, petroleum, and natural gas. However, the potential of the mining sector has not been optimally managed, resulting in income disparities among regions. Economic convergence is pursued as an effort to reduce these economic disparities and achieve equitable economic growth. The research utilizes the GDP Index, Williamson Index, and Location Quotient to measure economic growth, regional disparities, and identify leading sectors. Input- Output Analysis is employed to understand the interconnections among economic sectors, and forecasting is done using Time Series Analysis and Moving Average Method to predict future economic growth. The analysis reveals that only Muara Enim Regency experiences a rising trend towards economic convergence, influenced by the significant contribution of the mining sector. The agricultural, forestry, and fisheries sectors also have significant influence in some regions. This research provides a profound understanding of the impact of the mining sector on economic convergence and recommends policies to promote equitable economic growth in South Sumatra Province.