Approach
| Publication Form | Research Report |
| Publication Title | Input-Output Analysis of the Diversification of Three Provinces West Nusa Tenggara Province, South Sumatra Province, and Riau Province |
| Projects | This study explores economic diversification in three resource-rich provinces, namely West Nusa Tenggara, South Sumatra, and Riau, using Input-Output (IO) analysis to map the relationship between sectors and their impacts on output and employment. Three scenarios are tested: Business-as-Usual (BAU), provincial aspiration documents, and key sectors. The results show that the key sector scenario excels in increasing output, but is less than optimal in creating jobs, while the aspiration document scenario excels in employment. In Riau, the key sector scenario performs best in both aspects, and this study suggests that economic diversification policies should be tailored to the specific potential of each region to support sustainable development. |
| Funding | Ford Foundation |
This study explores sector-based economic diversification policies to determine the direction of the future economy with a focus on the efficiency of economic resources, such as investment. The process of selecting economic sectors involves diversification analysis to select leading sectors that are the focus of economic development. In this study, Input-Output (IO) analysis is used to map the relationship between sectors and their impacts on output and employment absorption.
This study includes three analysis scenarios: Business-as-Usual (BAU), provincial aspiration documents, and key sector scenarios that have been assessed by the research team. In the provinces of West Nusa Tenggara and South Sumatra, the scenarios using key sectors excel in increasing output, but are not optimal in generating jobs, while the aspiration document scenario is superior in creating jobs. The BAU scenario does not show favorable results compared to the other two scenarios.
In Riau Province, the scenario using key sectors excels in both increasing output and creating jobs. The aspiration document scenario is not optimal in absorbing labor, although the output results are relatively higher than BAU. This study provides policy recommendations to support sustainable economic development based on the results of the analysis of leading sectors identified in each province.
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