Sustainable Development of Indonesia’s Land Border Areas; Overview from an Economic Perspective

Dian Anggraeny Rahim(1*), Dominicus Savio Priyarsono(2), Ernan Rustiadi(3), Yusman Syaukat(4)

(1) Universitas Darma Persada Jakarta
(2) Faculty of Economics and Management, IPB University
(3) Faculty of Agriculture, IPB University
(4) Faculty of Economics and Management, IPB University
(*) Corresponding Author

Abstract

The development of land border areas is continuously inevitable, so the government annually rolls out programs and policies. The sustainability of this development is expected to make the border area a center of economic growth, have a multiplier effect on the surrounding area, reduce poverty and backwash the economy, attract investment, and improve the country's income. In comparison, eliminates problems in the land border area, such as low indicators of development performance and regional isolation. This research was conducted in provinces with land border areas, namely West Kalimantan, East Kalimantan, North Kalimantan, East Nusa Tenggara, and Papua. Observations were made from 2015 – 2020 using secondary data sourced from the Central Bureau of Statistic. The research method used Principal Component Analysis to reduce thirteen to six variables of government programs supporting development performance in border areas. The reduced factors then used as variables in the Data Regression Panel to find out what programs affecting gross domestic product, poverty, and human development index in Indonesia's land border areas. The fifth variables are investment, health, agriculture, road infrastructure and markets and transportation. All variables have a significant effect on poverty and human development index, but not gross domestic product. This result shows a government economic strategy for developing sustainable land border areas.

Keywords

sustainability of land border area development, economic development performance, government strategy

Full Text:

PDF

References

Ahluwalia, M. S. (1976). Inequality, poverty and development. Journal of Development Economics, 3(4), 307–342. https://doi.org/https://doi.org/10.1016/0304-3878(76)90027-4

Banerjee, P., & Chen, X. (2013). Living In In-Between Spaces: A Structure-Agency Analysis Of The India-China And India-Bangladesh Borderlands. Cities, 34(October), 18–29. https://doi.org/10.1016/j.cities.2012.06.011

Brunet‐Jailly, E. (2012). In the increasingly global economy, are borderland regions public management instruments? International Journal of Public Sector Management, 25(6/7), 483–491. https://doi.org/10.1108/09513551211260685

Cassidy, K., Yuval-Davis, N., & Wemyss, G. (2018). Debordering and everyday (re)bordering in and of Dover: Post-borderland borderscapes. Political Geography, 66, 171–179. https://doi.org/10.1016/j.polgeo.2017.04.005

De Mello, L. R. (1997). Foreign direct investment in developing countries and growth: A selective survey. Journal of Development Studies, 34(1), 1–34. https://doi.org/10.1080/00220389708422501

Dolfsma, W. (2011). Government Failure — Four Types. Journal of Economic Issues, 45(3), 593–604. https://doi.org/10.2753/JEI0021-3624450304

Farris, F. A. (2010). The Gini Index and Measures of Inequality. The American Mathematical Monthly, 117(10), 851–864. https://doi.org/10.4169/000298910X523344

Fellman, J. (2012). Modelling Lorenz curve. 1(3), 53–62.

Firmansyah, F., & Oktavilia, S. (2015). Indonesian Economic Structure: An Analysis of Temporal Leontief Inverse. Jurnal Ekonomi Pembangunan Kajian Masalah Ekonomi Dan Pembangunan, 16(1), 11–21. https://doi.org/10.23917/jep.v16i1.933

Grant, A. (2020). Crossing Khorgos: Soft power, security, and suspect loyalties at the Sino-Kazakh boundary. Political Geography, 76, 102070.

Horner, R. (2019). Towards a new paradigm of global development? Beyond the limits of international development. Progress in Human Geography, 44(3), 415–436. https://doi.org/10.1177/0309132519836158

Jesuit, D. K., & Sych, L. (2012). Local economic development and cross‐border networks. International Journal of Public Sector Management, 25(6/7), 473–482. https://doi.org/10.1108/09513551211260667

Jolliffe, I. T., & Cadima, J. (2016). Principal component analysis: a review and recent developments. Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, 374(2065), 20150202. https://doi.org/10.1098/rsta.2015.0202

Kumari, R., & Devadas, V. (2017). Modelling the dynamics of economic development driven by agricultural growth in Patna Region, India. Journal of Economic Structures, 6(1). https://doi.org/10.1186/s40008-017-0075-x

Labra, R., Rock, J. A., & Alvarez, I. (2016). Identifying the key factors of growth in natural resource-driven countries. A look from the knowledge-based economy. Revista ESPE - Ensayos Sobre Política Económica, 34(79), 78–89. https://econpapers.repec.org/RePEc:bdr:ensayo:v:34:y:2016:i:79:p:78-89

Lantz, J., & Sahut, J. (2005). R&D Investment and the Financial Performance of Technological Firms. International Journal of Business, 10(3), 252–270.

Luu, H. N., Nguyen, N. M., Ho, H. H., & Tien, D. N. (2019). Infrastructure and economic development in developing economies. International Journal of Social Economics, 46(4), 581–594. https://doi.org/10.1108/IJSE-05-2018-0252

Niebuhr, A., & Stiller, S. (2004). Integration effects in border regions - A survey of economic theory and empirical studies. Jahrbuch Fur Regionalwissenschaft, 24(1), 3–21.

Nuraini, I., & Hariyani, H. F. (2019). Quality Economic Growth as an Indicator of Economic Development. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 20(1), 80–86. https://doi.org/10.23917/jep.v20i1.7104

Oakerson, R. J., & Parks, R. B. (2011). The Study of Local Public Economies: Multi-organizational, Multi-level Institutional Analysis and Development. Policy Studies Journal, 39(1), 147–167. https://doi.org/https://doi.org/10.1111/j.1541-0072.2010.00400.x

PRIYARSONO, D. S. (2017). Membangun dari Pinggiran: Tinjauan dari Perspektif Ilmu Ekonomi Regional. Journal of Regional and Rural Development Planning, 1(1), 42. https://doi.org/10.29244/jp2wd.2017.1.1.42-52

Rahim, D. A., & Adiatmojo, G. D. (2020). Development of industrial estates in the context of supporting border economic development (Case study at Entikong National Strategic Areas). Journal of Physics: Conference Series, 1469(1), 1–11. https://doi.org/10.1088/1742-6596/1469/1/012136

Rahim, D. A., Priyarsono, D. S., Rustiadi, E., & Syaukat, Y. (2021). Analysis of Development Index of Land Border Area through Composite Index Construction. MIMBAR : Jurnal Sosial Dan Pembangunan, 37(2), 390–401. https://doi.org/10.29313/mimbar.v37i2.7946

Rahim, D. A., Priyarsono, D. S., Rustiadi, E., & Syaukat, Y. (2022). Have the Government’s Efforts to Build Border Areas Succeeded? Case Studies in Kalimantan Corridor - Indonesia. International Journal of Sustainable Development and Planning, 17(1), 323–328. https://doi.org/10.18280/ijsdp.170133

Saleh, H., Surya, B., Annisa Ahmad, D. N., & Manda, D. (2020). The Role of Natural and Human Resources on Economic Growth and Regional Development: With Discussion of Open Innovation Dynamics. Journal of Open Innovation: Technology, Market, and Complexity, 6(4). https://doi.org/10.3390/joitmc6040103

Shahriar, S., Qian, L., & Kea, S. (2020). Anatomy of human rights violations at the Indo-Bangladesh borderlands. Territory, Politics, Governance, 8(4), 553–578. https://doi.org/10.1080/21622671.2019.1582359

Suparjito, S., Sarungu, J. J., Soesilo, A. M., Samudro, B. R., & Hasanah, E. U. (2020). The Effect of Government Consumption and Government Investment as Intervening Variables to Growth in Indonesia. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 20(2), 193–207. https://doi.org/10.23917/jep.v20i2.6822

Vanthillo, T., & Verhetsel, A. (2012). Paradigm change in regional policy: Towards smart specialisation? Lessons from flanders (Belgium). Belgeo, 1–2, 1–2. https://doi.org/10.4000/belgeo.7083

Wu, C.-T. (2001). Cross-Border Development in a Changing World: Redefining Regional Development Policies. New Regional Development Paradigms, January 2001, 21–38.

Xu, H., Hwan Lee, S., & Ho Eom, T. (2007). Introduction to Panel Data Analysis. November. https://doi.org/10.1201/9781420013276.ch32

Yandri, P., Priyarsono, D. S., Fauzi, A., & Dharmawan, A. H. (2018). Contemporary Studies on Suburban (Indonesia) Today: Critique on Classical-Neoclassical Regional Economics Based Institutional Economics Perspectives. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 19(1), 80. https://doi.org/10.23917/jep.v19i1.5701

Ying, L. G. (1999). China’s Changing Regional Disparities during the Reform Period. Economic Geography, 75(1), 59–70. https://doi.org/10.2307/144462

Zia, I. Z., & Prasetyo, P. E. (2018). Analysis of Financial Inclusion Toward Poverty and Income Inequality. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 19(1), 114. https://doi.org/10.23917/jep.v19i1.5879

Zulfikar, R. (2018). Estimation model and selection method of panel data regression: An overview of common effect, fixed effect, and random effect model. JEMA: Jurnal Ilmiah Bidang Akuntansi, 1–10. https://scholar.google.com/scholar?oi=bibs&cluster=193289084434328157&btnI=1&hl=en

Article Metrics

Abstract view(s): 1228 time(s)
PDF: 402 time(s)

Refbacks

  • There are currently no refbacks.