Inter-Sectoral and Inter-Regional Linkages in the Economy of South Kalimantan Province : Data Analysis of Inter Regional Input Output (IRIO) Tables

Abstract

The economic growth of South Kalimantan Province is highly dependent on commodity exports, which means the conditions are highly dependent on global prices, so as the global price shock occurs, the regional economic growth tends to be shaken. This vulnerability requires the region to have an industry that can be used as a leading sector. It is necessary to have an assessment that can be used as a reference for the preparation of regional economic policies. This study was carried out thoroughly not only on the sector, but also the ability of the sector to have an impact on other sectors, both forward linkage and backward linkage. This will allow us to determine which industry should be developed, as well as a form of institutional strengthening in the determination of research-based development planning policies. This study concludes several things based on the IO and IRIO analysis tools used, namely the intraregional effect, spillover effect, and feedback Interregional effect that occur between islands in Indonesia and South Kalimantan Island originating from final demand. Based on final demand sourced from household consumption, this study reveals the following industries have the potential to be developed as the backbone of the South Kalimantan economy: Food and Beverage Industry; Seasonal and Annual Plantation; and Wholesale and Retail Trade, Not Cars and Motorcycles. This suggests that, in order for the South Kalimantan economy not to rely solely on coal commodities, these industries should be given higher priority when developing policies to enhance the economy of South Kalimantan. Java and Sulawesi Island are potential output destinations for South Kalimantan considering the potential final demand for household consumption originating from these islands is very large.