Jejak Vol 9 (1) (2016): 145-158. DOI: http://dx.doi.org/10.15294/jejak.v9i1.7204 JEJAK Journal of Economics and Policy http://journal.unnes.ac.id/nju/index.php/jejak Analysis of Economic Growth Factors in West Pantura Areas of Central Java Sarwono1 1Diponegoro University, Indonesia Permalink/DOI: http://dx.doi.org/10.15294/jejak.v9i1.7204 Received: January 2016; Accepted: February 2016; Published: March 2016 Abstract There are six factors of economic growth which influence on the economic growth level is analyzed in this research. The factors are: General Allocation Fund, government expenditure, investment, quality of human resources, agglomeration, and labor. The analysis tool used ist the regression of data panel/pooled data with the approach of Least Square Dummy Variable (lSDV). This approach is used because it is in accordance with the aim of research, which is to know the role of the economic growth factors to the GDP and to know the rate of economic growth from 2004 to 2013 in the West Pantura (northern coastal) areas of Central Java. From the estimation, it is known that the economic growth factor of human resource is the one that influence the GDP ipm with coefficient of 0.199316 percent, followed by the labor factor with coefficient of 0.165086 percent, an investment of 0.0013066 percent and the government expenditure with coefficient of minus 0.019731 percent. However, the General Allocation Funds does not have much influence on the economic growth, only at 0.009572 percent. Whereas, the agglomeration has no influence on the role of the GDP and on the economic growth in the West Pantura areas of Central Java. The regression result indicates -0.013514 percent. Keywords: West Pantura, Gross Domestic Product. How to Cite: Sarwono, S. (2016). Analysis of Economic Growth Factors in West Pantura Areas of Central Java. JEJAK: Jurnal Ekonomi Dan Kebijakan, 9(1), 145-158. doi:http://dx.doi.org/10.15294/jejak.v9i1.7204 Corresponding author: p-ISSN 1979-715X Address: Jl. Prof. Soedarto, SH, Tembalang, Semarang 50275 e-ISSN 2460-5213 E-mail: [email protected] 146 Sarwono, Analysis of Economic Growth Factors in West Pantura Areas of Central Java INTRODUCTION The West Pantura areas of Central Java or formerly known as the Residency of A development in an area essentially is Pekalongan (next it will be called the former an effort to increase the capacity of residency of Pekalongan) cover Batang government, private sector, society, and Regency, Pekalongan Regency, Pekalongan relevant stakeholders in managing the City, Pemalang Regency, Tegal Regency, economic resources in efficient and effective Tegal City, and Brebes Regency. ways for the progress of the area and the If further examined, it appears that the social welfare. Some regions achieve the five regencies in the former residency of East Java rapid growth, while other ones experience Pekalongan (Batang, Pekalongan, Pemalang, slower growth. The region that becomes the Tegal, and Brebes) are traversed by the path center of growth is the one that has good of the northern coastal (Pantura) of East enough resources so that its economic Java, Central Java to West Java and DKI activity is quite high and is expected to give a Jakarta. Moreover they have the similar positive impact to the other surrounding potential and natural resources. The only areas (trickle down effect). (Achal Kumar, difference is the width of the area (see the 2010). appendix 2, the width of Central Java areas). Some regions achieve the rapid growth, However, the difference can be seen when while some other ones experience slower examining the economic earnings or the growth. These regions do not experience the economic macro indicators. This condition is similar progress because they are lack of interesting to be researched and examined in resources (Sutarno, 2003). As the integral science, particularly in economics. Table 1 part of the national development, essentially below provides information on the GRDP in the regional development is an effort to Pantura Areas, compared to the GRDP of improve the capacity of the local govern- Kendal Regency or Central Java Province. ments to create a powerful capability in On average, the largest GRDP of the last implementing the government and giving five years is Brebes Regency with the value of the maximum service to the society. The GRDP of Rp 13,162.63 billions, Pemalang decentralization policy is aimed at realizing Regency with the value of GRDP of Rp the region's autonomy. 8,937.600 billions, Tegal Regency with the CENTRAL JAVA City Administrative Distribution Regency Capital of Regency West Java East Java JEJAK Journal of Economics and Policy Vol 9 (1) (2016): 145-158 147 value of GRDP of Rp 8,931.112 billions, This condition should become a concern. Pekalongan Regency with the value of GRDP Kendal at least has successfully managed of Rp 8130.158 billions, Pekalongan City with what it owns so that in macro economic way the value of GRDP of Rp 4,261.886 billions, it has successfully empowered its economic and the lattest is Tegal City with the value of resources; the direct impact of the economic GRDP of Rp 2,872.128 billions. While Kendal growth is as expected. The economic growth Regency, which is the most eastern region of in Central Java in 2009-2013 tends to increase the West Pantura, has the value of GRDP of as indicated by the growth of GRDP that is Rp 12,163.942. The GRDP value of Kendal continuously increased and almost achieves Regency is higher than Batang Regency, the national economic growth. Central Java Pekalongan Regency, Pemalang Regency, Province achieves on average of 6.168 Tegal Regency, Pekalongan City, and Tegal percent, only closed within 0.57 percent of City, and slightly below Brebes Regency. the national economic growth of 6.73 percent (Table 2). Table 1. GRDP of West Pantura Areas, Kendal Regency, and GRDP of Central Java Province the period of 2009 - 2013 (billions) Regency/City 2009 2010 2011 2012 2013 Average 01. Batang Regency 4 685.02 5 268,57 5 865,06 6 492,41 7 219.97 5 928,206 02. Pekalongan Regency 6 436,18 7 230,83 8 033,44 8 934,75 10 014.97 8 130,158 03. Pemalang Regency 7 170,68 7 961,38 8 859,72 9 771,67 10 924.55 8 937,600 04. Tegal Regency 7 129,48 7 936,03 8 798,46 9 802,45 10 989.14 8 931,112 05. Brebes Regency 12 532,52 14 629,93 16 426,88 18 026,80 20 199.86 13 162,638 06. Pekalongan City 3 476,70 3 803,99 4 191,36 4636,01 5 201.37 4 261,886 07. Tegal City 2 387,81 2 635,24 2 846,98 3 091,84 3 398.77 2 872,128 Amount 43 818.39 49 465.98 55 021.89 60 745.93 67 948.63 55 400,164 Kendal Regency 9 555,94 10 778,66 12 130,06 13 431,61 14 923,44 12 163,942 GDP of Central Java Province 347.235,35 390.879,77 441.216,18 497.778,07 561.952,49 447.812,372 Source: GRDP of Central Java Province, 2004-2015 Table 2. Growth Rate of GRDP West Pantura Areas, Kendal Regency and Central Java Province, in 2009 - 2013 (%) Regency/City 2009 2010 2011 2012 2013** Average 01. Batang Regency 3,72 4.97 5.26 5,02 5,17 4,828 02. Pekalongan Regency 4,30 4.27 4.77 5,32 5,45 4,822 03. Pemalang Regency 4,78 4.94 4.83 5,28 5,41 5,048 04. Tegal Regency 5,29 4.83 4.81 5,25 5,81 5,198 05. Brebes Regency 4,99 4.94 4.97 5,21 5,06 5,034 05. Pekalongan City 3,73 4,78 5.51 5,60 5,89 5,102 06. Tegal City 5,15 5,02 4.61 5,67 4,93 5,076 Kendal Regency 5,55 5,97 5,99 5,54 5,24 5,658 Central Java Province 5,66 6,02 6,28 6,73 6,24 6,168 Source: GRDP of Central Java Province 2015 148 Sarwono, Analysis of Economic Growth Factors in West Pantura Areas of Central Java The high economic growth is an high, the number of unemployment will important indicator in assessing the success decrease. On the contrary, if the economic of development that has been carried out by growth is low, the number of unemployment the local governments. So the higher the will be increasing. economic growth rate of a region is, the According to the Classical theory, the more successful the region will be in the level of investments made will always be development. The GRDP and the economic equal to the level of public savings. It is growth rate achieved in the West Pantura because the level of investment and savings areas of Central Java (the former residency of are equally determined by the high-low Pekalongan) seems still far from the interest rates. expectations. This is proved by the low role The General Allocation Fund (DAU) is of the GRDP and the level of economic sourced from the national budget (APBN) growth in the West Pantura Areas (the that is allocated to bring equality of financial former residency of Pekalongan) that is still ability among the regions to fund the needs low and below the average of economic of the region in the implementation of growth rate of Central Java.