Economic Facts of Sumatra and Kalimantan Islands for
10 Years
e-ISSN 2774-5155
p-ISSN 2774-5147
Boy Piter Nizu Kekri
1
and Muhammad Fahmi
2
1.438
INTRODUCTION
Economic growth is one of the macro indicators (Indayani & Hartono, 2020) which
can reveal the extent to which economic activity works in an area (Hellen et al., 2018). In
addition to the island of Java, there are 2 islands namely Sumatra and Kalimantan
(Rosmeli & Nurhayani, 2014). It has a considerable role in our national economy
(Kristiyanti, 2012). (Darmawan, 2020) noted that territorially, the foundations of national
economy based on the roles and contributions are firstly, Java Island (Sardini, 2011),
while the second and third are the islands of Sumatra and Kalimantan (Nasruddin, 2013),
followed by the island of Sulawesi, then the island of Bali, Nusa Tenggara, Maluku and
lastly Papua.
Macro portrait of economic growth on the island of Sumatra in 2011 was within an
average of 6.33 percent (Jayanti, 2017), but in 2020 it contracted quite strongly to -1.25
percent (Nugroho & Muhyiddin, 2021). With the same pattern for the economic growth
of the island of Kalimantan (Fathurahman, 2019), in 2011 it was able to create growth in
the economic activity of 6.49 percent (Prasetyo, 2011). However, with the Covid-19
pandemic outbreak in early 2020 (Indayani & Hartono, 2020), it had a real impact on the
economic structure of Kalimantan Island to -1.79 percent.
This condition seems to be experienced by other islands and also, in general, the
Indonesian economy (Radar Bali, 2021). The current economic conditions, in which Bali
province is quite comfortable with economic growth, Bali is only able to grow -5.76
percent. (Gallyn, 2020). Informed that the conditions in 2020 will not be the same as the
previous year, when various domestic parties and International Institutions predicted that
the Indonesian economy in 2020 will experience a slowdown. Dhea et al., 2021, found
empirical facts in 2020, that Indonesia's economic growth was slowing down. One of the
causes is the limited international trade activity. Of course, slow economic growth will
have a broad impact on the financial aspects of the country. (Kekry, 2021) said that
regional economic growth is the essence of creating a source of regional income. Other
studies found that regional economic movements have a fairly strong relationship with
fiscal capacity.
Researchers are interested in uncovering what a portrait of growth looks like in 10
provinces on the island of Sumatra and 5 provinces on the island of Kalimantan. With
various factual expressions and empirical findings, the formulation of the problems raised
in this scientific research is what scientific facts can be obtained, based on the historical
economic conditions for 10 years on the islands of Sumatra and Kalimantan. This
research generally aims to identify scientific facts of the direction and pattern of
economic growth that occurred on the islands of Sumatra and Kalimantan throughout
2011-2020. This research pays attention to several theoretical frameworks, in the book
Microeconomic Theory (Wilson, 2007) economic variable relationships are important to
be found. Past phenomena can be used as a foothold in correcting mistakes and efforts to
stabilize future growth rates (Sadono, 2008). Economic growth reflects the movement of
economic activity, Then the movement should have an influence on income, welfare in a
certain period of time. (Todaro, 1998) states that the country's economic growth is
illustrated by the provision of goods for the people, by strengthening the ideological,
technological and institutional aspects.
RESEARCH METHODS
The research focused on economic growth, with loci on the islands of Sumatra and
Kalimantan. Principally, this research was designed using quantitative approaches. In the