E-Business, the impact of regional growth on the improvement of Information and Communication Development

ICT becomes a key element to improve industrial infrastructure efficiency and sustainable economic productivity. This study aims to analysis the impact of regional improvement on information and communication development in Indonesia. This research is a correlational study. Population of this research include 151 regions in Indonesia. By using a total sampling, there were 151 sample regions. The results show there are the strong impact of regional growth on increasing Gross Regional Domestic Product (GRDP) of information and communication. It can be seen from all regional improvement sub variables that have a high correlation in increasing GRDP of Information and Communication in Indonesia. Only two sub-variables that have low correlation to GRDP of Information and Communication variable i.e. GRDP of Agriculture, Forestry and Fishing (0.01) and GRDP of Mining and Quarrying (0.04). The correlation coefficient (R) is 0.981, means the variable of information and communication GRDP has a very strong correlation with regional growth variable. Thus the value of Adjusted R Square is 95.8%, means there are impact of regional growth variables in increasing GRDPof Information and Communication, while the increase of 4.2% of Information and Communication GRDP is influenced by other factors aside from regional improvement.

Abstract. ICT becomes a key element to improve industrial infrastructure efficiency and sustainable economic productivity. This study aims to analysis the impact of regional improvement on information and communication development in Indonesia. This research is a correlational study. Population of this research include 151 regions in Indonesia. By using a total sampling, there were 151 sample reg ions. The results show there are the strong impact of regional gro wth on increasing Gross Regional Do mestic Product (GRDP) of information and communicat ion. It can be seen fro m all regional imp rovement sub variables that have a high correlation in increasing GRDP of Information and Co mmunication in Indonesia. Only t wo sub-variables that have low correlation to GRDP of Information and Co mmun ication variab le i.e. GRDP of Agricu lture, Forestry and Fishing (0.01) and GRDP of M ining and Quarry ing (-0.04). The correlation coefficient (R) is 0.981, means the variable of informat ion and communicat ion GRDP has a very strong correlation with regional growth variable. Thus the value of Adjusted R Square is 95.8%, means there are impact of regional g ro wth variab les in increasing GRDPof Info rmation and Co mmun ication, while the increase of 4.2% of Information and Co mmunicat ion GRDP is in fluenced by other factors aside fro m regional improvement.

Introduction
Information and Communication Technology (ICT) is an important element for sustainable development. ICT becomes a key element for industrial infrastructure efficiency and for increasing productivity as a sustainable and competitive development foundation [1]. On the one hand, ICT can lead pricesincreased but on the other hand an overly high ICT development can lead the prices fall. The price reduction is usually influenced by the provision of free products and services, the ease of adherence to standardization, the Gross Regional Domestic Product (GRDP) which derived from the advancement of the internet that encourages a more free culture, the consumption based on the aspects of usefulness and happiness, but cannot be calculated in the GRDP data that measured income [2]. However, region growth can be measured from the GRDP of the region. To achieve a good GRDP, a region should be able to create valueadded for the production of goods and services. GRDP is one in dicators to measure a region performance or as a reflection of a government's success in mobilizing the economic sectors. Information and communication development covers the information production and distribution, cultural products, inventory of tools to transmit or distribute the products, data or communications, information, information technology activities, data processing as well as other information services activities. ICT business fields consists of several industries, namely publishing, production of moving pictures, video, voice and music recording, broadcasting and programming (radio and television), telecommunication, programming, computer and information technology [3]. Regional economic growth reported by Central Bank of Indonesia (Bank Indonesia) shows the highest contribution to the national economy sequentially in Central Kalimantan province (9.5%), Southeast Sulawesi (8.4%), South Sulawesi (7.5%), North Maluku (7 , 5%), West Sulawesi (7.4%), Gorontalo (7.3%), Java (58%), Sumatera (22%) and Eastern Indonesia (KTI) at 20% [4].This study aims to analyze the impact of regional improvement on information and communication development in Indonesia.

Methodology
This research used correlational study. Research variables include X Variable (regional growth) and Y Variable (information and communication development). Regression analysis is used to analyze the impacts on both variables. Population on this research include 151 regions in Indonesia. By using a total sampling there were 151 region as research sample. The data of research was analyzed by using Person Correlations, R test and multiple linear regression equations [5][6] [7][8] [9].

Result and Discussion
Analysis of the impact of regional growth on the information and communication development used multiple linear regression formula. The data include 151 of districts/ cities in Indonesia with research variables and sub-variables as follows: Y = GRDPof Information and Communication X 1 = GRDPof Agriculture, Forestry and Fishing X 2 = GRDP of Mining and Quarrying X 3 = GRDP of Manufacturing X 4 = GRDP of Electricity and Gas X 5 = GRDPof Water Supply, Sewerage, Waste Management and Remediation Activit ies X 6 = GRDP of Construction X 7 = GRDPof Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles X 8 = GRDP of Transportation and Storage X 9 = GRDPof Accommodation and Food Service Activities X 10 = GRDPof Financial and Insurance Activities X 11 = GRDP of Real Estate Activities X 12 = GRDP of Business Activities X 13 = GRDP of Public Administration and Defense; Compulsory Social Security The results of the analysis of 151 regions using Pearson Correlations, R test and multiple linear regression equations can be seen in Table 1, Table 2 and Table 3 below:  Table 1 shows that almost all regional growth sub-variables have a high correlation with the GDRP of information and communication variable, there are only 2 (two) variables that have low correlation withGRDP of Information and Communication variable ie GRDPof Agriculture, Forestry and Fishing (0.01) and the GRDPof Mining and Quarrying (-0.04). GRDPof Information and Communication, while the increase of 4.2% of Information and Communication GRDP is influenced by other factors aside from regional improvement.This shows the strong regional growth impact on the increase of Information and CommunicationGRDP. Based on the multiple linear regression equation above, it can be seen that the variables X 2 , X 5 , X 6 , X 7 , X 8 , X 9 , X 10 , X 14 , X 16 have a positive impact onincreasing GRDP of Information and Communication, while the variables X 1 , X 3 , X 4 , X 11 , X 12 , X 13 , X 15 have a negative impact on decreasing GRDP of Information and Communication.

Conclusion
There is the strong impact of regional growth on increasing GRDP of information and communication. It can be seen from all regional improvement variables that have a high correlation in increasing GRDP of Information and Communication in Indonesia.Only two sub-variables that have low correlation to GRDP of Information and Communication variable i.e. GRDP of Agriculture, Forestry and Fishing (0.01) and GRDP of Mining and Quarrying (-0.04). The correlation coefficient (R) is 0.981, means the variable of information and communication GRDP has a very strong correlation with regional growth variable. Thus the value of Adjusted R Square is 95.8%, means there are impact of regional growth variables in increasing GRDPof Information and Communication, while the increase of 4.2% of Information and Communication GRDP is influenced by other factors aside from regional improvement.