Analysis of Base And Non-Base Sectors in The Economic Development of Jayawijaya Regency

Abstract


INTRODUCTION
Economic growth in a region increases when incomes increase, income equality, and unemployment declines.GRDP value data is an indicator of economic growth.Each sector of the economy has a different level of contribution to the value of GRDP.These different contributions result in inequality or inequality in the economic sector.This is indicated by income inequality and employment.Therefore, the roles of various sectors are expected to be able to make a positive contribution in narrowing the gap that occurs.The sectors that are the main focus to be developed are the base or superior sectors.Furthermore, non-base or potential sectors are not forgotten because they are supporting sectors for the development of base or superior sectors (Prawoto, 2010;Permatasari, 2012;Suryani, 2013;Mangilaleng et al., 2015;Jumiyanti, 2016;Ratag et al., 2016).
Papua Province consists of 29 regencies and cities.Jayawijaya Regency is one of the regencies in it.Wamena is the capital of Jayawijaya Regency.Jayawijaya Regency is an economic centra for the central mountainous region in Papua Province.The central mountainous region includes the regencies of Nduga, Tolikara, Yalimo, Puncak Papua, Pegunungan Bintang, Mamberamo Tengah, Yahukimo, and Lanny Jaya (Wenda et al., 2018).
Being an economic center, Jayawijaya Regency continues to strive to boost economic growth in a variety of sectors.This is demonstrated by the annual increase in GRDP value from 2010 to 2019 (10 years).The five sectors with the largest average contribution to the GRDP of Jayawijaya Regency in order from the smallest to the largest are construction; public administration and defense; compulsory social security; agriculture, forestry, and fisheries; wholesale and retail trade; repair of motor vehicles and motorcycles; and transportation and storage.The percentage growth rate of GRDP over the last ten years from 2010 to 2019, has been fluctuating.The growth of certain sectors shows a tendency to be faster, but other sectors tend to be slower.The fluctuating growth rate has shown that there is a growth gap between sectors of the economy.The average GRDP growth of Jayawijaya Regency in 10 years was 6.05% ( BPS Kabupaten Jayawijaya, 2020a; BPS Kabupaten Jayawijaya, 2020b).
The average gini ratio for Jayawijaya Regency between 2010 and 2019 was 0.34.This suggests that the level of expenditure inequality in the community is moderate.The projected population in Jayawijaya Regency in 2019 amounted to 217.887 people with a population growth of 1.33%.Moreover, Jayawijaya Regency has a very high poverty rate of about 80.000 people (BPS Kabupaten Jayawijaya, 2020a; BPS Provinsi Papua, 2020).The poverty rate in Jayawijaya Regency was the highest compared to all districts in Papua Province.This demonstrates the lack of prosperity among the residents of Jayawijaya Regency.The direction of economic development of a region in principle seeks to increase people's income followed by an even level of income.The problem that often occurs is the lack of strengthening the regional economy.This is due to unequal income distribution (Sunardi, 2019).
Economic potential must be mapped in order to plan for the economic development of a region, especially one that has experienced regional expansion.Economic potential is mapped through research on the basic sector.This is carried out because resource changes occur in regions or areas that experience expansion (Novita, 2013).LQ analysis is the analysis technique used to identify the base and non-base sectors.LQ is a metric that assesses how strongly a particular economic sector contributes to a region relative to the larger region above it (Jumiyanti, 2016;Ibrahim, 2018).Furthermore, the projected changes and competitive power of future economic sectors use DLQ (Dynamic Locationt Quotient) analysis (Hajeri et al., 2015).
The determination of basic economic sectors and non-basic economic sectors in the economy with LQ and DLQ analysis tools has been carried out by several researchers.Research by Hajeri et al. (2015) analyzed the determination of the basic economic sector of the economy in Kubu Raya Regency.According to the findings of the LQ study, the main or basic economic sectors include the manufacturing industry; transportation and communication; and electricity, gas and clean water.Whereas, the findings of the DLQ analysis indicate that the following industries will make up the basic sectors of the economy in the future are agriculture; construction; electricity, gas and clean water; mining and quarrying; manufacturing; transportation and communication; finance, rental, and corporate services; and services.
Research by Wenda et al. (2018) conducted a search for leading sectors and their role in the economy of Jayawijaya Regency for five years from 2011 to 2015.The results showed that the agricultural; manufacturing; construction; electricity, gas and clean water; trade, hotels and restaurants; financial services; transportation and communication; and services are leading sectors.The agriculture; services; and transportation & communication sectors are the economic sectors with the highest contribution to economic development compared to other economic sectors.
The research of Wenda et al. (2018) in Jayawijaya Regency used five years of data from 2011 to 2015, but this study used data from ten years specifically 2010 to 2019.The research conducted by Wenda et al. (2018) aimed to identify leading sectors, while the present study not only identified basic sectors but also projected future changes in the economic sector.The objectives of this study were 1) knowing the base and non-base economic sectors in the economic development of Jayawijaya Regency, 2) knowing the projected changes and competitive advantages of the Jayawijaya Regency economic sectors.

RESEARCH METHOD
This study was a descriptive research with a quantitative methodology.The location of the research was Jayawijaya Regency.Jayawijaya Regency was purposefully chosen as the site of the research because it is a developing Regency that is continues to strive in increasing the economic growth across a range of industries.The study was done between January and March of 2021.The method of data collecting involved a literature review that accessed and analyzed secondary data types.The data type was secondary data.The source of the data comes from BPS (Central Bureau of Statistics) Jayawijaya Regency and Papua Province.The data was Gross Regional Domestic Product (GRDP) of Jayawijaya Regency at 2010 Constant Market Prices by Industry for the period 2010-2019 research period.In addition, this study also uses references to literature studies accessed from the internet and libraries in the form of scientific articles, books, and other supporting data.
The data analysis method was based on the research objectives: 1.
The analysis of basic and non-basic sectors used the LQ analysis method.LQ analysis compares the contribution of a sector in a region to the contribution of that sector at the regional or national level.The economic sector which later became the base sector is a sector that has high comparative ability (Wenda et al., 2018); Soleh & Maryoni, 2017).The LQ model is expressed through the following mathematical equation: Description: LQ = LQ Index PDRBik = GRDP value of sektor i in Jayawijaya Regency PDRBtk = Total GRDP in Jayawijaya Regency PDRBip = GRDP value of sector i Papua Province PDRBtp = Total GRDP in Papua Province Basis for decision-making if: a. LQ > 1, meaning that sector i is a basic economic sector.This economic sector has a comparative ability where the production is sufficient to meet the needs of Jayawijaya Regency and can be exported.b.LQ < 1, meaning that sector i is a non-base sector.The production of the economic sector has not been able to meet the needs in the region itself so it must be imported.c.LQ = 1, meaning that sector i is a non-base sector, with no comparative advantage.The economic sector's production is only enough to fulfill the needs within Jayawijaya Regency and not export.2.
Analysis of projected changes and competitive advantages of economic sectors used the DLQ analysis method.The DLQ method is used to determine sectoral changes or repositioning.DLQ is a development of SLQ which accommodates the magnitude of GRDP over time (Soleh & Maryoni, 2017).DLQ is calculated using the following formula (Sunardi, 2019):

RESULTS AND DISCUSSION Base and Non-Base Sectors in Jayawijaya Regency Economic Development
The LQ approach was used to determine the basic and non-basic sectors in Papua Province and Jayawijaya Regency.This aims to identify the main economic sector in Jayawijaya Regency when compared to the same economic sector in Papua Province.Leading and supporting economic sectors influence economic development.The base sector is the main economic sector with high potential, while the non-base sector is the supporting economic sector in economic development.If the LQ index value is more than one (LQ> 1), the sector is referred to as basic.If the LQ index value is one or less (LQ 1), the sector is referred to be a non-base sector (Rompas et al., 2015;Vikaliana, 2017;Daryanto & Hafizrianda, 2010).Source: Processed from BPS Data of Jayawijaya Regency and Papua Province (2020) The average value of the analysis results using the LQ method shows that there are 15 base sectors of 17 economic sectors in Jayawijaya Regency for the period 2010 to 2019.The base sectors referred to when sorted from the lowest LQ value to the highest LQ value are accommodation and food service activities; financial and insurance activities; construction; manufacturing; other services activities agriculture, forestry and fisheries; education; public administration and defence; compulsory social security; human health and social work activities; business activities; wholesale and retail trade; repair of motor vehicles and motorcycles; information and communication; real estate activities; electricity and gas; and transportation and storage.The results of the LQ analysis of Jayawijaya Regency for the 2010-2019 period can be seen in Table 1.
Other sectors that experienced fluctuations (repositioning) in the determination of basic and non-basic sectors were sorted from the lowest LQ index value, which were the provision of accommodation and food service activities; financial and insurance activities; manufacturing; and construction sectors.The provision of accommodation and food service activities sector was removed from the base economic sector in 2014, 2015, and 2019.The financial and insurance activities; construction; and manufacturing in 2019 turned into non-base economic sectors.Because of their low output value and slow growth, these sectors are classified as having low comparative ability.This viewpoint is consistent with Wibisono et al. (2019), who believe that a sector has a low comparative advantage if it has a low output value.On the other hand, a sector is considered to have a strong comparative advantage if the output value is high.In addition, Sunardi (2019) emphasized that the repositioning of GRDP in the Jayawijaya Regency economy is influenced by the growth rate of business sectors which in turn causes the repositioning of bases.
There are six base sectors that contribute more to the economic development of Jayawijaya Regency than other base sectors.These sectors are transportation and storage; electricity and gas; real estate activities; information and communication; wholesale and retail trade; repair of motor vehicles and motorcycles; and business activities.This result is different from the results of research by Wenda et al. (2018) in Jayawijaya Regency, which found that the economic sector that contributed more was the agricultural sector, however, the results of this study found that the agricultural sector was not a sector that had a major impact on the economy even though it was still a basic sector.This indicates a shift in the basic sector of economy in Jayawijaya Regency.The transition occurred as a result of the high competitiveness across industries and the specialization of each industry in the economy of Jayawijaya Regency.Yulianita (2009) underlined that a region's economy might undergo structural changes from agricultural to non-agricultural activities or from industrial to services.
The findings are comparable to those of Wenda et al. (2018) in that the transportation and storage, and communication sectors remains a mainstay sectors because they contribute the most to the economy of Jayawijaya Regency.The position of Jayawijaya Regency is a strong argument in favor of the significant contribution made by the transportation and storage, and communication sectors.In the central mountain region, Jayawijaya Regency serves as a warehouse and distributor of goods and services to other areas.This condition is consistent with Yulianita (2009) statement that that an area or region experiencing economic growth is largely determined by the factor of the existence of adequate facilities (infrastructure), and infrastructure such as transportation and communication.
Compared to several studies outside Jayawijaya Regency, it shows that each region has an economic sector which then becomes a base or leading sector, which is not the same.Research by Wibisono et al. (2019) shows that the waste and recycling; mining & quarrying; waste management; and water supply in the Jambi Province region as the basic sectors, whereas in Jayawijaya Regency it is not the basic sectors.Furthermore, the results of research by Sunardi (2019) using the LQ analysis method shows that the basic sectors in the Surakarta Prefecture are dominated by the electricity and gas; human health and social work activities; wholesale and retail trade; repair of motor vehicles and motorcycles; and financial and insurance activities.The results of research by Hajeri et al. (2015) in Kubu Raya Regency found that the basic sectors are the manufacturing; transportation and communication; and the electricity, gas and clean water.The results of the research in Surakarta Prefecture and Kubu Raya Regency have similar basic sectors to Jayawijaya Regency, but differ in the contribution of the basic sectors.The similarity with this research is the use of the same analysis method.

Projected Change and Competitive Advantage of Jayawijaya Regency Economic Sectors
DLQ analysis was utilized to project the future of each sector in the Jayawijaya Regency economy.This aims to observe the projected repositioning of economic sectors.If a business or economic sector grows faster in Jayawijaya Regency's regional GRDP than it does in Papua Province's GRDP, it is still considered to be a basic sector.
Based on the results of the DLQ study, the projected growth rate of each sector shows that only the mining and quarrying sector experienced moderate growth and even was lagging behind.Compared to the same sector in Papua Province, other sectors were growing quickly.Table 2 displays the findings of the DLQ analysis of Jayawijaya Regency.Table 2 shows that in the future there will be a repositioning of the basic sectors in the economy of Jayawijaya Regency.The repositioning of the basic sectors with fast growth rates, sorted from lowest to highest are the economic sectors of business activities; information and communication; water supply, sewerage, waste management and remediation activities; electricity and gas; education; manufacturing; public administration and defence; compulsory social security; other services activities; human health and social work activities; construction; agriculture, forestry, and fisheries; accommodation and food service activities; transportation and storage; wholesale and retail trade; repair of motor vehicles and motorcycles; financial and insurance activities; and real estate activities.
The repositioning of the base sector in the future was determined by the competitiveness of a sector against other sectors in the economic development of Jayawijaya Regency.The results of the LQ analysis show the transportation and storage sector as the base sector that has the highest contribution, but the DLQ analysis also shows that the real estate activities can be the base sector with the fastest growth rate in the future.Furthermore, the electricity and gas; business activities; and the information and communication sectors have slower growth rates than the financial and insurance activities; accommodation and food service activities; and construction sectors.This indicates that the real estate activities; construction; financial services and insurance activities; transportation and storage; accommodation and food service activities; and wholesale and retail trade; repair of motor vehicles and motorcycles sectors have high competitiveness against other sectors in the economic development of Jayawijaya Regency.
Significant repositioning occurred in the water supply, sewerage, waste management and remediation activities sector.This sector is not included in the LQ analysis as a basic economic sector, but in the future it can become a basic economic sector.This shows that the water supply, sewerage, waste management and remediation activities sector has high competitiveness and fast growth rates compared to other sectors in economic development of Jayawijaya Regency.High levels of competition offer opportunities for sectors to grow and become basic or leading sectors.According to Soleh & Maryoni (2017), an economic sector can be recognized as having the potential to develop into a basic sector in the future if it grows more quickly than other sectors.In order to accelerate economic development in Jayawijaya Regency, the government should therefore concentrate on basic areas with the potential for quick growth.
Research by Hajeri et al. (2015) using DLQ analysis shows that the economic sectors that will become the mainstay sectors in the future are the services activities; transportation and communication; finance, rental, and business activities; buildings; electricity, gas, and clean water; manufacturing industry; mining and quarrying; and agriculture.This is in contrast to the findings of this study, which indicate that the mining and quarrying sector will not be a basic sector in the future.Moreover, study conducted in Batanghari Regency by Soleh & Maryoni (2017) reveals that the services activities sector is the dominant sector according to DLQ analysis.The difference in the outcomes of this study is that instead of 17 economic sectors, 16 are included as a future base.

CONCLUSION
Based on the results of the study, it shows that out of 17 economic sectors in Jayawijaya Regency, there are 15 basic or leading economic sectors and 2 non-basic or potential economic sectors.The non-base economic sectors are mining and quarrying; and water supply, sewerage, waste management and remediation activities.Projected changes and competitive advantages of economic sectors show that repositioning occurs in the economic sector of water supply, sewerage, waste management and remediation activities, while the mining and quarrying economic sector has not changed and has low competitive power.

RECOMMENDATION
Local governments should concentrate their development planning and policymaking efforts on the basic sectors with the greatest competitive advantages.In order to determine the specialization of the basic sectors and their development strategies, additional research using various techniques and the most recent data is required.In order to identify the base subsectors, it is also necessary to further examine the current base sectors.
, sector i is the base economic sector in the future.b.DLQ ≤ 1, sector i is a non-base economic sector in the future.