SELECTION OF INDONESIAN NATIONAL CAPITAL CITY USING INTER REGIONAL INPUT-OUTPUT (IRIO)

Maulana Malik Sebdo Aji and Nuri Nasriyah

No w8tdg, OSF Preprints from Center for Open Science

Abstract: President Joko Widodo decided to move the State Capital outside Java. Jakarta is considered to be too dense and saturated to remain the State Capital. The purpose ofthis research is to find out which provinces are more profitable for the capital city development investment seen from the multiplier of output and job. The data used amounted to 466 trillion rupiahs which was estimated from APBN to build a new capital city. Injection is carried out on Indonesia's inter regional input-output model (IRIO). The results of the study were that Lampung Province was the most profitable if the Capital City was built on Sumatra Island. Central Kalimantan Province is the most profitable if it will be built on Kalimantan Island. West Sulawesi Province is the most profitable if the State Capital will be built on Sulawesi Island. The island of Bali is most beneficial if the Capital City of the State will be built in the Nusa Tenggara region.

Date: 2019-07-31
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:w8tdg

DOI: 10.31219/osf.io/w8tdg

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