CONTRIBUTION OF INFRASTRUCTURE DEVELOPMENT TO GROSS REGIONAL DOMESTIC PRODUCT IN ALL PROVINCES OF INDONESIA
DOI:
https://doi.org/10.65886/ijde.v2i01.21Keywords:
Infrastructure, GDP, Regional DisparitiesAbstract
Infrastructure development is a key factor in driving economic growth, particularly in developing countries like Indonesia, which face geographical challenges and regional disparities. This study aims to analyse the effect of road, electricity, and clean water infrastructure on Gross Regional Domestic Product (GRDP) across all provinces in Indonesia, with a focus on the dimensions of inclusiveness and spatial equity. The main issue raised is the inequality in infrastructure distribution between regions that hinders equitable economic growth. This study provides a new contribution through a multidimensional approach that not only assesses the economic impact of infrastructure but also takes into account social and sustainability aspects. In addition, the use of cross-section data from all provinces in 2023 and the application of multiple linear regression with classical assumption tests are methodological advantages that have not been widely used in previous studies. The method used is a quantitative approach with multiple linear regression analysis, using secondary data from BPS in 2023. The independent variables consist of road, electricity, and clean water infrastructure, while the dependent variable is GRDP. The classical assumption test was carried out to ensure the validity of the empirical model. The results of the study show that only the electricity infrastructure has a significant effect on GRDP, while road and clean water infrastructure do not have a statistically significant effect. However, all three remain strategically important in supporting long-term development. The conclusion of this study emphasises that infrastructure development must be inclusive and spatially equitable. The government needs to prioritise development in the 3T (frontier, outermost, and disadvantaged) regions and prioritise infrastructure quality, not just quantity, in order to encourage sustainable and equitable economic growth throughout Indonesia.
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