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Analysis of Industrial Minerals Mining Sector in the Effort of Supporting the Economic Development of West Java Province, Indonesia
Current Issue
Volume 2, 2015
Issue 5 (September)
Pages: 123-133   |   Vol. 2, No. 5, September 2015   |   Follow on         
Paper in PDF Downloads: 44   Since Sep. 3, 2015 Views: 2064   Since Sep. 3, 2015
Authors
[1]
Ukar Wijaya Soelistijo, University of Islam Bandung (UNISBA), Department of Mining Engineering, Faculty of Engineering, Bandung, Indonesia; Institute of Technology Bandung Department of Mining Engineering, Faculty of Mining and Petroleum Engineering, Bandung, Indonesia; Center for Education and Training of Mineral and Coal, Ministry of Energy and Mineral Resources, Bandung, Indonesia.
[2]
Sri Widayati, University of Islam Bandung (UNISBA), Department of Mining Engineering, Faculty of Engineering, Bandung, Indonesia.
[3]
Mikdad Hamad, University of Islam Bandung (UNISBA), Department of Mining Engineering, Faculty of Engineering, Bandung, Indonesia.
Abstract
West Java Province has large resources of industrial mineral (non-metallic minerals and rocks).Based on the result of economics analysis of West Java Province such as location quotient (LQ), economic multipliers, backward and forward linkages are indicated as indicated as the followings. Backard lingkage (aj) of the industrial mineral sector is small (<1) off 0.746. Forward linkage (bi) of industrial mineral sector is also small (<1) off 0.710. While regencies that have LQ>1.0 are Sukabumi, Bogor, Ciamis, Cirebon, Majalengka, Kuningan, West Bandung and Banjar. It means that it can comply its on needs or self-sufficiency even it can meet the other region’s demand for industrial mineralsis quite good. So far, where the output multiplier is 1.37, the investment multiplier is 1.38, employment multiplier 1.23, income multiplier 1.23 and added value multiplier of 1.26 or significantly high. It indicates that the mining sector can provide added value to the other economic sectors. Moreover, the surplus multiplier of the industrial mineral sector can reach 2,304or significantly high, it means that the investors is well attracted to invest in this sector. Also this sector could be pointed out as the prime sector in the Province of West Java.Based on the results of computation using 2010 I-O Table an the projected 2013 and 2035 I-O Tables it is found out that the final demand (Y) in 2013 is IDR 1.070.118 Trillion and IDR 3.319 Trillion in 2035 with the assumption of 6.01% economic growth rate per year. By using optimization linier programming is identified that the optimized Ŷ is IDR 1.070,443 Trillion and the Ŷ of 2035 is IDR 3,319 Trillion, or the ratio of the optimized Y/Ŷ of 2013 is 0,997 and the related ratio of 2035 is 1.0. It means that the economy of West Java Province is actually inefficient and would be more efficient toward 2035.The methodology applied in this study is based on macroeconomic, Input-Output (I-O), LQ, and engineering model.
Keywords
Industrial Minerals, Economic Linkages,Multiplier, LQ
Reference
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Soelistijo UW, PL Anjani, HI Pratama, Pili HL, Herdyanti MK, [2015). Trend of Mineral Commodity Price and its Impact on the Indonesia Economy 1990-2025. Earth Sciences. Vol. 4, No. 4, 2015, pp. 129-145.doi: 10.11648/j.earth.20150404.11.
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