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Riau province case study (revised on may 14 th )

Riau province case study (revised on may 14 th ). Presented by: Chairul Denyl Mully Endah Rima Eryani Stevanus Anggoro. OVERVIEW. Profile Inequality’s Problem Leading Sector Analysis Financial Analysis Policy Implication. geography. geography. To the North:

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Riau province case study (revised on may 14 th )

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  1. Riau provincecase study(revised on may 14th) Presented by: Chairul Denyl Mully Endah Rima Eryani Stevanus Anggoro

  2. OVERVIEW Profile Inequality’s Problem Leading Sector Analysis Financial Analysis Policy Implication

  3. geography

  4. geography To the North: North Sumatera Province, Straits of Malacca, Straits of Singapore. To the South: Jambi Province. To the West: West Sumatera Province and North Sumatera Province To the East: South China Sea, Eastern Malaysia, Singapore, Riau Island Province.

  5. profile Capital Pekanbaru Governor Rusli Zainal Area 82,232 km2 (31,750 sq mi) Population 4.070.911  (2003) Density 60.2 /km2 (156 /sq mi)

  6. profile Ethnic groups Malay (38%), Javanese (25%), Minangkabau (11%), Batak (7%), Banjarese (4%), Chinese (4%), Buginese (2%) Religion Muslim (88%), Protestant (1%), Catholic (5%), Buddhist (6%), Hindu (0.2%) Languages Malay, Indonesian, Minangkabau Time zone WIB (UTC+7)

  7. Population by Age and Sex Groupin Riau Province 2007

  8. Inequality’s problem From Willamson Index, we can see positive correlation between growth and equality. The following chart show that GRDP with oil is greater in inequality rather than chart without oil.

  9. Growth poles analysis Based on typology analysis, we can find that some districts become a growth poles in Riau Province, such as: Bengkalis, Dumai, RokanHilir.

  10. Leading Sector Leading sector is a sector that has comparative advantage compare with the same sector at other regions. We could use Location Quotient to analyze a leading sector.

  11. Location quotient Location quotient — ratio that provide a convenient way to examine the specialization of economic activity in a region — is basically a way of quantifying how concentrated a particular industry, cluster, occupation, or demographic group is in a region as compared to the nation. It can reveal what makes a particular region 'unique' in comparison to the national average (EMSI, resource library).

  12. LOCATION QUOTIENT Static Base on GRDP Constant Price (with oil & gas) in 1993-2003

  13. LOCATION QUOTIENT Static Base on GRDP Constant Price (non oil & gas) in 1993-2003

  14. LOCATION QUOTIENT DynamicBase on GRDP Constant Price (with oil & gas) in 1993-2003

  15. LOCATION QUOTIENT DynamicBase on GRDP Constant Price (non oil & gas) in 1993-2003

  16. Based on LQ analysis at tables above, the result is surprising that majority district in Riau Province have more than one leading sectors. It is a good potential for every district to support development in its region. LOCATION QUOTIENT ANALYSES (1)

  17. LOCATION QUOTIENT ANALYSES (2) Base on calculation result of LQ static, both with oil and gas and non oil and gas, the highest LQ of leading sector majority on agriculture sector. In LQ static with oil and gas, the highest leading sector non agriculture in Siak (mining & quarrying), Pekanbaru (electricity) and Dumai (transportation). In LQ static non oil and gas, the highest leading sector non agriculture in Pelalawan (manufacture) and Bengkalis (trade).

  18. LOCATION QUOTIENT ANALYSES (3) Different with Location Quotient static, in Location Quotient dynamic, the highest leading sector tend disseminate at many sectors both at data with oil and gas and non oil and gas. The only one district who didn’t have leading sector is in Dumai District at data Location Quotient Dinamic non oil and gas.

  19. LOCATION QUOTIENT ANALYSES (4) There are interesting matters to be analized that as long as observation period (1993-2003), several districts in Riau Province are indicated have experience in structural transformation.

  20. LOCATION QUOTIENT ANALYSES (5) Example: In Siak District, structural transformation happened in year 1998 when manufacturing industry sector as the highest leading sector was replaced bymining and quarrying. In Bengkalis, Kampar District which each previously the highest leading sector in agriculture, since 1998, the highest leading sector was replaced bymining and quarrying industry.

  21. Shift and Share Majority district in Riau Province share to GRDP of province from Agriculture, Livestock, Forestry, and Fishery Sector. Let’s observe the data! In the observation period, there is only few district experience in shifting their contribution to GRDP of province. Again, let’s observe one more!

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