Developing Local Potency in Rural Area of Purworejo to Strengthen Regional Competitiveness

Abstract

Gross domestic regional product (GDRP) contribution of Purworejo Regency to Central Java Province was only 1.35% which is the fourth lowest contributor after the City of Pekalongan, Salatiga and Magelang. Besides, in 2016, Purworejo Regency has a level of moderate inequality with the Gini Index and Williamson Index value of 0.36. Also the poverty rate of 13.91% which is higher than the Central Java poverty rate of 13.27%. While on the other hand, Purworejo Regency has some local potencies that have not been developed optimally and could be utilized to promote the economic growth. This study aims to analyze the development of local economic potency in rural area of Purworejo. In addition, it also analyzes the strategy of Purworejo Local Government to develop local potency in order to strengthen regional competitiveness. The approach used was descriptive quantitative, using Klassen Typology and Location Quotient Shift Share (LQ Shift Share) method. The results showed that based on Klassen Typology, Purworejo Regency was included in the category of underdeveloped areas that the development was stagnant. Meanwhile, based on the LQ analysis, the basic sector in Purworejo Regency was agriculture. However, based on Shift Share analysis, the agricultural sector was in the retarded position. One of the reasons was the low technology application to local agriculture activities. Keywords— GDRP; agriculture; local potency; regional competitiveness; Purworejo