Study of Leading Sector in the Economy in South Kalimantan Province through the IO Model Approach

Abstract

The economy of South Kalimantan Province is currently still dependent on the mining and quarrying sector, especially in the coal mining sub-sector. This produces an excessive dependency on the global economy, where commodity price volatility has a very significant impact on the regional economy. This study aims to determine the leading sectors in South Kalimantan Province. This study uses an Input-Output table analysis of South Kalimantan Province in 2016 with 52 sector classifications. Based on the calculation of the power of dispersion index and the degree of sensitivity index, there are four categories in determining the sectors, namely; leading sectors (priority I), strategic/potential sectors (priority II and III), and lagging sectors (priority IV). The results indicate that there are 12 economic sub-sectors which categorized as leading sectors, namely; Electricity, Food and Beverage Industry, Livestock, Timber Industry, Industry of Wood, Goods made of Cork and Woven, and Goods from Bamboo, Rattan and its kind, Rubber Industry, Rubber and Plastic Goods, Non-Metal Excavated Goods Industry, Construction, Information and Communication, Warehousing and Services Transportation Support, Post and Courier, Coal and Lignite Mining, Other Financial Services, Chemical Industry, Pharmacy, and Traditional Medicine. For other priorities, there are 12 strategic/potential sectors as priority II, 7 strategic/potential sectors as priority III, and 21 lagging sectors as priority IV.