Regional Analysis for Sustainable Economic Development: A Case Study of Sukamara Regency, Kalimantan Tengah, Indonesia

Economic growth remains the sole determining factor that shapes regional development in Sukamara Regency, Kalimantan Tengah, Indonesia. Therefore, in designing and formulating its regional planning, it is imperative that the leading economic sector(s) be specifically studied and prioritized. Using quantitative data and regional analysis, this research aimed to identify the leading sector(s) to formulate recommendations for the regency’s development planning using geographic information systems and three economic growth indicators: location quotient (LQ), multiplier effect (ME), and shift-share (SS). Results indicate that Forestry, Agriculture, and Fisheries is the primary leading sector, followed by Manufacturing, which are both fuelled by the palm oil industry. The prevailing industrial sector causes economic disparities between northern and southern Sukamara. For further regional development, disparities between regions and sustainability issues must be addressed using a nature-based approach and socially inclusive measures by promoting and fostering small and medium enterprises, especially in southern Sukamara. Shifting the economy from extractive sectors (primary) to trade and tourism (secondary and tertiary) is also recommended to ensure the sustainabality of the development.


Introduction
The economy is the foundation of development.On that account, regional development levels are commonly measured using economic indicators, including gross product, income, export and import, and trade statistics.In other words, the economic characteristics of a particular region or area should be understood to determine the current state of development and formulate regional development planning accordingly.Regional economic development considers internal strength or potential as directions for regional planning.The main determinant of the economic growth of a region is directly related to goods and services demands from other areas or the size of the increase in its exports.
Sukamara Regency is one of the administrative units in the Province of Kalimantan Tengah, Indonesia, that shows steadily increasing economic development.Its geographical position and context make for a challenging case study of regional economic development: it is hemmed in by other administrative units and has limited accessibility.Lack of accessibility hinders trade in goods and 1313 (2024) 012042 IOP Publishing doi:10.1088/1755-1315/1313/1/012042 2 commodities, and the flanked location creates political obstacles because Sukamara has to compete with neighboring regencies to be able to take advantage of available regional resources.The role of infrastructure in sustaining economic growth is unquestionably essential for paving the way to markets and overcoming economic gaps or inequality [1][2][3][4].
However, amidst the challenging circumstances, Sukamara maintained its economic growth and even thrived during the COVID-19 pandemic thanks to its well-managed agricultural sector.Now, it must strive to break through economic growth constraints by taking more interest in its leading economic sectors.Therefore, the most traded commodities must be first identified so as to formulate strategies and policies that put their development as a priority for investment in the region.
The story of Sukamara Regency is one of the cases that requires comprehensive cross-disciplinary regional development studies, especially related to the economic sector and its derivatives.Previous studies have confirmed that examining a particular sector, such as agriculture and plantation [5,6], aquaculture [7], and livestock [8], could reflect the condition of the leading sectors and provide the basis for designing regional development.Scrutinizing and determining the leading sector is crucial in focusing and prioritizing the direction of development in regions with relatively limited resources [9][10][11].In addition, Sukamara has seen a gradual increase in its economic sector, which influences the quality of its population.
From the above description, it can be inferred that studying the economic sector is essential for advancing economic growth while maintaining sustainability.Moreover, Sukamara is stepping into a political transition as its long-term development plan will come to an end in 2025 after the 2024 election.This is a momentum to reflect on and evaluate the leading sectors as the basis for planning sustainable regional economic development.This study focuses on economic sectors and can, thus, serve as an academic input for sustainable development planning.It is expected to provide a practical contribution to regional development, both politically and economically, while enriching the debate on the significance of sustainable economic growth for regional development.In short, this research attempts to answer the questions: what are the leading sectors that shape and direct the economic growth of Sukamara Regency, and how to optimize that leading sectors?

Methods
BPS-Statistics Indonesia groups economic activities based on the size of the exports and the incrementing figures.It recognizes 17 economic sectors with which regional development and gross regional domestic product (GRDP) are measured.A leading sector is known as a basic or superior sector.With more basic sectors, a region can have more flows of income, goods and services demands, and volume of non-basic sectors.The basic and non-basic sector analysis is generally based on added value or employment.The sum of employment in both sectors is the total employment available in a region.

Research Location
This study was conducted in Sukamara Regency, an administrative unit in Kalimantan Tengah, Indonesia.It is situated at the province's southwest corner and shares borders with Kotawaringin Barat and Lamandau Regencies (Kalimantan Tengah) and Ketapang Regency (Kalimantan Barat).It covers an area of 3,827 km 2 and is divided into five districts: Permata Kecubung, Balai Riam, Sukamara, Pantai Lunci, and Jelai.The administration and government centers sit in the Sukamara District, which also serves as the center of activity, as shown in Figure 1.
Geographically, Sukamara is flanked by two major rivers, Lamandau and Jelai.Both rivers are primarily responsible for shaping its morphological, geological, soil, and hydrological properties.The topography is mainly flat and is composed chiefly of alluvial sediments, with marine deposits found in a small area on the southern coast [12].Sukamara was officially formed in 2002 and has seen increasing economic growth ever since.Nevertheless, inadequate infrastructure remains a major concern or hindrance to advancing its economic growth.

Data Acquisition
Based on the research objectives and problem formulation, quantitative data were used to calculate and measure the superiority of the economic sectors as part of the regency's economic growth.Secondary data were collected from Regions in Figures (Daerah Dalam Angka) reports by BPS-Statistics Indonesia to determine each economic sector's performance and contribution to the regional economy from 2017 to 2021.To provide a broader perspective, spatial data on the regency's palm oil plantation areas and settings were obtained from Google Earth Engine [13].In addition, the Indonesian Topographic Map (RBI) was used as the base map.The spatial data provided a bird's-eye view of the regency to help understand its characteristics and facilitate the formulation of regional development planning strategies.Furthermore, direct observation was conducted to obtain supporting primary data by documenting actual conditions in the field and to verify and complement the secondary data.The data used in this research are summarized in Table 1.

Data Sources Type
Actual conditions in the field Field survey through documentation Primary Gross Regional Domestic Product, 2017-2021

BPS-Statistics Indonesia Secondary
Administrative Boundaries RBI (Rupabumi Indonesia) Maps and Secondary

Road networks Geospatial Information Agency Secondary
Palm oil plantations Descals et al. [13] Secondary Source: Data Analysis, 2023

Data Analysis
Economic activities rely on particular basic, non-basic, and leading sectors.These three sectors were determined using the location quotient (LQ), multiplier effect (ME), and shift-share (SS) analyses [14].These methods were selected based on several considerations: simplicity, data availability, and usefulness in answering the research questions.For instance, LQ is relatively simple but can illustrate a certain sector's ability in regional development, while SS and ME are effective for determining a sector's growth [15].LQ, ME, and SS are indicators that aid in understanding how regional development works.
Location quotient (LQ) complemented with dynamic location quotient (DLQ) were used to identify superior or most traded commodities.In planning investment priorities, LQ and DLQ analysis results are used as material to determine relevant policies in formulating strategies for developing superior commodities in the future.LQ > 1 indicates that the sector in question is a basic sector, whereas LQ < 1 indicates a non-basic sector.The LQ of each economic sector in the study area was calculated using Eq. 1 below: To analyze Sukamara's economic structure, we employed a Shift-share (SS) analysis.In addition, it provides information that can be used to protect the growth of certain economic sector(s) in any two periods.SS discerns changes in various indicators of economic activity at two points in time, such as production and employment.It is designed to observe the relative development of an economic sector compared to other sectors by juxtaposing the size of a sector's activity with economic growth.
An increase in the size ofregional employment refers to the jobs available in the last year of observation (t) minus the jobs figures in the first year (t-n) (Eq.2).An increase in employment in a predefined sector can be explained by the influence of the national share, proportional share, and differential shift (i.e., the three components of SS analysis), as expressed in Eq. 3 below.

Location Quotient, Shift-Share, and Multiplier Effect Analysis Results
Based on the principle of comparison, if the LQ number of a sector stands above the others, it indicates that the comparative advantage that Sukamara Regency has in developing that sector is also higher.Seventeen sectors were analyzed to determine their respective contributions to the regency's GRDP in comparison with the same contribution at a larger administrative area, Kalimantan Tengah Province (Figure 2).The graph in Figure 3 illustrates the magnitude of the multiplier for each basic sector in Sukamara Regency.They show five sectors with a multiplier effect (ME) of greater than 1 on income.Education had an ME of 32.90, indicating contribution to the economic growth, where one unit of an increase in demand in the education sector will lead to an increase in household income in the economy by 32.90 times.The second-highest ME was identified in Wholesale and Retail Trade (Repair of Motor Vehicles and Motorcycles, 9.46), followed by Information and Communication (5.97),Manufacturing (2.65), and Agriculture, Forestry, and Fisheries (1.97).The Construction sector ranked last, with an ME of -78.67, meaning it does not have a multiplier effect on the regional income.The ME value of the education sector contributed to an increase in the final demand for one unit of money in this sector.This sector will create additional output for the entire economy in the regency because it encompasses all forms of educational activities conducted orally, in writing, and by different means of communication on any level of education and for various jobs.The educational levels are primary, secondary, higher education, and others, including educational support services and early childhood education.This sector also includes public and private education and teaching in the fields of sports, entertainment, and educational support.Further, education can be provided indoors, through radio and television broadcasting, the Internet, and correspondence.
The estimation of shift-share results for the regency's GRDP in 2017 and 2021 (Figure 4) showed a proportionality shift (PS)>0 for eight sectors: Agriculture, Forestry, & Fisheries with the number of 0,094.Gas & Electricity with Water Supply, Sewerage, Waste Management, & Remediation Activities are also included with the PS numbers of 0,324 and 0,113 respectively.Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles, has the closest number to zero with the score of 0,038 with Information and Communication PS number is 0,265.Financial and Insurance Activities and Education each has the PS numbers of 0,054 and 0,063.Human Health and Social Work Activities sits in the top of the table with the PS number of 0,35.PS>0 means that the sector has a fast-growing specialization.On the contrary, PS<0 indicates the sector has a slow growing pace.Based on the proportional growth performance, part of the SS analysis of the provincial GRDP, there are eight superior and nine non-superior sectors.Broadly speaking, an economic sector is said to be superior if it has a fast growth rate.In contrast, it is considered non-superior if it has either a slow or negative growth rate.

Palm Oil Plantation's Contribution to Economic Growth
Subchapter 3.1 above provides an overview of the regency's economic growth and the basic sectors that work behind it.It was found agricultural-related sectoris the primary leading sector among the four basic sectors.A more detailed picture shows that it is mainly driven by palm oil plantations [16].
Palm oil plantation fuels the economic growth of Sukamara Regency in particular and Kalimantan Tengah Province in general [17].Its positive contributions include increasing regional income, alleviating poverty, creating jobs, and advancing the infrastructure.For the infrastructure, further observation found that a significant road network had been established within the palm oil plantation area (Figure 5).The need to distribute or transport fresh fruit bunch (FFB) and palm oil drives the companies to build such a road network, which has eventually developed into a public main road.Figure 5 also illustrates how palm oil plantations are spatially distributed. of them are located in the north, with another large plantation sitting at the center of the region.Because the palm oil commodity is the main engine of economic growth, there is a disparity between northern and southern Sukamara.In addition, the role of palm oil plantations in economic growth also raises concerns about ecological consequences and disaster management.Like other regions in southern Kalimantan, Sukamara is prone to forest fires due to its land cover characteristics [18].It is also home to a large part of the Lamandau Reserve area, which is a biodiversity hotspot and carbon pool in the region [19,20].It is necessary to take the most stringent measures to diminish the environmental impact of palm oil plantations to achieve economic development that promotes a balance between profit, people, and the planet.

Incorporating Sustainability into the Development Framework
LQ calculation proved that the agroindustry-relatedsector, dominated the economic development in 2017-2021, along with Manufacturing as its derivative.These two sectors were able to grow due to the benefits gained from palm oil plantations, particularly the infrastructure built within the plantation area.However, this line of industry needs to be wisely exploited since it poses a threat to the narrative of sustainable development, as elaborated by Susanti and Maryudi and Li and Semedi [21,22].Susanti and Maryudi discovered that palm oil plantations are responsible for major land-use change in Riau, which ultimately disturbs the ecosystem dynamics.In addition, despite the economically flourishing oil palm plantation, there remain disparities between different areas in the regency.
To overcome these challenges, the Sukamara Regency has to incorporate strategies to achieve the 17 Sustainable Development Goals (SDGs) in its development framework.Sustainability is currently the main narrative for development planning at every level, as it promises a development that stands in the center of profit, people, and the planet and that causes minimum negative impacts.
In the regulation and administration of regional planning, sustainability can be embodied in development through Strategic Environmental Analysis (SEA).The regional government is obligated to consider and adjust its short-, mid-, and long-term spatial and regional planning documents to ensure the achievement of sustainability.Therefore, having identified the leading sector, this information is further discussed in the following subchapter to see how it can contextually lead to sustainable development in Sukamara.

Enhancing Economic Sectors to Address Development Challenges
Economic disparities between northern and southern Sukamara are the first thing to address to realize sustainable economic development.Several previous research papers suggested that infrastructure is the key factor to closing the economic gap spatially [23][24][25].Another paper went further on not only discussing the economic significance of infrastructure but also challenging the underlying concept and approach of regional disparity [26].Creating equal development and thus eliminating disparity can pragmatically or conceptually be dealt with by various strategies.Infrastructure, as its name implies, serves as the infra or the basic requirement for numerous activities and regional dynamics.As a result of its development, the needed strategies can be sought from the regency's various natural resources or potential in the southern coastal area, including minerals, fisheries, tourism, and agriculture (non-palm oil).Hariyanto et al. [12] identified that the mineral resources consist mainly of quartz sand.Learning from infrastructure that grows with the frequency of goods and services transportation in operating palm oil plantation, the need to distribute resources also expectedly advances and stimulates economic growth and, eventually, the regional development itself.
Relying solely on primary or extractive sectors likely brings about ecological consequences.Therefore, economic development must be directed to simultaneously enhancing secondary and tertiary sectors, i.e., trade, services, and tourism, and placing them as the leading sectors sustained by small and medium enterprises.This will replace the existing primary sector and almost every positive impact it may provide but will have less negative impact.
Previous studies observing the coastal area suggested Integrated Coastal Zone Management as the grand concept of development [27], particularly considering the multitude of potential and commodities (Figure 6) that could be utilized and managed for the tourism sector [28].The research argues that tourism, especially ecotourism combined with aquaculture, appears to have economic potential for advancing development on the southern coast.Also, it can be promoted as a nature-based, serviceoriented development because it relies on ecosystem services.This statement is also based on what the research found during the observation, i.e., that the coast has accessible recreational beaches, hectares of mangroves, and tens of whiteleg shrimp (Litopenaeus vannamei) ponds.For the palm oil industry that has significantly contributed to the regional economy, it is suggested that appropriate instruments such as Roundtable on Sustainable Palm Oil (RSPO) be incorporated into sustainable management.Moreover, for other sectors, there should be more robust social support for small and medium enterprises (SMEs).For instance, Sukamara has a promising economic subsector from its local gastronomy with its unique fish-based dish called kerupuk basah or temet.This food commodity is popular among locals and is widely promoted by many SMEs [29,30].Empowering SMEs will create more inclusive development for the local community.In addition, the regency shows promising SMEs in the business, information, and communication sectors.If appropriately managed, these sectors will be able to sustain and support the growth of SMEs and shift the leading sector from palm oil plantation to businesses and services (e.g., tourism) with expectedly fewer environmental burdens, which promotes sustainability.Judging from its spatial setting, which is located at the center of the regency, Sukamara District (the capital of Sukamara Regency) can facilitate equal distribution of the economy to the north and the south.

Conclusion
Agriculture, Forestry, and Fisheries is the primary leading sector for economic growth in Sukamara Regency, followed by the Manufacturing industry.Further examination has shown that both sectors are mainly fuelled by palm oil plantation and production.Their upstream and downstream processes are the backbone of the regional economy.However, considering both their benefit and impact, the regency should shift focus from this primary extractive sector to secondary and tertiary sectors, such as trade, services, and tourism, to achieve sustainable development and, at the same time, address unequal development between northern and southern Sukamara.
Southern Sukamara is a coastal area with numerous potentials, including minerals, tourism, fisheries, and agriculture.An integrated plan to simultaneously incorporate these sectors into the regency's sustainable development plan is expected to accelerate economic growth and promote sustainability.Sustainable development should be implemented by considering the principles of nature-based development and community involvement (i.e., small and medium enterprises).

Figure 1 .
Figure 1.Map of the research area (Source: Data Analysis, 2023) .1088/1755-1315/1313/1/012042 5 The calculation results showed four basic sectors (LQ > 1) in the 2017-2021 period: Agriculture, Forestry & Fishing in the first place; Manufacturing sector as the second; Information & Communication sector sits in the third place; and the last is the sector of Wholesale & Retail Trade, Repair of Motor Vehicles and Motorcycles.This means their economic growth contributed to the regency's GRDP and potentially increased the growth rate during this period.Agriculture, Forestry, & Fisheries contributed most significantly to GRDP, with the highest average growth rate of 1.385.However, the table also shows that the average growth rate and LQ value of each basic sector experienced a significant decline in 2019 and 2020 but started to rebound and demonstrate an increased contribution to the GRDP in 2021.Meanwhile, the other eleven sectors were non-basic (non-leading), whose LQ values suggested small contributions to the regency's economic growth.The lowest average growth rates were found in Mining & Quarrying sector (0.074) entailed by Water Supply, Sewerage, Waste Management, & Remediation Activities (0.145).

Figure 2 .
Figure 2. Location quotient (LQ) values of the economic sectors in the Sukamara Regency, 2017-2021.Basic sectors are highlighted in yellow color (Source: Data Analysis, 2023)

Figure 5 .
Figure 5. Distribution of palm oil plantations, showing disparities in infrastructure development between northern and southern Sukamara (Source: Data Analysis, 2023)

10 Figure 6 .
Figure 6.(a) Recreational beaches, (b) mangroves, and (c) whiteleg shrimp ponds in the southern part of the Sukamara Regency.(Source: Field Survey, 2022) This paper is financially supported by the Institutional Development Fund (Dana Pengembangan Institusi), part of a cooperation between the Faculty of Geography, Universitas Gadjah Mada, and the Regional /FGE/UKDN/HK.08.00/2022).The authors would like to thank the Head of the Regional Development Agency of Sukamara Regency and the Dean of the Faculty of Geography for their invaluable support and facilitation during the research.