Gross Regional Domestic Product (GRDP) is one of the key indicators to determine the economic conditions in an area within a certain period, both based on current prices and constant prices. The GRDP per capita shows the value of GRDP divided by the mid-year population. According to data from Statistic Indonesia (BPS), the distribution of GRDP is concentrated in Java. About 59 percent of Indonesia's economy in 2021 was contributed by Java. The contribution of other islands is not more than 10 percent, except for Sumatra at 21 percent. One of the government's policies to equalize the economy announced in 2019 was the relocation of the nation's capital city from DKI Jakarta to East Kalimantan. This policy has generated polemics in various circles of society regarding priorities, urgency, procedures, and risks. The economic inequality between regions in Indonesia involves various regions or provinces with different characteristics. Spatial regression is a model that accommodates spatial effects because the observation unit is a location. The aim of this study is to determine the level of economic disparities between provinces in Indonesia, resulting in the decision to relocate the nation's capital city. In addition, the aim is to determine the significance of several factors that affect GRDP per capita as a measure of regional prosperity, namely population density, number of workers, and the Human Development Index.
South Sulawesi Province is considered capable of controlling inflation, as seen from its not very large volatility. However, this does not mean that the increase in fuel prices does not impact inflation in South Sulawesi. This study aims to obtain the best model to analyze the impact of rising fuel prices on inflation in South Sulawesi using Pulse Function Intervention Analysis and to find out how significant the impact of rising fuel prices on inflation in South Sulawesi is. The data in this study were obtained from the Central Statistics Agency (BPS) of South Sulawesi Province, namely the monthly inflation of South Sulawesi Province for the period January 2014 – September 2022, with a total of 105 observations. The best model in this study is the MA ([12]) bbm1, bbm5, and bbm6 models with AIC 104.09. Statistical test results show that 3 of 6 times increases in fuel prices since 2014 still influence the rising inflation, namely in November 2014, April 2022, and September 2022. The increase in fuel prices in 2014 impacted rising inflation by 1.97 percent, while in 2022, it increased inflation by 0.92 and 0.99 percent.
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