The Role of the Mining and Quarrying Sector in the Economic Growth of Kolaka District, Southeast Sulawesi Province, Indonesia

Abstract

The mining sector is one of the economic sectors that influences the economic growth of a region. Gross Regional Domestic Product (GRDP) is one of the indicators to observe the gross economic condition of a region. In this study, an analysis was conducted on the role of the mining sector and other economic sectors in the regional economic growth of Kolaka District based on the GRDP data. The goal is to determine the basis of the economic sectors that could increase the economic growth of the Kolaka District and the potential of the mining sector in supporting the economic growth of this region. This research required GRDP data of Kolaka District and Southeast Sulawesi Province based on the constant price for the 2010 base year according to the business fields from 2010 to 2018 and general conditions as well as the map of Kolaka District. The research methods used in this study were the location quotient analysis and shift-share analysis. Judging from the contribution of the mining sector to GRDP, the value of LQ > 1, which means the mining sector is a basic sector or a sector that can encourage economic growth in Kolaka District even able to export outside the region of Kolaka District and the mining sector it is a sector that shows fast and progressive growth.