According to (Laksamana, 2016), the calculation of GRDP is crucial for the

Research by (Silastri, Iyan, & Sari, 2017) also concludes that GRDP is one of the most

universal economic indicators for calculating economic development.

There are many experts who are also researching on how to increase GRDP.

According to (Odit, Dookhan, & Fauzel, 2010), take people's education is proven to be

seen as an important factor in increasing economic growth. Research by (Burda,

Hamermesh, & Weil, 2006) also does this with his findings suggesting that hourly

productivity is the main factor behind regional GRDP.

In addition to labor, there are other factors that are more significant in the

influence of GRDP according to the economist (Choi, Furceri, Loungani, Mishra, &

Poplawski-Ribeiro, 2018), that the higher the country's productivity, the more services

supported by the study of (Sutawijaya, 2010) which argues that investment can affect

economic growth such as increasing production, employment, added value, and exports.

Prior to that, (Forte & Moura, 2013) has revealed that the effect of investment depends on

the domestic conditions of the host country. Another study conducted by (Kunle, Olowe,

& Oluwafolakemi, 2014) for the same subject, then the results reveal that even though

investment directly has a positive effect on economic growth.

Batam City in Indonesia is known as one of the islands with the highest potential

in terms of economic development (Harefa, 2013). Batam is one of the regions that is

was achieved in a fairly short time. Batam's GRDP growth can be called a rate when

compared to other cities, but it can still respond slowly when compared to other cities

abroad that have similar strategic locations such as Malaysia or Singapore. Therefore, this

research was conducted in order to provide alternative solutions to increase the GRDP of

Batam more rapidly; to assist the vision and mission of Batam.

This study uses secondary data from the Central Statistics Agency as well as

various economist journals to get the effect of increasing productivity through education

According to the research results, there is a special method that will work well for

Batam City based on data that has been researched from other areas that have similar

geographical, social and economic conditions to Batam.

The country's labor productivity and GRDP have shown to have a fairly strong

correlation; with the basic fact that labor productivity means more and more human

resources that are well utilized; and more and more products and services produced by a

region. And one of the things that can reflect labor productivity is the unemployment rate

in a region.

Table 1 shows the TPT and GRDP of Batam City in 2011 - 2019

Source: CNBC Indonesia and the Indonesian Central Bureau of Statistics

The data in table 1 shows that Batam's GRDP will be lower if the TPT Batam is

getting higher. It should be noted that although the PDRB calculation of Batam City

includes many things other than the level of labor in Batam City, it still cannot be denied

that Batam City workforce is indeed one of the factors that influence the PDRB of Batam

City; and this can be proven through the data presented where the number of variables

provided can more accurately support the theory put forward.

Having proven that labor productivity does have a correlation with Batam's GRDP,

it is necessary to find a solution to increase Batam's labor productivity. One of the biggest

problems regarding low productivity is the high rate of unemployment, and the lack of

job creation.

It was recorded that on January 1, 2021, there were 853,128 people in Batam who

were at the working age. Meanwhile, the recorded employment is only 81,486, including

MSMEs without employees. People tend to be reluctant to open jobs because they have a

fear of failure. 38,876 MSME owners were interviewed for a research conducted by

Batam Pos, of the 38,876 MSME owners, more than 35,000 admitted that they had an

enormous fear of failure when they started out; and most of them have the same reasons,

Administrative requirements such as building construction permits (IMB), building

ownership status and land rights permits, architectural permits and building designations,

among others that are regulated in Law 28/22 can be cut, especially in 2021 where most

MSMEs no longer require all these things on line.

The requirements for outsourcing could also be relaxed significantly under the new

bill, as Article 66 of the Manpower Act which prohibits outsourced employees from

doing more than the core duties in the company has to be revised. The new bill suggests

that it should make it possible for agencies to hire workers for a variety of tasks,

and the Philippines which show an increase in job creation of around 5-7% compared to

the previous one.

Education also has a significant correlation for the GRDP of a region. The

country's GRDP in the United Kingdom is approximately $ 35,580 with 99% of the adult

population being literate; The GRDP in Mexico is around $ 11,410 with 92% of the adult

infrastructure. Batam's geographic location makes Batam a bridge city, especially for

not only because of the attractive apartments, but also because of Batam's infrastructure

which can be

believed as one of the cities that can develop rapidly. Therefore, Batam infrastructure can

be developed more rapidly and more effectively to increase foreign investors investing in

Batam City, not only in property but also in state projects.

If implemented properly, vital new infrastructure will allow the free movement of

goods to increase output and increase demand. A developing economy can basically help

infrastructure projects to pay for the projects themselves.

The Indonesian Minister of Finance predicts a 1% increase in infrastructure

spending will result in a 1.4% increase in GRDP within 4 years. But regardless,

help build up sizable capital to buy infrastructure assets, which many governments and

private owners are happy to sell.

be working well, and local governments can be even more supportive by increasing

purchases of infrastructure assets. The second is to increase Batam's productivity in two