How to cite:
Angela. (2021). Analysis of gross regional domestic products that influence
the economic growth of Batam city 2010 – 2020. Journal Eduvest. 1(6): 478-
483
E-ISSN:
2775-3727
Published by:
https://greenvest.co.id/
Eduvest – Journal of Universal Studies
Volume 1 Number 6, June 2021
p- ISSN 2775-3735- e-ISSN 2775-3727
ANALYSIS OF GROSS REGIONAL DOMESTIC PRODUCTS THAT
INFLUENCE THE ECONOMIC GROWTH OF BATAM CITY 2010 – 2020
ARTICLE INFO ABSTRACT
Received:
May, 29
h
2021
Revised:
June, 10
th
2021
Approved:
June, 17
th
2021
Batam city which is one of the areas in Indonesia that
has progressed quite rapidly, as a city located on the
border between Singapore and Malaysia. Batam city has
a lot of potential in developing its economy, one of
which is in the industrial sector. Some of the objectives
and reasons of the implementation of this research is as
one of the sources of information in studying GDP from
Batam, knowing how the economic growth of Batam city
from year to year, and factors that affect the economic
development of Batam City. In the period of 10 years,
from 2010 to 2020, the growth rate of Batam city GDP is
in a fairly stable position despite a slight decrease. The
result of Batam GDP city every year is quite influential
to the economy of batam city this can be seen from the
growth rate of GDP every year although the average is
below 5% but can bring significant changes to Batam.
KEYWORDS
GRDP, GDP, Economic Growth
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Attribution-ShareAlike 4.0 International
INTRODUCTION
The development of a country will always be influenced by regional
developments in each part of the country (Wise & Comrie, 2005). One sector that will
always affect the development of an area is the economic sector (Paun, Musetescu,
Topan, & Danuletiu, 2019). In Batam City, which is one of the regions in Indonesia that
has progressed quite rapidly, as a city located on the border between Indonesia and
Singapore, Batam City has a lot of potential in developing its economy, one of which is
in the industrial sector.
Angela
Analysis of gross regional domestic products that influence the economic
growth of Batam city 2010 – 2020 479
In observing the economic development of a region, it can be seen through the
gross regional domestic product of the region from year to year, this is what is behind
the author in analyzing the economy of Batam City through gross regional domestic
product. Some of the objectives and reasons for carrying out this research are as a
source of information in studying the GRDP of Batam City, knowing how the economic
growth of Batam City from year to year, and the factors that influence the economic
development of Batam City.
Table 1. Batam City Gross Regional Domestic Product Growth Rate 2010 – 2020
Source: BPS, 2021
Based on the results of the analysis above, it shows the growth rate of the gross
regional domestic product of Batam City in 2010-2020. In the table it can be concluded
that the GRDP in the city of Batam decreased from 2010 to 2017 from 8.61% to 2.19%.
In 2018 the GRDP in the city of Batam has increased from 4.96% and increased again
in 2019 to 5.92% and experienced a drastic decrease to -2.55%. This is caused by the
Covid-19 virus.
Table 2. Distribution of Batam City's Gross Regional Domestic Product in 2010 - 2018
Source: BPS, 2021
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The table above shows the distribution of GRDP in Batam city from 2010 to
2018 and it can be concluded that it runs steadily from year to year, namely from each
scope of business field group it reaches 100.00 percent and it is known that the company
services listed in the table only reach 0. 01 in 2010 and subsequent years have no
distribution figures. It can be seen that the mining and quarrying industry is not
supportive of the regional economy because it does not have the right natural resources.
Table 3. Gross Regional Domestic Product of Batam City in 2010 - 2017 in Billion
Rupiah Value
Source : BPS, 2021
The table above describes the GRDP in the city of Batam from 2010 to 2017
and it can be concluded that the GRDP in 2010 has always increased from year to year.
In 2016 the GRDP in the city of Batam reached Rp. 95,369.70 billion and in 2017 it
increased to Rp. 97,457.73 billion. In 2018 it is assumed that it will increase by 4.96%,
it will become Rp. 102.291.63 billion and in 2019 it will increase by 5.92%, it will
become Rp. 108.347.72 billion and in 2020 it will decrease by -2.55%, so GRDP in
cities Batam to Rp 105,584.44. These results can be obtained from the percentages in
table 1.
RESEARCH METHODS
This type of research used to analyze the gross regional domestic product that
affects the economic growth of the city of Batam is quantitative descriptive (Sugiyono,
2019) where this research describes data that is arranged regularly and is actual in which
the data has truth and justifies the data in order to describe a sign clearly. by combining
data or information in the form of numbers or quantitative where the data obtained from
GRDP and profit growth in Batam City used in this study is the period from 2010 to
2020 and is interpreted to become information. The following data obtained consist of:
1. Batam City GRDP Growth Rate Data 2010 - 2020
2. Batam City GRDP Distribution Data in 2010 - 2018
3. Batam City Gross Regional Domestic Product Data 2010 – 2017
Angela
Analysis of gross regional domestic products that influence the economic
growth of Batam city 2010 – 2020 481
In this investigation using a descriptive method, meaning a type of research that
has the aim of providing an overview by explaining a variable value either one or
without connecting to other variables or by creating a comparison, the method
implemented by the author is to investigate the data. data obtained from the BPS
(Central Bureau of Statistics) Batam City, carry out the analysis, clarify the concepts
that have been shown in the data and analyze the problems.
RESULTS AND DISCUSSION
Economic growth can be interpreted as the growth of economic activity which
results in increased goods and services produced in the community (Kristanti, 2021).
Economic growth is usually referred to as the development of actions in the economy
that make services and goods manufactured by society increase and their prosperity also
increases (Hasyim, 2017). According to (Yasin, 2020) this growth can also be referred
to as an increase in GDP (Gross Domestic Product) / GNP (Gross National Product)
without seeing whether the increase is higher or lower than the quality level of society
or whether there are changes to the economic structure that have occurred or not. One of
the useful indicators for understanding economic conditions and also economic
developments in an area within a certain period of time is shown by data on gross
regional domestic product (GRDP) both at constant prices and at current prices (LAILI,
2018). So far, economic growth has been too regulated by development spending factors
areas such as infrastructure and public development facilities that improve public
services to attract investors (Rustiadi, 2018).
Gross Regional Domestic Product (GRDP)
Gross Regional Domestic Product (GRDP) is an efficient measuring tool in
economic activity in a country and also a region (Setianingsih, 2017). Gross Regional
Domestic Product (GRDP) is an indicator used with the aim of assessing the economic
performance of one region in one period (ASRIYANI, 2020). GRDP is the total of all
payments for use in households and private institutions that do not want profit,
government use, gross local fixed capital creation, inventory turnover and net exports in
a place or region during a period of a year (Basmar et al., 2021). According to the
Central Statistics Agency (BPS), GRDP is defined as the amount of added value
obtained by all business divisions in an area or the total value of final goods and
services. The benefits of GRDP are as an indicator of the level of economic
development, per capita income, prosperity, increase and decrease in the purchasing
power of the population, reflecting the economic structure and economic potential and
so on (WAHYUDI, 2019). The economy of a region will increase from year to year due
to fertilization in production factors.
There are two types of Gross Regional Domestic Product, namely:
a. Gross Regional Domestic Product at Constant Prices (PDRB ADHK)
In the calculation of GRDP ADHK describes the added value of goods and
services that can be calculated through prices in certain years only.
b. Gross Regional Domestic Product at Current Prices (ADHB GRDP)
In the calculation of GRDP ADHB shows the added value of goods and services
that can be calculated through prices each year (Ayu, 2018).
GRDP at current prices uses the value each year with the aim of understanding
the budget for added value of goods and services, while GRDP at constant prices uses
Eduvest – Journal of Universal Studies
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482 http://eduvest.greenvest.co.id
prices in certain years with calculations with the aim of understanding the budget for
added value of goods and services.
Locally-generated revenue
Regional original income is income generated from the regional tax sector,
regional levies, the results of regionally owned companies, the results of the
administration of separated regional assets, as well as other legitimate regional original
income (Maharani, 2016). implemented by the local government as well as the first
source of income for a region. PAD is divided into 3 types, namely fines and levies,
regional taxes and regional income (Romhadhoni, Faizah, & Afifah, 2019).
Based on the research that has been done by the author, there are several results
and discussions from 2010-2020 which the authors can describe based on the data that
has been collected, as follows:
1. In a period of 10 years, namely 2010-2020, the growth rate of Batam City's
GRDP is in a fairly stable position although it has decreased slightly (2010-
2019), in 2020 Batam City's GRDP touched a minus (-) percentage and fell to
point -2.55%, this is certainly one of the impacts of the covid-19 pandemic.
2. The information and communication sector is the most stable business sector
and continues to grow every year, even after the COVID-19 pandemic, this
sector continues to grow.
3. The business sector in the service category is the sector most affected by
COVID-19 in 2020, this is evidenced by the decline in the growth rate of other
service sectors to -67.98% in 2020.
Based on GRDP data that has been described and analyzed, Batam City's GRDP
growth has decreased and increased every year, this is influenced by various things,
such as the growth of various field sectors, the COVID-19 pandemic and others.
CONCLUSION
Based on the analysis above, it can be concluded that Batam City has a fairly
good GRDP every year in the 2010-2019 period and has decreased in 2020 due to the
Covid-19 virus. The results of the GRDP of the City of Batam each year are quite
influential on the economy of the city of Batam, this can be seen from the growth rate of
GRDP each year, although the average is below 5%, it can bring significant changes to
the profits of the City of Batam. The authors provide author recommendations related to
this analysis, namely during this covid-19 pandemic, hopefully the government can
improve further improvements to the economy of Batam City which was affected by the
pandemic.
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