Analysis of Inclusive Economic Development and Its Driving Factors in Papua Province

Papua Province, known for its abundant natural resources and cultural diversity, faces significant challenges in achieving inclusive economic development. Persistent disparities in income, infrastructure, and access to essential services have hindered equitable growth and social welfare improvement...

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Main Authors: Pisi Bethania Titalessy, Radian Januari Situmeang, Herlina Irianti Mulyono, Richard Patty
Format: Article
Language:English
Published: Laboratorium Rekayasa Sosial, Jurusan Sosiologi, FISIP Universitas Bangka Belitung 2024-12-01
Series:Society
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Online Access:https://societyfisipubb.id/index.php/society/article/view/743
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author Pisi Bethania Titalessy
Radian Januari Situmeang
Herlina Irianti Mulyono
Richard Patty
author_facet Pisi Bethania Titalessy
Radian Januari Situmeang
Herlina Irianti Mulyono
Richard Patty
author_sort Pisi Bethania Titalessy
collection DOAJ
description Papua Province, known for its abundant natural resources and cultural diversity, faces significant challenges in achieving inclusive economic development. Persistent disparities in income, infrastructure, and access to essential services have hindered equitable growth and social welfare improvement. This study examines the inclusiveness of economic development in Papua and explores its driving factors. Utilizing secondary data from the Ministry of National Development Planning/National Development Planning Agency (Badan Perencanaan Pembangunan Nasional, Bappenas), BPS - Statistics Indonesia (Badan Pusat Statistik, BPS), and the Directorate General of Fiscal Balance (Direktorat Jenderal Perimbangan Keuangan, DJPK) for 2017–2021, the research employs descriptive analysis and panel data regression methods. The panel regression results highlight the critical role of fiscal policies in promoting inclusivity. Economic expenditures demonstrate a positive and significant impact on inclusive development, fostering equitable economic participation and productivity. In contrast, basic infrastructure spending shows a significant negative effect, possibly due to uneven allocation or misalignment with local community needs. While education expenditures are not statistically significant, they exhibit potential for enhancing inclusivity through long-term human capital development. These findings underscore the importance of targeted and well-distributed fiscal policies to address Papua’s unique socio-economic challenges. By prioritizing human capital, aligning infrastructure investments with local needs, and fostering balanced economic growth, policymakers can pave the way for more inclusive development across the province. This research provides valuable insights for designing effective policy interventions to reduce inequality and foster sustainable economic growth in Papua.
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spelling doaj-art-7fec661cc9e44403a7eea709bd3f69cc2025-08-20T01:57:21ZengLaboratorium Rekayasa Sosial, Jurusan Sosiologi, FISIP Universitas Bangka BelitungSociety2338-69322597-48742024-12-0112210.33019/society.v12i2.743Analysis of Inclusive Economic Development and Its Driving Factors in Papua ProvincePisi Bethania Titalessy0https://orcid.org/0000-0002-4102-6827Radian Januari Situmeang1https://orcid.org/0009-0006-0760-5530Herlina Irianti Mulyono2Richard Patty3Cenderawasih UniversityCenderawasih UniversityCenderawasih UniversityCenderawasih University Papua Province, known for its abundant natural resources and cultural diversity, faces significant challenges in achieving inclusive economic development. Persistent disparities in income, infrastructure, and access to essential services have hindered equitable growth and social welfare improvement. This study examines the inclusiveness of economic development in Papua and explores its driving factors. Utilizing secondary data from the Ministry of National Development Planning/National Development Planning Agency (Badan Perencanaan Pembangunan Nasional, Bappenas), BPS - Statistics Indonesia (Badan Pusat Statistik, BPS), and the Directorate General of Fiscal Balance (Direktorat Jenderal Perimbangan Keuangan, DJPK) for 2017–2021, the research employs descriptive analysis and panel data regression methods. The panel regression results highlight the critical role of fiscal policies in promoting inclusivity. Economic expenditures demonstrate a positive and significant impact on inclusive development, fostering equitable economic participation and productivity. In contrast, basic infrastructure spending shows a significant negative effect, possibly due to uneven allocation or misalignment with local community needs. While education expenditures are not statistically significant, they exhibit potential for enhancing inclusivity through long-term human capital development. These findings underscore the importance of targeted and well-distributed fiscal policies to address Papua’s unique socio-economic challenges. By prioritizing human capital, aligning infrastructure investments with local needs, and fostering balanced economic growth, policymakers can pave the way for more inclusive development across the province. This research provides valuable insights for designing effective policy interventions to reduce inequality and foster sustainable economic growth in Papua. https://societyfisipubb.id/index.php/society/article/view/743EducationEconomicGovernment expenditureInclusive Economic DevelopmentInfrastructurePer Capita Income
spellingShingle Pisi Bethania Titalessy
Radian Januari Situmeang
Herlina Irianti Mulyono
Richard Patty
Analysis of Inclusive Economic Development and Its Driving Factors in Papua Province
Society
Education
Economic
Government expenditure
Inclusive Economic Development
Infrastructure
Per Capita Income
title Analysis of Inclusive Economic Development and Its Driving Factors in Papua Province
title_full Analysis of Inclusive Economic Development and Its Driving Factors in Papua Province
title_fullStr Analysis of Inclusive Economic Development and Its Driving Factors in Papua Province
title_full_unstemmed Analysis of Inclusive Economic Development and Its Driving Factors in Papua Province
title_short Analysis of Inclusive Economic Development and Its Driving Factors in Papua Province
title_sort analysis of inclusive economic development and its driving factors in papua province
topic Education
Economic
Government expenditure
Inclusive Economic Development
Infrastructure
Per Capita Income
url https://societyfisipubb.id/index.php/society/article/view/743
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