Makassar Strait Area Development in Indonesia Based on the Marine Economy Sector

Abstract

The new capital city of Indonesia, Nusantara, having moved from Jakarta on Java Island to Kalimantan, is now officially located in the interregional area of the Makassar Strait. This area is expected to develop as the engine of the Indonesian economy, while various economic infrastructures are still very limited. The Makassar Strait area covers East Kalimantan, South Kalimantan, South Sulawesi, West Sulawesi and Central Sulawesi. These provinces have significant marine resource commodities and make a relatively significant economic contribution to the Indonesian economy as a whole. Using the data of the 2016 Inter-Regional Input-Output (IRIO) table which was updated in January 2021, this study aims to analyze the main sectors and inter-provincial linkages between each sector in the region. The results show that each province has a different main sector of economic development, which leads to differenct strategies based on their quadrants. Furthermore, the goal of provincial development as the new engine of the Indonesian economy is based on the assumption that the marine sector is on an industrial scale.