Regional disparity in Province of Riau Islands

Abstract

Province of Riau Islands, a region as a result of the division of the Province of Riau, has high disparity between Batam and other districts. The objectives of the study are: (1) to identify priority sectors in each district; (2) to analyze level of development in each district; (3) to analyze condition and magnitude of disparity in the Province of Riau Islands; and (4) to analyze the regional development strategies of Province of Riau Islands. The analytical method used are Locational Quotient Analysis (LQ), Shift Share Analysis (SSA), Scalogram Analysis, Williamson Index, Theil Index, and Analytical Hierarchy Process (AHP). The result showed industry and commerce have become the first priority sector in urban areas. In the other hand, agricultural sector, particularly fishery, is the dominant sector in rural areas. The result of Scalogram Analysis showed the urban areas are in the first hierarchy, while the rural areas are in the second and third hierarchy. In the period of 2006 to 2010, the disparity level was decrease as indicated by 0.85 of Williamson Index (high disparity) in 2006 to 0.49 (average disparity) in 2010. The result of AHP showed the policy of regional development was to increase development of the regional infrastructure emphasize to fishery and marine sector, because the fishery and marine sector in Province of Riau Islands have a great potential.