Economic Impact Analysis of Road Infrastructure due to Estate Crops Sector in Lampung Province.

Abstract

Estate commodities are mainstay product for Indonesia export, but most of it was being export as fresh product. These facts showed that industrialization in estate crops product has not been maximized yet. Road infrastructure has important role as promoting sector for industrialization. The objective of this research are (1) to analyze the role of estate crops sector and roads, bridges and ports sector in Lampung Province economic development; (2) to analyze connection and role of investment in roads, bridges and ports sector for estate crops sector; and (3) to analyze role of road infrastructure for the improvement of coffee agribusiness performance in Lampung Province. Analysis tool used for this research are input output table analysis, multiple linear regression analysis, and efficiency analysis using mathematic equation. This research were held in Lampung Province. Input-Output analysis (IO) showed that the roads, bridges and ports sector, coconut sector, and coffee sector, are the key sectors in economic development of Lampung province. Estate crops sector who really need the output of roads, bridges and ports sector is the palm sector, while acting as input provider is rubber sector. Increased length of road has positive effect for coffee production in Lampung Province while improved quality of roads could reduce transportation costs up to 22.501%. Reduction in transport costs can reduce production costs and the price of coffee will be more competitive. In order to increased estate crops production specially coffee in Lampung Province, government should build new roads, encourage the use of high quality seeds, and rejuvenation of unproductive trees.