An analysis of leading sectors and regional development direction Of Sabang City, Aceh Province;

Abstract

Sabang city is one of the districts/cities in Aceh province that has low Gross Regional Domestic Product (GRDP) and so far Sabang under developed, although it has a wide range of potential areas that can be developed. In order to enhance the regional development progress, one of the development policy and direction of regional development is to give attention to the leading sectors. The purpose of this study were: (1) To analyse the key sectors which can provide a multiplier effect for economic growth in the Sabang city (2) To analyse the hierarchy level of regional growth based on the facilities and infrastructure in the Sabang city (3) To review extent of spatial interaction that is capable supporting development of the area in Sabang city (4) To formulate policy directions of Sabang city development. The analysis techniques used in this study were the Location Quotient (LQ), Shift Share Analysis (SSA), Input-Output (I-0), Skalogram, Descriptive analysis, Analytical Hierarchy Process (AHP) and combination of Analytical Hierarchy Process (AHP) and SWOT (AWOT). The result showed that Sabang has a sector with a competitive advantage, linkages between sectors namely the processing industrial sector, the power sector and the wholesale and retai trade sectors. The direction of development policy for leading sector in the Sabang city is increasing linkages between sectors with other sectors that can provide added value so it can increase the role of leading sectors in regional economy. Decreasing rate of regional development caused by limited amount of economic infrastructure. Therefore, the direction of development in Sabang city is economic infrastructure needs to be developed so that citizen can be motivated to participate in various economic activities in Sabang city and finally can increase rate of development in the Sabang city.