ECONOMIC GROWTH BEHIND THE BOARD POST PANDEMIC

(LITERATURE STUDY ANALYSIS)

 

Abdulloh

Master of Economics and Business, State University of Malang, Indonesia

 

�[email protected]

 


Received: 04-10-2022 �������������������������������� Accepted: 16-11-2022 �������������������� ����������� Published: 16-11-2022������

 

ABSTRACT

Introduction: Population growth in Indonesia is getting higher. This change is influenced by population density. Economic growth in the behind-the-board area is still volatile; this can be addressed by planning for human resource development and managing business fields in several regional sectors. The purpose of this study is to analyze the economy of Balikpapan in 2022. Method: This study uses a qualitative literature study method. Through data collection from journals and other literature supporting media. Result: The study results indicate that the economy behind the board area needs to develop a strategy to adjust the existing potential by increasing the balance of human resources as management staff. It is based on the performance achievements of local companies by collaborating in the international market sector. The achievement of business economic development through increasing MSMEs in several areas behind the board is an effort to improve the creative economy. Conclusion: The market shift has created a new attribute among the business, tourism and micro and macroeconomic sectors. The development aspect supports regional progress in economic growth with the high capacity of the population in Indonesia, especially behind the board. The creative economy has become a significant change from the existence of the Indonesian youth creative economy movement.

 

Keyword: Growth, Economy, Balikpapan, Post Pandemic

 



Corresponding Author: Abdulloh

E-mail: [email protected]

 

INTRODUCTION

Population growth in Indonesia is growing day by day. The increase in population is a measure of economic growth. Based on the primary needs of each region, the State requires food, shelter and housing. The general context is clear that the economic changes in Indonesia are undergoing rapid shifts due to the high population growth. Balikpapan is the gateway to the Eastern Indonesia region (Hadiyatno et al., 2018). The potential development of human and natural resources in the area behind the board is very high, so it becomes a discourse in changing the regional order. As behind the panel is planned as the capital city of Indonesia.

Economic awareness is an essential foundation for increasing the stability of the country's wealth. The potential behind the board can be adequately developed if human resources can appropriately manage the structure of development, economy, and tourism. Understanding developing business in several sectors of the economy behind the board is an innovation that must be designed according to the needs of the Indonesian people, especially Balikpapan. With the development of the strategic environment and the perception of potential threats faced by Indonesia, it is necessary to make adjustments between development policies and defence strategies related to efforts to strengthen security and international cooperation in various fields. (April & Defence, 2020).

The government must review the mechanism of economic development in 2022. They know the economy's capabilities in the city of Balikpapan through an analysis of economic growth (GRDP) with an economic base approach to identify which sectors are the most superior and strategic to be developed (April & Defense, 2020). With this Analysis, the central and local governments can place business projects according to the potential and opportunities in the local area. Follow-up economic development is a big hope for the community to achieve stable financial stability.

The embodiment of the creative market is divided into several groups. Among them are traditional and modern market groups. The two markets are divided into implementation strategies for developing transaction models, like conventional and online transactions. According to Sumodiningrat, community empowerment is an effort to make the community independent by realizing the potential capabilities possessed by the community (Hadiyatno et al., 2018). Through the preparation for developing a creative economy with digital access, the community is given special education and training as a provision of science and technology.

The government's awareness of the potential wealth of the sea and hills owned by the city of beam boards to achieve the target of industrial management. The breadth of job opportunities is because it has a reasonably large business field. Economic development in the behind-the-scenes sector is the primary embodiment of the improvement of the creative economy, which will be developed by Indonesian youth towards a golden Indonesia. Many people from outside Kalimantan live in the Kalimantan area for several reasons, including economic and population density in the place where they live. The city of Balikpapan consists of 5 (five) sub-districts and 27 (twenty-seven) urban villages, which are cities in East Kalimantan, Indonesia (Praditha et al., 2019). Balikpapan City has an area of 50,330.57 ha, consisting of 12% sea area and 85% hilly area. A coastal and marine area that stretches along a coastline of 45.6 km, this city is located on the east coast of Kalimantan, which is directly adjacent to the Makassar Straits.

There is a sea to utilize marine fishery resources, with regional developments and job expansion innovations. They are establishing tourist attractions with the use of ecosystems and food creation through the processing of foodstuffs from marine resources. For example, fish produced by fishermen can be innovated by marketing through fish chip products, processing restaurants, crackers, and home industries. Expansion of employment in coastal areas is one of the objects of tourism development. Suppose the creative economy movement through increasing MSMEs is adequately realized. In that case, it can help the economic recovery program of the central government and local governments (Praditha et al., 2019). The fisheries sector has excellent potential as a regional development capital; this statement will be realized if the fisheries sector is the economic base sector.

The natural wealth behind the board is not only developed in a marine ecosystem but through the development of industry and wood processing with extensive natural plantations capable of providing business opportunities for the local community. Balikpapan is one of the cities in East Kalimantan which has experienced very rapid economic growth since the 1970s, namely since the increasing world demand for wood commodities in East Kalimantan (Primary, 2020) . The timber sale in the Kalimantan region is well known in various sectors of Indonesia.

Indonesia's natural wealth is extensive and promises managers of both micro and macro business fields high potential. Through the system and cooperation between sectors of the local economy. To develop the creative economy area, it is necessary to have an excellent social network so that it becomes the capital basis for the development of communication. Attitudes and cooperation between business fields make the economic movement advanced and established. The government will start noticing results based on potential and natural wealth, which will establish collaboration with MSMEs in Indonesia. The creative industry is a field that has the potential for development, considering that this industry has unlimited resources and is based on the intellectuality of its human resources (Syaputra et al., 2021). The growing creative industry in Indonesia, the more it shows that the Indonesian economy can innovate and compete

Kalimantan holds various wood-producing plants, especially wood from tropical forests (Syaputra et al., 2021). The natural wealth in Kalimantan includes wood processing. Harvesting wood produces small pieces of residue that have been underutilized. On the other hand, one of the superior products entrepreneurs sell in the Inpres market is a typical Kalimantan woven fabric. With these resources, of course, it has the potential to be developed as a regional speciality product. Protection of timber-producing forests must be increased because significant assets in the Kalimantan region have a pretty good income. If the resilience of the protected forest decreases, it is feared that there will be timber theft and a significant reduction in timber, which will impact regional and State losses.

The utilization of tropical forests can be developed to improve the regional economy and society. However, some of the problems in Indonesia's population are still at the poverty line, with several indicators including low education, early marriage, lack of attention from the central and local governments, and not a steady income. The challenges in development faced by the central and local governments are poverty, unemployment and social inequality (Syaputra et al., 2021). The result of quality human resources is one solution in responding to these challenges. To improve human resources, the government must provide skills and training, offer scholarships to students and support the readiness of education costs.

Based on this research, it can be formulated: a. How is economic development behind the board after the pandemic? b. Can the processing of natural resources from the local government improve people's welfare? the purpose of this research is to find out the economic growth behind the post-pandemic board. As can provide practical benefits to increase public knowledge regarding the role and efforts to restore the people's economy in terms of natural resources (natural resources) power lines, to be able to utilize natural resources properly and correctly without having to damage the environment. Researchers suggest that the natural wealth owned in the balikpapan area has the potential category to be developed by the central and regional governments. Natural wealth in general directs the level of social welfare with the qualifications of food sources, jobs and processing of raw materials into a product that has a high selling value if it can be managed properly. In principle, welfare dominates the aspects of development and availability of goods and services.

 

METHOD

This research uses a qualitative method of literature study design. According to (Fadli, 2021), The research approach used is qualitative, namely research by understanding social phenomena. The existing data is then described (Moleong, 2007: 6). Analysis of theoretical studies (Praditha et al., 2019) policy supervisors related to the fisheries sub-sector in Balikpapan City and the Central Statistics Agency for Balikpapan City to obtain data on Balikpapan City GRDP Value based on constant prices and current prices in 2010-2017, East Kalimantan Province GRDP value based on regular prices and current prices in 2010-2017, Development of RTP City. Balikpapan in 2010-2017, Development of fishery production in Balikpapan City in 2010-2017, Number and composition of the population of Balikpapan City in 2010-2017

Researchers collected data by collecting journals and ebooks for analysis based on relevant findings. Steps to complete the literature study include collecting journals related to the behind the scenes economy, analyzing and following up on every aspect of the problem from the references the researchers got.

 

RESULTS AND DISCUSSION

Based on the analysis results from several reference journals, researchers can understand that economic activities in Balikpapan must be redeveloped in 2022. There are changes in the management system for natural resources and human resources. The current financial processing process has significant changes, with online transactions as the main supporting factor for the development of the East Kalimantan region, which will become the capital city of Indonesia. The central government has raised funds for economic progress in various parts of Indonesia. The provision of KUR funds with low-interest rates and the empowerment of MSMEs through the creative economy movement is part of the micro and macro business sectors. The efforts of the central government to cooperate with the development and improvement of MSMEs are one of the keys to the community's economic progress.

The development of MSMEs in the Kalimantan area is quite extensive through the awareness of the youth of Kalimantan to form the GEKRAF (Creative Economy Movement) organization which embodies the development of local products assisted by the product development process through a licensing system and collaboration between tourist attractions and the sectors involved. The opinion of (Syaputra et al., 2021), MSMEs are the leading figures in economic activity in Indonesia. In general, MSMEs in the national economy have the following roles: (1) providing employment opportunities, (2) playing essential roles in local economic development and community empowerment, (3) creating new markets and sources of innovation, and (4) contributing to the balance of payments (Putra, 2016).

Through the market sales mechanism, MSMEs create an active community to develop their potential and skills; with the provision of funds and assistance from the government, the community can develop regularly and programmatically. The discourse from MSMEs towards a prosperous society by producing new local products is assisted in the legality process with digital marketing methods. Using applications on Android phones is a community-conscious effort to form creative economy groups (Musta'in et al., 2022).

Utilizing functions with good financial income can help people become financially literate. They are reducing unemployment and assisting the development of individual and group potential. As the population increases, economic needs also increase (Widiarani et al., 2021). Within five years, the economic growth of the City of Balikpapan has experienced a fluctuating increase in the Economic Leading Sector Analysis of the City of Balikpapan and Samarinda, which has a reasonably high range. The change in this surge has become the government's discourse on stable economic resilience in the Balikpapan area. Opportunities that have developed into people's business capital in living their daily lives. The level of welfare has begun to stabilize. The community feels that economic growth in the tourism, marine and industrial sectors is relatively stable.

Its economic growth is a benchmark for economic development and a barometer for the development of East Kalimantan Province. Balikpapan City had a contribution of 14.76% in 2015, and its contribution reached 15.66% in 2019 (Widiarani et al., 2021). Meanwhile, Samarinda City contributed 10.09% in 2015, and in 2019 it increased to 10.49%, according to BPS (2020). Increasing income from the Kalimantan region is an excellent economic guide for Indonesia. The majority of the population domiciled in West Java, Central Java, and East Java are in Kalimantan for reasons of business, work, etc. Some reasons for transmigration become a reference that some residents in the Java region still need to receive an established economic need. The family chose Kalimantan as one of the overseas cities to stimulate economic growth. Some of the residents of Kalimantan continue their education in the Java region to increase human resources to preserve the high economic growth rate.

Balikpapan's economy has become stable due to environmental empowerment from the government, and the pace of economic progress is the beginning of the gateway to the nation's progress. Opinion from (Wicaksono, 2019) The economic potential of each region needs to be utilized effectively and efficiently to support the development and economic growth in the area. Awareness of local government and local communities is part of healthy economic development. This means that the people's economy recovers when the community undergoes changes and moves independently. As a state facilitator, the government supports local community programs by opening training in and outside the region, establishing cooperation between countries, improving education and reducing poverty. Such awareness is a reasonable effort and collaboration. Because the natural potential and job opportunities in Indonesia are pretty vast, it is just that people are less able to move actively and creatively.

Changes in the creative economy through economic development with innovation and skill improvement are essential for advanced economic movements in various regions, especially Balikpapan. Economics, in general, is allocating, producing, distributing and consuming goods and services needed by a person, group of people, society or the State (April & Defense, 2020). The economy has excellent opportunities to change people's lives as part of the need to survive. A stable economy can promote a healthy population recovery. Vice versa, if the economy slumps, conditions will worsen. The changes that the government will build for the community are carried out in stages. Change means following the mechanism of population growth that will help a healthier life.

Excellence is a derivation of a postulate developed in international trade studies, where a country must have an advantage (April & Defence, 2020) Sector. Domestic products that have been designed must have national recognition and confirmation. To recognize the results of the finished product, the community can market it by getting a particular brand so that all consumers easily recognize it. The purpose of the product brand as the legality and identity of the product's origin is developing. This effort is to make online or traditional merchants have superior value in the world market.(April & Pertahanan, 2020)

Based on the Analysis according to (Endrawati et al., 2021), population data originating from the North Balikpapan District in figures 2019 explains that the area in the Graha Indah Village has several different types of work. Some jobs in the Graha Indah sub-district are 357 traders, 334 farmers, and 1411 workers. People still need to understand the ways and strategies of business development. The category of traders still needs to be higher compared to workers. This needs to be followed up in developing the potential for trading businesses through debriefing and training on the use of goods and services, potential food resources, and marine and tropical forest products. The creative economy movement needs to be synergized with sector managers so that the community wants and is willing to build the Balikpapan economy through the creative economy movement.

Tourism can help people achieve economic improvement by offering a variety of unique tourist destinations and foods to achieve the progress of tourist attractions. There are marine tourism spots in coastal areas to be managed with exciting rides and culinary delights. When the tourism sector has a coastal culinary innovation program, the place is managed uniquely by building cooperation to create a creative culinary market. Tourism is one of the capitals in increasing the income of a region. Such efforts help the community deal with changing times and increasingly rapid technological shifts (Hadiyatno et al., 2018). Traders will implement marketing through applications such as food and other forms of application. Tourism development is part of national development with goals, among others, to expand business opportunities and employment (Hadiyatno et al., 2018).

Dynamic economic developments have caused Balikpapan City and Samarinda City sectors to fluctuate (Kosanke, 2019) (Wijaya et al., 2020). The manufacturing industry has the highest role in forming the GRDP of Balikpapan City, while in Samarinda City is the construction sector. The growth rate of the manufacturing industry sector fluctuated in the 2015-2017 period, then tended to increase until 2019. In 2019 the growth rate of the manufacturing industry was 4.47%, higher than in 2018, which was 4.09%. Meanwhile, in the same period, the construction sector's growth rate in Samarinda in 2019 was 4.72%, a decrease compared to 2018, which grew by 6.15% (Statistics, 2016). Such changes are one of the aspects that support the welfare of the people of Balikpapan to continue to innovate in developing businesses in the tourism sector, food processing, and empowering natural resources.

The purpose of the creative economy movement is to become an important vehicle and skill that must be developed to provide training for Indonesian youth. The provision and training of these skills are not only in demand by the people in coastal areas, but the development of the area becomes the primary reference that the population distribution in the region has the potential to have an element of rapid opportunity when appropriately developed. Achieve the population's success level when viewed from the established business's management, distribution and development. Economic progress encourages the emergence of new business actors, giving rise to intense business competition (Arifin, 2011). All business ventures are trying to get the maximum profit. The community feels that developing the business contributes to empowering a healthy environment and improving the management of natural potential by offering convenience to the population. Economic empowerment is a step taken to strengthen the economy and have competitiveness. An economy that can build a conscious business makes a particular strength for the State in helping the rate of growth and development towards increasing the degree of MSMEs (Basmar et al., 2021).

 

CONCLUSION

Post-pandemic Balikpapan economic development has decreased significantly. One of the steps built to improve recovery is through financial literacy. Can develop through production engineering, namely building a creative economy in the Kalimantan region, especially Balikpapan. Until now, the management of natural resources from the government has become one of the main assets of the community in developing goods and services. Therefore, cooperation between producers, the government and consumers is needed for the market needs needed by the community. So as to obtain wealth from production, good processing to increase post-pandemic economic stability.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

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