The influence of infrastructure on economic growth in indonesia 2016-2022
DOI:
https://doi.org/10.35335/ijosea.v15i1.752Keywords:
Economic Growth, GRDP, Infrastructure, Panel Data AnalysisAbstract
This study investigates the influence of infrastructure on economic growth in Indonesia from 2016 to 2022, offering a novel contribution by simultaneously analyzing multiple infrastructure dimensions road length, electricity distribution, clean water availability, and the number of educational institutions across all 34 provinces over seven years. The research addresses the ongoing issue of regional economic disparities despite sustained infrastructure investments. Using a quantitative approach, the study employs secondary data from the Central Bureau of Statistics (BPS) and applies panel data regression with the Fixed Effect Model (FEM) as the most suitable estimation method based on model selection criteria. The variables analyzed include road length (Km), electricity distributed (GWh), clean water distribution (L/sec), and the number of senior high schools (units), with Gross Regional Domestic Product (GRDP) at current market prices as the dependent variable. The empirical results indicate that electricity distribution, clean water access, and the number of senior high schools have a significant positive effect on GRDP, highlighting their role in enhancing productivity and economic performance. Conversely, road length exhibits a significant negative effect, suggesting a tested reverse hypothesis: that road expansion, in some regions, may not translate into economic gains due to inefficiencies in allocation or lack of alignment with local economic needs. These findings underscore the importance of strategic, need-based infrastructure planning to foster equitable and sustainable economic growth in Indonesia
Downloads
References
Afifah, Cintya, Mufidahsari Puteri, Dyah Maya Nihayah, and Retno Febriyastuti Widyawati. 2024. “Infrastructure Development and Its Influence on Income Disparities : Case Study in Indonesia.” Proceedings of the 4th International Conference on Social Sciences and Law 4(1). doi: 10.2991/978-2-38476-303-0.
Asrul Asrul, Syofria Meidona, Lili Salfina, and Della Maretha. 2023. “The Role of Infrastructure on Economic Growth in West Sumatra Province.” International Journal of Social Science and Human Research 6(08):5242–50. doi: 10.47191/ijsshr/v6-i8-84.
Farza, Tengku Citra Nisa, and Andri Zainal. 2018. “How the Government Quality Can Help Boosting Infrastructure Investment and Economic Growth? A Closer Look at Indonesia’s Practice.” International Journal of Academic Research in Business and Social Sciences 8(7):542–53. doi: 10.6007/ijarbss/v8-i7/4396.
Fitri, Desika Eka. 2024. “Public Infrastructure Towards Economic Growth in Bali Province.” Journal of Finance and Business Digital (JFBD) 3(4):573–82. doi: https://doi.org/10.55927/jfbd.v3i4.12755.
Gati, Sekar Asmoro, and Khoirunurrofik. 2023. “The Effect Of Telecommunications Infrastructure On Inclusive Economic Growth In Indonesia 2011−2021.” International Journal of Innovative Technologies in Social Science (2(38)). doi: 10.31435/rsglobal_ijitss/30062023/8007.
Ghufron, Moh Idil, and Ahmad Ali Bustomi. 2022. “Infrastructure Development And Socio-Economic Disparities In Indonesian Society.” IJED: International Journal of Economy Development Research 1(2):22–33. doi: 10.33650/ijed.v1i2.5719.
Husein, Zulfikar, and Siti Aisyah. 2022. “The Influence of the Tourism Sector and Local Revenue on Economic Growth in Bali.” ICOEBS 4(1):982–90. doi: 10.2991/978-94-6463-204-0_80.
Hutauruk, Rapat. 2021. “Pengaruh Infrastruktur Terhadap Pertumbuhan Ekonomi Di Kota Pematangsiantar.” Ekuilnomi : Jurnal Ekonomi Pembangunan 3(1):2614–7181. doi: 10.36985/ekuilnomi.v3i1.77.
Irawan, Tony, Djoni Hartono, Irawan Ferry, and Arief Anshory Yusuf. 2012. “Infrastructure Improvement and Its Impacts on the Indonesian Economic Performance 12.” Journal of Indonesian Economy and Business 27(3):293–302. doi: 10.22146/jieb.6235.
Irwandi, Herwin, Abd Jamal, and Muhammad Nasir. 2025. “How Investment Mediates Infrastructure Effect on Economic Growth in Indonesia.” Grimsa Journal of Business and Economics Studies 2(2). doi: 10.61975/gjbes.v2i2.59.
Joeliaty, Joeliaty. 2024. “The Impact of Infrastructure Development, Education, Tourism, and Agriculture on Regional Economic Growth in Indonesia.” The Es Economics and Entrepreneurship 2(03):193–207. doi: 10.58812/esee.v2i03.235.
Kresna Sakti, Rachmad, Eddy Suprapto, and Axellina Muara Setyanti. 2022. “The Economic Impact Analysis Of Infrastructure Development In East Java: Do Roads Drive Growth?” Journal of International Conference Proceedings (JICP) 5(2):687–95. doi: https://doi.org/10.32535/jicp.v5i2.1975.
Manthofi, Afif, Siti Aisyah. 2024. “Pengaruh Sektor Pariwisata Terhadap Pertumbuhan Ekonomi Di Provinsi Nusa Tenggara Timur.” COSTING: Journal of Economic, Business and Accounting 7:982–90. doi: 10.2991/978-94-6463-204-0_80.
Munawaroh, Siti, and Tri Haryanto. 2021. “Development of Infrastructure And Economic Growth of Papua Province.” Media Trend 16(1):19–31. doi: 10.21107/mediatrend.v16i1.7454.
Nurlestari, Adinda Dwi, and Shanty Oktavilia. 2023. “Industrial Agglomeration and Economic Growth in Indonesia.” Efficient: Indonesian Journal of Development Economics 6(1):1–12. doi: 10.15294/efficient.v6i1.55232.
Pratama, Fryma Putra, Emmilya Umma, Aziza Gaffar, Universitas Mulawarman, Kota Samarinda, and Kalimantan Timur. 2025. “The Impact of Regional Infrastructure Sector Investment on Economic Growth and Regional Inequality in East Kalimantan Province , 2012 – 2023.” International Journal of Economics, Commerce, and Management 2(1):44–52. doi: https://doi.org/10.62951/ijecm.v2i1.354.
Rijal, Syamsu, Masnawati S, and Baso Iwang. 2023. “Analysis of The Effect of Infrastructure Investment on Economic Growth in Indonesia: Linear Regression Model Approach.” International Journal of Business, Law, and Education 4(2):1282–94. doi: 10.56442/ijble.v4i2.319.
Romhadhoni, Putri, Dita Zamrotul Faizah, and Nada Afifah. 2019. “Pengaruh Produk Domestik Regional Bruto (PDRB) Daerah Terhadap Pertumbuhan Ekonomi Dan Tingkat Pengangguran Terbuka Di Provinsi DKI Jakarta.” Jurnal Matematika Integratif 14(2):115–21. doi: 10.24198/jmi.v14.n2.2018.115-121.
Sawitri, Dhian. 2023. “The Contribution of Road Construction on Regional Economic Development in Indonesia.” Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning 7(3):313–33. doi: 10.36574/jpp.v7i3.409.
Sebayang, Asnita Frida. 2020. “Economics Development Analysis Journal Infrastructure Investment and Its Impact to Regional Development.” Economics Development Analysis Journal 9(3):269–80. doi: https://doi.org/10.15294/edaj.v9i3.38859.
Solihatun Mardiah, and M. Irwan. 2024. “Analysis of the Effect of Infrastructure Development on Economic Growth in Mataram City.” Socio-Economic and Humanistic Aspects for Township and Industry 2(2):290–98. doi: 10.59535/sehati.v2i2.278.
Solow, Robert M. 1956. A Contribution to the Theory of Economic Growth. Vol. 70.
Suprapto, Firre An, Agus Manshur, Sumedi Andono Mulyo, Editha Praditya, and Fiktia Alfianita. 2024. “The Role of Basic Infrastructure to Strengthen Economic Security in Eastern Indonesia.” The Journal of Indonesia Sustainable Development Planning 5(2):117–33. doi: 10.46456/jisdep.v5i2.563.
Syahputra, Tatang Syahban Adi, Elidawaty Purba, and Darwin Damanik. 2021. “Pengaruh Infrastruktur Terhadap Pertumbuhan Ekonomi Di Kota Subulussalam.” Jurnal Ekuilnomi 3(2):104–14. doi: 10.36985/ekuilnomi.v3i2.261.
Todaro, Michael P. .., and Stephen C. .. Smith. 2020. Economic Development. Pearson.
Yuliadi, Imamudin. 2020. “Determinants of Regional Economic Growth in Indonesia.” Jurnal Ekonomi & Studi Pembangunan 21(1). doi: 10.18196/jesp.21.1.5035.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Muhammad Ibnu Aziz, Nur Hidayah Nur Hidayah
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
International Journal on Social Science, Economics and Art is licensed under a 