Determination Analysis of the Leading Sectors of the Economy
of Bandung Raya Area
Yana Rohmana and Suci Aprilliani Utami
Universitas Pendidikan Indonesia, Jl. Dr. Setiabudhi 229, Bandung, Indonesia
Keywords: Leading Sector, Klassen Tipology, Location Quotient, Multiplier.
Abstract: It is important for each region to determine its leading sector which acts as the first mover in which each of
its changes has a multiplier effect on the economy as a whole. This study aims to analyze the leading
sectors in Bandung Raya area. The analytical tool used in the determination of the leading sector in
Bandung Raya area is Klassen Tipology and Location Quotient analysis, using time series data undefined
from four regions in Bandung Raya during the period of 2011-2015. The result from the research is known
that each region in Bandung Raya area has their own superior sectors. The city of Bandung and Cimahi
City are very prominent in the information and communication sector, Bandung regency has the processing
industry as the leading sector, and West Bandung Regency has the leading sector in the field of
accommodation and drinking. There is one sector that has the same superior in the four regions in Bandung
Raya area that is the education service's sector. The implication is that each region can develop the leading
sector to promote the region and prosper from the people.
1 INTRODUCTION
The growth of several leading sectors or bases will
determine the overall development of the region,
resulting in increased revenues and consumption
and investment. The increased revenue will increase
demand for the leading sectors, which will also
boost demand for non-leading sectors, which will
also boost non-priority sector investment.
The policy of development strategy should be
directed to policies that provide optimal impact for
economic growth, increase in people's income that
poverty decreases and job creation so
unemployment can decrease, as well as improving
the quality of human resources. The leading sectors
gained through analysis can be the basis of
consideration in future development planning. The
regional development policy has established nodal
regions, i.e. structural areas consisting of the core
area with complementary adjacent areas.
Description of the conditions above one of them
occurred in the area of Bandung, where the city of
Bandung serve as the center of economic activity,
because almost all infrastructure that support
economic activities exist in the region of Bandung.
As a result the rate of economic growth Bandung
becomes higher than other regions incorporated into
Bandung Raya consisting of Bandung, Bandung
Regency, Cimahi City, and West Bandung regency.
This can be seen from the data recapitulation
realization of local revenue Bandung has a higher
income in comparison local revenue other regencies
/ cities as Bandung Raya period 2010-2014. In 2010
local revenue Bandung reached Rp 442 billion and
in 2014 has reached Rp 1.763 trillion (BPS Jawa
Barat).
Based on the above, it is important for each
region in Bandung Raya to determine the superior
sector. Because, as the name suggests, the leading
sector activities have the role of the first mover
where every change has a multiplier effect on the
aggregate economy. That is the importance of this
research, which determines the leading sectors of
each region as Bandung Raya.
Some of the previous studies related to this are
Amir and Riphat's research in 2005 in East Java
based on superior sector analysis and sectoral
linkages recommended to make East Java an
industrial center, trade center, and agricultural
center. Fachrurrazy's research in 2009 in North
Aceh Regency resulted from Klassen Tipology
analysis, Location Quotient analysis and Shift Share
analysis showed that the sector which is the leading
sector in North Aceh Regency with criteria of
advanced and fast growing sector, basic sector and
competitive sector is agriculture sector.
Rohmana, Y. and Utami, S.
Determination Analysis of the Leading Sectors of the Economy of Bandung Raya Area.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 777-779
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
777

This base theory or sector is based on J.S.Mill
thinking that in solving the problem of growth and
regional equity it is suggested that there is inter-
regional trade, by realizing regional specialization.
The rationale of the theory of economic basis
according to Kadariah (1985: 70) is that the base
industry produces goods and services both for
markets within and outside the region, the sale of
out-of-region results will bring income flows into
the area. This revenue stream causes both increases
in consumption as well as an increase in investment
in the area, which in turn raises income and
employment. And this study aims to analyze the
leading sectors in Bandung Raya area.
2 METHODS
The analytical tool used for the determination of the
leading sector in Bandung Raya area is (i) Klassen
typology, used with the purpose of identifying the
position of the district / city economic sector by
taking into account the economic sector of West
Java Province as reference area. Klassen Typology
Analysis produces four sector classifications with
different characteristics as follows (Sjafrizal, 2008:
180): Sector advanced and growing (developed
sector) (Quadrant I); Sector advanced but stagnant
(Quadrant II); Potential sector or developing sector
(Quadrant III); and the underdeveloped sector
(Quadrant IV). (Ii) Location Quotient Analysis,
Used to determine the base and non-base sectors in
the regional economy of Bandung Raya in West
Java Province. To get the Location Quatient (LQ)
value using the method referring to the formula put
forward by Bendavid-Val (Kuncoro, 2004: 183):



jabarijabar
kotakabikotakab
PDRBPDRB
PDRBPDRB
LQ
/
/
,
/,/
PDRB kab / Kota, i = GDP of sector i in the
regency / municipality in a given year; ∑ PDRB kab
/ Kota = Total GRDP in the Regency / City in a
given year; PDRB jabar, i = GDP of sector i in
West Java Province at a certain level; π∑ PDRB
jabar = Total GRDP in West Java Province in
certain year. Provided that the value of LQ > 1, it
can be concluded that the sector is a base sector and
potential to be developed as a driver of the economy
and vice versa if LQ < 1.
The data used are time series data from four
regions in Bandung Raya area covering Bandung,
Bandung Regency, Cimahi City, and West Bandung
Regency during the period of 2011-2015 with
constant 2010 prices.
3 RESULTS AND DISCUSSION
Based on the calculation analysis using Klassen
Tipology and Location Quotient (LQ), it is known
that in Kota Bandung sector that enter quadrant I
advanced and fast growing sector and LQ value
more than one there are 7 sectors, they are
information and communication sector;
Construction; Large and Retail Trade, Car Repair
and Motorcycles; Transportation and Warehousing;
Provision of Accommodation and Drinking; Real
Estate; And the Company Services sector. Of the
seven sectors that become the leading sector of the
highest value is the information and communication
sector.
The information and communications sector in
Bandung is the most superior sector based on the
growth of economic growth with the highest growth
rate compared to other sectors in 2011, 2013, 2014
and 2015. And in 2015, economic growth reaches
16.47%. More than that it is known that the
economic growth of Bandung in 2011 to 2015 is
higher than the economic growth of urban districts
in Bandung Raya area.
Although the information and communication
sector is the most superior sector of the other in the
city of Bandung, but when viewed from the
percentage distribution of Gross Regional Domestic
Product (GRDP) known that the city of Bandung in
general the structure of the economy dominated by
field of business categories of large and retail trade,
car repairs and Motorcycles and the category of
processing industries. Distribution of PDRB
percentages broken down by these categories and
sub-categories shows the role of each sector to
GRDP as a whole.
Based on the above results visible for the city of
Bandung which is also the capital of West Java
province has occurred higher shift again starting to
go as a service city. No wonder if later Bandung
became the core city to metropolitan Bandung
Raya.
Relative results are also obtained by the City of
Cimahi that based on the analysis of Klassen
Tipology and Location Quotient (LQ) is known that
in the City of Cimahi sector entering the first
quadrant of advanced sector and grow rapidly and
LQ value more than one there are 5 sectors,
Information and communication of the highest
value; Followed by education services sector;
Financial Services and Insurance; Large and Retail
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
778

Trade, Car Repair and Motorcycles; And
Administration, Defense and Social Security
sectors.
Viewed from the structure of the economy,
some people of Cimahi City are based on industry,
especially textile and apparel industry. This can be
seen from the contribution of agriculture to the
preparation of GDP Cimahi City until 2015 by 46
percent.
For Regency of Bandung based on analysis of
Klassen Tipology and Location Quotient (LQ), it is
known that in Kabupaten Bandung sector that enter
quadrant I advanced and fast growing sector and
LQ value more than one there are 2 sectors, that is
covering processing industry sector and real estate
sector. This is indeed supported by geographical
conditions that make Bandung suitable as a region
of processing industry, the manufacturing sector is
the main contributor in the economy (PDRB)
Bandung regency.
While for West Bandung Regency, based on
analysis of Klassen Tipology and Location Quotient
(LQ) it is known that in West Bandung regency
sector that enter quadrant I advanced and fast
growing sector and LQ value more than one there
are 3 sectors, that is covering sector of Provision of
Accommodation and Eating and drinking; Real
Estate, and Electricity and Gas Procurement sector.
Policymakers must be right in making decisions.
Identification of investment priorities within these
potential sectors and implementation of a
comprehensive regional development policy plan
would definitely accelerate the economic growth of
Banyuwangi (M. Khusaini, 2015). And Zizi
Goschin (2014) the results from the shift-share
analysis suggest that the developed regions can
recover more easily from the crisis, due to their
economic potential, and the regional disparities are
likely to deepen unless appropriate regional policies
are enforced.
In the future, the development of Metropolitan
Bandung Raya as Metropolitan Modern is based on
urban tourism, creative industry, and science,
technology, and art. Where the focus of
development is (i) Bandung is defined as the core
city with its main activities are trade and services
sector, creative and high tech industries, and
tourism. (ii) Kota Cimahi as the core city with its
main activities is trade and services sector, creative
and high technology industries. (iii) Bandung
Regency with its main activities is the development
of non-polutif industrial sector, agriculture and
plantation. (iv) Regency of West Bandung main
activity is non-polutif industrial sector, agriculture,
creative industry and high technology. And (v)
Sumedang Regency is equipped with supporting
facilities and centers of higher education in
Jatinangor, agribusiness, and non-qualified areas.
4 CONCLUSIONS
The economic activities within which there are
excellent sectors are highly dependent on the
characteristics of the region apart from the potential
of its natural and human resources. The city of
Bandung and Cimahi City are very prominent in the
information and communication sector, Bandung
regency has the processing industry as the leading
sector, and West Bandung Regency has the leading
sector in the field of accommodation and drinking.
There is one sector that has the same superior in the
four areas in Bandung Raya area is the education
services sector. And the districts / cities that have
economic growth and GRDP per capita is higher
than the growth rate and GRDP per capita of West
Java Province is located in the first quadrant is the
city of Bandung and Kota Cimahi
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