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Ikhlasul A’mal
Politeknik Statistika STIS

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The Impact of Mining and Metal Industry Investment on The Economy of Southeast Sulawesi Province: Input-Output Analysis Hasna Arifah Nur Fatih; Ikhlasul A’mal; Rafael Agintha Tarigan; Yuniar Yudhi Tirana; Fitri Kartiasih
Ekonomi dan Bisnis Vol 13 No 1 (2026): EKONOMI DAN BISNIS
Publisher : Fakultas Ekonomi dan Bisnis, Universitas Pembangunan Nasional Veteran Jakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35590/jeb.v13i1.12377

Abstract

Purpose: This research aims to provide an overview of the input-output structure in the metal ore mining and basic metal industries, determine the leading sectors and their role in other sectors, and assess the impact of investment in these sectors on the economy of Southeast Sulawesi. Design/methodology/approach: This study uses data from the 2016 Input-Output Table of Southeast Sulawesi Province, which was updated to 2023 using the RAS method. The analysis used in this study is multiplier analysis, linkage analysis, and impact analysis. Findings: The results show differences in output structure between the metal ore mining sector and the basic metals industry. From an input perspective, both are efficient because primary input is greater than intermediate input. Metal ore mining is also one of the leading sectors in Southeast Sulawesi. Simulating investment in both sectors simultaneously yields a larger output increase compared to investing in only one sector. Research limitations/implications: The research is limited to data from the Input-Output Table for Southeast Sulawesi Province, and therefore has not yet been able to capture the relationship between the input-output structure and other regions. Further studies are recommended using the Interregional Input-Output (IRIO) Table, which allows for a more comprehensive analysis of interregional linkages. Practical implications: The government needs to utilize the output of the basic metal industry as raw materials for other sectors to stimulate economic growth. In addition, it is also necessary to prioritize downstreaming of metals thru the construction of smelters to increase added value while maintaining environmental sustainability. Originality/value: This research offers a novel contribution by integrating the mining sector and its downstream industries, namely the base metal industry, into the provincial-level analysis to provide a more representative picture of mineral resource potential in Southeast Sulawesi.