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Journal : Economics Development Analysis Journal

Regional Asset Utilization: How Can it Affect Regional Income and Poverty? Hadi, Rahman; Maulana, Arief; Mahesa, Rama; Sitepu, Rasidin Karo Karo; Mustikawati, Rindang
Economics Development Analysis Journal Vol. 13 No. 3 (2024): Economics Development Analysis Journal
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v13i3.8841

Abstract

This study examines Indonesia’s regulatory framework and empirical practices regarding using regionally owned assets. By applying the two-stage least squares (2SLS) technique for the national macro model, the study also seeks to determine the effects of increased regional asset utilization on poverty reduction and regional revenue across various regions. The study employs a descriptive-analytical approach using mixed methods. Fixed effect and random effect estimation techniques were utilized for the regional models, while the two-stage least squares (2SLS) method was applied for the national macro models. The Statistical Analysis System (SAS), version 4.0, was used for this analysis. The findings demonstrate that maximizing the use of regional assets positively impacts regional original income, with a 1% increase in asset utilization leading to a 0.53% rise in regional original income. Furthermore, a 1% increase in regional income results in a 0.09% decrease in poverty. Increasing regional revenue and reducing poverty are two measurable outcomes of optimizing regional assets as a policy tool to enhance regional economic performance. Several factors contribute to Indonesia’s low optimization of asset utilization, including remote geographic locations, legal disputes with third parties, numerous assets unregistered in state or regional administrations, and unclear asset allocation
Co-Authors A. Ricco Galang Erlangga Abib Riyadi Aditya Wicaksono Agryani Petra Sitorus Alda Puspita Ramadhani Aldivo Anugraha Aliyah Rahma Alsa Az Zukhruf Alviani, Safira Arafiah Amaliasari, Nuralfi Amanda Putri Amanda, Della Amer Abdul Aziz Anggraini Susanti Arief Maulana Ayudana Kezia Ayudana Kezia Pasaribu Belinda Desti Syahani Berutu, Febri Bonar M. Sinaga Della Zahwa Fadilla Desri Yohanna Devi Pradipta Disya Ayu Disya Ayu Rivtryana Diva Aprilia Nur Indah Diyah Puspa Asih Atsilanti Eka Rindah Yani Elfa Syukrina Enjelina Damayanti Falisha, Siti Nayla Farhan, Edrian Arizal Farraz Ariel Gubita Fathimah, Muthia Zahira Fayza Andani Febrina, Lien Galang Erlangga Greyuni Grace Tambunan Hadi, Rahman Hamdah Istifha Dinia Haoro, Putri Yaohanida Hawina Siti Alanasry Hibatullah, M Luthfi Husnul Arrafi Ihsan Imtiyaaz Anggraeni Inayah, Ashifa Tinezia Irvanly Dominggus Sihombing Kayla Marsa Nabila Khasanah, Zuhrotul Leopolisa, Magdalena Lien Febrina Lucky Safitri M. Ilham Riyadh Mahesa, Rama Manalu, Doni Sahat Tua Mangara Tambunan Marcella Magdhalena Erlely Mardagus, Wulandari Marsellina, Elisa Maunisa Widya Zalianty Merin Ananda Permana Fitroh Mhd Asaad Mhd. Asaad Muhammad Akbar Husain Muhammad Aryo Fachrezi Muhammad Asaad Muhammad Hafidz Azizi Muhammad Ifran Muhammad Iqbal Muhammad Puja Dwi Surya Muhammad Tsaqifa Ifada Mustikawati, Rindang Mutiara Az-Zahra Nasution, Isnirobit Fikri Novi Fitriani Novia Miftakhul Qisthi Noviana Trianti Novrini, Susan Fikri Nur Azizah Nur Faizatul Luthfiah Nur Hikmah Fathira Pazrin, Deby Putri Imelda Putri, Kurnia Rachel Azahra Raden Ahmad Rasyid Pradava Raden Fadhilla Salsabila Rahul Abi Ubaidillah Ramadhan, Muhammad Fikri Ranjani Nuralifah Reyhani Intan Sabrina Rezky Anugerah Rheisya Silvanny Ridho Christiadi Simbolon Rina Oktaviani Risma Dianitami Rivtryana, Disya Ayu Riza Permata Rizki Yuda Musidi Roby Andika Ruqoyah, Siti Nur Safira Kencana Putri Sajati, Shadida Syadza Salsa Nur Maulida Salsabila, Hanum Satrio Rasendriya Widyadhana Sebayang, Veralianta Br Silaban, Budi Siregar, Rezani Siti Fauziah Suharno Suharno Syaniah, Alifia Wardahesa Syavira Nayla Shaumy Tasya Angelita Uding Sastrawan Yolanda Desi Anggraini Silalahi Yolanika Cahyadi Zahra, Afifah Zidane, Tifani Yazid