The Indonesian Journal of Islamic Economics Research
Vol. 7 No. 2 (2025)

Not all sectors are equal: LQ and DLQ Reveal Pangkalpinang’s true economic driver

Michael Kusuma (Ministry of Finance, South Jakarta)
Brigitha Mega Rebeca (Ministry of Manpower, South Jakarta)



Article Info

Publish Date
31 Dec 2025

Abstract

Economic policy in Pangkalpinang City risks misallocation if relying solely on static data. This research identifies leading sectors (2018–2022) by integrating the Location Quotient (LQ) and Dynamic Location Quotient (DLQ). The study's novelty lies in using LQ to identify the current base and DLQ to project future potential, yielding a strategic map to differentiate between leading and mature sectors. Using time-series Gross Regional Domestic Product (GRDP) data from BPS, this research assesses each sector's specialization and dynamics. The results reveal a critical divergence: although 13 sectors were identified as base (LQ > 1), the analysis shows the information and communication sector is the only true leading sector (base and prospective). Other main base sectors, such as trade and construction, were found to be mature (base but non-prospective). This finding offers a practical implication: policy priorities must focus on accelerating the digital economy while maintaining stability in mature sectors.

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Journal Info

Abbrev

ijier

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Indonesian Journal of Islamic Economics Research ( IJIER) is a research journal in the discipline of Islamic economics which is expected to contribute to a new or state-of-the-art for academic development or real-world applications, or both. This journal encompasses original research articles, ...