<![CDATA[Industrial agglomeration plays an important role in improving production efficiency, regional economic growth, and the development of industrial centers. This study aims to analyze the effects of energy consumption and the number of Large and Medium Industries (LMI) on industrial agglomeration in the Southern Sumatra (Sumbagsel) region during the 2020–2025 period from an Islamic economic perspective. This study employs a quantitative approach using panel data covering five provinces, namely Jambi, Bengkulu, Lampung, South Sumatra, and the Bangka Belitung Islands, with a total of 30 observations. The analysis was conducted using panel data regression with the assistance of EViews 10, and the Random Effect Model (REM) was selected as the best model based on the Chow Test, Hausman Test, and Lagrange Multiplier Test. The results show that energy consumption has a positive but insignificant effect on industrial agglomeration, with a coefficient of 0.010772, t-statistic of 0.271195, and p-value of 0.7883. Meanwhile, the number of LMIs has a negative and significant effect on industrial agglomeration, with a coefficient of -0.074059, t-statistic of -2.441010, and p-value of 0.0215. Simultaneously, energy consumption and the number of LMIs have a significant effect on industrial agglomeration, as indicated by an F-statistic of 5.390787 and a p-value of 0.010718. From an Islamic economic perspective, the development of industrial agglomeration should be based on the principles of 'adl (justice), maslahah (public benefit), tawazun (balance), and amanah (trustworthiness) in resource management so that industrial development can take place efficiently, equitably, and sustainably.]]>
Copyrights © 2026
