Basic Infrastructure and Economic Growth in Sumatra Province, Indonesia

Abstract

This study aims to examine the impact of basic infrastructures, such as roads, electricity use, irrigation, and educational facilities, on economic growth in the Sumatra region. The Badan Pusat Statistik (BPS) of the Republic of Indonesia, PLN, the Ministry of Education and Culture, the Ministry of Public Works and Public Housing of the Republic of Indonesia, and Bank Indonesia provided data for this research. The FEM (fixed effect model) technique was used to analyse panel data from 2015 to 2019 in 10 provinces in Sumatra. Economic growth is a temporary variable; the independent variables are roads, electricity, irrigation, and educational infrastructure. According to the findings, the variable length of provincial highways in excellent and moderate condition, electricity consumption, irrigation, and educational infrastructure in the form of school buildings had a positive and significant influence on economic growth in Sumatra provinces from 2015 to 2019. As a result, the government must provide facilities and infrastructure to boost economic growth.