Analysis of Leading Sectors and the Role of MSMEs in the Kedungsepur Development Area in Supporting Central Java Economy

Abstract

Kedungsepur economic-growth as a whole continues to increase. The average economic-growth of Kedungsepur from 2011 to 2018 was 5.58%, higher than that of Central Java. The difference in economic growth of each region in Kedungsepur indicates a disparity in income. However, as the area which is expected to be the driver for area economy including Central Java, and also as the role of Kedungsepur MSMEs that still have the potentials to be expanded, it is crucial to know what sectors that can be expanded for this reason. This paper aimed to identify some matters related to the regency / city economic growth, analyze the sectors that have the potentials to be developed in order to encourage economic growth, categorize regions and regency / city sectors in Kedungsepur based on growth-rates and per-capita-income / contribution. The analysis method used is the Klassen typology analysis. The results of this study indicate that: The manufacturing sector and the provision of accommodation are the leading sectors with the potentials to encourage economic growth in each regency / city in Kedungsepur. The development of leading sectors that have become the basic sectors in each region is meant to accelerate the rate of economic-growth, and furthermore to be the crucial part to push the economy in Central Java, especially in the manufacturing sector with agro-industry, thereby creating inter-sectoral links.