Economic and Regional Impacts of Infrastructure Development Activities for Indonesian's National Economic Recovery Program (PEN) in Pamekasan Regency, East Java Province

Abstract

In response to the COVID-19 impact, infrastructure development has become crucial to accelerating economic growth at the municipal level in Indonesia. The Indonesian Government, in 2019-2020, initiated the National Economic Recovery Program (Pemulihan Ekonomi Nasional - PEN) in several regions, including Pamekasan Regency in East Java Province. PEN aimed to promote economic growth by some activities of infrastructure development that is urgently required for economic development in each municipality. This study aims to measure the effect of the program on various variables and identify the leverage variables for the of the PEN's sustainability in Pamekasan Regency. The aimed variables include economic, regional, and demographic development (population) variables. The program's impact is calculated based on the gap between the conditions before and after the program implemented in each impact area. A Multi-Dimensional Scaling (MDS) technique, namely Rapfish, is used to identify leverage variables for sustainability. As the result, Economic variables show an average value of 4 for each activity such as improving County Roads & Street Lighting Development, improving Traditional Market Area, and improving Small to Medium-Sized Industrial Area. Regional variables, however, show an average value of 3, indicating constancy across each type of activity. Meanwhile, population variables show an average value of 4, indicating growth for each indicator. According to the Rapfish analysis, the leverage variable for the level of sustainability within the PEN project in Pamekasan Regency is the regional variable with the highest root mean square value, which is 2.48.