The economic benefit of toll road investment on the performance of the industry sectors in West Java Province

Abstract

Toll road infrastructure investment will affect the production sector, where the role of transportation is to be the logistics function of the manufacturing industry. The government policy based on the acceleration of toll road investment is expected to boost production performance. The local government is expected to provide support by increasing the economic potential of the region along with the policy. This research tends to describe the contribution of the toll road infrastructure investment in the Manufacturing Industry Sector in West Java Province. The empirical data result shows the difference of the significant efficiency level of the Manufacturing Industry Sector from connected district areas/cities compared to the areas that are not connected to the toll road (+ 6%). With the T-test Pair analysis, there is a significant difference against the value of efficiency level for the areas that are connected to the toll road from the Manufacturing Industry Sector once the Cipularang Toll Road begins to operate (+ 4%).