Analysis Relatedness Infrastructure Transportation and Growth Regional Economics : A Post-Pandemic Perspective for Indonesia

Abstract

Infrastructure development in transportation holds an important role in supporting regional economic growth, especially in developing countries like Indonesia which faces geographical challenges and regional disparities. Post-COVID-19 pandemic, increased government investment in the transportation sector has been directed as a national economic recovery strategy. However, there is not yet sufficient evidence whether infrastructure improvements impact regional economic growth evenly.

This research aims to analyze the connection between transportation infrastructure investment and regional economic growth in Indonesia post-pandemic, with focus on spatial distribution and potential interprovincial disparity. The methodology employed a quantitative approach using panel data regression analysis and spatial analysis techniques. Data were collected from 26 provinces during the 2019-2023 period through secondary sources including BPS, Ministry of PUPR, and Bank Indonesia. Panel data regression with fixed-effect model was applied, complemented by Hausman tests for model specification and Geographic Information System (GIS) for spatial mapping.The results of the analysis show that transportation infrastructure investment has a positive and significant influence on regional economic growth, with coefficients indicating GRDP increases alongside transportation investment allocation increases. However, the impact is not distributed evenly, as areas with high economic agglomeration like Java and Sumatra tend to receive greater benefits compared to regions such as Papua or Nusa Tenggara. This study contributes novel insights by providing post-pandemic evidence of spatially differentiated infrastructure impacts and recommending affirmative planning approaches for disadvantaged provinces to achieve more equitable development outcomes. The findings confirm the importance of spatial-based transportation development planning and local potential assessment so that infrastructure can become an instrument of equity and sustainable economic growth.