Identification of benefit indicator of road network on development :: Case study on Batu Southern Ring Road Project

PURIYANI, Dr. Ir. Heru Sutomo, M.Sc

2009 | Tesis | S2 Magister Sistem dan Teknik Transportasi

Transportation sector is one of important economic component impacting regional development and social welfare. It provides economic and social opportunities. The role of transportation in economic development is crucial to production and participation of remote area. Good transport facility will reduce production cost, increase producer prices and encourage of investment. The study analyzes the hypothetical impacts of road network project to regional economic development. The project benefits --- travel time cost (TTC) saving and vehicle operational cost (VOC) --- saving used to identify the impact to economic development indicator. Project impacting directly in Junrejo and Batu districts is based on production sectors (agriculture, industrial sector, trading sector, and recreational place sector. The project increase 1.06 per cent of gross regional domestic product (GRDP). It can be concluded that the road network project has positive impact on the regional economic development. Limited study area is caused by data limitation. Data availability, in particular economic data such as investment volume and production value are among one of the hindrances. Further study is needed to identify others economic development indicators such as labour utilisation and investment.

Kata Kunci : Benefit,VOT,TTC,Economic development indicator