Chapter 5 The Case Studies, Result Analysis
5.1. Before and After
5.1.3. Economy performance
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105 The number of universities increased from 4 universities in 2009 to 7 universities in 2010. Until the year 2011, the number has not changed.
Figure 5-8 Educational institutions of City C
5.1.3. Economy performance
In this section, to illustrate the economic performance of each region, we present the local financial capacity and the economic growth of the region. The local financial capacity includes the own source revenue, fund balance and other legal source. Meanwhile, to illustrate the economic development of the region, this study performs the Gross Regional Domestic Product (GRDP).
Since 2006 until 2011, the income of the City A has been increased slightly.
The figure shows that the highest amount of income was received from the fund balance income in 2009 with Rp. 517366.9 billion. A positive trend is shown by own source revenue (OSR) that from 2006 until 2011 the amount of income received was increasing. The amount of other legal sources of income is almost similar to OSR, it might be due to the amount of Special Autonomy fund given by the central government.
Source: City C in Figures 2007 - 2011
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Figure 5-9 Local financial capacity of City A
Figure 5-10 Gross Regional Domestic Product of City A
Meanwhile, regarding the economic performance, by comparing the Growth Regional Domestic Product (GRDP) between year 2000 and 2012, we found that the GRDP of City A during the leadership of mayor A has improved significantly. In 2000 the GRDP was 3.208 billion rupiah and in 2012 the GRDP reached 12.962 billion rupiah. It increased at least four times since the year mayor A started his tenure. The largest contribution of GRDP came from the tertiary sector which
Source: City A city in Figures 2006-2011
Source: City A in Figures 2000 & 2012
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107 includes trade, hotel and restaurant sectors; transportation and communication;
financial sector, rents and manufacturing industries; and also services. These sectors contributed 75 percent GRDP.
The following figure shows that since 2007 until 2012 the City B income has increased. Fund balance contributed the most and only in 2009 the amount of fund balance income received decreased. On the other, the own source resources income earned by this city was increasing every year. The other legal source was zero between 2006 and 2009, and in 2010 the income was increased significantly.
Figure 5-11 Local Financial Capacity of City B
Regarding the GRDP performance, we found that the value has increased significantly that it increased 6 times from the early year when DS started his tenure.
In 1999, the GRDP was 334 billion rupiah while in 2011 the GRDP was 2032 billion rupiah. In 2011, the GRDP mostly contributed by trade, hotel and restaurant then
Source: City B in Figures 2003-2010
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followed by services. Next is finance, rents and corporate services followed by manufacturing industry and finally transportation and communication.
Furthermore, based on the data of statistical bureau of County D from 2007 to 2012, the own source revenue of the county was increasing as well as the fund balance income. However, this positive trend is not followed by other legal revenue and in 2012 income decreased. Between 2008 and 2011, the primary sector had contributed the most to County D GRDP. The primary sector includes agriculture, mining and excavation. However, the primary sector growth was slower than secondary and tertiary. Hence, since 2008 to 2011 the value contributed by the primary sector was decreasing.
Figure 5-12 Gross Regional Domestic Product of City B
Source: City B in Figures 1998 & 2012
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109 Figure 5-13 Local financial capacity of County D
The economy structure of County D is different from the Aceh Province structure in general. While the economy structure of Aceh province had depended on the tertiary sector, the economy structure of County D is depend on the primary sector. The agriculture sector contributes the most although between 2008 and 2011 the contribution was decreasing. This is likely that County D begins to lessen its dependency towards agriculture and tries to develop other.
Figure 5-14 Gross Regional Domestic Product of County D Source: County D in Figures 2007-2012
Source: County D in figures 2009-2012
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Finally, based on the statistical data of City C between 2007 and 2012, compared to fund balance income and other legal local revenue, OSR was consistently increasing. Fund balance income was increasing between 2006 and 2009 but dropped in 2010 and increase significantly in 2011. Meanwhile, the other legal local revenue shows that the income has been fluctuated between 2006 and 2009 and increased slightly between 2010 and 2011. Among regions, only County D fund balance income that remain stable between 2009 and 2010.
Figure 5-15 Local financial capacity of City C
Regarding to City C GRDP performance, between year 2011 and 2002 there was a significant increasing trend occurs. In 2002, the GRDP was 468 billion rupiah while in 2011 was 2,420 billion rupiah. It means that the GRDP increases five times since the mayor begins his ruling. The largest contribution of GRDP in 2002 was came from tertiary sector which includes trade, hotel and restaurant sectors;
transportation and communication; financial sector, rents and manufacturing industries; and also services. Services were the major contribution for GRDP followed by trade, hotel and restaurant. While transportation and communication sectors are
Source: City C in figures 2007-2012
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111 next. The condition has not changed in 2011 that services still become the major contribution.
Figure 5-16 Gross Regional Domestic Product City C