Analysis of Regional Development Strategies Based on Leading Sectors in Babussalam District, Aceh Tenggara Regency

Abstract

This study identifies leading economic sectors and formulates regional development strategies for Babussalam district, Aceh Tenggara Regency, Indonesia. Using secondary GRDP data (2020–2024) and stakeholder interviews, we apply the Location Quotient (LQ), Klassen Typology, and SWOT analysis. Results show that agriculture remains the backbone of the district economy, increasing from IDR 125.75 to 133.09 billion and contributing 39.58–42.03% of GRDP, with an LQ around 1.00 (near parity) during 2020–2024, indicating a comparative advantage that is present but increasingly thin. Wholesale and retail trade grows steadily (IDR 40.40–47.98 billion; 13.50–14.74% of GRDP) and remains a base sector during 2020–2024, reaching Quadrant I in 2023, while transportation and warehousing fluctuate around parity (LQ ≈ 1.00), being classified as a base sector in 2020 and 2023 and as non-base in 2021, 2022, and 2024. SWOT findings indicate that priority strategies include strengthening roads, warehousing, and logistics to expand market access; enhancing farmer capacity and sustainable agricultural technologies to raise productivity; and diversifying the local economy through nature-based tourism that leverages the Gunung Leuser National Park. These findings provide evidence-based priorities for place-based planning and local economic transformation.