The Role of Road Infrastructure in Regional Economic Development: Evidence from Simalungun Regency, Indonesia

Abstract

This study investigates the relationship between land transport infrastructure and regional economic development in Simalungun Regency, Indonesia, from 2010 to 2022. Using a quantitative correlational method, the research examines the impact of road length and vehicle volume on three economic indicators: regional income (PDRB), employment rates, and the growth of micro, small, and medium enterprises (MSMEs). Spearman's rho test was employed due to non-normal data distribution, revealing that road length has a very strong and statistically significant correlation with employment (ρ = 0.851; p = 0.032), and a strong but non-significant relationship with PDRB and MSMEs. Conversely, vehicle volume showed weak and statistically insignificant correlations across all indicators. These findings suggest that physical infrastructure—especially road availability—plays a more pivotal role in facilitating regional labor mobility and economic distribution than vehicle accumulation. The study recommends an integrated, spatially targeted infrastructure policy emphasizing road development in high-potential but under-connected regions, aligned with Indonesia’s current fiscal efficiency agenda.