Prioritizing Infrastructure Development to Boost Regional Gross Domestic Product (GDP) in Simalungun Regency, Indonesia

Abstract

This study investigates the economic impacts of prioritizing infrastructure development in Simalungun Regency, Indonesia, through the application of the Analytical Hierarchy Process (AHP). The analysis of Gross Regional Domestic Product (GRDP) highlights the significant roles of the agriculture, forestry, and fisheries sectors in regional economic growth, with these sectors showing substantial contributions in recent years. The study employs a mixed-method approach, utilizing both qualitative and quantitative data. Data were collected through questionnaires administered to respondents selected via purposive sampling, ensuring representation of key community figures, including merchants, farmers, homemakers, and public transportation drivers. Secondary data were obtained from various Simalungun Regency Government agencies. The AHP method was utilized to determine infrastructure development priorities, while the Location Quotient (LQ) technique analyzed the comparative advantages of economic sectors. The prioritization criteria, including budget allocation, construction timelines, and community needs, emphasize the importance of road infrastructure in enhancing accessibility and boosting economic activities, particularly in rural areas. Key findings underscore the critical need to address widespread road deterioration to improve connectivity and facilitate the smoother transportation of agricultural products. Additionally, the study reveals challenges related to uneven access to clean water and electricity, underscoring the necessity for targeted infrastructure improvements to elevate living standards and unlock economic potential across the region. Recommendations advocate for immediate and strategic investments in road rehabilitation, coupled with regular infrastructure assessments to ensure timely interventions. Strengthening water quality assessments, especially at primary sources like the Lobang River, is essential for ensuring a sustainable water supply for local communities. These initiatives are poised to stimulate economic growth, enhance social well-being, and bolster Simalungun Regency's resilience in the face of evolving developmental challenges.