The impact of electricity investment on inter-regional economic development in Indonesia: An Inter-Regional Input-Output (IRIO) approach

Electricity is a development priority for low and middle income countries, including Indonesia, especially in the households living suburban rural areas. By 2020, Indonesia's electrification ratio has reached 96.71%. However, there were 433 villages that did not have electricity, most of which located eastern Indonesia (Papua, West Papua, East Nusa Tenggara, Maluku). Investment electricity sector will drive regional economic growth. This research attempts to figure out impact investment on economy. study used Indonesian inter-regional Input-Output data. The method this was Interregional (IRIO) model. analysis shows impacted only territory being built but also other regions Indonesia. industry been able provide multiplier effect economy as many 3.11. Java region gets greatest benefit from rationally acceptable due fact region. causes gap between outside Java. It necessary accelerate reallocate several national strategic industries various islands based advantages each strive areas are still "dark" electricity.JEL Classification E22; L94; R15