The Impact of Infrastructure Quality Toward West and East Nusa Tenggara Economic Performance
Keywords:
Economic Development, Infrastructure, Infrastructure Development Index, Sustainable DevelopmentAbstract
This study examines the influence of infrastructure quality on economic performance in the provinces of West Nusa Tenggara (NTB) and East Nusa Tenggara (NTT), two regions with moderate-low economic growth rates and suboptimal regional competitiveness. The objective of the study is to analyze the components of the Infrastructure Development Index (IPI) as a proxy for infrastructure capacity to support inclusive and sustainable economic growth. This study examines the influence of infrastructure quality on economic performance in the provinces of West Nusa Tenggara (NTB) and East Nusa Tenggara (NTT), two regions with moderate-low economic growth rates and suboptimal regional competitiveness. The objective of the study is to analyze the components of the Infrastructure Development Index (IPI) as a proxy for infrastructure capacity to support inclusive and sustainable economic growth. The results show a significant infrastructure disparity between NTB and NTT, with NTT having a lower percentage of access to public facilities. Both provinces exhibit a pattern of fluctuation in physical infrastructure with a decline in 2022 but a recovery trend in 2023–2024. NTT's Infrastructure Development Index recorded a consistent increase, while NTB's declined and then recovered. Both provinces' economic growth is positive but remains fluctuating. The study concluded that infrastructure quality impacts regional economic performance and the achievement of the SDGs. Integrated infrastructure policies, oriented towards remote areas and based on local needs, are needed to create inclusive and sustainable development in West Nusa Tenggara (NTB) and East Nusa Tenggara (NTT).
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