Investigating the Economic Structure and Growth Dynamics in Bandung City: Sectoral Insights for Regional Policy
https://doi.org/10.56225/jmsc.v4i1.427
Keywords:
Regional Economic Growth, Sectoral Contribution, Urban Economic Structure, Bandung City DevelopmentAbstract
In recent years, the economic landscape of Indonesian urban centres has undergone a significant transformation, with Bandung City serving as a pertinent case study. Despite its strategic role in regional development and innovation, Bandung has experienced a gradual deceleration in economic growth. This study examines the structural dynamics and sectoral performance of Bandung City's economy from 2020 to 2023, a period marked by post-pandemic recovery and digital transformation. Despite a consistent increase in Gross Regional Domestic Product (GRDP) from IDR 211.25 trillion in 2022 to IDR 221.97 trillion in 2023, the city's economic growth rate decelerated slightly from 5.41% to 5.07%. This slowdown reflects both a return to normalcy after a strong rebound and potential structural challenges within key sectors. Using a sectoral contribution analysis based on GRDP data at constant prices, this study identifies the wholesale and retail trade, manufacturing industry, and information and communication as the top three contributors to the city's economy throughout the period. While these sectors provide a stable economic foundation, the study also highlights significant growth in emerging sectors, including health services, transportation and warehousing, and accommodation and food services. These findings indicate a gradual diversification of Bandung's economic structure, suggesting new areas of opportunity for policy support and investment. The research offers critical insights into regional economic planning, highlighting the need to strike a balance between supporting dominant sectors and fostering emerging industries to ensure sustainable and inclusive urban growth.
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