ANALYSIS OF ECONOMIC POTENTIALS, TRANSFORMATION OF SHIFTING STRUCTURES AND ECONOMIC SPECIALIZATION: POST TERRITORIAL SPLIT IN ACEH

Purpose of the study:This study aims to determine the potential for economic growth of the parent and split regions after the implementation of the territorial split policy. It specifically looks at the economic position of parent and new regions in the Aceh province, identifies the superior sectors, the structure of regional economies, and interregional differences in economic performance in Aceh after the territorial splits. Methodology:This study used secondary data from BPS Aceh which will be further analyzed using the Klassen Typology, Location Quotient (LQ) and Shift Share (SS). Main Findings:Klassen typology analysis shows that there are three districts in the fast-progressing and fast-growing category, Central Aceh, West Aceh, and Nagan Raya. Nagan Raya is the only newly established district, formerly part of West Aceh. All parent and new regions have superior sector which should be put into priority by their regents/mayors. According to the findings, it can be concluded that the parent and split regions have financially benefited from the territorial split. Applications of this study:This study provide information to government stakeholders in Aceh and Indonesia in developing their annual state budget and development plan. Novelty:Aceh is one of the provinces in Indonesia who has many split regions. However, there are no studies examining the economic development of the split regions. This topic is very significant to be further studied in order to evaluate the effectiveness of the territorial split policy in Indonesia