Determining Factors of Potential Economy Sectors of Bantaeng Regency in South Sulawesi Province of Indonesia : An Analysis Using the Location Quotient Approach

Bantaeng Regency, one of the regencys in South Sulawesi Province, has some potential economy sectors to be developed. In order to know those potential economy sectors, one of the economy analysis which can be used is the Location Quotient analysis. In this research, the analysis will use Static Location Quotient (SLQ) and Dynamic Location Quotient (DLQ). The SLQ method is used to determine the base sectors (leading sectors) in Bantaeng Regency at one period of time. While DLQ method is used to determine whether a sector that is superior over a period of time are leading sectors for the period of time that will come. The analysis showed that in the year 2013-2014 the Trade and Retail sector; Car and Motorcycles Repair sector; Real Estate sector; Government Administration sector; Defence and Compulsory Social Security; and Other Services Sector is the leading economy sector in Bantaeng Regency. And in the year 2014-2015, the Trade and Retail sector; Cars and Motorcycles Repair sector; Real Estate sector; Service Sector Health and Social Work; and Other Services Sector is the leading economy sector in Bantaeng Regency.


Preliminary
Accordance with the mandate of regional autonomy, each local government (the city and the regency government) was given by the central government some authority to explore its potential resources.Each region has different economy advantages, as well as the source of growth for its region.In this context, the local government is considered to be able to explore the economy advantages, which is the source region of excellence, to ensure that the local economy can grow faster in accordance with the availability of potential resources and ability to grow.Until now, the sectoral approach is still one of the strategies in regional development.The sectoral approach or commonly known as the base sector approach is more emphasis on the selection of the economy sectors that can be more precise and faster acting as regional economy driver, labour absorbing and poverty alleviation.
The sectoral approach is more focused on improving the productivity of economy sectors through the priorities development program in the local government policy.Therefore, the analysis of the sector which is the base/economic advantage in an area to be very important as a consideration in formulating development policies.Thus, it will be known which sector is the basic sector and its role in promoting economy growth in the region.Arsyad (1999) revealed that differences in local conditions carrying implications for the mode of application development in the region.Regional economy development policies which are set in an area must be adapted to the local conditions (problems, needs and potential) of the area.This analysis was conducted to map out potential economy sectors in Bantaeng Regency, located in South Sulawesi Province.The analysis technique which used is first to determine the base sectors in each period and subsequent mapping the potential economy sectors in the running period of the time.The process of determining the sectors base becomes important because, according to Blakely (1989) and Kuncoro (2004) defining the economic basis is a task that needs to be done in the first stage in the process of regional economy development planning.

Methodology 1) The Static Location Quotient and the Dynamic Location Quotient Method
To determine the base sectors (seed) of an area over a certain time period, in this analysis method is used SLQ by the following equation (Yuwono, 2000): Where: SLQ ij : the value that indicates the level of specialization in sector i in Bantaeng Regency; y ij : the value-added production and business sector i in Bantaeng Regency expressed by the value of GDP.
The SLQ calculation results can be used to identify potential sectors in Bantaeng Regency with the following criteria:  SLQ ij > 1 indicates that the sector i is the dominant sector because the sector is more specialized than the same sector in the South Sulawesi Province;  SLQ ij = 1 indicates that the sector i has the same level of specialization in these industries in the South Sulawesi Province, so the sector is only enough to meet the needs of its territory alone;  SLQ ij < 1 indicates that the sector is less specialized than the same sector in the South Sulawesi Province, so it is not a dominant sector.
However, the SLQ method has drawbacks, namely the criteria are merely static, which only provide a snapshot at one point in time.That is, an economy sector that is superior in any given year may not necessarily be the leading economy sector in the next year.Conversely, an economy sector that does not excel in any given year, can be a leading economy sector in the years to come.Therefore, as an alternative method, the method used in this analysis Dynamic Location Quotient (DLQ).The DLQ equation is: Where: DLQ ij : potential economy index for sector i in Bantaeng Regency; g ij : the growth rate of value-added production and business for sector i in Bantaeng Regency; g j : the average GDP growth rate for Bantaeng Regency; G i : the growth rate of value-added production and business for sector i in South Sulawesi Province; G: the average GDP growth rate for South Sulawesi Province.
The DLQ calculation result can be used to identify potential economy sectors in Bantaeng Regency with the following criteria:  DLQ ij > 1 indicates that the potential for economy development in sector i in Bantaeng Regency is faster compared to the potential development of the same economy sector in South Sulawesi Province (sector i has the potential to become a dominant sector in Bantaeng);  DLQ ij = 1 indicates that the potential for economy development in Bantaeng Regency sector i is equal to the potential development of the same economy sector in South Sulawesi Province;  DLQ ij < 1 indicates that the potential for economy development in the sector i Bantaeng slower than the economy development potential of the same sector in of South Sulawesi Province (sector i is not potential to become a leading economy sector in Bantaeng Regency).

2) The Classification of Potential Economy sectors
The classification method of potential economy sectors in Bantaeng Regency is as shown in Table 1 below Where:  Base sector value is the SLQ > 1 and the DLQ > 1, which means that the sector (at the time of the analysis) is a sector that is leading sector (the base sector) and will remain a leading sector (a base sector) for the next few years;  Prospective sector value is the SLQ < 1 and the DLQ > 1, which means that the sector (at the time of the analysis) is not a leading sector, but it will remain a leading sector for the next few years;  Reliably sector value is the SLQ > 1 and the DLQ < 1, which means that the sector (at the time of analysis) is a leading sector, but for the next few years it will not be a leading sector;  Lag sector value is the SLQ < 1 and the DLQ < 1, which means that the sector (at the time of the analysis) is not a leading sector and it still will not be a leading sector for the next few years.

The result and Discussion of the Static Location Quotient for the Year 2013
The result of Bantaeng Regency SLQ for the year 2013 is shown in Table 2 below.This means that the nine sectors of the economy are able to meet the needs of Bantaeng Regency and able to export products and venture out of Bantaeng Regency.

The Result and Discussion of the Static Location Quotient for the Year 2014
The result of Bantaeng Regency SLQ for the year 2013 is shown in Table 3 below.Based on Table 3, it is noted that only the values of SLQ are different, but the nine base sectors of Bantaeng Regency unchanged.Thus, it can be said that there is no change in the condition of the leading sectors in Bantaeng Regency for the year 2014.

The Result and Discussion of the Static Location Quotient for the Year 2015
The result of Bantaeng Regency SLQ for the year 2013 is shown in Table 4 below.Based on Table 4, it is noted also that only the values of SLQ are different, but the nine base sectors of Bantaeng Regency unchanged.Thus, it can be said that there is also no change in the condition of the leading sectors in Bantaeng Regency for the year 2015.

The Result and Discussion of the Dynamic Location Quotient
The Dynamic Location Quotient calculation results for the period of 2013-2014 and 2014-2015 are shown in Table 5 below: From Table 5 it can be seen that there are twelve leading economy sectors in Bantaeng Regency for the period of the Year 2013-2014 and there are ten leading economy sectors for the period of the Year 2014-2015.

The Classification of the Potential Economy Sectors
The classification of the potential economy sectors of Bantaeng Regency for the Year 2013-2014 is shown in Table 6.With the same concept, from Table 7 it can be seen that in Bantaeng Regency for the period 20140-2015 there were four leading economy sectors, six prospective economy sectors, the mainstay of the five economy sectors and two lag economy sectors.

Conclusion
Having regard to the calculation and analysis SLQ and DLQ that have been done, then the mapping of potential economy sectors Bantaeng Regency is as follows:

Table 1 .
. Classification of potential economy sectors in bantaeng regency according to the analysis of static location quotient and dynamic location quotient

Table 2 .
Static location quotient (SLQ) value of bantaeng regency for the year 2013  Procurement of Electricity and Gas;  Construction/Building;  Wholesale and Retail Trade; Cars and Motorcycle Repair;  Real Estate;  Government Administration, Defence and Compulsive Social Security;  Education Service;  Health Service and Social Activity;  Other Service.

Table 3 .
Static location quotient (SLQ) value of bantaeng regency for the year 2014

Table 4 .
Static location quotient (SLQ) value of bantaeng regency for the year 2014

Table 5 .
Dynamic location quotient value for economy sectors in Bantaeng regency for the period of year2013-2014 and 2014-2015

Table 6 .
Potential economy sectors classification of Bantaeng regency for the period 2013-2014

Table 7 .
Potential Economy Sectors Classification of Bantaeng Regency for the Period 2014-2015

1) Leading (Base)Economy Sectors: i. For the period 2013-2014:
Procurement of Water; Garbage Processing, Waste and Recycle;  Transportation and Warehousing;  Procurement of Accommodation; Food and Drink;  Information and Communication;  Financial Service and Insurance;  Corporate Service.
 Procurement of Electricity and Gas;  Construction/Building;  Education Service;  Health Service and Social Activity.