tailieunhanh - Impacts of coal railroad transportation project on GDP promotion and unemployment reduction in Bengkulu province, Indonesia

This paper analyzes the impact of this Project on the Bengkulu economy, which is currently considered low. The Gross Domestic Product (GDP) is adopted as the economic indicator. | 2 | Paulus Kurniawan | 2 - 24 Impacts of Coal Railroad Transportation Project Impacts of Coal Railroad Transportation Project on GDP Promotion and Unemployment Reduction in Bengkulu Province, Indonesia PAULUS KURNIAWAN Doctorate Candidate from Faculty of Economics at Postgraduate Program, University of Udayana, Denpasar, Indonesia Email: KEMBAR SRI BUDHI Professor, Faculty of Economics at Postgraduate Program, University of Udayana, Denpasar, Indonesia SUYANA UTAMA Professor, Faculty of Economics at Postgraduate Program, University of Udayana, Denpasar, Indonesia MAHAENDRA YASA Doctor, Faculty of Economics at Postgraduate Program, University of Udayana, Denpasar, Indonesia ABSTRACT A massive, advanced and integrated railroad system for coal transportation (referred to hereafter as “Project”) from Muara Enim, Sumatra Selatan Province to the new coal port at Pulau Baai, Bengkulu Province, Indonesia is developed by a private investor together with the local government (PEMDA) of Bengkulu Province to make the best use of abundant coal resources in the region. This paper analyzes the impact of this Project on the Bengkulu economy, which is currently considered low. The Gross Domestic Product (GDP) is adopted as the economic indicator. The study combines the theories of export base and economic base, economic and regional developments, cost-benefit analysis and economic impact study with the empirical data. The results show the Project’s financial feasibility with Cost-Benefit Ratio of , Internal Rate of Return of and Payback Period of 5 years, which will provide a significant contribution to the Bengkulu GDP growth and a decrease of 821,600 people among the unemployed. Keywords: railway coal transportation, GDP, decreasing unemployment, Bengkulu Province, Indonesia. JED April 2013 | 3 1. INTRODUCTION Indonesia has one of the largest coal reserves in the Asia-Pacific region, with proven reserves of 7 billion tons, and these are

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