Economic Growth Trend in Disadvantaged Regions Decreases (2014-2019)

The average economic growth in underdeveloped regions from 2014 to 2019 showed a declining trend. According to the Central Bureau of Statistics (BPS), this downward trend occurred from 2016 to 2018, with average growth reaching 6.53% in 2015.

This decline continued until 2018, reaching 4.99%. In 2019, the figure rose again, although not as high as in 2015, reaching 5.11%.

Compared to national economic growth from 2014-2019, the average economic growth in underdeveloped regions was higher. Only in 2018 did the economic growth in underdeveloped regions fall below the national growth, reaching 4.99% compared to the national growth of 5.2%. To catch up, underdeveloped regions need to achieve economic growth above the national average.

(Read More: Economic Growth in Maluku and Papua Highest in Quarter I-2021)

In April 2020, President Joko Widodo declared that only 62 districts remained categorized as underdeveloped regions for the 2020-2024 period. For context, there were 122 underdeveloped districts in the 2015-2016 period. This indicates that almost half of the underdeveloped districts from 2015-2016 have progressed to a more advanced stage of development.

The 62 underdeveloped districts for the 2020-2025 period are located across several provinces: North Sumatra, West Sumatra, South Sumatra, Lampung, West Nusa Tenggara, East Nusa Tenggara, Central Sulawesi, Maluku, North Maluku, West Papua, and Papua. Papua has the highest number, with 22 districts.

Underdeveloped regions refer to areas that have not developed as much as other regions. Characteristics include high poverty rates, low education levels, limited infrastructure, inadequate healthcare facilities, and a low Human Development Index (HDI).