LOCAL ECONOMIC TRANSFORMATION OF PALANGKA RAYA CITY: IDENTIFICATION OF LEADING AND POTENTIAL SECTORS

Abstract

This study aims to identify leading economic sectors that play a strategic role in economic growth in Palangka Raya City. To achieve this goal, three analytical approaches are used, namely Location Quotient (LQ), Klassen Typology, and Shift Share using 2018–2024 GRDP data. Through the LQ analysis, it was found that 14 of the 17 sectors studied were classified as basic sectors, meaning that these sectors have a relative advantage in the regional economy compared to the provincial level. Among them are the Electricity and Gas Procurement, Government Administration, and Accommodation and Food and Beverage sectors as the main leading sectors. Through the Klassen Typology, the sectors are classified into four quadrants; trade, communication, government, and education in Quadrant I, indicating rapid growth and high contribution to the city's economy. Meanwhile, the Shift Share Analysis shows a total growth of IDR 3,620.98 billion, driven by national trends, industrial structure, and local competitive advantages. These findings confirm the dominance of the service sector, while productive sectors such as agriculture and the processing industry require strategic policies to increase their competitiveness. This study recommends strengthening potential sectors and increasing local capacity as strategic steps towards sustainable economic development.