Empowerment of the Processing Industry During the Covid-19 Pandemic and its Effect on Local Income in Banten Province

Abstract

Banten is one of the provinces that provides the largest contribution to the national GDP. It was recorded that in 2020, Banten Province contributed Rp. 626 trillion or 4.05% of the National GDP. The manufacturing sector is the largest contributor to the GRDP structure of Banten Province, reaching 31% with the largest contribution from the chemical industry, footwear industry, and basic metal, iron and steel industries. The processing industry sector is endeavored to continue to contribute to both the handling of Covid-19 and the recovery of the national economy. With the contribution of the manufacturing industry which is so large and supported by the significant investment value from PMA and PMDN, it is hoped that regional revenues from the manufacturing sector can also be distributed to improve the welfare of the people of Banten. The research method used in this study is regression with the Ordinary Least Square approach. The population is all data on research variables from 2000 since the formation of Banten Province until 2020 which relates to all variables to be studied, while the sample of this study amounted to 40 (forty) from 2012-2021 using quarterly data. The results of the study indicate that the empowerment of the processing industry has a positive and significant effect on the local revenue of Banten Province.