STRUCTURAL CONSTRAINTS AND DEVELOPMENT STRATEGY OF THE HUMBANG HASUNDUTAN REGION: A QUALITATIVE POLICY ANALYSIS
Keywords:
Regional economic development; economic growth strategy; structural transformation; sectoral diversification; regional competitiveness; Humbang HasundutanAbstract
Regional economic development plays a strategic role in strengthening national economic resilience, particularly within the framework of fiscal decentralization and regional autonomy. This study analyzes the growth patterns and economic development strategy of Humbang Hasundutan Regency, North Sumatra, over the 2019–2024 period. The region is endowed with substantial agricultural and tourism potential yet constrained by persistent structural weaknesses. Employing a qualitative descriptive-analytical approach, the study draws on secondary data from the Regional Medium-Term Development Plan (RPJMD) 2021–2026, BPS Kabupaten Humbang Hasundutan publications (Humbang Hasundutan Dalam Angka and PDRB menurut Lapangan Usaha, 2019–2024), and related policy documents, analyzed thematically and through policy analysis. The findings indicate that the regency’s economy remains heavily dependent on the primary sector: agriculture, forestry, and fisheries contributed approximately 47–52% of Gross Regional Domestic Product (GRDP) and absorbed around 58–62% of the workforce, while the processing industry contributed only about 2.5–3.8%. Average economic growth of roughly 4.1–4.8% per year during the period was predominantly output-driven rather than productivity-driven, yielding limited employment diversification and modest welfare gains. The study underscores the urgency of a development strategy centered on economic diversification, downstreaming of leading commodities (potato, shallot, Arabica coffee), infrastructure enhancement, and human-capital development to achieve inclusive and sustainable regional growth.
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