The Structural Model of Infrastructure and Social Development Effects on Economic and Environmental Growth in the Independent Integrated City (IIC) of Hinterland Area of Telang, South Sumatra - Indonesia

Abstract

Zulkifli Idrus, Andy Mulyana, M. Edi Armanto, Didik Susetyo, Nurhayati Damiri, Elisa Wildayana, Iwan A. Ratmoko, Syuhada A. Umar, and Nuryamsasni

The Integrated City (IIC) of Telang is a part of transmigrate area in South Sumatera which have been opened and developed in last 10 years. The evaluation of progress in developing of IIC become the main purpose of this study. The output of this study is to formulate the further strategy to design the IIC of Telang area as the better city based on a sustainable development aspect. The research used two data which were obtained using the questionnaires as the primary data and some data obtained from related agencies. A Structural Equation Modelling Analysis (SEM) was then used to formulate the interaction model between the infrastructure interaction, social growth on the economic sector and environmental growth in the IIC of Telang and the Hinterland area. The result showed that there was a correlation between each sector which proved that the Infrastructure and Social Development Model affected to the Economic Growth which further provided an impact to the environment. The further investigation in the IIC of Telang and the Hinterland area showed that Banking Service become the main infrastructure which had the most powerful impact to the social aspects which correlated to the economic growth in the IIC of Telang and the Hinterland area. The new strategy pathway of sustainable development in the studied area was then directed as an urban function such as a government area and a center for community services which made the area was not only as a growth center in the agricultural industry which have been developed in last 10 years.