Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


The Role of Regional-Owned Enterprises, Local Own-Source Revenue and Investment in Strengthening Regional Economic Growth of Riau Province, Indonesia

Author(s): Bernard Isyandi and R. Agus Trihatmoko

This study aims to reveal the economic growth of the Riau Province based on the analysis of local own-source revenue, the profit of Regional Owned Enterprises (ROEs) and regional investment. The research method uses multiple linear regression analysis. The secondary data analysis was obtained by the Central Statistics Agency and the local agency of Riau Province. The results of this study found that the ROES profit had a significant effect on increasing own-source revenue with the ratio of only 3.37%, and ranks third after local taxes and other revenues. Moreover, GRDP at constant 2010 prices reached IDR 471.42 trillion, a growth of 2.71% is not related to the strengthening of regional economic growth in Riau Province which is in accordance with the percentage of separated regional wealth yields. On average, the provincial local own-source revenue revenue realization ratio also illustrates the ROEs’ Competency Map in encouraging regional investment. The results of this study have implications for the direction of medium and long-term regional policies in the regional economic development of the Riau province, and their synchronization with the national economy. The model built from this study and the use of the analysis is the originality of the research. Thus, universally as a theoretical contribution to regional and national economic development.

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