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3.

1 Economic Growth
Economic growth shows the extent to which economic activity will generate
additional income for the community in a certain period because basically
economic activity is a process of using factors of production to produce
output, then this process will in turn produce a flow of remuneration for the
factors of production owned. by the community as the owner of the factors of
production will also increase. Economic growth is a country's economic
problem in the long term.
Economic growth measures the achievement of the development of an
economy from one period to the next. From one period to another, the ability
to produce goods and services will increase due to the factors of production
which are always increasing in quantity and quality. The Neo-Classical theory
of economic growth states that economic growth (measured by the growth of
Gross Regional Domestic Product) depends on the development of
production factors, namely; capital (investment and government spending),
labor, and technology (Sukirno, 2004:45).
Economic growth absolutely must exist, so that people's income will increase,
thus the level of people's welfare is expected to increase. In order for
economic growth to continue to expand and to be maintained in the long term,
it is necessary to know what factors can affect economic growth and what
factors need to be avoided so that economic growth does not stagnate or
experience setbacks. According to Todaro (2000: 42), rapid population growth
encourages the emergence of underdevelopment problems and makes
development prospects even more remote.
Through the literature from Suparmono (2017) found that airport development
has a positive impact on economic growth, increasing economic output and
increasing household income for residents around the airport. Furthermore,
Ulfah et al. (2018) explained the positive impact of airport construction on
local economic activities because it provides employment opportunities for
local residents, encouraging an increase in the household economy.
Meanwhile, Breidenbach (2020) in his writings states that the construction of
an international airport has no effect on regional economic growth due to the
high operational costs of the airport and a location selection strategy that does
not depend on local economic conditions.
Airport development has a positive impact on economic performance, one of
which is in the manufacturing and construction industry sector by optimizing
the potential for absorbing the workforce needed to carry out the construction
of the airport. In addition, the development of the airport area is expected to
be able to increase the income and purchasing power of the local community,
increase the level of welfare, create a local business climate, and generate
jobs for the community. As for the government side, it is also expected to
stimulate the local economy, strengthen the development of industry,
business, and the tourism sector, and encourage the cultivation of natural
resources to support industrial added value, tax revenue, and others.

3.2 Investment Opportunities


Airport development in general has contributed a lot to the investment climate
both nationally and regionally. This positive contribution also proves the
effectiveness of airport development because it has an impact on regional
development so that it can attract more investors to carry out business and
trade activities in the country. Therefore, infrastructure development
especially in the airport sector creates the largest investment compared to
other infrastructure.
The existence of air transportation infrastructure and facilities is one of the
attractions for both domestic and foreign investors, which will automatically
have an impact on development progress in the economic, social, cultural,
and defense and security fields. Improving airport infrastructure facilities will
reduce accommodation and transportation costs thereby encouraging the
creation of new capital flows. According to Tambunan (2001:63). The rate of
investment growth is a crucial factor for the continuity of the process of
economic development, or long-term economic growth.
The role of the airport as an economic node that offers speed, effectiveness,
and efficiency in movement and costs so as to attract business, commercial,
and industrial activities (Budiman, et al, 2013). With the existence of
production activities, employment opportunities are created and people's
incomes increase which in turn can create and increase demand in the
market.
This opinion explains the influence caused by investment, where the
emergence of investment will encourage employment opportunities and
increase income. Investment has an indirect effect on employment
opportunities at the airport. Investors will gain access to global markets,
security, and safety, reduce costs to become more competitive in the market
and become production businesses to ease entry into the ASEAN market.

3.3 Tourism Sector


As an archipelagic country, Indonesia urgently needs air transportation
infrastructure, namely airports as areas on land and/or waters with certain
boundaries that are used as places for aircraft to land and take off, board and
drop off passengers, loading and unloading of goods, and places for intra-air
transfers. and between modes of transportation, which are equipped with
aviation safety and security facilities, as well as basic facilities and other
supporting facilities (Regulation of the Minister of Transportation of the
Republic of Indonesia Number Pm 39 of 2019 concerning National Airport
Arrangements).
Air transportation can increase tourism development and the number of
tourists because access to urban areas becomes smoother and the costs
incurred are lower. This positive impact affects the community's economy with
the emergence of new tours (Sudiarta, 2005).
Thus the presence of airports is predicted to be able to support the tourism
sector as stated by Gaus and Darwis (2013) that the air transportation sub-
sector is the main engine in driving the development of the tourism sector, air
transport is one of the modes that is urgently needed in the development of
the tourism sector. The presence of an airport has a positive and significant
impact on the number of tourist visits to an area and is predicted to continue
to grow in the future if the management of facilities and infrastructure for
tourist attractions including various facilities at tourist attractions, imposing
tariffs, services and others can be implemented better.

3.4 Supporting Sustainable Development


With the accelerated development of infrastructure that is evenly distributed,
especially the provision of air transportation infrastructure that will connect
regions or even countries, it can encourage regional economic development,
including one of them as a basic determinant of international tourism flows
(Doer et. al, 2020). To be able to fulfill the aspects of development integrators,
airport entities must fulfill the concept of sustainable development.
The concept of sustainable development is based on the concept of
development (socio-economic development in line with ecological
constraints), the concept of needs (redistribution of resources to ensure the
quality of life for all), and the concept of future generations (the possibility of
long-term use of resources to ensure the necessary quality of life for future
generations ) (Klarin, 2018). The essence of the concept of sustainable
development comes from the concept of the Triple bottom line which is based
on three pillars, namely social, economic, and environmental pillars. These
three pillars are supported by the foundation of government institutions which
are based on 17 points of the Sustainable Development Goals (SDGs) which
are translated into 169 targets and 241 indicators that are interrelated with
each other (Alisjahbana & Murniningtyas, 2018).
Therefore, it is necessary to develop air infrastructure in order to make it a
means of connecting, inputting, and output of various kinds of social and
economic activities. This indicates that airport development is basically not
just a transportation node but also a catalyst for economic, logistical, and
social development (Greer et al, 2020).

REF
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