Regional Economic Transformation amid Industrialization in Batang Regency, Central Java Province, Indonesia

Abstract

This study examines the structural transformation of the regional economy in Batang Regency, and its implications for farming household income diversification. Agriculture has historically been the backbone of the local economy; recent trends show a declining contribution of the agricultural sector to the GRDP, concurrent with the rise of manufacturing, trade, and service industries. Using secondary data from 2013–2024, the research applies descriptive sectoral analysis, Shift Share analysis, Location Quotient (LQ) to evaluate economic shifts before and after the establishment of the Industrial Park in Batang Regency. The descriptive findings reveal that manufacturing has become the dominant sector, followed by agriculture and trade. Shift Share results indicate that while agriculture benefits from overall regional economic growth, it lacks structural and competitive advantage es. LQ analysis identifies key basic sectors, including agriculture, manufacturing, information and communication, and transportation.