The The Contribution Of The Development Of The Mandalika Special Economic Zone (SEZ) In Increasing Labor Absorption In Central Lombok

Rahma Wati; Akhmad Jufri; M. Jumaedi

doi:10.63922/ijebir.v5i05.5607

Rahma Wati Development Economics Study Program, Faculty of Economics and Business, University of Mataram, Mataram, Indonesia
Akhmad Jufri Development Economics Study Program, Faculty of Economics and Business, University of Mataram, Mataram, Indonesia
M. Jumaedi Development Economics Study Program, Faculty of Economics and Business, University of Mataram, Mataram, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i05.5607

Keywords: Special Economic Zones, labor absorption, Difference-in-Differences, Investment, Mandalika SEZ.

Abstract

Unemployment and low job creation continue to be development challenges in Indonesia, prompting the government to develop Special Economic Zones (SEZ) as new growth centers to encourage investment and labor absorption, one of which is the SEZ Mandalika in Central Lombok Regency. This study aims to analyze whether the development of the Mandalika Special Economic Zone (SEZ) contributes to the increase in labor absorption in Central Lombok Regency compared to East Lombok Regency as a control area. The research uses a causal comparative quantitative approach with the Difference-in-Differences (DiD) method on annual panel data for the period 2009-2024 (32 observations), comparing the treatment area and the control area in the periods before (2009-2016) and after (2017-2024) the development of the Special Economic Zone (SEZ). The model is estimated with robust standard errors after the assumption test shows signs of heteroscedasticity. The estimation results show an interaction coefficient of Treat × Post of -45,006.28 with a probability of 0.308 (R-squared = 0.7149), which means that the development of the Mandalika Special Economic Zone has not yet had a statistically significant impact on employment absorption in Central Lombok during the study period. The variable of investment realization and the number of active tenants show a positive relationship but are not yet significant. These findings indicate that the benefits of the Mandalika Special Economic Zone (KEK) to the labor market are still seasonal and closely tied to the hosting of international events. Therefore, strategies to strengthen the capacity of local businesses and human resources are needed to make job creation more sustainable.

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