Analysis of the Impact of Central Government Official Travel Expenditure on the Tertiary Sector: Perspectives from Economic Education and Public Finance in Indonesia

Dwi Ari Wibawa; Jus Samuel Sihotang; Wahyu Joko Susilo

doi:10.63922/ijevss.v5i04.6977

Dwi Ari Wibawa Pusdiklat Anggaran dan Perbendaharaan, Bogor
Jus Samuel Sihotang Pusdiklat Anggaran dan Perbendaharaan, Bogor
Wahyu Joko Susilo Pusdiklat Anggaran dan Perbendaharaan, Bogor

DOI: https://doi.org/10.63922/ijevss.v5i04.6977

Keywords: Official Travel Expenditure, Tertiary Sector, Regional GRDP, Keynesian Multiplier Effect, Bureaucratic Tourism, Panel Data Regression

Abstract

This study aims to analyze the impact of central government official travel expenditures on the economic growth of the tertiary sector, particularly the accommodation and transportation subsectors in Indonesia. Official travel expenditure is frequently perceived merely as an operational burden, despite its substantial potential as a fiscal injection instrument to stimulate the local economy. This research employs an explanatory quantitative approach using panel data regression methods across 38 provinces over the 2019–2024 period. The analyzed data is sourced from the State Budget and Treasury Online Monitoring System (OMSPAN) and the Directorate General of Fiscal Balance for fiscal variables, alongside Statistics Indonesia (BPS) for macroeconomic indicators. The primary results demonstrate that official travel expenditures have a positive and significant effect on the Gross Regional Domestic Product (GRDP) of the accommodation subsector and transportation, contributing 0.252 % and 0,0564% for every unit increase in expenditure. Furthermore, path analysis confirms that the accommodation and transportation sectors effectively mediate the transmission of the impact of official travel expenditures toward achieving the aggregate total GRDP. The conclusion of this study asserts that bureaucratic mobility serves as a vital and effective mechanism for sectoral fiscal stimulus. The practical contribution of this research lies in providing a policy foundation for state treasury authorities to reformulate and allocate official travel budgets as a tool for equitable regional economic distribution. Theoretically, this study substantially enriches the multiplier effect model literature regarding the direct impact of state apparatus mobility on escalating the productivity of the service industry in developing countries

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