Identifying Economic Growth Engines in Malinau Regency: A Shift-Share Analysis

Inclusive and sustainable economic development in Malinau Regency is faced with structural challenges, where aggregate economic growth has not been optimal in reducing unemployment and poverty rates. This study aims to identify sectors that drive economic growth and examine the structural patterns of economic growth in Malinau Regency. This research was conducted using a Shift-Share approach using data from the Central Statistics Agency for 2024-2025. The identification results show a shift in the sources of economic growth in Malinau Regency. The Construction sector emerged as the main leading sector (Category I) with positive proportional shift (IM) and differential shift (RS) values, and contributed the highest growth of 24.73%. On the other hand, the Mining and Quarrying sector, which is structurally the largest contributor to GDP, actually contracted by IDR 227.06 billion (Category IV). Meanwhile, the agriculture, processing industry, trade, and accommodation and food and beverage sectors are in Category II, which means that they have structural potential but their local competitiveness still needs to be strengthened. Local governments need to reorient their policies by gradually reducing dependence on the extractive sector and directing investment to value-added economic diversification, agricultural downstreaming, as well as strengthening the service sector and the quality of human resources.