PEOPLE: International Journal of Social Sciences ISSN 2454-5899
 
© 2017 The author and GRDS Publishing. All rights reserved. 252
Available Online at:
http://grdspublishing.org/ 
 
Kusumah, 2017
Volume 3 Issue 3, pp.252-257 Date of Publication: 1
st
 December 2017 DOI-https://dx.doi.org/10.20319/pijss.2017.33.252257 This Paper Can Be Cited As : Kusumah, E. (2017). Economic Condition Of Post Tin Mining (Case Study On Bangka Belitung Island As One Of The Largest Tin Producers In The World). People: International  Journal Of Social Sciences , 3(3), 252-257.
ECONOMIC CONDITION OF POST TIN MINING (CASE STUDY ON BANGKA BELITUNG ISLAND AS ONE OF THE LARGEST TIN PRODUCERS IN THE WORLD)
Echo Perdana Kusumah
 Departement of Management, Faculty of Economic, University of Bangka Belitung, Indonesia echo_perdana@ubb.ac.id  
Abstract
This study aims to determine the effect of economic conditions of the Bangka Belitung island on the level of public purchasing power and the active role of local government policy when the natural resources of tin that can be produced by the public is very minimal. Along with the  passage of time, the economic growth of Bangka Belitung has decreased even though there is  still non-tin potential in the form of plantation and fishery. The research instrument in the form of questionnaires was used to 40 respondents. The data analysis used is the analysis of frequency descriptive and factor analysis to process the data that have been collected. The result of data analysis shows that the variable of public purchasing power and active role of dominant  government have medium category (57,5% and 52,5%) whereas factor of public purchasing  power and active role of society have value 67,593% in explaining economic condition of post tin mining.
Keywords
 
Economic condition, Purchasing power, Government policy
1.
 
Introduction
 
 PEOPLE: International Journal of Social Sciences ISSN 2454-5899
 
© 2017 The author and GRDS Publishing. All rights reserved. 253
Available Online at:
http://grdspublishing.org/ 
 
The main contributor of Gross Domestic Gross (GDP) of Bangka Belitung Islands Province (Babel) comes from tin industry processing industries. During 2016, the tin processing industry generated added value of Rp 13.06 trillion (BPS Babel, 2016; Bank Indonesia, 2016). In the past five years, the contribution of the tin processing industry has declined compared to previous years. This is driven by the application of Permendag No. 33 of 2015 set, private tin companies and state-owned companies agreed to restrict export quotas (Sistem Rujukan Statistik BPS RI, 2016). As a result tin cumulative production of tin has contracted. Apart from tin as the main contributor of GDP, the second largest contributor is agriculture, forestry and fishery with an added value of Rp 13.02 trillion (BPS Babel, 2016). The second largest contribution is increased from previous years due to the quota of tin exports. The economic growth of the Bangka Belitung Islands Province is slowing down due to the decline of the main economic sector in the form of tin that can affect other sectors such as large trade, wholesale and retail (see graphic 1.1). Theoretically in general that the decline in GDP has a negative effect on the purchasing power of consumers so as to increase demand for the company's products.
Figure 1:
 
GDP Bangka Belitung with tin and without tin
 Bangka Belitung economic growth is projected in the future will increase along with the impact of the central government's policy package in providing convenience in the investment climate. From the above explanation, this research will determine the effect of economic condition of post tin mining in Bangka Belitung province which has started to decrease every year based on the factor of public purchasing power and active role of local government policy.
2.
 
Literature review
2.1 Purchasing Power
 
 PEOPLE: International Journal of Social Sciences ISSN 2454-5899
 
© 2017 The author and GRDS Publishing. All rights reserved. 254
Available Online at:
http://grdspublishing.org/ 
 
Purchasing power is the value of the currency expressed in the amount of goods or services that can be purchased by a unit of money (Investopedia, 2016). Purchasing power can also be defined as the ability of people to spend their money in the form of goods or services (BPS, 2016).
2.2 Government Policy
Government policy is a complex dependency pattern of interdependent collective choices, including decisions for inaction, made by agencies or government offices (Dunn, 2003). An action that leads to the objectives proposed by a person, group or government in a particular environment in relation to the presence of certain constraints while looking for opportunities to achieve the goal / realize the desired goal (Tangkilisan, 2003).
 
3.
 
Research methods
Sampling technique using Non-Probability Sampling method, which is sample determination technique that does not give equal opportunity/opportunity for every element (member) of  population to be selected become member of sample (Ghozali, 2016; Ferdinand, 2014). In addition, the technique chosen in Non- Probability Sampling is the Incidental Sampling, which according to Sugiyono (2014), is a technique of determining samples by chance, anyone who accidentally/incidentally meets the author can be used to be a sample. In this study questionnaires distributed to some public and students who are in the area Pangkalpinang. A source of data used in this study is Primary Data, data obtained from research in the field of the source of the respondents, which is the result of the questionnaire. Data analysis techniques will  be processed and analyzed by using the software program SPSS 22.0 for Windows. The analysis to be used is the analysis of factors in which the analysis can show variables or factors that have a certain relationship pattern in a group of variables (Sulistyo, 2012).
4.
 
Results
In descriptive analysis obtained from the questionnaire with three categories (low, medium and high) answered by the respondents can be seen in tables 1 and 2 and factor analysis can be seen in tables 1.3 and 1.4.
Tabel 1:
 
 Descriptive analysis of people's purchasing power 
 
 
Frequency Percent Valid Percent Cumulative Percent
 
 PEOPLE: International Journal of Social Sciences ISSN 2454-5899
 
© 2017 The author and GRDS Publishing. All rights reserved. 255
Available Online at:
http://grdspublishing.org/ 
 
 
Valid low 17 42,5 42,5 42,5 moderate 23 57,5 57,5 100,0 Total 40 100,0 100,0
Tabel 2:
 
 Descriptive analysis of the government's active role
Frequency Percent Valid Percent Cumulative Percent Valid low 18 45,0 45,0 37,1 moderate 21 52,5 52,5 97,1 high 1 2,5 2,5 100,0 Total 40 100,0 100,0
Based on table 1 above can be seen that the level of public purchasing power is more moderate category (57.5%) and low (42.5%), while the respondent answers with high category does not exist at all. In table 2 it can be seen that the active role of government is more moderate category (52.5%), followed by low category (45%) and high (2.5%).
Tabel 3:
 
 Factor Analysis (KMO and Bartlett's Test)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. ,500 Bartlett's Test of Sphericity Approx. Chi-Square 4,956 df 1 Sig. ,026
The results of the study In Table 3 shows that the Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO-MSA) value of 0.500 and the significance value of Bartlett's Test of Sphericity of 0.026 (<0.05) is considered sufficient to analyze subsequent data.
Tabel 4:
 
 Factor Analysis (Total Variance Explained and Component Matrix)
 
Component Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 1,352 67,593 67,593 1,352 67,593 67,593 2 ,648 32,407 100,000 Extraction Method: Principal Component Analysis. Component 1 Purchasing Power ,822 Government Role ,822 Extraction Method: Principal Component Analysis.
of 6