The Analysis of the Role of Monetary and Agricultural Economy in the Structure and Development of Konawe Regency’s Economy as a National Mining Area

This study investigates the structural economic transformation and emerging macroeconomic vulnerabilities driven by the rapid expansion of nickel downstreaming in Konawe Regency, Southeast Sulawesi—one of Indonesia’s priority industrial mining zones. A quantitative descriptive approach using time-series data from 2010 to 2024 applies Shift Share Analysis (SSA), Location Quotient (LQ), and Dynamic Location Quotient (DLQ) to assess sectoral competitiveness and structural change. The results show a significant reconfiguration of the regional economy, reflected in the declining competitiveness of the agricultural sector (LQ falling from 1.467 to 0.686) and the sharp rise of the manufacturing sector linked to the Morosi Industrial Area (LQ increasing from 0.726 to 5.333). DLQ results indicate that manufacturing is the only sector demonstrating sustained dynamic competitiveness (DLQ 2.096 during 2019-2024), while social sectors such as education and health remain stagnant. This transformation creates macroeconomic pressures, including heightened inflation risks, increasing dependence on external capital and commodity price fluctuations, and widening income inequality. Strengthening regional economic resilience therefore requires coordinated fiscal-monetary policy support and strategic economic diversification aligned with the long-term vision of Indonesia Emas 2045. Keywords: Nickel downstreaming; Structural transformation; Sectoral competitiveness; Macroeconomic vulnerability;Indonesia Emas 2045.