A Study of Economics Development in Cluster Taman Puri, Serang City

A. Introduction
1. Background
Taman Puri is a residential cluster located in a suburban area. It
comprises of several housing complexes, commercial areas, and public
facilities. The cluster has experienced significant growth and
development in recent years, leading to various economic implications
that need to be studied. Taman Puri has evolved from a quiet
neighborhood into a bustling residential cluster. This transformation has
been accompanied by the establishment of new businesses, increased job
opportunities and a rise in population. These changes have undoubtedly
impacted the local economy, necessitating a comprehensive study to
understand their extent and implications (Yasni & Muhammad, 2020).
The needs in the Banten region are also truly felt and supported by
the capabilities of the central government. The availability of adequate
facilities and infrastructure can be one of the supports in realizing a
target achievement in the economic growth cycle. Development
activities that are specifically oriented towards economic aspects are the
main targets that must be completed by all groups in development
activities. This refers to the impact of development that brings people's
welfare. Efforts related to implementing community development and
distributing feedback must be felt together. The mainstream impact of
global development certainly has a big impact on various social
problems that still occur in various regions of Indonesia
(Damanik et al., 2021).

The urgency of economic development is proof of the existence of

a country that is moving forward to improve the quality of life of its
people. Development is one of the nation's ideals in creating social
welfare. Implementation of needs and infrastructure also supports
correlation between several authorities in this business sector in each
region. The government must pay attention to the needs of the
 community so that the ongoing process is regulated and planned
systematically (Kennedy, 2018).
The essence of understanding the long process of economic
development can be a supporting factor in creating GDP per capita or
interpreted as people's income continuing to increase. Some of the main
characteristics of income growth are the emergence of processes that
lead to continuous change, an increase in people's per capita income
which continues to develop into businesses, or businesses that can
contribute to the growth of people's per capita income. Consideration of
economic development as a media element to increase income must be
important for the needs or growth of GDP (gross domestic product)
(Arifqi & Junaedi, 2021).
Until now, the limitations that have arisen in the phenomenon and
process of economic development planning are related to the process
mechanisms of the city of Serang itself which have not been
implemented well. Limitations in the financial sector due to ongoing
regional development are also one of the triggers for very complex
obstacles. The role of each stakeholder or stakeholder is also closely
related to
development planning processes that influence each other. This is
because there are other parties involved, such as the government and the
private sector, and differences in wishes and constructive suggestions
from other parties must be taken into account
2. Rumusan Masalah
Based on the previous research review, specify the research problem that
this study aims to address. This could include topics such as identifying
economic challenges, analyzing the impact of specific factors on
businesses, or evaluating the potential for economic growth in the
cluster. The study intends to address the following research questions:
1) What are the key economic indicators of Taman Puri?
2) How has the development of Taman Puri impacted employment
opportunities?
 3) What are the factors contributing to the growth of businesses
within Taman Puri?
4) Is there a correlation between the increase in population and the
local economy?
5) What are the income levels and patterns in Taman Puri, and how
have they evolved over time?
B. Theory
Economy is something that cannot be separated from human life. As
time goes by, human needs increase, therefore the economy continuously
experiences growth and change. Changes that generally occur in the
economy experienced by a country such as inflation, unemployment,
employment opportunities, production results, and so on. If this is handled
properly, a country will experience a stable economic situation, affecting the
welfare of the lives of the country's residents
(Kambono & Marpaung, 2020).

The Indonesian economy covers all economic activities and conditions

in Indonesia. The economic system adopted by the Indonesian state is the
Pancasila economic system, namely an economic system imbued with the
Pancasila ideology, which is a joint effort based on kinship and national
mutual cooperation. This economic system is also called economic
democracy. The philosophical basis of the Indonesian economic system is
Pancasila and the constitutional basis is the 1945 Constitution articles 23, 27,
33 and 34.
The concept gathered in the planning work model is an activity that
runs in society and government, which actually runs when a strategy is
made, which is optimal when planning work is used as a tool to achieve a
goal. The essence of design as a rational path represents a more future
structured. At the same time, the urgency of the plan must correspond to a
process that can determine future actions and make decisions about the
various processes related to those actions.
Every year there is a decline in the rate of economic growth in each
district/city. This is important and part of identifying economic potential.
The main problem with existing economic growth is that economic sectors
that have the potential for competitive and comparative competitiveness are
not yet known. Apart from that, there will be challenges in the economic
development process such as 1) the development of technology, 2) the
existence of conflicts that occur among the population, 3) there is damage to
the environment, 4) developments that occur in the global environment and
5) the existence of conflicts that occur between country
(Yamali & Putri, 2020).

Adam Smith, a pioneer of classical economic thought, in his book “An

Inquiry into the Natural and Causes of the Wealth of Nations” expressed his
views regarding the important factors that play a role in economic growth.
His main views are; 1) The role of the free market system. Smith argued that
the market mechanism system would realize efficient economic activities
and steady economic growth. In this case, the government does not need to
carry out economic activities that produce goods and services, 2) Market
expansion. Smith emphasized the importance of foreign markets in
developing domestic activities. The wider the market for goods and services,
the higher the level of production and level of economic activity, 3)
Specialization and technological progress. The expansion of markets and
expansion of economic activities that are encouraged will enable
specialization in economic activities. Furthermore, specialization and
expansion of economic activities will promote technological development
and increase productivity. This increase will expand the market and increase
workers' income. This cycle will result in the economy continuing to
develop (Purba et al., 2021).
In economics there is not only one growth theory, but there are many
growth theories. Economists have their own views or perceptions regarding
the growth process of an economy. Growth theories can be grouped into
several theories, namely:
1. Classical growth theory
Classics argue that the role of capital is important for economic
development. According to Adam Smith in Boediono's book, there are
 two main aspects of economic growth, namely total output growth
(GDP) and population growth. In output growth, Adam Smith saw a
country's production system as consisting of three main elements,
namely:
a) Available natural resources (land production factors).
b) Human resources (population).
c) Existing stock of capital goods.
2. Neo-classical growth theory
Neo-Classical growth theory was first developed by Robert Solow.
Neo-Classical theory argues that economic growth originates from the
increase and development of factors that influence aggregate supply.
This contradicts the Harrod-Domar theory which argues that economic
growth is determined in terms of demand, that is, it depends on the
development of aggregate demand.
Neo-Classical growth theory basically aims to explain the main
factors that determine economic growth and the relative contribution
of various factors in creating economic growth. In Neoclassical theory,
it is shown how three types of input, namely capital, technology and
labor, determine the level of economic activity, and the role of capital
and technological development in determining economic growth.
3. Modern growth theory
Joseph Schumpeter lived in modern times from 1883 to 1950. In
terms of theory, Schumpeter can be classified in the group of classical
growth theories. However, in contrast to previous classical economists,
he is optimistic that in the long term the standard of living of many
people can be continuously improved in accordance with the
technological advances that society can achieve. Schumpeter argued
that the driving force of economic development is a process called
innovation, and the perpetrators are entrepreneurs or innovators.
C. Method
In this research, the object of research is the Taman Puri residential
area in Serang City. The time period used in this research covers 2019-2024
using time series data. Meanwhile, the type of data that the author uses in
this research is secondary data, namely data obtained from second party
processing (external data) and the data used is annual data. This research
was conducted in Banten Province by looking at economic development in
the Taman Puri Indah residential area, Serang City. The data analysis
method used in this analysis consists of four analyses, namely: Location
Quotient (LQ) analysis used to determine the base sector and non-base
sector in a region, Growth Ratio Model (MRP) analysis which can provide
information regarding the description of economic activities (economic
sectors) with potential and Overlay Analysis which is a combined analysis
between the results of the growth ratio of the study area (RPs) with the
results of the location quotient (LQ) analysis.
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