Regression Analysis of Electrical Energy Sold and the Connected Capacity as Determinants of Gross Regional Domestic Product (GRDP) at Constant Prices in Bandung City

Abstract

This study aims to examine the influence of electricity sales and installed capacity on the Gross Regional Domestic Product (GRDP) at constant prices in Bandung City. The analysis is based on secondary data covering the period from 2010 to 2017, obtained from the Central Bureau of Statistics (BPS) of Bandung City and the State Electricity Company (PLN). In addition, the study evaluates the extent to which these variables contribute, both individually and jointly, to regional economic growth, while also identifying the variable with the most dominant impact on GRDP. The research employs a multiple linear regression approach, complemented by partial significance testing (t-test) and simultaneous testing (F-test). All statistical computations are conducted using SPSS version 24.0. The findings indicate that installed electricity capacity exerts a positive and statistically significant effect on GRDP at current prices in Bandung City, suggesting that an expansion in electricity capacity stimulates economic activity. In contrast, electricity sales demonstrate a negative yet significant relationship with GRDP, implying that electricity consumption has not been optimally translated into value-added output, likely due to the predominance of non-productive sectors. Collectively, both variables exhibit a significant impact on regional economic growth, highlighting the importance of strengthening electricity infrastructure to support sustainable economic development in Bandung City.