AMBuS

Article Details

Vol. 1 No. 3 (2026): May

Infrastructure development and local business growth: evidence from the Trans Papua Road Project in Nduga Regency, Indonesia

https://doi.org/10.35912/ambus.v1i3.4167

Abstract

Purpose: This study examines the impact of road infrastructure development on local business growth in Nduga Regency, Papua Highlands Province, Indonesia, and explores community perceptions of its economic benefits and its long-term sustainability.

Research Methodology: A mixed-methods approach combining qualitative and quantitative analyses was used. Primary data were collected through structured questionnaires from 30 respondents in the Kenyam District, including community members, entrepreneurs, and traders. In-depth interviews with five key informants were used to supplement the data. Secondary data were obtained from the BPS and regional government documents (2019–2024).

Results: Survey results showed high community ratings for income improvement (83.33% rated 'very good'), market expansion, and trading fluency (80%). Key informant interviews confirmed that road development reduced the prices of basic goods, facilitated trade, and created business opportunities. The GRDP data revealed a 3.56% growth in 2024. However, 79.4% of roads remain unpaved, limiting income gains due to business capital constraints and incomplete road coverage.

Conclusions: Road infrastructure significantly stimulates local economic growth by improving accessibility, reducing transportation costs, and generating new business opportunities in the region. However, its potential depends on investment in village roads, capital access, and Indigenous community participation.

Limitations: The study is limited by its focus on the Kenyam District and the lack of broader economic data for the entire regency.

Contributions: This study provides valuable insights into the economic impact of the Trans Papua Road project, contributing to frontier development literature and informing infrastructure policy in Papua.

Keywords

Community Perception Economic Growth Frontier Development Local Business Development Road Infrastructure

How to Cite

Murib, G. ., Hutajudu, H. ., & Marlissa, E. R. . (2026). Infrastructure development and local business growth: evidence from the Trans Papua Road Project in Nduga Regency, Indonesia. Advances in Management and Business Studies, 1(3), 185–197. https://doi.org/10.35912/ambus.v1i3.4167

Download Citation

Endnote/Zotero/Mendeley (RIS) BibTeX

References

  1. Agrawal, P., Singh, A. V., & Bhardwaj, G. N. (2025). Impact of pradhan mantri gram sadak yojana on rural employment: Evidence from a large-scale household survey in India. European Economics Letters, 15(4), 2571-2581. doi:https://doi.org/10.52783/eel.v15i4.4098
  2. Aschauer, D. A. (1989). Is public expenditure productive? Journal of Monetary Economics, 23(2), 177-200. doi:https://doi.org/10.1016/0304-3932(89)90047-0
  3. Banerjee, A., Duflo, E., & Qian, N. (2020). On the road: Access to transportation infrastructure and economic growth in China. Journal of Development Economics, 145(5), 102442. doi:https://doi.org/10.1016/j.jdeveco.2020.102442
  4. Bom, P. R., & Ligthart, J. E. (2014). What have we learned from three decades of research on the productivity of public capital? Journal of economic surveys, 28(5), 889-916. doi:https://doi.org/10.1111/joes.12037
  5. BPS. (2024). Kabupaten Nduga dalam Angka 2024. Retrieved from Nduga: https://ndugakab.bps.go.id/id
  6. Chen, J., & Pan, L. (2024). Impact of the coupling coordination degree of human capital and infrastructure on high-quality economic development: empirical evidence from Chinese cities. Sustainability, 16(20), 8905. doi:https://doi.org/10.3390/su16208905
  7. Dima, E. T. Y., & Nalle, F. W. (2025). Economic growth dynamics in Kupang City: The role of poverty, human development index, and inflation. International Journal of Financial, Accounting, and Management, 7(1), 43-60. doi:https://doi.org/10.35912/ijfam.v7i1.2712
  8. Faggian, A., Modrego, F., & McCann, P. (2019). Human capital and regional development. Handbook of Regional Growth and Development Theories, 126(1), 149-171. doi:https://doi.org/10.4337/9781788970020.00015
  9. Gautam, S., & Ukil, P. (2025). On the road to a better life? Rural road and economic development in Albania. The European Journal of Development Research, 37(6), 1071-1098. doi:https://doi.org/10.2139/ssrn.5492812
  10. Gentari, K., Agustina, S., & Susillawati. (2026). Human resource capabilities and local business models as drivers of BUMDESMA institutional transformation. Annals of Human Resource Management Research, 6(1), 427-438. doi:https://doi.org/10.35912/ahrmr.v6i1.3940
  11. Hamzah, I. R., & Setiawan, D. (2019). Pengaruh infrastruktur terhadap pertumbuhan ekonomi di Sumatera Selatan 2014-2017. Syntax Literate, 4(10), 47-60. doi:https://doi.org/10.36418/syntax-literate.v4i10.750
  12. Hiranrithikorn, P., & Pamornmast, C. (2019). Does transport infrastructure fosters the economic growth: An asean perspective. Journal of Security & Sustainability Issues, 9(2). doi:https://doi.org/10.9770/jssi.2019.9.2(25)
  13. Isaac, O. (2019). Transport infrastructure development in Kenya: How connectivity impacts eastern Africa regional integration. Insight on Africa, 11(2), 200-218. doi:https://doi.org/10.1177/0975087819845205
  14. Kamaludin, A. S., & Qibthiyyah, R. M. (2022). Village road quality and accessibility on transforming rural development. AGRARIS: Journal of Agribusiness and Rural Development Research, 8(2), 160-180. doi:https://doi.org/10.18196/agraris.v8i2.13618
  15. Kambu, Z., Jinca, M. Y., Pallu, M. S., & Ramli, M. I. (2022). Perspectives of the local communities on the development of Trans-Papua road infrastructure. Civil Engineering Journal, 8(5), 999-1010. doi:https://doi.org/10.28991/CEJ-2022-08-05-011
  16. Maciulyte-Sniukiene, A., & Butkus, M. (2022). Does infrastructure development contribute to EU countries’ economic growth? Sustainability, 14(9), 5610. doi:https://doi.org/10.3390/su14095610
  17. Marsuni, N. S., Ridwan, A., & Manou, A. R. (2024). Infrastructure development and its socioeconomic implications: A study of enrekang regency. GoodWill Journal of Economics, Management, and Accounting, 4(1), 11-22. doi:https://doi.org/10.65246/
  18. Masua, S., & Mollet, J. A. (2025). Analysis of the impact of Hasanudin Petrosea Road infrastructure improvement on the economic activities (production, distribution, and income) of the surrounding community. Studies in Economy and Public Policy, 1(1), 19-31. doi:https://doi.org/10.35912/sepp.v1i1.3559
  19. Miles, M. B. (1994). Qualitative data analysis: An expanded sourcebook Thousand Oaks. London: SAGE Publications.
  20. Moljevic, S. (2016). Influence of quality infrastructure on regional development. International Journal for Quality Research, 10(2), 433. doi:https://doi.org/10.18421/IJQR10.02-13
  21. Morten, M., & Oliveira, J. (2024). The effects of roads on trade and migration: Evidence from a planned capital city. American Economic Journal: Applied Economics, 16(2), 389-421. doi:https://doi.org/10.1257/app.20180487
  22. Mramra, N. K., Kambuaya, B., & Werimon, S. (2021). Pengaruh Kualitas Sumber Daya Manusia, Regulasi, Dan Perencanaan Anggaran Terhadap Penyerapan Anggaran Pada Organisasi Perangkat Daerah Provinsi Papua Barat.
  23. Nanda, A. P., & Banerjee, R. (2021). Consumer’s subjective financial well?being: A systematic review and research agenda. International Journal of Consumer Studies, 45(4), 750-776. doi:https://doi.org/10.1111/ijcs.12668
  24. Nasution, S. (2025). The Impact of transportation infrastructure on community economic development. Young Journal of Social Sciences and Humanities, 1(4), 1-8. doi:https://doi.org/10.66867/yjssh.v1i4.195
  25. Nss, R. L. P., Suryawardana, E., & Triyani, D. (2015). Analisis dampak pembangunan infrastruktur jalan terhadap pertumbuhan usaha ekonomi rakyat di Kota Semarang. Jurnal Dinamika Sosial Budaya, 17(1), 82-103. doi:https://doi.org/10.26623/jdsb.v17i1.505
  26. Olayinka, A. A., Sule, B., & Kaka, E. J. (2025). Economic challenges and opportunities in climate change: The case of Africa. Studies in Economy and Public Policy, 1(1), 7-17. doi:https://doi.org/10.35912/sepp.v1i1.3265
  27. Ompusunggu, T., Karamoy, H., & Gamaliel, H. (2024). Analysis of factors affecting on local government’s financial losses in North Sulawesi. The Contrarian: Finance, Accounting, and Business Research, 3(2), 226-240. doi:https://doi.org/10.58784/cfabr.204
  28. Ompusunggu, V. M. (2018). Dampak pembangunan infrastruktur jalan terhadap pertumbuhan ekonomi masyarakat di Desa Semangat Gunung, Kabupaten Karo. Jupeko (Jurnal Pendidikan Ekonomi), 3(2), 18-26.
  29. Putra, J. E., & Rajiman, R. (2025). Dampak peningkatan infrastruktur jalan terhadap pertumbuhan ekonomi makro di Kecamatan Talang Kelapa, Kabupaten Banyuasin Sumatera Selatan. Teknika Sains: Jurnal Ilmu Teknik, 10(1), 122-130. doi:https://doi.org/10.24967/teksis.v10i1.4065
  30. Randhawa, S., Ayguen, E., Randhawa, G., Herfort, B., Lautenbach, S., & Zipf, A. (2025). Paved or unpaved? A deep learning derived road surface global dataset from mapillary street-view imagery. ISPRS Journal of Photogrammetry and Remote Sensing, 223, 362-374. doi:https://doi.org/10.1016/j.isprsjprs.2025.02.020
  31. Rosik, P., & Wójcik, J. (2023). Transport infrastructure and regional development: A survey of literature on wider economic and spatial impacts. Sustainability, 5(1), 1-18. doi:https://doi.org/10.3390/su15010548
  32. Sarimole, B. J. (2025). Challenges of accessibility and quality of public services in the Papuan Mountains. Journal Dimensie Management and Public Sector, 6(3), 214-225. doi:https://doi.org/10.48173/jdmps.v5i1.375
  33. Sharma, K. K., Bhandary, N. P., Subedi, M., & Pradhananga, R. (2024). Unraveling the nexus between road transport infrastructures and economic growth: empirical insights from Nepal’s case. Economies, 12(8), 221. doi:https://doi.org/10.3390/economies12080221
  34. Singh, V., & Maurya, A. K. (2025). Cost-effective pavement condition assessment: a smartphone-based approach for emerging smart cities. Measurement, 16, 119787. doi:https://doi.org/10.1016/j.measurement.2025.119787
  35. Tabuni, N. Y., Ismanto, B., Sandang, Y., Kameo, D. D., & Leba, U. T. I. (2024). Nduga human development index 35.19/0.35: PENA as an alternative to human resource development in Mountainous Papua. Jurnal Indonesia Sosial Teknologi, 5(10), 4389-4406. doi:https://doi.org/10.59141/jist.v5i10.5780
  36. Tambunan, T. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9(1), 18. doi:https://doi.org/10.5220/0008429001830189
  37. Tambunan, T. T. (2018). MSMEs and access to financing in a developing economy: The Indonesian experience Financial entrepreneurship for economic growth in emerging nations (pp. 148-172): IGI Global Scientific Publishing.
  38. Varghese, A. M., & Pradhan, R. P. (2025). Transportation infrastructure and economic growth: Does there exist causality and spillover? A Systematic Review and Research Agenda. Transportation Research Procedia, 82(3), 2618-2632. doi:https://doi.org/10.1016/j.trpro.2024.12.208
  39. Zheng, Z. (2025). How does transport infrastructure development impact rural livelihoods in the Global South? A systematic review of the English language academic literature. Environmental Science & Policy, 173, 104231. doi:https://doi.org/10.1016/j.envsci.2025.104231

Authors

1 . Gay Murib
Universitas Cenderawasih, Jayapura, Papua, Indonesia
2 . Halomoan Hutajudu
Universitas Cenderawasih, Jayapura, Papua, Indonesia
3 . Elsyan R. Marlissa
Universitas Cenderawasih, Jayapura, Papua, Indonesia

Downloads

View PDF

Statistics

Downloads

Download data is not yet available.

Issue

Vol. 1 No. 3 (2026): May
Section: Articles
WhatsApp Instagram Facebook LinkedIn Email