An Application of Multiplier Analysis in Analyzing the Role of Mining Sectors on Indonesian National Economy

Abstract

This purpose of the current study aims is to analyze the multiplier analysis on mining sector in Indonesia. The mining sectors defined by coal and metal; crude oil, natural gas, and geothermal; and other mining and quarrying. The multiplier analysis based from input output analysis, this divided by income multiplier and output multiplier. This results show that (1) Indonesian mining sectors ranked 6th with contribute amount of 6.81% on national total output; (2) Based on total gross value added, this sector contribute amount of 12.13% or ranked 4th; (3) The value from income multiplier is 0.7062 and the value from output multiplier is 1.2426.