Abstract
The economic development in Indonesia from period to period until now is increasing because Indonesia is very rich with natural and human resources, only quality human resources need to improve their quality in order to be able to develop better economy in the future, however unemployment and poverty rate of Indonesia is still high compared to some other countries in the world, therefore it is necessary jointly between individual society, private and the government has maximum efforts to reduce unemployment and poverty in Indonesia, by increasing the growth of gross domestic product (GDP) contribution by business field can reduce poverty level in Indonesia. The result of multiple regression analysis shows that the contribution of GDP according to business field can decrease poverty level in Indonesia. This condition indicates that agriculture, forestry, fishery sector has a negative effect on poverty rate in Indonesia which means any decrease in agriculture, forestry, fishery by one unit affect the decrease of poverty level of 0.203 at constant -7,70, while the other three factors mining and quarrying, processing industry factor and trade factor have a positive effect on poverty level which means that every increase of one unit leads to a significant increase in poverty not yet able to reduce poverty level but has significant influence on all variables to poverty level in Indonesia. The results of multiple correlation coefficient analysis indicate that from each sector, agriculture, forestry, mining fishery, excavation, processing industry and trade are very strong together that is equal to 97,70%, besides coefficient value of determination equal to 0,96% whereas the remaining 4% of the poverty rate is influenced by other factors.
Highlights
Economic development in Indonesia from period to period is increasing because Indonesia is very rich with natural and human resources, only the quality of human resources need to improve quality in order to increase the independence and able to develop a better economy in the future, Indonesia's unemployment and poverty rate is still high compared to some other countries in the world, it is necessary jointly between individual, private and governmental communities there is a maximum effort to reduce poverty and unemployment rates which one of the factors is growth population, by increasing the growth of the contribution of gross domestic product (GDP) according to the field of business can reduce the level of poverty in Indonesia
From the regression shows that agriculture, forestry, fisheries negatively affect the level of poverty in Indonesia which means that every increase of agriculture, Forestry and fishery for one unit affects poverty reduction of 0.203 at -7.70 constant, while the three variables, has a positive effect which means that every increase for one unit of the three variables experienced an increase of poverty level which means not able to decrease poverty level and yet still have significant influence all variable to poverty level in Indonesia
From the regression shows that agriculture, forestry, fishery have a negative effect on poverty rate in Indonesia which means that every increase of agriculture, forestry, and fishery decrease poverty level in Indonesia that is equal to 0,203 at constant -7,70
Summary
Economic development in Indonesia from period to period is increasing because Indonesia is very rich with natural and human resources, only the quality of human resources need to improve quality in order to increase the independence and able to develop a better economy in the future, Indonesia's unemployment and poverty rate is still high compared to some other countries in the world, it is necessary jointly between individual, private and governmental communities there is a maximum effort to reduce poverty and unemployment rates which one of the factors is growth population, by increasing the growth of the contribution of GDP according to the field of business can reduce the level of poverty in Indonesia. The national income accounting is one of the important innovations in measuring development indicators in the twentieth century. The national income account shows the high level of national income of a country, as well as the contribution of each sector of economic activity to the level of national income concerned. In the national income account system are known some important terms, among GDP (Suparmoko & Nurrochmat, 2005). One of the most important benchmarks in measuring a country's economic growth rate is to look at to GDP. One of the main indicators in economic development is economic growth. Economic growth indicates the progress of economic activities in a certain year
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