Abstract

This study analyzes the role of the manufacturing industry sector in the Indonesian economy, and analyzes the linkages between the processing industry sector and other economic sectors, both input and output providers from the manufacturing sector in Indonesia. Besides analyzing the distribution coefficient and sensitivity of the spread of the processing industry sector in Indonesia, and analyzing the effect of the economy based on multiplier effects on output, income, and labor in Indonesia. The analytical method used is the analysis in the Input table - Indonesia's Output in 2016 classification of 17 sectors aggregated into 9 data processing sectors with the help of Microsoft Excel (computer software) program. Based on the results of the linkages in the processing industry sector, the value of future total linkages (4.188) is greater compared to total backward linkages (2.336), indicating that the manufacturing sector is very important in availability. output used as input by other sectors in Indonesia. While the results of the spread, the value of the sensitivity of the spread of the processing industry sector (3.143), and the value of the distribution coefficient (1.090), the value of spread is greater than one, this indicates the manufacturing industry sector encourages economic growth and is able to attract economic growth. Multiplier results, output multiplier values in the processing industry sector (1.815), income multiplier value in the manufacturing industry sector (0.205), and industrial sector labor multiplier values (0.006). From the results of the 2016 Input – Outputanalysis of the manufacturing industry sector efforts should be made to develop a better processing industry sector in increasing economic growth. The processing industry sector here as the leader sector, with the development of industry will lift the development of other sectors, and will improve the economy in Indonesia.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call