An application of Interregional effect on Central Java province economy (interregional input output approach)

Abstract

The changes in the structure of the Indonesian economy not only affect the interregional linkages but also the intersectoral linkages, no exception the Central Java Province. This paper aims to calculate and to interpret the interregional effect, especially Central Java Province, to the main island in Indonesia. Using the Interregional Input - Output data for 2005. The study found that the sectors that provide the greatest interregional effect as follows (1) the electricity gas water sector for Central Java and other provinces in Java Islands; (2) the air transport sector for Central Java and Sumatra Islands; (3) the water transport sector for Central Java and Kalimantan, also Central Java and Bali, West Nusa Tenggara and East Nusa Tenggara; (4) oil refining industry sector for Central Java and Sulawesi; (5) animal husbandry and other products sector for Central Java and Maluku - North Maluku - Papua.