Structure Transformation of Indonesia Economic Year Period 2000-2014

Abstract

This study aims to identify and analyze: (1) The pattern of structure transformation of Indonesia economic according to output (GDP) and employment; and (2) Impact of reduction in the share of the primary sector to the growth of the sector. This study used secondary data such as GDP and employment Year 2000-2014, published data sourced from various years. This study used descriptive analysis method is the analysis of share and growth analysis. The results showed that: (1) Based on output (GDP) and employment transformation of economic structure Indonesia moves from the primary sector to the tertiary sector then the secondary sector (patterns P-T-S); (2) The decline in the share of the primary sector and the increasing contribution of the tertiary sector either by PDB or employment was not followed by a decline in economic growth in the sector. The patterns of economic structure transformation in Indonesia produce economic structures that are not qualified. Stepping economic growth of the primary sector to the tertiary sector does not provide a high multiplier effect against economy. Suggested the government to formulate a development of upstream-downstream is a development strategy that strengthens the secondary sector-based Primary and supported by the services sector.