Constructing an interregional social accounting matrix for Indonesia sources and methods

Abstract

Indonesia’s economic transformation and persistent regional disparities highlight the need for comprehensive analytical tools to evaluate structural change and policy impacts. This paper develops Indonesia’s Interregional Social Accounting Matrix (IRSAM) 2019, a major update from the previous 2005 version. IRSAM 2019 features six regions (Sumatra, Java, Bali, Kalimantan, Sulawesi, and Nusa Tenggara–Maluku–Papua), 67 sectors designed to capture emerging industries and policy-relevant activities, and household classifications by income decile. The table is constructed using a top-down hybrid method that combines the RAS approach with survey-style evidence to incorporate new and emerging sectors such as biodiesel, electric vehicles (EVs), and seaweed products. IRSAM 2019 captures interregional flows of labor, capital, and trade, and can be applied to analyze regional and income disparities as well as broader economic transitions. This paper contributes by documenting the evolution of Indonesia’s SAM and IRSAM, detailing the structure and compilation process of IRSAM 2019, and presenting an overview of its aggregated results.