Determinant Factors on Indonesia Economic Growth

Abstract

Indonesia's economic growth has not been able to become an accelerator of efforts to overcome unemployment and poverty. Indonesia's economic growth is still too small even since 2011-2015 tends to experience a significant decline. Analysis of the factors that influence economic growth can be approached through two sides, namely from the supply side (supply-side economics) and the demand side (demand-side economics). This research was conducted with two approaches, namely from the supply side, by looking at the impact of capital accumulation. The data analysis method used in this research is multiple linear regression using the Ordinary Least Square (OLS) model, which was previously performed first using the classic assumption test to ensure that the model used meets normality assumptions and does not contain multicollinearity, heteroscedasticity, and serial correlation so meet the Best Linear Unbiase Estimate (BLUE) assumption.. This finding is in line with economic theory, both based on the aggregate supply side, and the aggregate demand side

Provincial Real Economic Growth in Indonesia: Investigating Key Factors Through Spatial Analysis

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“…The economic landscape of Indonesia is marked by diverse regional disparities, with provinces experiencing varying economic growth and development levels [1]. These disparities can be attributed to a multitude of factors, including differences and changes in natural resources, infrastructure, government policies, socioeconomic and cultural conditions, demography, and other internal and external influences that impact economic growth at the provincial level [2][3][4][5][6][7]. As a result, the economic growth trajectory can vary between both provinces and over time [8,9].…”