Perekonomian Indonesia

1. Gross Domestic Product
PDB or Produk Domestik Bruto in the international language is also called GDP or Gross Domestic Product.. According to experts, GDP can be interpreted that the amount of production of goods or services that have been produced by the production unit in an area at a certain time.
Thus, GDP can be used as a gauge of economic growth of a country.
GDP can be regarded as an economic indicator of a country to measure the total amount of production value in which the total amount is produced by all people or companies either owned by local or foreign in a country.

GDP component can be divided into 4 :
1) Private Consumption :  calculate consumption of individual or household for some kind of goods such as;
* Durable Goods : goods that are durable or not quickly damaged which generally have 
a relatively long age or can be said for more than 3 years. Examples of motors, cars, electronics and others but not included for the purchase of new homes.
* Non-Durable Good : goods that are directly consumed and exhausted benefits. For example, food, drinks, shoes and others.
* Service : consumption for services. For example, doctor services.
2) Investment : calculate an expenditure for capital goods. Example: home purchase, building new factory, new program and various other investment.
3) Government Spending : calculate all expenditures that the Government does. Example: pay the salary of civil servants or government employees, buy military equipment, build roads and others.
4) Net Export : calculate the difference obtained from Total Export minus Total Import.

Formula Looking for GDP
There is a formula for calculating GDP is as follows :
PDB = C + I + G + (X-M)
Information :
GDP: Gross Domestic Product
C: Household consumption
I: Investment
G: Government consumption
X: Export
M: Import



2. Growth and change of economic structure in Indonesia
a. the definition of economic growthEconomic growth can be interpreted as the process of change in economic conditions of a country on an ongoing basis towards better conditions for certain periods. economic growth can be interpreted as well as the process of capacity increase the production of an economy which is realized in the form of the opinion.
b.  changing the structure of the national economy economic development in the long run, following the growth of national income, will bring fundamental changes in economic structure, of the traditional with agriculture as a sector key to modern economics that dominated the sector for the primary, especially indusri manufacturing with increasing return to " scale doubles " (the relationship of positive between the growth of output and productivity growth) a dynamic as the main engine of economic growth (weiss, 1988).
Borrowing the term kuznets, changes in economic structure commonly called the transformation structural and could be defined sebaai a series of changes connected to each other in the composition of the demand side, foreign trade (exports and imports) and the aggregate (prodksi and the use of the factors of production such as the labor and capital) which is necessary in order to support the development process and sustainable economic growth (chenery, 1979).
Terori structural changes focus on the discussion on, ekanisme economic transformation experienced by countries, which was originally a subsistence (agricultural traditional) and meniitkberatkan the agricultural sector to economic structure of the medoren the SMEs for the primary, especially industry and services.
arthur lewis theory basically discuss the process of economic development that occurred in rural and urban areas.
6 the difference between countries in a number of factors internal :
1. the condition and structure of the awalekonomi in nederi (economic base).
2. the magnitude of the domestic market
3. the pattern of the income distribution
4. the characteristics of industrialization
5. the existence of suber natural resources
6. the foreign trade

3. history of indonesia economics growth from the new order untill now
From the beginning of the new order, indonesia’s economic condition is in a bad position. Existence of G 30S pki movement and unstable political conditions causing inflation up to 650%. Indonesias start to join the IMF and another world banks. Indonesia start to reorganize the economics after getting help from the IMF and world banks. One of successful economics policies program is the REPELITA(rencana pembangunan lima tahun). Repelita has been made from the 1st until 4th.
The new order has been succeed increase the indonesias economics. The economics of indonesia growth stably,in the growth averages reach 2,5% and in next REPELITAs program it reach 5%-10% from the 1990 until the crisis in 1998. And suddenly the economics overheating take place. Economics overheating is a conditions that economy capacity cant handle the economics growth. Economics overheating became worst because the global crisis. The global crisis leads the indonesias new order regime fall down.
Sign by the fall of new order,the reformation era has just began. In the beginning of reformation era,indonesias president B.J habibie could make a indonesia able to get out the crisis,thanks to world banks and IMF. In the next president,the economics condition has started to improved,but still unstable. K.H. Abdurahman Wahid's policies that day is to create a national economic council due to decrease the economic crisis. In the megawatis government, the economics conditions has became better than the last one,and the exchange started to be stable. She started to pay the almost 120 trillions debt. In the susilo bambang yudhoyono government,that day the economical has getting better and better,with the growth economy rate reach 5% per year. And the next policies is to decrease the price of  gasoline, and to pay the debt to IMF. With almost 3,2 billion dollar.

4. Factors that determine the prospect of economic structure in Indonesia
Determinants of Indonesia's economic growth prospects Broadly speaking, there are at least 2 (two) factors that determine the prospects for economic growth in Indonesia. The two factors are internal and external factors.
1. Internal Factors The economic crisis in 1998 caused by poor national economic fundamentals, and the slow pace of national economic recovery after the event caused many reluctant foreign investors (even to this day) to invest in Indonesia. Then the process of recovery and improvement of the national economy is also not accompanied by adequate political and security stability, the settlement of social conflict, and the absence of legal certainty. Whereas these non economic factors are an important aspect in determining the level of risk within a State to be the basis of decisions for business actors or especially foreign investors to do business or invest their capital in that State.
2. External Factors The condition of trade and the regional economy and the world is an important external factor to support the process of economic recovery in Indonesia. Why is the condition of trade and regional or world economy is considered important? Therefore, if the trade and economic conditions of these countries are especially Indonesia's partners are weakening, it will also impact on the recovery process that will increasingly gain time and consequently can hamper economic progress in Indonesia. In addition, there are also several factors that are considered important in supporting the economic growth of a country,that is:
- Human Resource Factor Similar to the development process, economic growth is also influenced by human resources. Human resources is the most important factor in the development process, the rapid development process depends on the extent to which human resources as the subject of development have sufficient competence to carry out the development process.

5. Government policy that support economic growth
The policy of accelerating economic growth by the government is:
Policy “diversivikasi” economic activities, the first step that needs to be done is to modernize existing economic activities. The important steps to be taken are to develop new economic activities that can accelerate the information of economic activities that are traditional to modern economic activities.
Developing infrastructure, modernizing economic growth requires modern infrastructure as well. Various economic activities require a thriving infrastructure, such as roads, bridges, airports, ports, industrial estates, irrigation and water supply, electricity and telephone networks.
Increasing savings and investments, low community revenues lead to lower community savings. While development requires a large savings to finance the investments made. Lack of investment is always declared as one source that can hamper economic development. Therefore, the important condition that needs to be done to accelerate growth and economic development is to increase community savings
Improving the level of community education, in terms of individual views as well as overall, education is a very useful investment in economic development. Individuals who get higher education tend to earn higher income, so the higher the education the higher the income earned
Formulating and implementing economic planning, the conventional government policy of fiscal and monetary policy can not realize the expected economic growth. To overcome this in the early stages of economic development, development planning needs to be done. Through development planning can also be determined the extent to which private and government investment needs to be done to achieve a predetermined growth goals.

6. Structure change of economic and the impact to Indonesian people
- Determinants of Economic Structure Changes
The existence of structural economic changes can be reflected in the role of sectors in the formation of national production and the percentage of labor in each sector of the economy. Where the role or contribution of the primary sector (agriculture and mining) in the formation of Gross Domestic Product (GDP) or Gross Regional Domestic Product (GRDP) will decrease, while the role of secondary sector (manufacturing industry, construction) and tertiary sector (services) will increasingly, with the advancing economy of the country. In addition, the higher per capita income of a country, the smaller the role of agriculture in providing and absorbing employment, and the industry sector will increasingly become increasingly important and increasing its role in accommodating the workforce. (Kamaludin: 1999).
economic structure occurs due to the change of a number of factors, which according to the source can be distinguished on the factors Internal namely:

a) Aggregate Demand (AD)
b) Aggregate Supply (AS)
Changes in economic structure are also influenced directly or indirectly by government intervention in daily economic activities.
a) Aggregate Demand
On the Aggregate Demand side, the most dominant factor is the change in domestic demand caused by the combination of increasing income per capita of the community and the changing of the people's taste. Changes in demand not only in the sense of increased consumption but also changes in the composition of goods consumed. This change in composition can be explained by Engel's theory: If the real income of the society increases then the growth in demand for non-food items will be greater than the growth in demand for food. Generally food, such as rice, has an income elasticity of demand that is zero (normal goods category) or negative (inferior), whereas non-food items such as household appliances from electronics and clothing have a positive and large elasticity (category ferior).
b) Aggregate Supply
From the side of Aggregate Supply, important factors include a shift in comparative advantage, technological change or advancement, educational improvement or human resource quality, inventions of new materials for production, and accumulation of capital goods. All these things make it possible to innovate in products and production processes. In the case of a shift in comparative advantage according to Chenery in Tambunan (2001) that the process of structural transformation will run slowly, sometimes even reversed or declined in the sense of a decline in the contribution of manufacturing industry output in the formation of Gross Domestic Product (GDP), if the comparative advantage does not work in accordance with the direction of shifting domestic demand patterns toward manufacturing industry output and patterns of change in the composition of exports. Changes in the economic structure of the Aggregate Supply are also caused by the reallocation of investment funds and other major resources, including technology and labor or human resources from one sector to another. This reallocation can occur because of differences in productivity or real income between sectors, the existence of poverty in one sector or the existence of more favorable government policies in certain sectors such as industrialization policy and foreign trade policy prioritizing development or output growth in the industrial sector.

The economic structure of a country can be seen from different points of view. There are 4 kinds of reviews:
• Macro-sectoral review
• Spatial review
• Review of state administration
• Review of decision-making bureaucracy


-  Positive Impacts of Economic Development
* Through economic development, the implementation of economic activities will run more smoothly and able to accelerate the process of economic growth.
* The existence of economic development is possible the creation of jobs needed by the community, thereby reducing unemployment.
* The creation of employment due to direct economic development can improve the level of national income.
* Through economic development, it is possible that there is a change of economic structure from agrarian economic structure to industrial economic structure, so that the economic activities carried out by the state will be more diverse and dynamic.
* Economic development requires the improvement of the quality of human resources so that in this case, it is possible that science and technology will grow rapidly. Thus, will further improve the welfare of the community.

- Negative Impacts of Economic Development
* Unplanned economic development results in environmental degradation.
* Industrialization results in reduced agricultural land.

7. Chases of GDP,Growth and change of economic structure in Indonesia

1) TEMPO.CO, Jakarta - Central Agency of statistic or BPS recorded the Indonesian economy in 2017, measured by gross domestic product (GDP) at current prices, reaching Rp 13,588 trillion and per capita GDP of Rp 51.89 million.
In terms of spending, Indonesia's economic growth reached 5.07 percent, or higher than in 2016 which recorded 5.03 percent. The growth is supported by household consumption expenditure (PK-RT) components, household consumption expenditure (PK-LNPRT), government consumption expenditure (PK-P), gross fixed capital formation (PMTB), and exports goods and services.
"Exports of goods and services became the highest growth component of 9.09 percent," said BPS Head Suhariyanto at BPS office, Central Jakarta, Monday, February 5, 2018. Followed by PK-LNPRT component of 6.91 percent and PMTB component of 6.15 percent.
"Realization of real investment in the fourth quarter also rose 12.7 percent on an annual basis to Rp 179.6 percent," said Suhariyanto.
When viewed from the creation of a source of growth, the PK-RT component becomes the main source of Indonesia's economic growth in 2017, at 2.69 percent and the PMTB component of 1.98 percent.
While Indonesia's economic growth is based on the fourth quarter of 2017, the highest growth is in the export of goods and services by 8.50 percent, followed by growth of PMTB of 7.27 percent, PK-LNPRT component 5.24 percent, PK-RT of 4, 97 percent, and PK-P 3.81 percent. Meanwhile, imports of goods and services grew 11.81 percent. But imports are a subtracting factor in GDP.

Analysis:
On the other hand, Indonesia's GDP structure, according to expenditure at current prices, does not show any significant change. Final demand activity is still dominated by the PK-RT component that covers more than half of Indonesia's GDP.
Compared to the structure of GDP according to the third quarter of 2017, the role of PK-RT component increased from 55.73 percent to 56.22 percent in the fourth quarter of 2017.

2) Jakarta - Central Agency of statistic (BPS) reported the realization of Indonesia's economic growth reached 5.02 percent in 2016 or higher than 4.88 percent in 2015. Last year's achievement hoisted the value of Gross Domestic Product (GDP) to Rp 12,406, 8 trillion at Current Basic Price (ADHB).
"The national economic growth of 2016 is 5.02 percent," according to BPS Head Suhariyanto at the 2016 GDP Release at his office in Jakarta on Monday (2/6/2017).
Meanwhile, the value of GDP at Constant Price Base (ADHK) last year amounted to Rp 9.433 trillion. The value of ADHB and ADHK GDP in 2016 increased compared to the previous two years, namely in 2015 reached Rp 11,531.7 trillion (ADHB) and Rp 8,982.5 trillion (ADHK), and Rp 10,569.7 trillion (ADHB) and Rp 8,564.9 trillion (ADHK) in 2014.
Suhariyanto explained that the increase of GDP value at Current Market Prices in 2016 to Rp 12,406.8 trillion is driven by positive growth in all business fields or the national economy driving sector.
"The entire business field moves in 2016, so the value added to increase and our GDP reaches Rp 12,406.8 trillion.Then the value is divided by the population, it can be per capita GDP Indonesia in 2016 which amounted to US $ 3,605.06 or Rp 47.96 million per year, "

Analysis :
all business fields in 2016 show positive growth in all economic categories. The highest growth occurred in the financial services and insurance sector 8.90 percent; information and communication 8.87 percent; and other services grew 7.80 percent.
Based on data from BPS, ADHB's GDP of Rp 12,406.8 trillion in 2016 is supported by manufacturing business sector which reached Rp 2,544.6 trillion. Other contributions from the agriculture, forestry and fishery sectors contributed Rp 1.669 trillion; major trade and retail sectors, car and motorcycle repairs Rp 1.636 trillion; construction sector Rp 1,287.7 trillion, and mining and quarrying sector Rp 893.9 trillion.


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