ANALYSIS OF AGRICULTURE, INDUSTRY AND SERVICE INEQUALITY IN INDONESIA PERIOD 2014.1-2019.3
DOI:
https://doi.org/10.61841/aempe152Keywords:
industrialization, economic structure, production, agriculture, industry, servicesAbstract
Industrialization is a necessity for a country to be properly called a developed country. The Indonesian economy during the development process has changed its structure from relying on the agricultural sector to the industrial sector. The development of the contribution of the industrial sector to Indonesia's GDP during the New Order continues to increase, and vice versa for the agricultural sector. The purpose of this study was to evaluate the development of the contribution of the agricultural, industrial, and service sectors to GDP in Indonesia in the period 2014.1-2019.3 due to a phenomenon that deviates from the theory of economic structure change. From the calculation results, it is proven that the development of the contribution of the agricultural and industrial sectors to Indonesia's GDP has decreased. In contrast, the contribution of the service sector to Indonesia's GDP showed an increase. The contributing factors are low productivity, regulation, and downstreaming in the agricultural sector. While the industrial sector is caused by the scarcity of oil and gas and the non-optimal role of the non-oil sector in competing with foreign countries. While the increase in the transportation services sector is due to the role of Gojek that can replace public transportation. The solution needed in agriculture and industry is the improvement of government regulations and the need for superior human resources. As for the service sector, it needs to be optimized by providing infrastructure and improving management, especially sea and air.
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