An analysis of the characteristics of Indonesian industrial sectors: 2005-2010

Abstract

The purpose of the current study is to analyze the characteristics of Indonesian industrial sectors from 2005 through 2010. The study employs the analysis instruments from the Input-Output (IO) analysis, namely the indices of the power of dispersion, and the sensitivity of dispersion. For 2005 and 2010, the study focuses on nine and seventeen industries, respectively. The results show that industry 3, manufacturing, placed the quadrant I on the analysis period. The fact shows that, from 2005 through 2010, the industry had a strong influence on the Indonesian economic activities, and received high impacts from the external aspects. In other words, the industry has great potency for the Indonesian economy. From the results one can also see that sector 4, electricity and gas, included in the quadrant I in 2010. This fact explains that the sector has also great potency for the economic activities of Indonesia. Thus, the Indonesian government should prioritize the industries development.