Contribution of Economic Sectors toward Regional Disparity of Indonesia

Abstract

Regional disparity of Indonesia became an important issue during the presidency of Joko Widodo. One of the causes of this disparity is lack of economic resource mobility. Several infrastructure programs have been planned and implemented to increase economic mobility resources from one region to another so that equitable development can be achieved. This paper aims to analyze how much regional disparity decreases in 2014-2016 and to find out which economic sectors have a biggest contribution toward regional disparity of Indonesia. Data used in this paper is secondary data from 2011-2016, consist of labor, population, Gross Domestic Product, and Gross Regional Domestic Product. The result shows that the regional disparity since 2014 tends to decrease and industrial sector has the biggest contribution toward regional disparity, which is 58.19 percent on average.