Who has the Biggest Contribution to Indonesia’s Economy
On the argument of when the financial crisis will have an impact in Indonesia during 2008 mortgage crisis, 2013 euro, china etc, I have heard that any international crisis would not have an impact to Indonesia due to Indonesia has very strong domestic economy. At that time I did not understand the explanation of why, but I am agree that our domestic economy is strong an provide a strong foundation for sustainability.
A. Contribution based on GDP Sectoral Contribution
– Services: 40% (Transport 7%, Property 3%, Banking: 3%, Telco & IT: 2%, Retail, Tourism, Health)
– Industry: 46% (Manufacturing 25% (Textiles, Auto, Elect), Oil & Gas 7%, Coal&Mining 2%, Construction 6%)
– Agriculture: 14% (Palm Oil, Rubber, Cocoa, Coffee, Tea)
B. Contribution based on Export
Coal 11%, Gas 8.5%, Palm Oil 8.1% Oil 5.5%
C. Contribution based on National Budget (APBN)
APBN 2015: 1,793 trillion IDR, Oil and Gas Income: 224 trillion IDR (12%)
D. Self-claim Company Contribution
Chevron Contribution to GDP (1.4%) 120 T IDR LPEM UI 2014
Freeport Contribution to GDP (0.8%) LPEM UI 2011
IPA Claim: Oil & Gas: 7-8% to GDP, 21-30% to state revenue (tax and non-tax)
Palm oil contribution claim: 11% Indonesia export
E. Another Perspective Contribution
SME Contribution to GDP 57%
SOE Contribution to GDP 40%
SOE Revenue 2009 to GDP 18%
Pertamina 1976 Debt as percentage of GDP 30%
Civil Servant Salary to GDP 5% (25% of government budget) in 1999
In my opinion, from portfolio perspective, if I look this contribution proportion. There is no sector or industry that giving a significant contribution to Indonesia economy. All distributed equally, even the most popular industry among graduates e.g oil & gas is only maximum 12%, each very low compare what manufacturing contribution of 25%.
However, if you look at the another perspective contribution, we will see that number talk. Small Medium Enterprise (SME) contribution to economy, which are 57%, and at the same time SME contribution to export is only 15%, I can see that it explain all the missing link that now I found the answer. Another thing on foreign worker (TKI) contribution which might reach 1-2% GDP is also something that need to be consider as very high.