THE CONTRIBUTION OF TECHNOLOGY ON INDONESIAN ECONOMY: NATIONAL, SECTORAL AND SPATIAL PERSPECTIVES.

This paper reports a research that aimed to analysis the contribution of technology on Indonesian economy at national, sectoral and spatial perspectives. Growth accounting decomposition technique was employed to calculate the contribution of factors production in the economy. The results showed that, on average, technology contribution to Indonesian economy, in term of TFP growth, was too small (8.79%) if compared to the TFP growth of other countries, especially in the developed countries. Even if compared with the contribution of other factors contribution, such as capital (74.1%) and labor (17.1%). Sectorally, the contribution of technology on Indonesian economy varied among sector. The highest and gave positive contribution were Other Services (72.6%) and Manufacturing (52.6%). The lowest and gave negative contribution were Agriculture (-55.1%) and Financial, Rental and Corporate Services (-38.7%). Spatially, the contribution of technology on Indonesian economy also varied. The highest and gave positive contribution were the Island of Java (47.9%) and Bali-Nusa Tenggara Island (30.4%). The lowest and gave negative contributions were Maluku-Papua Islands (-95.4%) and Kalimantan Island (-24.7%)