The Sector Growth and Its Contribution to Economic Growth

What do you think if you look the data below? With our glimpse, perhaps we assert that there is variety of the sector growth as well as its contribution to economic growth. Ok, let me elaborate the data beneath the figure, so that you can understand clearly what my intentions in this article are. 

The Sector Growth and Its Contribution to Economic Growth on 2011

Source: Economic Growth Report Published by BPS (2012)

As we know, the economic sector is divided into nine categories. Each category consists of some kind of field work. If we sum up all of sector in economy, we can know gross domestic product. In other side, if we sum up the growth of each sector and then we divide into nine as well as the number of sector, we can know economic growth in the entire economy. The data above tell us about the sector growth and its contribution to economic growth. There are some characteristics that can be assessed based on the data. First, the highest sector growth dominantly comes from service sectors, such as transportation, financial, trade, and other services. This attainment portends that the service sectors profoundly evolve in Indonesia. Unfortunately, the agricultural and manufacturing sector growths are outraged. They just grow respectively 3 percent and 1,4 percent.  Comparing with transportation and trade sector that grow respectively 10,7 percent and 9,2 percent, it is remain task to government.

The other trait that is important from the data is related with the contribution of each sector to economic growth.  As we know, the economic growth in Indonesia on 2011 is 6,5 percent. This is fabulous attainment. But, this attainment does not amuse us if we look inside to source of growth.  The economic growth dominantly propelled by the service sector. Fortunately, the industrial sector also render high contribution that is reach 1,6 percent as well as trade sector contribution. I think the main problem if economic growth just propelled by service sector is that it can’t cater labor absorption. The backward of service sector is that it doesn’t need more labor force, whereas our labor forces are overwhelming. The trait of Indonesia economy which is labor surplus needs more and more field work. Therefore, I think that the best way in developing Indonesia process must favor to labor force intensive than capital intensive. But, it doesn’t mean that we neglect capital intensive sector, such services and manufacturing sector. If we have to develop together, but just give more attention to labor forces intensive sector, such as agricultural and some kind of industrial sector. []  

Note: In the article above, I admit that there are many grammatical errors in which I still don’t understand well. So, I apologize for those wrong. It is important to know that I am still studying English, so this media just used to publish my work in my study process. Thank you for visiting my blog.