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Contributing factors of labor productivity in the industrial sector in Indonesia: a comparative study among regions

Jurnal Perspektif Pembiayaan dan Pembangunan Daerah · Vol. 8 No. 3 (2020) · pp. 277–286

DOI
10.22437/ppd.v8i3.9626
ISSN
2355-8520, 2338-4603
Published
2020-08-31
Publisher
Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi
Language
en
License
creativecommons.org/licenses/by/4.0

Abstract

TIndonesia’s degree of competitiveness in attracting investment is relatively low compared to other ASEAN countries, e.g., Singapore, Malaysia, Thailand, and Vietnam, despite the country’s potential resources. Specifically, low labour productivity in industrial sector led to lower degree of investment competitiveness in Indonesia. Thus, this study aims to examine the transformation of economic structures and factors determining the regional labor productivity in industrial sector in Indonesia. This study employs multiple regression method with panel data approach on 34 provinces in Indonesia from 2014 to 2019. This study suggests that, in general, the decline of agriculture sector share in the Eastern part of Indonesia was greater than the Western part of Indonesia. Furthermore, the composition of labor absorption in Sulawesi, Maluku, Papua, and Kalimantan decline periodically. This research also suggests that the factors leading to improvement of productivity in the Industrial sector in Western part of Indonesia is real wages. Moreover, provision of electricity is the contributing factor and hampers labor productivity in the Eastern part of Indonesia. This study further concluded that supply of electricity is substitutional to labor which result in the decline of productivity

Keywords

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7 authors · 9 co-authorship links

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Boby Rantow PayuAffiliation unknown1
Fitri Hadi Yulia AkibAffiliation unknown1
Mahyudin HumalanggiAffiliation unknown1
Rezkiawan TantawiAffiliation unknown1
Citra Aditya KusumaAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://online-journal.unja.ac.id/index.php/JES/oai, first harvested 6 Nov 2026, last seen 6 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">Contributing factors of labor productivity in the industrial sector in Indonesia: a comparative study among regions</dc:title>
	<dc:creator xml:lang="en">Arham, Muhammad Amir</dc:creator>
	<dc:creator xml:lang="en">Junus, Stella</dc:creator>
	<dc:subject xml:lang="en">Contributing factors</dc:subject>
	<dc:subject xml:lang="en">Labor productivity</dc:subject>
	<dc:subject xml:lang="en">Industrial sector</dc:subject>
	<dc:description xml:lang="en">TIndonesia’s degree of competitiveness in attracting investment is relatively low compared to other ASEAN countries, e.g., Singapore, Malaysia, Thailand, and Vietnam, despite the country’s potential resources. Specifically, low labour productivity in industrial sector led to lower degree of investment competitiveness in Indonesia. Thus, this study aims to examine the transformation of economic structures and factors determining the regional labor productivity in industrial sector in Indonesia. This study employs multiple regression method with panel data approach on 34 provinces in Indonesia from 2014 to 2019. This study suggests that, in general, the decline of agriculture sector share in the Eastern part of Indonesia was greater than the Western part of Indonesia. Furthermore, the composition of labor absorption in Sulawesi, Maluku, Papua, and Kalimantan decline periodically. This research also suggests that the factors leading to improvement of productivity in the Industrial sector in Western part of Indonesia is real wages. Moreover, provision of electricity is the contributing factor and hampers labor productivity in the Eastern part of Indonesia. This study further concluded that supply of electricity is substitutional to labor which result in the decline of productivity</dc:description>
	<dc:publisher xml:lang="en">Program Magister Ilmu Ekonomi  Pascasarjana Universitas Jambi</dc:publisher>
	<dc:date>2020-08-31</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://online-journal.unja.ac.id/JES/article/view/9626</dc:identifier>
	<dc:identifier>10.22437/ppd.v8i3.9626</dc:identifier>
	<dc:source xml:lang="en">Jurnal Perspektif Pembiayaan dan Pembangunan Daerah; Vol. 8 No. 3 (2020): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah; 277 - 286</dc:source>
	<dc:source>2355-8520</dc:source>
	<dc:source>2338-4603</dc:source>
	<dc:language>en</dc:language>
	<dc:relation>https://online-journal.unja.ac.id/JES/article/view/9626/5841</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2020 Muhammad Amir Arham, Stella Junus</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by/4.0</dc:rights>
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