The Effect of the Household Consumption, Investment, Government Expenditures and Net Exports on Indonesia's GDP in the Jokowi-JK Era

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Darman, Aryusmar

Abstract

The research aims at determining the effect of household consumption, investment, government expenditures and net exports on Indonesia's Gross Domestic Product (GDP) in the Jokowi-JK era. This research uses quantitative descriptive method, with multiple linear regression analysis using IBM-SPSS. The data used in the 2014-2019 annual quarter is sourced from the Central Statistics Agency (BPS) and Bank Indonesia (BI). This study found that there was a positive and significant effect between the variable of household consumption and GDP, on the contrary the investment variable, government expenditures and net export had no significant effect on GDP. Meanwhile, simultaneously household consumption, investment, government expenditures and net exports has a significant effect on GDP. Finally, this study concludes that the contribution of household consumption to GDP is greater than investment, government expenditures and net exports.


The implication is that the government in this case should encourage ease of investment, especially PMA. Government spending sectors, such as infrastructure, need to be increased again in order to create economic efficiency. Furthermore, the government policy to encourage exports and reduce the rate of imports in the future is highly expected.

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