Employee Production Factor in Economic Development (A Study in Indonesia)

Economic growth is one measure of development that reflects the welfare of society in a country. In Indonesia, labor production factors make the biggest contribution to economic growth compared to capital and technology production factors. However, the quality of Indonesian labor is the lowest compared to ASEAN-5. This study using approach of Neo Classic to know the magnitude of the contribution of production factors: Labor, capital, and technology to Indonesia economic growth by using the Cobb Douglas production function which is changed in a multiple regression equation. The results of this study indicate that production factors labor and investment significantly influence Indonesia economic growth. While production factors of technology have influence is little on Indonesia economic growth. Based on the results of this study, it is suggested that the Indonesian government improve the quality of the workforce through improving education aspects.