THE IMPACT OF TRANSPORTATION SECTOR ON THE ECONOMY OF CENTRAL JAVA PROVINCE, INDONESIA: INPUT OUTPUT APPROACH

The transportation sector has an important role in the economy of Indonesia, especially in the Central Java Province. This sector is the artery of the distribution of goods and people in the regions and countries, especially in supporting trade. In additionto the increasing share of Central Java's GRDP from year to year, this sector also absorbs a fairly high workforce. The businesses of this sector also include all levels of formal and informal community businesses from small to large scales. This study analyzes how the transportation sector supports the economy of Central Java by using the Input-Output approach. By applying the 2013 Central Java Input-Output table, the impact of transportation sector activities is examined through the input provider sector (including imported inputs other than domestic), as well as the product buyers' sector of the transportation sector. Based on the path analysis, it can be identified the dependence of other production sectors on the transportation sector. Then, it can be examined the impact of change in final demand and primary input in this sector on economic and sectoral output.