Table 1.2 Gross Regional Domestic Product of Riau Province at Current Prices Based on The Business Field In 2006 – 2010
Source: Badan Perencanaan dan Pembangunan Daerah Bappeda Riau Province, 2011
Field of Business 2006
million rupiah 2007
million rupiah 2008
million rupiah 2009
million rupiah 2010
million rupiah Agriculture
36,294,175.88 43,595,169.01
53,137,563.80 60,270,256.01
69,025,079.71 Mining and Quarrying
a. Oil and gas b. Non oil mining
c. Quarrying 70,427,525.42
69,178,832.03 800,053.40
448,639.99 91,119,826.29
89,103,779.03 1,410,745.53
605,301.67 123,781,863.82
120,771,330.59 2,072,244.81
938,288.43 114,203,564.32
110,038,218.46 2,917,000.99
1,248,344.87 123,077,421.91
118,006,413.36 3,469,704.72
1,601,303.83
Manufacturing Industry a. Oil and gas Industry
b. Non-oil manufacturing industry 32,313,284.03
3,073,755.38 29,239,528.65
39,156,003.58 3,863,797.55
35,292,206.03 50,179,230.71
6,503,557.17 43,675,673.53
59,796,961.91 8,097,487.24
51,699,474.67 70,309,300.89
10,132,344.70 60,179,956.19
Electricity, gas water 339,751.00
392,735.09 461,086.39
525,583.52 584,546.11
Building 4,258,801.15
7,043,077.64 11,308,251.44
14,758,030.96 19,262,905.24
Trade, Hotel Restaurant 11,179,723.48
14,064,410.65 19,317,092.67
24,878,634.72 32,276,354.84
Transport Communication 3,216,185.09
3,853,213.87 4,867,262.36
5,762,017.91 6,719,791.07
Finance, Leasing corporate services 3,134,172.22
3,924,150.41 5,068,118.69
6,644,795.85 8,453,374.03
Services 5,904,570.60
6,853,973.75 8,279,660.08
10,333,183.11 12,982,674.73
GRDP with oil and gas 167,068,188.88
210,002,560.30 276,400,129.95
297,173,028.31 342,691,448.53
GRDP without oil and gas 94,815,601.47
117,034,983.66 149,125,242.19
179,037,322.61 214,552,690.46
Development is the target of a system placed in the economy with the goals in achieving social welfare and stability in certain aspects such as economy, social
and politics. As mentioned in Pancasila, the national ideology of Indonesia, point number three, the Indonesia state purposes is to provide social justice, therefore
social welfare becomes the major goal in Indonesian economy. Based on its national ideology, Indonesian economy system is aiming on economic growth for
improving its GDP and living quality, including Riau Province through the economy system that geared to economic growth, which can increase both GRDP
and GDP. Pulp and paper industry contribution is expected to improve local, regional and national community welfare aligned with economic development
main goals. Input-Output Table will be used to understand the role of pulp and paper industry in the development of the economy of Riau Province.
1.2 Research Problems
The economy of Riau Province has shown positive growth, which can be seen from its GRDP growth for the past five years. This fact shows Riau Province
has the ability to survive within the global economy challenges. Industrial contribution, especially manufacturing industry, is one of the main supporting
factor for GRDP growth, this include the pulp and paper industry. Pulp and paper industry also has linkage with other sectors in the economy of Riau Province,
whether it is industrial sector or non-industrial sector. Reciprocal relationships between sectors in national economy are the main key for overall growth of the
sectors within the economy.
The ability of paper industry to encourage its upstream and downstream sectors can be seen by comparing with other sectors and identifying linkages with
other sectors as well. As mentioned above, therefore several issues that can be identified are:
1. How is the contribution of pulp and paper industry in the economy of Riau
Province, in term of demand structure, output structure, gross value added, investment and export–import?
2. How are the linkages between pulp and paper industry with other sectors in
the economy of Riau Province? 3.
How is the contribution of pulp and paper industry in encouraging and pulling the growth of its upstream and downstream sectors?
4. How are the output multiplier and income multiplier of pulp and paper
industry in the economy of Riau Province? 5.
How is the role of pulp and paper industry in key sectors of the economy of Riau Province?
1.3 Research Goals
