Demand Structure Paper Industry

Table 5.1 Output Structure of Riau Province in 2010 Sector Output Total million rupiah Agriculture 69,975,061.18 11.80 Wood 22,907,049.10 3.86 Other forest products 5,213,202.00 0.88 Mining and Quarrying 142,070,032.01 23.95 Industry of Food Products, Beverages and Tobacco Products 113,545,578.25 19.14 Industry of Textiles and Wearing Apparel 157,328.00 0.03 Industry of Wood and Furniture 2,530,448.01 0.43 Pulp Industry 35,525,159.00

5.99 Paper Industry

4,233,851.00 0.71 Industry of Paper Products 615,651.00 0.10 Mining Industry 17,401,862.99 2.93 Industry of Fertilizer and Chemical Products 2,492,672.00 0.42 Industry of non-metallic Products 6,384,224.00 1.08 Industry of Fabricated Metal Products 173,129.00 0.03 Other Industries 495,329.00 0.08 Electricity, Gas, and Water Supply 1,878,743.00 0.32 Construction 53,864,219.00 9.08 Trade, Hotels and Restaurants 50,197,063.03 8.46 Transport and Communications 15,863,447.00 2.67 Financial Institutions, Leasing and Corporate Services 12,094,103.00 2.04 Services 35,539,995.00 5.99 Others 0.00 0.00 Total 593,158,146.59 100 Source: Riau Province Input- Output Table, 2010 calculated

5.1.2 Demand Structure

In 2010, the total demand for domestic goods and services produced by Riau Province reached 593,158,146 million rupiah. Total demand is the sum of the intermediate demand and total final demand. Mining and quarrying gives the biggest contribution for 23.95 percent of total demand, followed by Industry of food products, beverages and tobacco products, which contributed 19.14 percent of all. The intermediate demand of Riau Province in 2010 amounted to 223,234,665 million rupiah and the final demand amounted 369,923,481 million rupiah. From these values, the final demand is greater than the intermediate demand in Riau Province, which suggests that the use of output in Riau Province tend to meet direct consumption of the society. Based on Table 5.2, viewed from the intermediate demand, it appears that mining and quarrying sector provides the strongest output by 48,814,819 million rupiah or 21.87 percent, which followed by the agriculture sector with a value of 42,610,515 million rupiah or 19.09 percent. As for the paper industry, the intermediate demand is 2,446,353 million rupiah or 1.10 percent of all the intermediate demand in Riau Province. From the final demand in Table 5.2, mining and quarrying also took the first place by 93,255,222 million rupiah or 25.2 percent of all, followed by Industry of food products, beverages and tobacco products for 74,879,523 million rupiah or 20.2 percent. As for the paper industry, it has contributed 1,787,498 million rupiah or 0.5 percent of all final demand, which makes it ranks fourteenth than other sectors in Riau Province. The intermediate demand for paper industry is higher than the final demand for paper industry, which means that overall people use the output of paper industry for indirect consumption or as input rather than for direct consumption to the other sectors. This indicates that paper industry has a strong connection with its downstream industries. On the other hand, pulp industry has contributed 16,51,780 million rupiah or 7.43 percent for the intermediate demand, and 18,933,379 million rupiah or 5.1 percent for the final demand in the economy of Riau Province. Pulp industry has the higher value of final demand than intermediate demand, which indicates that the output of pulp industry is use to direct consumption or to be used by paper industry. Table 5.2 Demand Structure of Riau Province in 2010 Sector Intermediate Demand Final Demand Total Demand Total million rupiah Total million rupiah Total million rupiah Agriculture 42,610,515 19.0 27,364,546 7.4 69,975,061 11.8 Wood 18,565,758 8.3 4,341,291 1.2 22,907,049 3.8 Other forest products 2,541,933 1.1 2,671,269 0.7 5,213,202 0.8 Mining and Quarrying 48,814,810 21.8 93,255,222 25 142,070,032 23.9 Industry of Food Products, Beverages and Tobacco Products 38,666,055 17.3 74,879,523 20 113,545,578 19.1 Industry of Textiles and Wearing Apparel 21,762 0.01 135,566 0.0 157,328 0.03 Industry of Wood and Furniture 884,960 0.4 1,645,488 0.4 2,530,448 0.43 Pulp Industry 16,591,780

7.43 18,933,379