The Impact of Government Spending on the Distribution of Compensation and Business Surplus in Indonesia's Primary Sector
Keywords:
Business Surplus, Compensation, Government SpendingAbstract
This study aims to analyze the impact of government spending on the distribution of compensation and business surplus in Indonesia's primary sector. Data were analyzed using interregional Input-Output tables, descriptive statistics, and correlations. The data source was Statistics Indonesia. The results indicate a trade-off between business surplus and compensation. As business surplus increases, compensation decreases, and vice versa in several regions, except Bali & Nusa Tenggara. The correlation between business surplus and compensation is very strong for Kalimantan and Sulawesi, strong for Java, moderate for Sumatra, and very weak for Bali & Nusa Tenggara, as well as Maluku and Papua. Overall, the correlation coefficient between business surplus and labor compensation resulting from government spending is moderate in Indonesia.
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