RETA 6483: Adopting the Supply & Use Framework Towards 1993 SNA Compliance in Selected Developing Member

Countries

Indonesia Supply and Use Tables

Country Report
BPS

2011
Prepared by: Supriyanto Buyung Airlangga Etjih Tasriah

BPS

STATISTICS INDONESIA

I.

Introduction

In BPS-Statistics Indonesia National Accounts and Statistical Analysis is headed by a Deputy of Director General in which the structures is divided into three directorates ie. Production accounts, Expenditure Accounts and Statistical Analysis. The production accounts directorate responsibilities are to proceed the GDP by Production, I-O and SUT, while the expenditure account directorate responsibilities are to proceed GDP by expenditures, Flow of Funds, Social Accounting Matrix and Government Financial Statistics. However, the responsibilities of the two national accounts directorates are not so rigidly hold especially when I-O table is being developed. An ad hock technical team combining of two directorates is established that consists of 30-40 people involved in it. The first Indonesia Input-Output was exercised and introduced by LIPI (Lembaga Ilmu Pengetahuan Indonesia/The Indonesian Institute of Sciences) in 1969. The indirect method (non survey method) was selected as the approach of the development process due to data limitation. Since then, BPS-Statistics Indonesia in collaboration with the Institute of Developing Economies (IDE) of Japan and the Central bank of Indonesia started to develop the survey base Input-Output Table for 1971. Every five year I-O table is published periodically by BPS, in which between two publications, an Updating version is constructed to preview current economic condition. The last survey base I-O table is 2005 while the updating version is 2008. The Indonesian supply and uses table is derived from 2008 updated I-O which is already balance. Starting with the purchasers price, the trade and transport margin is extracted to come up with producer price, then tax and subsidies are estimated at the industrial level to get the basic price. Some industrial re- aggregation is needed to comply with RETA standard SUT classification. Adjustments were made in the area of import, NPISH, and government collective consumption.

a.

Main Objectives
RETA 6483 aims to help participating economies adopt the Supply and Use Table (SUT) framework toward implementing the 1993 System of National Accounts, and achieve minimum compliance and scope requirements. It is hoped that by employing the SUT framework a comprehensive assessment of data gaps can be made and an integrated model for generating SNA 93-based GDP can be developed which will provide more reliable GDP estimates for informed policy and decision making. The 1993 System of National Accounts (SNA 93) was introduced some 15 years ago but still much has to be done for countries in Asia and the Pacific region to fully implement and subscribe to its recommendation. In fact, in the 2005 International Comparison Program (ICP) for Asia and the Pacific (ICP Asia Pacific), it was found that only four of the twenty one participating ADB-member economies, reported full implementation of SNA 93. Data inadequacy is reportedly the main impediment to implementing SNA 93.

Recognizing that consistent and internationally comparable estimates of GDP and its aggregates are necessary, among others, for monitoring levels of poverty, the Asian Development Bank is currently implementing RETA 6483. Its main objective is to assist participating DMCs in increasing their compliance to the SNA 93 recommendations by adopting the Supply and Use (SU) Framework. It is hoped that by employing the SU Tables framework a comprehensive assessment of data gaps can be made and an integrated model for generating SNA 93-based GDP can be developed.

b.

Rationale
The primary objective of the RETA is to increase participating DMCs' compliance with SNA 93 that will help them acquire more reliable, accurate and comparable data for monitoring the achievement of the millennium development goal (MDG) related to poverty and for measuring economic output. The RETA specifically aims to: Establish the supply and use framework for data gap assessment and GDP estimation based on the 1993 SNA; Identify appropriate administrative data sources in addition to survey data for SUT construction; Develop a framework to derive sufficiently detailed expenditure weights such as those required for PPP compilation; and Improve technical expertise and expose national accountants in the DMCs to alternative approaches for compiling consistent GDP aggregates based on the 1993 SNA. To achieve these objectives, the RETA 6483 intends to (i) establish the supply and use framework for data gap assessment and GDP estimation based on the 1993 SNA; (ii) identify appropriate administrative data sources in addition to survey data for the construction of a SUT; (iii) develop a framework to derive sufficiently detailed expenditure weights such as those required for PPP compilation; and (iv) improve technical expertise and expose national accountants in the DMCs to alternative approaches for compiling consistent GDP aggregates based on the 1993 SNA. The delivery of these outputs will ensure that participating DMCs acquire more reliable and accurate data for both monitoring the achievement of MDGs related to poverty and measuring economic output. Upon the successful completion of the RETA, selected DMCs will also be in a better position to take on the additional challenges of the SNA 2008 (previously termed 1993 SNA revision 1). Scope: Construction of the supply and use framework which involves the review of concepts, methodologies and recommendations of the 1993 SNA; and assessment of the status of national accounts of participating DMCs. Review of available data from countries and identify administrative data sources in addition to survey data for the construction of supply and use tables.

Organization of regional training programs courses, and/or workshops involving NSOs and related agencies on the compilation of national accounts statistics with particular focus on the minimum requirement datasets. Development of the framework to derive sufficiently detailed expenditure weights. At the very least, this will include the 155 Basic Headings included in the 2005 ICP. Finalization of estimates and publication of SUTs and minimum requirement datasets by selected DMCs. Delivery of these outputs will ensure that participating DMCs acquire more reliable and accurate data for monitoring the achievement of MDGs related to poverty and measuring economic output. Upon the successful completion of the RETA, selected DMCs will be in a better position to take on the additional challenges of the SNA 2008 (previously termed 1993 SNA revision 1).

c.

Importance/ Uses and Application

Supply and Use Tables (SUT) provides a comprehensive framework in which basic statistical data may be presented with minimum manipulation. The SUT are an integral part of the new system and play an important role as an integration framework. In the supply and use framework, statistical data is realistically presented as follows: Any producing unit may engage in more than one activity producing more than one type of product (the principal and secondary activities of a industry will be shown). Goods and services as output are as far as possible valued at the prices at which it first entered the market (a product will be supplied at basic prices). Goods and services as intermediate or final products are valued at the prices which users have to pay for them (a product will be used at purchasers prices). SUT are intended to include all the transactions in goods and services in the economy for a specific year in a matrix format. SUT are an extremely useful device to arrange basic statistics for the compilation of value added by industry and final demand by products. SUTs serve as a coordinating framework to ensure the numerical consistency and accuracy of data obtained from different sources i.e. industrial surveys, household surveys, investment surveys, foreign trade statistics. SUT are also important in analyzing and evaluating the performance of an economy over time.

II.

Background of National Account

In general Indonesian national accounts system relies on the old SNA although to some extent some new issues of the 1993 SNA have been implemented. ISIC rev-2 is engaged as the basis of commodity grouping and becomes the main classification for GDP. There are 43 sectoring commodity sub-groups for GDP Production approach that can be aggregated into 9 major commodity groups, while the GDP of expenditure publishes GDP by final demand components in which the both approaches provide the purchasers and producers price for the publication. Regularly GDP is developed every quarter and published and released at 11 pm Jakarta Time, 35 day after the underlying accounting period either for national level figures or provinces. On the other hands, the classification of I-O table fully adopts ISIC rev-3 as its standard of classification which divides the industrial sectors into 175 groups. The I-O table is regularly published every five years and becomes the benchmarking figures for GDP. In 2002, the GDP base year has been changed from 2000=100 to 2010=100 whereas at that time the 2000 I-O table was adopted to revise the GDP figures and set the new level for national GDP. At the moment the latest I-O tables 2005 which is updated for years 2008. In developing I-O table several item in the 1993 SNA improvements were adopted such as defense expenditure, mineral exploration, computer software expenditure, cultivated asset, unincorporated enterprise, separation between collective and individual consumption and nonprofit institution serving households. But Valuable and Fisim are not implemented yet. The major problem to fully adopt 1993 SNA recommendations is lag of human resource skill and knowledge that meet the requirement to self learning understanding improvements of new SNA. It should be noted, the relatively few of international supports to introduce the importance of new SNA improvements combined with lag of management knowledge how to organize that such big changes at once contributed very much on the delay of the implementation. Experience has inspired BPS to develop a system that would be compatible with the data conditions and facilitate quicker compilation. The quality of the table is also expected to be better, to more accurately reflect the actual data. The methodology, system, and tools used in the compilation are becoming better established with subsequent compilations. The Indonesia I-O tables are widely used for analysis and planning, and they are extensively used at the local and regional levels. In preparing economic planning for the long term, the Indonesia National Economic Planning Agencies (BAPPENAS) have used national and regional I-O tables. This experience has induced BPS (Statistics Indonesia) to continuously provide the I-O tables at intervals of five years. In addition, the I-O table is not only an effective tool for economic analysis and projections in development planning but also provide a framework for evaluating and detecting data weaknesses. Hence, the tables can be used in providing input for improving the national statistical systems.

In the Indonesia I-O table 2008 two valuations were used: the purchaser s price and the producer s price. The purchaser s price of a good includes any transport charges paid separately by the purchaser in order to take delivery at the required time and place. The producer s price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any VAT or similar deductible tax invoiced to the purchaser. It excludes any transport charges invoiced separately by the producer. The format of the Indonesia I-O table basically follows the System of National Accounts (SNA) of the United Nations. The final-demand sectors consist of domestic final demand, exports, imports, and the domestic final demand is further disaggregated into private-consumption expenditures, government consumption expenditures, gross fixed-capital formation, and changes in stock. The value-added sectors comprise wages and salaries, operating surpluses, depreciation, indirect taxes, and subsidies. Intermediate transactions reflect several characteristics and the structural change of the Indonesian economy. The number of intermediate sectors has been relatively stable over the years, ranging from 161 to 179, but the composition of industries has changed between 1971 and 2000. The largest change in number of sectors is observed in manufacturing. The number of manufacturing sectors has increased from 78 in 1971 to 92 sectors in 2000. Within manufacturing, the number of sectors related to pulp and paper, chemical products, and machinery has increased, while that for textiles, wood products, and petroleum products has decreased. These changes reflect the replacement of major industries in the course of the development of the Indonesian economy.

III.

Supply and Use Framework

There are two different ways by which the SUT are used either as 1) the first step in compiling an input output table or 2) a means of ensuring consistency between GDP estimated from the expenditure and output sides. As the RETA is mainly concerned with the second use, the rules for compiling the SUT can be simplified in several ways. Specifically: That the imports and import duties are shown as a column a single vector and not as a matrix. They are classified by type of product and not by kind of activity as well. That an SUT does not need to be square and can have a different numbers of rows and columns depending on the classifications used in each country; and That the valuation rules are less strict.

Theoretically speaking, the Gross Output (GO) matrix should be valued at basic prices while taxes less subsidies on products should be shown separately. In practice however, what is wanted is to have an estimate of total supply (domestic production plus imports) at market prices. Market prices are also called purchasers values of purchasers prices . This means that if it is more convenient to leave some taxes on products in domestic production this will not matter provided one can still arrive at a correct figure for total supply at basic price. Indonesia Input-Output table is classified by specified IO code which is not directly match (compatible) with the standard international classifications. Meanwhile, Central product classification version 1 (CPC) and the International Standard Industry Classifications (ISIC rev 3.1) are the recommended classifications for the row and column, respectively, of a Supply and Use Table based on the 1993 SNA. Therefore, attempt has been made to abridge the classification use in SUT consistent with standard classification system like the CPC or the previous International Standard Commodity Classification (ISCC). There is no single ideal degree of detail or size of matrix for the SUT. Hence, each country must decide on the appropriate level of detail depending on its data sources. As a general rule, countries usually use as much detail as possible in compiling their SUTs but collapse their classifications to a much smaller number of items for publication purposes. It was reiterated that SUT does not have to be square and countries can have more product than industries. A combination of industry groupings into 2-digit, 3-digit, 4-digit is acceptable and is totally up to the country. However, countries are encouraged to bear mind than when regrouping items, it should be such that the sampling errors of production-related parameters for the redefined groups are within acceptable limits and similar or related activity categories are merged. The criteria for merging related level of ISIC codes are as follow: For the redefined groups, relative standard error (RSE) is within acceptable limit (say 5%); Share of redefined groups in GDP> 1%; If required, more than one 2-digit levels may be merged entirely;
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Redefined groups do not cut across 2-digit levels of ISIC, except when they are merge entirely; and If available, use RSE of three consecutive surveys for this purpose3

As a rough guide and for purposes of the RETA, ADB recommended minimum level of 50 products (rows) and 20 industries (columns) for the country's SUT. As recommended by RETA-ADB, the size of Indonesia SUT matrix is 51 products (rows) and 32 industries (columns). Detail Products classification: No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Product description Cereals Vegetables Fruit and nuts Other products of agriculture, horticulture and market gardening, ne.c Beverages and spice crops Live animals and Other animal products Forestry and logging products Fish and other fishing products Coal and lignite; peat, crude petroleum and natural gas Other Minerals, n.e.c Electricity, town gas, steam and hot water Water Meat, fish, fruit, vegetables, oils and fats and dairy products Grain mill products, starches and starch products; other food products Beverages and Tobacco Clothing and wearing apparel; leather and leather products Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles Basic Chemical and Other Chemicals Rubber and plastics products Glass and glass products and other non-metallic products n.e.c. Furniture Other transportable goods Basic metals Fabricated metal products, except machinery and equipment General and Special Purpose Machinery Office, accounting and computing machinery Electrical machinery and apparatus; Radio, television and communication equipment and apparatus CPC rev 1.0 Code 011 012 013 014 016 02 03 04 11, 12 13-16 17, 69 18, 69 21, 22 23 24, 25 26-29 31-32 34, 35 36 37 381 382-389 41 42 43-44 45 46 47

No 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

Product description Medical appliances, precision and optical instruments, watches and clocks Transport equipment Manufacturing, n.e.c Construction services Wholesale and retail trade services Lodging; food and beverage serving services Land transport services Water transport services Air transport services Supporting and auxiliary transport services Postal and courier services Financial intermediation services, and investment banking, Insurance and pension services (excluding reinsurance services), except compulsory social security services Real estate services Leasing or rental services without operator Research and development services Other business and production services, n.e.c Telecommunications services; information retrieval and supply services Public administration and other services to the community as a whole; compulsory social security services Education services Health and social services Recreational, cultural and sporting services Other services, n.e.c

CPC rev 1.0 Code 48 49 33, 39 54 61-62 63 64 65 66 67 68 711-712 713-716 72 73 81 82-83, 85-89 84 91 92 93 96 94-95, 97-99

Detail Industry Classification: No 1 2 3 4 5 6 Industry description Agriculture, hunting and related service activities Forestry, logging and related service activities Fishing, aquaculture and service activities incidental to fishing Mining and quarrying Manufacture of food products, beverages and tobacco Manufacture of textiles; wearing apparel; dressing and dyeing of fur; Tanning and dressing of leather; manufacture of luggage, handbags, saddler, harness and footwear ISIC rev 3.1 Code 01 02 05 10-14 15-16 17-19

No 7 8 9 10 11

Industry description Manufacture of wood and of products of wood and cork, manufacture furniture; manufacture of articles of straw and plaiting materials Manufacture of paper and paper products; Publishing, printing and reproduction of recorded media Manufacture of rubber and plastics products Manufacture of Basic Metals Manufacture of fabricated metal products; office, accounting and computing machinery, radio, television and communication equipment and apparatus; electrical machinery and apparatus ;medical, precision and optical instruments, watches and clocks Manufacture of motor vehicles, trailers and semi-trailers; other transport equipment Manufacture of Furniture Manufacturing n.e.c. Electricity, gas, steam and hot water supply Collection, purification and distribution of water Construction Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods Hotels and restaurants Land transport; transport via pipelines Water transport Air transport Supporting and auxiliary transport activities; activities of travel agencies Post and telecommunications Financial intermediation, except insurance and pension funding Insurance and pension funding, except compulsory social security; Activities auxiliary to financial intermediation Real estate activities Renting of machinery and equipment without operator and of personal and household goods; Other business services Public administration and defense; compulsory social security Education Health and social work Other Services

ISIC rev 3.1 Code 20 21-22 25 27 28-33

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

34-35 361 23-24, 26-27, 369 37 40 41 45 50 - 53 55 60 61 62 63 64 65 66 - 67 70 71-74 75 80 85 90-93, 95, 99

IV.
i.

Data Sources and Estimation Methodology

Supply Side

1. Domestic Production Data on production of paddy, cassava, corn, sweet potato, groundnut, soybean, vegetable and fruits are obtained from BPS. Data on production of crops were obtained from the Directorate General of Estate Production Development, Ministry of Agriculture. Agricultural services data as a part of agriculture activities were obtained from 2003 Census of Agriculture and Special Survey for Input Output (SKIO). Production of animal husbandry is defined as increase in cattle number, and cattle products. Cattle size increase and weight gains are assumed to be equal to the sum of the number slaughtered, increase in population and net export of livestock. Data on slaughtered and population of livestock are obtained from the Directorate General of Animal Husbandry, while data on export and import of livestock are obtained from BPS. Data on animal raising products such as eggs and milk are also obtained from Directorate General of Animal Husbandry. Data on production of forestry encompass products such as logging of wood, firewood, rattan, resin, and hunting products. Logwood consists of forest wood and non-forest wood. Data on logwood were obtained from Forestry Department and PT. Perhutani. Woods and bamboo were estimated using data on intermediate consumption of manufacturing establishments and special survey. Data on the production of fishery were obtained from the Directorate General of Catch and Fishery Cultivation, Ministry of Marine Affair and Fishery. Data on prices used to estimate agricultural output are obtained mostly from BPS. These types of data include wholesaler s prices, retailer s prices, producer s prices, and export and import prices. Data on special auction prices of fish are obtained from the Directorate General of Fishery, Ministry of Marine Affair and Fishery. The prices used to estimate output are producer s prices, which excluded trade and transportation margins (TTM). Information on data of trade margin, transportation cost and marketed surplus were obtained from special survey conducted by BPS. By-products and subsidiary products are part of industry s output in which values are estimated as certain fixed proportion of output of the main product. For example if rice is the main product and straw is its by-product, the value of straw is estimated as a certain proportion of the value of rice. Proportion figures are obtained from special surveys. Mining and quarrying covers all activities in mining, quarrying, and sea s water evaporating. On principal, the purpose of these activities are obtaining different kinds of mine extracts, minerals, and quarrying products solid, liquid or gaseous from the ground as well as underground. Data on production of this sector are obtained from Annual Report of Indonesian Energy and Mineral Resources and Statistics of Indonesian Petroleum (Directorate General of Oil and Gas, Ministry of Energy and Minerals Resources). Data on prices and input structure are obtained from the special survey conducted by BPS. Producer's

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prices of exported commodities such as crude oil, natural gas, coal, tin ore, bauxite ore etc. are assumed equal to their corresponding export prices. Manufacturing sector covers all production activities, which are to transform raw materials or semifinished goods into products with higher values or higher qualities. The manufacturing process can be mechanical, chemical, or other process using simple tools or machineries. The supporting services of manufacturing, such as contract for services, reparation and maintenance of machineries, ships, trains, and airplanes are also included in this sector. The reparation, by this context, means to repair capital assets either do-it-yourself (DIY) or by others. However, reparation of machineries owned by household, and motor vehicles are not included in this sector, but in the services sector. Data source to estimate output and of manufacturing sectors are Industrial Statistics, Survey of Small Scale and Cottage Industries, and SKIO. Some data obtained from annual report of mining establishments such as Pertamina are used to estimate activities which were not covered by statistical report such as crude oil refinery and liquefied natural gas (LNG). Estimation of output and preparation of input structure are done separately for large and medium scale manufacturing on the one hand, and those of small scale manufacturing and handicraft on the other. For commodities having the same industrial classification both the outputs and inputs are grouped in a sector coded according to the 2008 I-O table classification. Output and inputs of crude oil refinery and train LNG are calculated separately because their data came from different sources. Oil and gas subsidies are given by government intend to make its cost of production lower and its market price cheaper too. Since the amount of imported crude oil subsidies considerably high, therefore its amount is placed in one column (405). This new column is intended avoidance disturbance on the I-O model. The electricity sector covers the activity of generating and distributing of electric power carried out by PLN as well as that by other non-PLN establishments. The sector also includes electricity produced by estates, manufacturing and other sectors, except that produced for own consumption. Electricity production is defined in terms of total KWH of electric power generated; it s consisting the amounts sold, own use, and lost during transmission and distribution. Electricity subsidy is given by government intended to make its cost of production lower and its market price cheaper too. The gas sector covers the activities of providing and distributing utility gas to consumer, to other sectors as well as to households by pipe. Utility gas is obtained through the distribution of natural gas. PT. National Gas Corporation (PGN) is the only establishment in this activity. The water supply sector covers the activities of refining, purifying, and treating by chemical process of unrefined water to produce clean water, including its distribution by pipes to households as well as to other consumers. Data on production, prices and intermediate input of the electricity are obtained from BPS (PLN Electricity Statistic, water supply statistic, and City Gas Statistic), PT.PLN (Annual report of PT.PLN, Statistic of PLN), and PT.PGN (Annual report of PT. PGN).

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Construction covers activities carried-out by both ordinary contractors, i.e. construction companies which provide construction services for other, and special contractors, i.e. business units or individuals dealing with construction activities for own use such as government offices, private offices, households and non-construction business units. Construction covers activities such as fabricating, creating, installing, renovating and repairing of all kinds of construction whether residential or non-residential buildings, agricultural work projects, roads, bridges, electrical plants, gas and residential buildings may take the form of houses, mansions and other type of buildings for households to use as living quarters. Non-residential buildings include hotels, schools, hospitals, shopping centers, offices, and trading centers, factories, storage spaces, structure for raising livestock, birds, building, for religious, arts performance and sport purposes, and other non-residential buildings. Agricultural public works includes the construction of fishponds, floodgate, paddy fields, drainage, irrigation, and other including deforestation and reforestation. Public works relating to road, bridge, and harbor include the construction of road and bridge facilities for land, rail transportation, airports, harbors, piers, runways, railways, parking lots, sidewalks and others. Structure in public utilities and communications include installation, transmission, and distribution of electricity, gas, water supply, and communication networks, water pipe installations, harbor, transport and communication network, and other kind of constructions. Other constructions include public park structures, tunnels, dams, canals, severs, sport pits and recreational places, and other public structures, including improvement of land through drying and the land reclamation. The output of construction sector is defined as the value of works put in place during 2008, regardless of whether the works is completed or incomplete. Also included as the output of this sector are the value of electricity installations, air conditioning and water supply installations, and other equipments, which have become the integral part of buildings prior to their use. However, the value of land on which the building stands is excluded from building value. The output of construction sector is estimated using commodity flow approach, an output estimating method based on the amount of input use provided by other sectors. As a matter of fact it is known that the sum of the two types of inputs, intermediate and primary inputs, is equal to output. In construction raw materials and other goods and services such as installation and administration costs or materials unrelated to construction. Output data on wholesale and retail trade were estimated using commodity flow approach, i.e., by summing up trade margins resulting from domestic trade of every merchandise and import. The ratio of each of these trade margins to the respective sector output and to the sector import derived from SKSPJ. Output data of restaurants were obtained from outside-household consumption from socio economic survey (SUSENAS). Output of hotel is derived by multiplying the number of hotel rooms and the average rate per roomnight. Input structures of trade, restaurants, and hotels were obtained by multiplying their respective input coefficients and the output value of each which collected by SKSPJ. The estimate of output of railway transport was obtained from the PT.KAI financial account summary. Output of road transport was estimated from statistics on motor vehicles and lengths of road and the SKSPJ data. Output of the sea transport was estimated by multiplying the number of cargoes and
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passenger with its fare, respectively. Data on cargoes and passengers were provided by Indonesia National Ship Owner Association (INSA). Data on average fare per unit was derived from shipping enterprises annual reports. The production indicators of river and lake transportation were provided by the Official of River, Lake and Ferry Transport (ASDP), vessel average output was calculated based on the result of SKSPJ. Output and input of the air transport was provided by multiplying passengers and cargoes with average fare of the airline enterprises. Data on services allied to transport were selected from Loading and Unloading Statistics, air transport statistics, Jasa Marga, Inc. and Angkasa Pura, Inc. The output and input data of communication sector were obtained from the annual reports, and profit and loss summary of three state enterprises, i.e., PT. Indonesian Post, PT. Telkom, PT. Indosat and PT Exelcomindo. Output of railway transportation is obtained from adding up income of cargoes and passenger, station fee, and other incomes of railway transportation. The output of road transportation is obtained by multiplying the amount of vehicle and the average output of each vehicle by its kind. The output of sea transportation is obtained from summing the incomes from cargoes and passenger. Output of the river and lake transport activities was estimated by multiplying the number of passengers and cargoes by the average fare. The output of air transportation was obtained from multiplying the number of passengers and cargoes with its average fare. The output of services allied to transport were estimated as the number of vehicles, vessels, aircraft served, and the service fee or average cost paid by transportation activities for the services. Output of toll roads were the sum of revenues from toll roads and toll bridges services. Output of banking services includes provisions and commissions, net revenue from foreign currency transactions, other operational revenues and imputed services charge of banking service. Meanwhile, output of insurance is the differences between premiums and claims, plus dividends, and other incomes. The output of money changers are the difference between selling and buying prices. Data on banking were obtained from Bank Indonesia while data on insurance from Annual Report on Insurance activities provided by the Financial Institution Directorate, Ministry of Finance. Data on the output of renting of residential building were gathered from SUSENAS and Economic Census. Data on output of nonresidential building leasing and the number of business services enterprises were obtained through special survey SKSPJ. 2. Imports of Goods and Services and C.I.F/F.O.B adjustments Import of goods and services concerns the economic transaction between non-residents and resident. Economic transaction and resident are two important key words here. Economic transactions are transactions of merchandize, transportation services, tourism services, insurance services, communication services, and other commodity transactions. Residents of Indonesia are central and regional government bodies, individuals, enterprises and other institutions. Also included in the import transactions are direct purchases abroad by Indonesian residents.
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The producers' value of import of goods and services or the values of imported goods at landed cost is measured as the sum of c.i.f. values of imported goods, import sales tax, and import duty. The data obtained from the Statistics of Import, published by BPS, were used for estimating the values of import of merchandise. The values of imports there are calculated using the carry over method such as that used for export of merchandise. For the needs of the compilation of the 2008 I-O table, the import transaction must be those occurred in 2008 only therefore the results of the carry over methods need to be corrected. The estimates of import of services were derived using the data obtained from the same source as those for export of services, i.e., the Indonesian Balance of Payment report. The information needs, the approach and method of estimation used here are similar to those for export of services. A specified column was made in Supply Table to accommodate for cif/fob adjustment on imports. Valuation of imports at cif includes freight and insurance; if adjustments are not made then total supply will be overstated. 3. Valuation adjustments a. Transport cost and trade margin Trade and transport margins are the difference between the purchasers price and the producers price of a product. Because of the differences in trade and transport margins and taxes less subsidies on a given product, a product can be sold at different purchasers prices. More concretely, purchasers prices and producer s prices vary non-uniformly for the same product for the following reasons: a) Trade margins vary from one transaction to another depending on whether the goods are purchased directly from producers, wholesalers or retailers; they also vary by "class" of retail establishments (at high prices in establishments with higher-quality services and at lower prices at discount establishments with lower-quality services); b) Transport margins vary by mode of transport and the distance the goods have to be shipped; c) Policies on taxes on products are normally based on the purposes for which products are used (e.g., no taxes are imposed, or taxes are fully or partly deductible, on products used for production or export purposes); d) Who records the transaction: the seller may record it without transport cost while the buyer may record it with transport cost. For all these reasons, basic prices are more homogeneous than producer s prices which in turn are more homogeneous than purchasers prices. b. Taxes less subsidies on products

ii.

Use side

1. Intermediate consumption Intermediate consumption includes all non-durable goods and services with an expected life of less than one year which are used up in the process of production by industries. Small tools of low value, though
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durable, should also be treated as intermediate goods. In input-output tables, we are looking for input structures that best describe technical relationships in production techniques. Data source for intermediate consumption on agriculture activities are based on 2003 Agriculture Census and special surveys which done by BPS which are: Agriculture Survey and Special Survey for Input Output (SKIO). On reconciliation, sector input structure generally improved as the effect of supplydemand checking, and data consistency between sectors. Data on intermediate consumption for mining and quarrying activities are obtained from 2006 Economic Census and special surveys conducted by BPS which are: Mining and Quarrying Survey and SKIO. The source data for intermediate consumption of manufacturing activities are 2006 Economic Census, 2008 Industrial Statistics, and SKIO which done by BPS. Some data which was not covered in BPS statistical report such as manufacturing of oil refinery and liquefied natural gas was obtained from the Financial Report of mining establishments and data from PT. Pertamina. Data on intermediate consumption of the electricity, gas and water supply activities are obtained from BPS (PLN Electricity Statistic, Water Supply Statistic, and City Gas Statistic), PT.PLN (Annual report of PT.PLN, Statistic of PLN), and PT.PGN (Annual Report of PT. PGN). For the purpose of estimating the value of intermediate consumption for construction activity two sources may be distinguished, imported inputs and those domestically produced. Various data sources are used to derive information on both input types, i.e., import statistics, large and medium scale manufacturing statistics, construction statistics and agricultural statistics all of which are made available by BPS. Estimates of administration cost, primary inputs, and the distribution of construction sector output were based on the construction component, Statistics of Construction Activity and SKIO. Intermediate consumption of trade, restaurants, and hotels were obtained from special survey of SKSPJ. Intermediate consumption of rail transport, sea transport, air transport, and communication were computed using annual report data directly provided by companies involved in each of the field. Intermediate consumption of road transport, sea transport, inland water transport, and services allied to transport, were mainly based on several financial enterprises statements and the input coefficient data from SKSPJ, and annual report of the companies operating in this fields. Intermediate consumption of communication sector was obtained from the annual reports, and financial income statement of three state enterprises, i.e. PT. Indonesia Post, PT. Telkom, PT. Indosat and PT. Exelcomindo. Data on intermediate consumption of banking and insurance activities were calculated from the figures provided from financial income statement of commercial banks and Bank of Indonesia (central bank), Report on Indonesian Insurance Companies, annual report of pension fund, non-banking financial institutions that compiled by Ministry of Finance, Annual Reports of The State Enterprise Perum Pegadaian, survey of non-banking financial institution and 2006 Economic Census, BPS. While data on the input structures of other activities were obtained mainly through the SKSPJ. Data used for intermediate consumption of services sector were obtained from various sources. Data on central government and defense were obtained from the Directorate of Budget, Ministry of Finance, and those for local government from the returns of K-1, K-2, and K-3 questionnaires collected by the BPS. Data on intermediate consumption of private services were mainly based on SKSPJ.

15

2. Final demand a. Private consumption expenditure The basic data used for the estimation of private (household) consumption were acquired from the 2008 Socioeconomic Survey (SUSENAS). The SUSENAS data converted into 2008 IO classification for each commodity consumed. Conversion estimates were used to compile the structure of household consumption according to 2008 IO classification. The values of goods and services consumed by households were estimated based on households and non-profit institutions at purchase prices, which are equal to the corresponding retail prices in trade sector. b. General government consumption expenditure Data on the central government's routine expenditure were obtained from the central government's realized routine purchases, which the Ministry of Finance provides in the form of budget breakdowns. Data on regional government's routine expenditure were obtained from the result of the compilation of the regional government financial survey gathered annually by BPS. i. Individual Data on Individual consumption expenditure were obtained from government consumption expenditure on health (Ministry of Health), education (Ministry of Education), and other government services (Ministry of Tourism, etc.). ii. Collective Data on collective consumption expenditure were obtained from government consumption expenditure on defense, security, economic stabilization, public order, etc. c. Non-profit Institution serving households The basic data used for the estimation of NPISH consumption were acquired from the special survey on non-profit organization. d. Gross domestic capital formation i. Gross fixed capital formation The method used to estimate gross fixed capital formation figures was the commodity flow approach, an approach which derived through the supply of capital goods that is used as gross fixed capital formation, whether they are domestically produced or imported. The value of gross fixed capital formation in the form of construction structures was obtained from some part of construction sectors output, which carried out as gross fixed capital formation. The data used for this calculation were obtained from the same source as those used for the construction sector. The value of gross fixed capital formation figures on machinery, equipment and motor vehicles were estimated based on 2008 Statistics of Import and the Large and Medium Scale Manufacturing Statistics published by BPS. Data on fixed capital formation came from land reclamation and development, development and expansion of forest and mining area, planting and replanting of perennial crops, animals, and trade margin and other cost associated with transfer of ownership through transactions of land, mineral sources, forest concession, patent, inventions, and used capital goods are estimated based
16

on combination of plantation statistics, live stock statistics, financial report of establishments and their structure as in the 2008 I-O tables. ii. Changes in inventories Data on change in inventories were obtained from agriculture statistics, manufacturing statistics, and financial reports of listed enterprises in Indonesia Stock Exchange. iii. Acquisition less disposal of valuables Data of acquisition less disposal of valuables were not available. 3. Export of goods and services The data used for estimating export and import values of goods and services were obtained from Statistics of Export and Statistics of Import published by BPS, the Indonesian Economy and Finance Statistics published by BI, the Indonesian Annual Mining Statistics published by the Ministry of Energy and Mineral Resources, and other data sources. The estimation methods are described below. The data used for estimating the values of export of merchandise are from BPS's Foreign Trade Statistics. The export data available there are the ones, which are derived using the carry over method. For the 2005 I-O Table purpose, however, the export data must reflect the actual value of transactions occurred in 2005 only therefore the results of the carry over method needs to be corrected. These export values are classified according to the Harmonized System (HS). The data or estimating the values of export of services are obtained from the Indonesian Balance of Payment report published by Bank of Indonesia (BI). In that publication the values of export of services are calculated base on the component of export services covers the using of the components of service facilities provided by the Indonesian resident such as, transportation, travel, communication, construction, insurance, finance, computer, royalty and license and other services, personal, cultural and recreational services and government services. The data obtained from the Statistics of Import, published by BPS, were used for estimating the values of import of merchandise. The values of imports there are calculated using the carry over method such as that used for export of merchandise. For the needs of the compilation of the 2005 I-O table, the import transaction must be those occurred in 2005 only therefore the results of the carry over methods need to be corrected. The values of import of merchandise are classified according to the HS (Harmonized System). Adjustments were also made for several manufacturing products, i.e., refined oil, ships, motor vehicles excluding motorcycles, aero plane and other manufacturing products. The estimates of import of services were derived using the data obtained from the same source as those for export of services, i.e., the Indonesian Balance of Payment report. The information needs, the approach and the method of estimation used here are similar to those for export of services.

iii.

Uses of Value added

1. Compensation Data of compensation i.e. salaries and wages were gather from various survey. Except for compensation of employee of government civil servants was gathered from government budget statement.
17

2. Taxes less subsidies Data on taxes and subsidies were obtained from government budget statement from the Ministry of Finance. 3. Depreciation Data on depreciation were gathered from various surveys, such as: agriculture survey, mining and quarrying survey, manufacturing survey, SKIO, and SKSPJ. 4. Operating Surplus Operating surplus usually is balancing item in the IO Table framework.

18

V.

The Supply and Use Tables: Analysis and Results

The composition of Supply table is mostly dominated by domestic production. In 2008 domestic production account for 88.5% of total supply or at value of Rp 10,679,685,824 million. Total imports of goods and services constituted 11.1% or about Rp 1,343,478,216 million, in which Rp 1,161,522,412 million are imports of goods, Rp 186.233.502 million are imports of services, and the rest is cif/fob adjustments. Trade and transport margins (TTM) plus taxes less subsidies only contributed 0.3% of total supply or it amounted of Rp 39,603,473 million; in which taxes contribute Rp 280,494,944 million and subsidies contribute Rp 240,891,471 million.

Total Supply Composition

TOTAL IMPORTS OF GOODS AND SERVICES 11,1% TTM + TAX SUBSIDIES 0,3%

TOTAL DOMESTIC PRODUCTION 88,5%

Top ten domestic productions by industries No. Industry Domestic production (million Rp) 1,243,975,535 1,194,328,365 1,088,017,346 866,208,854 860,516,013 802,543,496 681,534,917 Percentage to total supply 10.31% 9.90% 9.02% 7.18% 7.13% 6.65% 5.65%

1 2 3 4 5 6 7

8 9

10

Construction Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods Manufacture of food products, beverages and tobacco Mining and quarrying Agriculture, hunting and related service activities Manufacturing n.e.c. Manufacture of fabricated metal products; office, accounting and computing machinery, radio, television and communication equipment and apparatus; electrical machinery and apparatus ;medical, precision and optical instruments, watches and clocks Hotels and restaurants Manufacture of textiles; wearing apparel; dressing and dyeing of fur; Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear Public administration and defense; compulsory social security

337,099,241 296,093,038

2.79% 2.45%

275,286,989

2.28%

Based on 2008 Indonesia s SUT, gross output of the entire economy was 10,679,685,824 million Rupiahs at basic price. Total trade and transport margins (TTM) were zero because TTM imposed on goods were counter act with TTM imposed on services. Total taxes were 280,494,944 million Rupiahs and subsidies

19

were 240,891,471 million Rupiahs. Total supply of entire economy based on purchaser s prices was 12,062,767,513 million Rupiahs. The SUTs are about balancing the output of products between their supply and use Products are valued at production stage at basic prices, but uses of products are usually valued at purchasers prices For the balance of any product, we need to bring each product at basic prices to purchasers prices, by adding trade and transport margins, and taxes on products less subsidies on products of each product so that the value of the particular product is brought to purchasers prices However, in the equation on the prev. slide only taxes and subsidies are included for converting data at basic prices to purchasers prices The trade and transport margins, which are the outputs of products of trade and freight transport, get redistributed to respective commodities on which these margins were incurred. Top ten suppliers by commodities No. 1 2 3 4 5 6 7 8 Commodity Construction services Coal and lignite; peat, crude petroleum and natural gas Grain mill products, starches and starch products; other food products Meat, fish, fruit, vegetables, oils and fats and dairy products Basic Chemical and Other Chemicals Manufacturing, n.e.c Transport equipment Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles Lodging; food and beverage serving services Clothing and wearing apparel; leather and leather products Supply at purchaser price 1,255,405,982 777,323,686 665,950,563 623,603,277 596,988,483 482,679,730 420,178,884 372,489,304 Percentage to total supply 10.4% 6.4% 5.5% 5.2% 4.9% 4.0% 3.5% 3.1%

9 10

367,790,885 363,844,955

3.0% 3.0%

Construction is the largest industry in term of total output with 1,243,975,535 million Rupiahs, or around 10.31 percent of total supply of entire economy. Top ten industries with the highest output were: (1) Construction, (2) Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods, (3) Manufacture of food products, beverages and tobacco, (4) Mining and quarrying, (5) Agriculture, hunting and related service activities, (6) Manufacturing n.e.c., (7) Manufacture of fabricated metal products; office, accounting and computing machinery, radio, television and communication equipment and apparatus; electrical machinery and apparatus ;medical, precision and optical instruments, watches and clocks, (8) Hotels and restaurants, (9) Manufacture of textiles; wearing apparel; dressing and dyeing of fur; Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear, (10) Public administration and defense; compulsory social security.

20

While construction contributes the highest domestic production by industry classification, construction services reported the highest supply at purchaser price commodity-wise. The top ten commodities which contribute highest supply are: (1) Construction services, (2) Coal and lignite; peat, crude petroleum and natural gas, (3) Grain mill products, starches and starch products; other food products, (4) Meat, fish, fruit, vegetables, oils and fats and dairy products, (5) Basic Chemical and Other Chemicals, (6) Manufacturing, n.e.c, (7) Transport equipment, (8) Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles, (9) Lodging; food and beverage serving services, (10) Clothing and wearing apparel; leather and leather products. Being the number one supplier to entire economy, construction services are also the top rank in term of domestic production. Its production constitutes 10.3 percent of total supply of the entire nation. The top ten domestic productions by commodities are: (1) Construction services, (2) Wholesale and retail trade services, (3) Coal and lignite; peat, crude petroleum and natural gas, (4) Grain mill products, starches and starch products; other food products, (5) Meat, fish, fruit, vegetables, oils and fats and dairy products, (6) Manufacturing, n.e.c, (7) Lodging; food and beverage serving services, (8) Basic Chemical and Other Chemicals, (9) Clothing and wearing apparel; leather and leather products, (10) Public administration and other services to the community as a whole; compulsory social security services. Top ten domestic productions by commodities No. 1 2 3 4 5 6 7 8 9 10 Commodities Construction services Wholesale and retail trade services Coal and lignite; peat, crude petroleum and natural gas Grain mill products, starches and starch products; other food products Meat, fish, fruit, vegetables, oils and fats and dairy products Manufacturing, n.e.c Lodging; food and beverage serving services Basic Chemical and Other Chemicals Clothing and wearing apparel; leather and leather products Public administration and other services to the community as a whole; compulsory social security services Domestic production 1,243,975,535 999,122,745 618,238,219 505,880,188 446,524,601 361,163,901 337,099,241 334,219,619 295,989,593 275,286,989 Percentage to total supply 10.3% 8.3% 4.2% 3.7% 3.0% 2.8% 2.8% 2.5% 2.3%

Meanwhile beside domestic production, imports are also play part in forming supply of goods and services at basic price. Top ten imports of goods and services are: (1) Manufacturing n.e.c., (2) Basic Chemical and Other Chemicals, (3) Coal and lignite; peat, crude petroleum and natural gas, (4) General and Special Purpose Machinery, (5) Transport equipment, (6) Basic metals, (7) Radio, television and communication equipment and apparatus, (8) Electrical machinery and apparatus, (9) Fabricated metal products, except machinery and equipment, (10) Water transport services.

21

Top ten imports of goods and services by commodities No. 1 2 3 4 5 6 7 8 9 10 Commodities Manufacturing, n.e.c. Basic Chemical and Other Chemicals Coal and lignite; peat, crude petroleum and natural gas General and Special Purpose Machinery Transport equipment Basic metals Radio, television and communication equipment and apparatus Electrical machinery and apparatus; Fabricated metal products, except machinery and equipment Water transport services Imports of goods & services 195,677,663 165,095,184 134,004,106 116,367,380 105,813,658 96,244,634 61,315,657 37,285,295 36,722,979 34,170,763 Percentage to total supply 1.6% 1.4% 1.1% 1.0% 0.9% 0.8% 0.5% 0.3% 0.3% 0.3%

Total Use Composition

EXPORT OF GOODS AND SERVICES 12,3% INTERMEDIATE CONSUMPTION 44,0%

GROSS CAPITAL FORMATION 12,5%

FINAL CONSUMPTION 31,1%

The composition of Use table is mostly consisting of intermediate consumption which made of 44% of total use or Rp 5,312,239,812 million. Final consumption contributed 31.1% of total use or Rp 3,754,649,031 million; out of which household consumption is Rp 3,305,603,265 million, general government consumption is Rp 416,866,669 million, and the rest is NPISH consumption. Gross capital formation (GFC) and exports of goods and services are contributing 12.5% and 12.3% of total use respectively. GFC amount for Rp 1,508,640,824 million; it consist of gross fixed capital formation (GFCF) and changes in inventories with Rp 1,405,265,687 million and Rp 103,375,137 million.

Total value added at basic price for entire economy was 5,367,446,011 million Rupiahs. Top ten industries with the highest value added were: (1) Mining and quarrying, (2) Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods, (3) Agriculture, hunting and related service activities, (4) Construction, (5) Manufacturing n.e.c., (6) Manufacture of food products, beverages and tobacco, (7) Manufacture of fabricated metal products; office, accounting and computing machinery, radio, television and communication equipment and apparatus; electrical machinery and apparatus ;medical, precision and optical instruments, watches and clocks, (8) Public administration and defense; compulsory social security, (9) Financial intermediation, except insurance and pension funding, (10) Hotels and restaurants.

22

Top ten gross value added by industries No. 1 2 3 4 5 6 7 Industries Mining and quarrying Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods Agriculture, hunting and related service activities Construction Manufacturing n.e.c. Manufacture of food products, beverages and tobacco Manufacture of fabricated metal products; office, accounting and computing machinery, radio, television and communication equipment and apparatus; electrical machinery and apparatus ;medical, precision and optical instruments, watches and clocks Public administration and defense; compulsory social security Financial intermediation, except insurance and pension funding Hotels and restaurants Gross Value Added 661,073,559 630,033,189 609,950,741 451,640,650 395,916,036 373,245,455 234,295,186 Percentage to total use 5.5% 5.2% 5.1% 3.7% 3.3% 3.1% 1.9%

8 9 10

157,722,749 153,814,877 152,059,213

1.3% 1.3% 1.3%

Top ten intermediate consumptions by industries No. 1 2 3 4 Industries Construction Manufacture of food products, beverages and tobacco Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods Manufacture of fabricated metal products; office, accounting and computing machinery, radio, television and communication equipment and apparatus; electrical machinery and apparatus ;medical, precision and optical instruments, watches and clocks Manufacturing n.e.c. Agriculture, hunting and related service activities Mining and quarrying Hotels and restaurants Manufacture of textiles; wearing apparel; dressing and dyeing of fur; Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear Manufacture of rubber and plastics products Intermediate consumption 792,334,885 714,771,891 564,295,175 447,239,731 Percentage to total use 6.6% 5.9% 4.7% 3.7%

5 6 7 8 9

406,627,460 250,565,272 205,135,296 185,040,028 183,785,887

3.4% 2.1% 1.7% 1.5% 1.5%

10

167,808,072

1.4%

Total intermediate consumption for the entire economy was 5,312,239,812 million Rupiahs. Construction recorded the highest intermediate consumption among others industries with 14.9 percent
23

of total intermediate consumption in the economy. Top ten industries with the highest intermediate consumption were: (1) Construction, (2) Manufacture of food products, beverages and tobacco, (3) Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods, (4) Manufacture of fabricated metal products; office, accounting and computing machinery, radio, television and communication equipment and apparatus; electrical machinery and apparatus ;medical, precision and optical instruments, watches and clocks, (5) Manufacturing n.e.c., (6) Agriculture, hunting and related service activities, (7) Mining and quarrying, (8) Hotels and restaurants, (9) Manufacture of textiles; wearing apparel; dressing and dyeing of fur; Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear, (10) Manufacture of rubber and plastics products. Top ten intermediate consumptions by commodities No. 1 2 3 4 5 Commodities Basic Chemical and Other Chemicals Coal and lignite; peat, crude petroleum and natural gas Manufacturing, n.e.c Cereals Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles Grain mill products, starches and starch products; other food products Fabricated metal products, except machinery and equipment Financial intermediation services, and investment banking, Other Minerals, n.e.c Transport equipment Intermediate consumption 439.899.496 386.828.676 368.004.088 248.703.875 219.183.695 Percentage to total use 3,6% 3,2% 3,1%
2,1%

1,8%

6 7 8 9 10

206.963.162 199.577.724 189,035,611 183.576.820 176.889.159

1,7% 1,7% 1,6% 1,5% 1,5%

Looking at top ten intermediate consumptions by commodities we can see that basic chemical and other chemicals is the most consumed commodities use by various domestic production industries; it constitutes Rp 436,899,496 million or around 3.6% of total use in the economy. The remaining nine commodities that most consumed by domestic production industries are: Coal and lignite; peat, crude petroleum and natural gas; Manufacturing, n.e.c; Cereals; Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles; Grain mill products, starches and starch products; other food products; Fabricated metal products, except machinery and equipment; Financial intermediation services, and investment banking; Other Minerals, n.e.c; and Transport equipment. Meanwhile, looking at ten most consumed commodities by final consumers (ie. Household, Government, and NPISH) we can see that they ware consist mostly of basic commodities necessarily to sustain life. At top is Grain mill products, starches and starch products; other food products consumed by final consumers reaching Rp 436,300,735 million or around 3.6% of total use. The remaining top ten commodities most consumed as final consumption are: Meat, fish, fruit, vegetables, oils and fats and dairy products; Public administration and other services to the community as a whole; compulsory social
24

security services; Lodging; food and beverage serving services; Education services; Beverages and Tobacco; Transport equipment; Fish and other fishing products; Clothing and wearing apparel; leather and leather products; and Fruit and nuts. Top ten final consumptions by commodities No. 1 2 3 4 5 6 7 8 9 10 Commodities Grain mill products, starches and starch products; other food products Meat, fish, fruit, vegetables, oils and fats and dairy products Public administration and other services to the community as a whole; compulsory social security services Lodging; food and beverage serving services Education services Beverages and Tobacco Transport equipment Fish and other fishing products Clothing and wearing apparel; leather and leather products Fruit and nuts Final consumption 436.300.735 327.629.177 266.779.590 263.000.321 189.968.870 177.064.636 171.466.974 148.959.080 145.252.962 139.837.555 Percentage to total use 3,6% 2,7% 2,2%
2,2%

1,6% 1,5% 1,4% 1,2% 1,2% 1,2%

Top ten household consumptions by commodities No. 1 2 3 4 5 6 7 8 9 10 Commodities Grain mill products, starches and starch products; other food products Meat, fish, fruit, vegetables, oils and fats and dairy products Lodging; food and beverage serving services Beverages and Tobacco Transport equipment Fish and other fishing products Clothing and wearing apparel; leather and leather products Fruit and nuts Radio, television and communication equipment and apparatus Live animals and Other animal products Household consumption 435.179.872 325.369.008 262.654.175 177.064.636 171.466.974 148.959.080 143.067.189 139.199.382 113.537.701 102.036.695 Percentage to total use 3,6% 2,7% 2,2%
1,5%

1,4% 1,2% 1,2% 1,2% 0,9% 0,8%

However, household consumption is one of three consumptions that compose final consumption component. Looking at ten most consumed commodities by household we can see that they were consist basically of food commodities. Grain mill products, starches and starch products; other food products are the number one household consumption commodity consisting of Rp 435,179,872 or around 3.6% of total use in the country. The other nine commodities most consumed by household are: Meat, fish, fruit, vegetables, oils and fats and dairy products; Lodging; food and beverage serving services; Beverages and Tobacco; Transport equipment; Fish and other fishing products; Clothing and
25

wearing apparel; leather and leather products; Fruit and nuts; Radio, television and communication equipment and apparatus; Live animals and Other animal products. General government consumption pattern consisted of only four services, they are: Public administration and other services to the community as a whole; compulsory social security services; Education services; Health and social services; and Recreational, cultural and sporting services. The first one is defined as collective government consumption; it is the kind of services government provides to its citizens collectively which formed 2.2% of total use in the economy or Rp 265,218,460 million. The remaining three are called individual government consumptions which is the kind of services government provided that can be consumed to its citizens individually; they are consisting of Education services, Health and social services, and Recreational, cultural and sporting services. General government consumptions by commodities No. Commodities General government consumption 265.218.460 103.204.819 30.921.445 17.521.944 Percentage to total use 2,2% 0,9% 0,3% 0,1%

1 2 3 4

Public administration and other services to the community as a whole; compulsory social security services Education services Health and social services Recreational, cultural and sporting services

Top ten NPISH consumptions by commodities No. 1 2 3 4 5 6 7 8 9 10 Commodities Other services, n.e.c Real estate services Basic Chemical and Other Chemicals Meat, fish, fruit, vegetables, oils and fats and dairy products Clothing and wearing apparel; leather and leather products Recreational, cultural and sporting services Electricity, town gas, steam and hot water Grain mill products, starches and starch products; other food products Leasing or rental services without operator Telecommunications services; information retrieval and supply services NPISH consumption 8.643.229 5.560.419 3.348.987 2.260.169 2.185.772 1.672.545 1.414.960 1.120.863 1.106.966 1.069.634 Percentage to total use 0,07% 0,05% 0,03%
0,02%

0,02% 0,01% 0,01% 0,01% 0,01% 0,01%

Unlike household and government, NPISH is the least final consumer in the economy. Other services n.e.c is the number one commodities in NPISH consumption with the amount of Rp 8,643,229 million or around 0.07% of total use. The remaining top ten NPISH consumptions are: Real estate services; Basic Chemical and Other Chemicals; Meat, fish, fruit, vegetables, oils and fats and dairy products; Clothing and wearing apparel; leather and leather products; Recreational, cultural and sporting services;
26

Electricity, town gas, steam and hot water; Grain mill products, starches and starch products; other food products; Leasing or rental services without operator; and Telecommunications services; information retrieval and supply services.

Top ten Gross Capital Formations by commodities No. 1 2 3 4 5 6 7 8 9 Commodities Construction services General and Special Purpose Machinery Transport equipment Radio, television and communication equipment and apparatus Other Minerals, n.e.c Electrical machinery and apparatus; Fabricated metal products, except machinery and equipment Grain mill products, starches and starch products; other food products Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles Other business and production services, n.e.c GCF 1.144.105.970 136.040.407 48.336.696 36.570.245 33.600.804 21.322.544 13.892.056 12.737.518 10.736.268 Percentage to total use 9,5% 1,1% 0,4%
0,3%

0,3% 0,2% 0,1% 0,1% 0,1%

10

10.020.543

0,1%

Gross capital formations (GFC) consist of gross fixed capital formation (GFCF), changes in inventories, and acquisition less disposal of valuables; however, the last component of GFC is not presented in Indonesia s SUT due to lack of data. Construction services composed the most GCF consumption with amounts of Rp 1,144,105,970 million or around 9.5% of total use in the entire economy. The other nine commodities which compose top ten GCF are: General and Special Purpose Machinery; Transport equipment; Radio, television and communication equipment and apparatus; Other Minerals, n.e.c; Electrical machinery and apparatus; Fabricated metal products, except machinery and equipment; Grain mill products, starches and starch products; other food products; Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles; and Other business and production services, n.e.c. Construction services also hit the number one commodities as GFCF, as it turn out that all GFC in form of construction services basically is GFCF. The remaining top ten GFCF are: General and Special Purpose Machinery; Transport equipment; Radio, television and communication equipment and apparatus; Electrical machinery and apparatus; Other business and production services, n.e.c; Fabricated metal products, except machinery and equipment; Furniture; Medical appliances, precision and optical instruments, watches and clocks; and Recreational, cultural and sporting services.

27

Top ten Gross Fixed Capital Formations by commodities No. 1 2 3 4 5 6 7 8 9 10 Commodities Construction services General and Special Purpose Machinery Transport equipment Radio, television and communication equipment and apparatus Electrical machinery and apparatus; Other business and production services, n.e.c Fabricated metal products, except machinery and equipment Furniture Medical appliances, precision and optical instruments, watches and clocks Recreational, cultural and sporting services GFCF 1.144.105.970 132.170.268 48.032.894 31.748.435 19.655.385 10.020.543 6.115.491 3.550.017 3.240.168 2.079.284 Percentage to total use 9,48% 1,10% 0,40%
0,26%

0,16% 0,08% 0,05% 0,03% 0,03% 0,02%

Other minerals n.e.c is top on changes in inventories with the amount of Rp 33,600,804 million or around 0.28% of total use. The remaining top ten changes in inventories are: Grain mill products, starches and starch products; other food products; Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles; Coal and lignite; peat, crude petroleum and natural gas; Basic Chemical and Other Chemicals; Fabricated metal products, except machinery and equipment; Clothing and wearing apparel; leather and leather products; Radio, television and communication equipment and apparatus; General and Special Purpose Machinery; and Basic metals. Top ten Changes in inventories by commodities No. 1 2 3 Commodities Other Minerals, n.e.c Grain mill products, starches and starch products; other food products Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles Coal and lignite; peat, crude petroleum and natural gas Basic Chemical and Other Chemicals Fabricated metal products, except machinery and equipment Clothing and wearing apparel; leather and leather products Radio, television and communication equipment and apparatus General and Special Purpose Machinery Basic metals
28

Changes in inventories 33.600.804 12.737.518 10.736.268

Percentage to total use 0,28% 0,11% 0,09%

4 5 6 7 8 9 10

9.757.706 8.683.690 7.776.565 5.266.254 4.821.809 3.870.139 2.690.808

0,08%

0,07% 0,06% 0,04% 0,04% 0,03% 0,02%

Meanwhile, coal and lignite; peat, crude petroleum and natural gas are the most exported commodity with exports value of Rp 362,021,518 million or around 3% of total use in the economy. The remaining top ten exports of goods and services are: Meat, fish, fruit, vegetables, oils and fats and dairy products; Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles; Clothing and wearing apparel; leather and leather products; Basic Chemical and Other Chemicals; Basic metals; Rubber and plastics products; Other Minerals, n.e.c; Fabricated metal products, except machinery and equipment; and Radio, television and communication equipment and apparatus. Top ten exports of goods and services by commodities No. 1 2 3 Commodities Coal and lignite; peat, crude petroleum and natural gas Meat, fish, fruit, vegetables, oils and fats and dairy products Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles Clothing and wearing apparel; leather and leather products Basic Chemical and Other Chemicals Basic metals Rubber and plastics products Other Minerals, n.e.c Fabricated metal products, except machinery and equipment Radio, television and communication equipment and apparatus Exports 362.021.518 126.470.828 103.554.201 Percentage to total use 3,0% 1,0% 0,9%

4 5 6 7 8 9 10

100.607.628 96.432.000 82.703.328 75.286.967 59.747.809 57.980.900 53.247.184

0,8%

0,8% 0,7% 0,6% 0,5% 0,5% 0,4%

Top ten final demands by commodities No. 1 2 3 4 5 6 7 8 9 10 Commodities Construction services Grain mill products, starches and starch products; other food products Meat, fish, fruit, vegetables, oils and fats and dairy products Coal and lignite; peat, crude petroleum and natural gas Lodging; food and beverage serving services Public administration and other services to the community as a whole; compulsory social security services Clothing and wearing apparel; leather and leather products Transport equipment General and Special Purpose Machinery Radio, television and communication equipment and apparatus
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Final demand 1.155.536.417 458.987.401 452.996.271 390.495.010 295.714.268 266.830.120 251.126.844 243.289.725 210.533.455 203.355.130

Percentage to total use 9,6% 3,8% 3,8%

3,2%

2,5% 2,2% 2,1% 2,0% 1,7% 1,7%

Construction services is on top of final demands commodities in Indonesia with value of Rp 1,155,536,417 million or around 9.6% of total use. The remaining top ten final demands are: Grain mill products, starches and starch products; other food products; Meat, fish, fruit, vegetables, oils and fats and dairy products; Coal and lignite; peat, crude petroleum and natural gas; Lodging; food and beverage serving services; Public administration and other services to the community as a whole; compulsory social security services; Clothing and wearing apparel; leather and leather products; Transport equipment; General and Special Purpose Machinery; and Radio, television and communication equipment and apparatus. Top ten uses by commodities (at purchaser s prices) No. 1 2 3 4 5 6 7 8 Commodities Construction services Coal and lignite; peat, crude petroleum and natural gas Grain mill products, starches and starch products; other food products Meat, fish, fruit, vegetables, oils and fats and dairy products Basic Chemical and Other Chemicals Manufacturing, n.e.c Transport equipment Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles Lodging; food and beverage serving services Clothing and wearing apparel; leather and leather products Uses 1.255.405.982 777.323.686 665.950.563 623.603.277 596.988.483 482.679.730 420.178.884 372.489.304 Percentage to total use 10,4% 6,4% 5,5%
5,2%

4,9% 4,0% 3,5% 3,1%

9 10

367.790.885 363.844.955

3,0% 3,0%

Construction services is the most used commodities in the country with total of Rp 1,255,405,982 million or around 10.4% of total use. The remaining top ten commodities most used are: Coal and lignite; peat, crude petroleum and natural gas; Grain mill products, starches and starch products; other food products; Meat, fish, fruit, vegetables, oils and fats and dairy products; Basic Chemical and Other Chemicals; Manufacturing, n.e.c; Transport equipment; Products of wood, cork, straw and plaiting materials; pulp, paper and paper products, printed matters, and related articles; Lodging; food and beverage serving services; and Clothing and wearing apparel; leather and leather products. Balancing Process Process of balancing SUT involves testing of an economic of scale of industrial activity. Once the level of economy is already been set the balancing process could be taken. There are some rules to the extend the data set in the SUT can be revised or changed. The international trade either export or import are a strong sources of data hence revising the data is not necessary. Banking, Government expenditures, crude oil are another strong data as well. The balancing can be done in two ways. In the raw wise, inventory is the balancing item under the condition that it would not greater than five percents. In the column wise the operating surpluses denotes the balancing item but it should be noticed that such item is a mixed income posting as well.
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VI.

Meeting the Challenges

This SUT table denotes the first attempt for BPS-Statistics Indonesia to compile it, even though that I-O table regularly published since 1970. This project at least has inspired how the mechanism of the new SNA implementation should be taken. One major project on compiling SUT table is detail of data availability, since the nature of SUT to portray the detail economy activity on the basis of establishments.

It is clear that Lag of knowledge and skill are the main reasons why the implementation has been delay among the participating countries. If every improvement of the new SNA is introduced to participating countries and learning and practices courses is conducted, the implementation would be more optimum.

VII.

The Way Forward

Learning from RETA Project and needs to improve better quality national accounts, BPS-Statistics Indonesia is planning to compile the 2010 SUT by 2013 that describes more detail industries by the same time to adopt 2008 SNA. The SUT will be compiled based on various databases that are expected to become the benchmark GDP. Accordingly the 2010 IO Table will depend on SUT. This process will contrast to the current 2008 SUT. As a starting point, a review on 2008 SNA is undertaken in order to the extent that the new system can smoothly implement. A focus group discussion (FGD) that consist of the whole national account staff is regularly conducted in order to proceed documents on impact and plan of the new SNA to higher level officer.

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