Contribution of Resin Commodity Exports to Gross Domestic Product and Employment in Indonesia

Abstract

Exports of resin commodities significantly affect Indonesia's economy, particularly in
terms of Gross Domestic Product (GDP) and employment. This study aims to analyze
the effects of resin commodity exports on Indonesia's GDP and employment
opportunities, and to provide recommendations for enhancing the sector's contribution
through strategic initiatives. The research employs the Error Correction Model (ECM)
to assess the relationship between resin exports, GDP, and employment, utilizing
secondary data over the past decade. Results indicate a strong positive correlation
between resin exports and GDP growth, with the latter significantly influenced by
export revenue. The findings also reveal that the resin sector creates numerous job
opportunities, benefiting not only the industry itself but also related sectors such as
logistics and manufacturing. Enhanced export capabilities can lead to increased
national income and reduced trade imbalances, further stabilizing the economy. In
conclusion, the study highlights the importance of resin commodity exports in driving
economic growth in Indonesia. It provides actionable insights for policymakers to
strengthen the resin sector, improve product quality, and expand market access. By
focusing on sustainable practices and technological advancements, Indonesia can
capitalize on its natural resource wealth, fostering job creation and elevating living
standards across local communities.