Domestic Demand as the Foundation of Indonesia's Economic Growth
An Economic Development Perspective
DOI:
https://doi.org/10.62012/sp47xs52Kata Kunci:
Domestic Demand, Economic Growth, Economic Development, Household Consumption, Economic Resilience, IndonesiaAbstrak
Economic growth is often associated with exports, foreign investment, and industrial expansion. However, the Indonesian economy presents a distinctive development model in which domestic demand plays a dominant role in sustaining economic growth. This perspective article argues that domestic demand should be recognized as a strategic development asset and a fundamental driver of long-term economic performance. Using recent economic statistics from Indonesia, the article examines the contribution of household consumption, domestic investment, demographic dynamics, and market size to national economic development. The analysis suggests that Indonesia's large domestic market provides resilience against external shocks, supports business expansion, stimulates investment, and strengthens economic stability. Beyond its conventional role as a component of gross domestic product, domestic demand functions as an enabling foundation that supports economic activities across multiple sectors. The article proposes a conceptual framework that positions domestic demand as development infrastructure and discusses its implications for sustainable and inclusive economic growth. The findings highlight the importance of strengthening household purchasing power, expanding the middle class, enhancing labor productivity, and promoting inclusive development policies to maximize the long-term benefits of Indonesia's domestic market.
Unduhan
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