The Role of Consumption on Indonesia Economy in the Period of 2001-2014

This research analyze the role of consumption on Indonesian economy by using annual time series data from 2001-2014. The results show that Consumption is the largest contributor to GDP, where the average contribution of consumption to GDP amounted to 54.42 % during the period of 2001-2014. The numbers are so large when compared with government spending, investment and net export. The amount of household consumption is increasing from year to year, but growth alone fluctuated where often there was an increase and decrease. The increasing in consumption is less than the increasing in GDP. In its contribution to GDP, household consumption has always declined from year to year. Ranging from 61.45 % in 2001 slipped to 55.05 % in 2014. Growth in household consumption is not always in line with GDP growth. Occasionally circumstances occur in which an increase in household consumption growth but the growth of GDP is decreasing. And vice versa when the growth of household consumption to decline, GDP growth actually increased. Keyword: Economic Growth, GDP, and Household Consumptio