The Analysis of Manufacturing Sector in Indonesia

The development of sustainable manufacturing industries is the strategy and policy of Indonesia government. The purpose of this research to examine and analyze the impact of labor, capital, material, and energy consume in 2012-2015 to output of manufacturing industries sector based on 2 digits code. The other purpose is to analyze and examine the factor affecting the output of manufacturing industries sector and Total Factor Productivity. The methods that used in this research is regression with panel data and TFP OLS. The result show that labor, capital, material, and energy consume have significant positive effect to output f manufacturing industries sector, while the TFP result is positive