THE ROLE OF MARITIME SECTOR IN THE ECONOMIC OF THE WORLD'S LARGEST DEVELOPED ARCHIPELAGIC COUNTRY

Background: In a developing archipelagic state with 70% of its territory is water, the geographical conditions indicate that the maritime sector is able to create an impact and have a vital role for the country's economy. However, the maritime sector development process has not received enough attention in the national development plan. Objective : This study is aimed to analyze the role, linkages, and multiplier effects of the maritime sector in the country's economy. Method: In this study a quantitative mathematical approach was used using the Input-Output model analysis tool and with Indonesian secondary input-output data in 2010. Observation of roles, linkages, and multiplier effects on the seven maritime sectors was carried out based on input-output data analysis. Results: Based on data analysis, the maritime sector in the marine constructions sector in Indonesia has a significant role as a leading sector with 19.34% value added for the economic sector in Indonesia. However, the linkage analysis showed that only three maritime sectors are able to attract and develop economies between sectors. Although the maritime sector can develop the creation of the output of the Indonesian economy but it has only a minor role in increasing people's income and absorbing labor. The maritime sector has a significant role for Indonesian economy. Even though it can create an output of the Indonesian economy, the maritime sector has not been able to improve the economy between sectors and has not been able to increase income and employment for the community. Conclusion: The use of IO tables in the analysis of roles, linkages, and the multiplier impact of the maritime sector in the country's economy showed a significance role of the maritime sector in Indonesia, although this study didn't use the latest IO table analysis.