International Research & Citation Index
IRCI Article ID: IRCI-AR-0000001595

Input–Output Analysis: Measuring the Multiplier Effect of The Mining Sector on The Economy of East Kalimantan

Authors:
Diana LestariLestari, DianaAyat Nur HidayatNur Hidayat, AyatRangga Aji WijaksonoAji Wijaksono, Rangga

Journal: International Journal of Economics, Management and Accounting

Publication: 2026-06-30 · Vol. 4 No. 1 · pp. 16–32

DOI: 10.47353/ijema.v4i1.390

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Abstract
The economy of East Kalimantan remains highly dependent on the Mining and Quarrying sector; however, in recent periods, the role of other sectors, such as the Manufacturing sector, has begun to strengthen. This study aims to analyze the linkages between the Mining and Quarrying sector and other sectors in the East Kalimantan economy, as well as to measure its impact on output, income, and employment. The method used is Input-Output analysis through forward and backward linkages, as well as labor and income multipliers. The results show that the Mining and Quarrying sector has strong forward linkages, with a Forward Linkage value of 2.7086, and backward linkages of 1.4138. This indicates that the mining sector plays a crucial role as a provider of inputs to other sectors while also serving as a user of inputs from supporting sectors. In terms of employment, the mining sector employs only about 0.40 people per Rp1 billion of output, reflecting the sector’s capital-intensive nature. These findings underscore the need to strengthen downstream processing, deepen local supply chains, and diversify labor-intensive sectors to foster more inclusive and sustainable economic growth in East Kalimantan.


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Authors
Diana Lestari
Affiliation: , Universitas Mulawarman, Indonesia Author Origin : Indonesia
Lestari, Diana
Ayat Nur Hidayat
Affiliation: , Directorate General of Treasury, ⁠Ministry of Finance of the Republic of Indonesia Author Origin : Indonesia
Nur Hidayat, Ayat
Rangga Aji Wijaksono
Affiliation: , Directorate General of Treasury, ⁠Ministry of Finance of the Republic of Indonesia Author Origin : Indonesia
Aji Wijaksono, Rangga


References
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Chenery, H. B., & Syrquin, M. (1975). Patterns of Development, 1950–1970. London: Oxford University Press.
Depari, S., Horman, J. R., & Setiawan, A. (2023). Relationship of the mining sector to the electricity and gas procurement sector in West Papua Province using input-output analysis. INTAN Journal of Mining Research, 6(2). https://doi.org/10.56139/intan.v6i2.159
Hilmawan, R., Yudaruddin, R., & Wahyuni, Y. S. (2016). Coal mining operations and their impact on sectoral and regional areas: Evidence from East Kalimantan, Indonesia. Journal of Indonesian Applied Economics, 6(1), 23–43. https://doi.org/10.21776/ub.jiae.2016.006.01.2
Hirschman, A. O. (1958). The Strategy of Economic Development. New Haven: Yale University Press.
Leontief, W. (1986). Input-Output Economics (2nd ed.). New York: Oxford University Press.
Muhammadiyah, D. N. A. (2023). Analysis of factors affecting labor absorption in East Kalimantan Province 2019–2021. Perbanas International Seminar on Economics, Business, Management, Accounting and IT, 1(1), 112–121. https://journal.perbanas.id/index.php/Proficient/article/view/670
Nababan, T. S., & Purba, E. F. (2023). Labor absorption in the manufacturing industry in Indonesia: Anomalous and regressive phenomena. arXiv. https://arxiv.org/abs/2311.01787
Randa, A. B. P., Rohmat, E. A. N., Oktaviana, L., Albab, M. H., & Kartiasih, F. (2025). Impact of the decline in coal exports on East Kalimantan’s mining and coal industry. Journal of Developing Economies, 10(1), 151–172. https://e-journal.unair.ac.id/JDE/article/view/61414
Saleh, R., & Suseno, T. (2017). The impact of copper mining operations in Papua on the national economy: An input-output analysis. Journal of Mineral and Coal Technology, 13(3). https://doi.org/10.30556/jtmb.Vol13.No3.2017.266
Simanjuntak, Y. O., & Anggara, A. W. (2022). Input-output analysis of East Kalimantan Province, 2016: Identification of leading sectors. BESTARI BPS East Kalimantan, 2(1). https://bestari.bpskaltim.com/index.php/bestari-bpskaltim/article/view/42
Soedomo, R. P. (2010). Analysis of inter-industry linkages and key sectors in Indonesia. Economic and Financial
Surbakti, S. P. P., & Nurhidayati. (2025). Economic impact of coal mining investment in East Kalimantan: An input-output approach. Indonesian Treasury Review: Journal of Treasury, State Finance, and Public Policy, 10(3), 272–284. https://doi.org/10.33105/itrev.v10i3.1229
Suseno, T., Suciyanti, M., & Madiutomo, N. (2019). Analysis of the metals mining sector’s linkages to the national economy. Indonesian Mining Journal, 22(2). https://doi.org/10.30556/imj.Vol22.No2.2019.705
Todaro, M. P., & Smith, S. C. (2020). Economic development (13th ed.). Pearson Education.
Wijaya, F. M., & Purnamadewi, Y. L. (2013). Analysis of the leading sector’s impact on employment in East Kalimantan and the factors influencing it. Bogor Agricultural University. https://repository.ipb.ac.id/handle/123456789/65464
Depari, S., Horman, J. R., & Setiawan, A. (2023). Relationship of the mining sector to the electricity and gas procurement sector in West Papua Province using input-output analysis. INTAN Journal of Mining Research, 6(2). https://doi.org/10.56139/intan.v6i2.159 DOI: https://doi.org/10.56139/intan.v6i2.159
Hilmawan, R., Yudaruddin, R., & Wahyuni, Y. S. (2016). Coal mining operations and their impact on sectoral and regional areas: Evidence from East Kalimantan, Indonesia. Journal of Indonesian Applied Economics, 6(1), 23–43. https://doi.org/10.21776/ub.jiae.2016.006.01.2 DOI: https://doi.org/10.21776/ub.jiae.2016.006.01.2
Leontief, W. (1986). Input-Output Economics (2nd ed.). New York: Oxford University Press. DOI: https://doi.org/10.1057/978-1-349-95121-5_1072-1
Randa, A. B. P., Rohmat, E. A. N., Oktaviana, L., Albab, M. H., & Kartiasih, F. (2025). Impact of the decline in coal exports on East Kalimantan’s mining and coal industry. Journal of Developing Economies, 10(1), 151–172. https://e-journal.unair.ac.id/JDE/article/view/61414 DOI: https://doi.org/10.20473/jde.v10i1.61414
Saleh, R., & Suseno, T. (2017). The impact of copper mining operations in Papua on the national economy: An input-output analysis. Journal of Mineral and Coal Technology, 13(3). https://doi.org/10.30556/jtmb.Vol13.No3.2017.266 DOI: https://doi.org/10.30556/jtmb.Vol13.No3.2017.266
Surbakti, S. P. P., & Nurhidayati. (2025). Economic impact of coal mining investment in East Kalimantan: An input-output approach. Indonesian Treasury Review: Journal of Treasury, State Finance, and Public Policy, 10(3), 272–284. https://doi.org/10.33105/itrev.v10i3.1229 DOI: https://doi.org/10.33105/itrev.v10i3.1229
Suseno, T., Suciyanti, M., & Madiutomo, N. (2019). Analysis of the metals mining sector’s linkages to the national economy. Indonesian Mining Journal, 22(2). https://doi.org/10.30556/imj.Vol22.No2.2019.705 DOI: https://doi.org/10.30556/imj.Vol22.No2.2019.705
Central Statistics Agency of East Kalimantan Province. (2026). Economic Growth by Industry in East Kalimantan Province (Percent), 2024–2026. https://kaltim.bps.go.id/id/query-builder
Chenery, H. B., & Syrquin, M. (1975). Patterns of Development, 1950–1970. London: Oxford University Press.
Depari, S., Horman, J. R., & Setiawan, A. (2023). Relationship of the mining sector to the electricity and gas procurement sector in West Papua Province using input-output analysis. INTAN Journal of Mining Research, 6(2). https://doi.org/10.56139/intan.v6i2.159
Hilmawan, R., Yudaruddin, R., & Wahyuni, Y. S. (2016). Coal mining operations and their impact on sectoral and regional areas: Evidence from East Kalimantan, Indonesia. Journal of Indonesian Applied Economics, 6(1), 23–43. https://doi.org/10.21776/ub.jiae.2016.006.01.2
Hirschman, A. O. (1958). The Strategy of Economic Development. New Haven: Yale University Press.
Leontief, W. (1986). Input-Output Economics (2nd ed.). New York: Oxford University Press.
Muhammadiyah, D. N. A. (2023). Analysis of factors affecting labor absorption in East Kalimantan Province 2019–2021. Perbanas International Seminar on Economics, Business, Management, Accounting and IT, 1(1), 112–121. https://journal.perbanas.id/index.php/Proficient/article/view/670
Nababan, T. S., & Purba, E. F. (2023). Labor absorption in the manufacturing industry in Indonesia: Anomalous and regressive phenomena. arXiv. https://arxiv.org/abs/2311.01787
Randa, A. B. P., Rohmat, E. A. N., Oktaviana, L., Albab, M. H., & Kartiasih, F. (2025). Impact of the decline in coal exports on East Kalimantan’s mining and coal industry. Journal of Developing Economies, 10(1), 151–172. https://e-journal.unair.ac.id/JDE/article/view/61414
Saleh, R., & Suseno, T. (2017). The impact of copper mining operations in Papua on the national economy: An input-output analysis. Journal of Mineral and Coal Technology, 13(3). https://doi.org/10.30556/jtmb.Vol13.No3.2017.266
Simanjuntak, Y. O., & Anggara, A. W. (2022). Input-output analysis of East Kalimantan Province, 2016: Identification of leading sectors. BESTARI BPS East Kalimantan, 2(1). https://bestari.bpskaltim.com/index.php/bestari-bpskaltim/article/view/42
Soedomo, R. P. (2010). Analysis of inter-industry linkages and key sectors in Indonesia. Economic and Financial
Surbakti, S. P. P., & Nurhidayati. (2025). Economic impact of coal mining investment in East Kalimantan: An input-output approach. Indonesian Treasury Review: Journal of Treasury, State Finance, and Public Policy, 10(3), 272–284. https://doi.org/10.33105/itrev.v10i3.1229
Suseno, T., Suciyanti, M., & Madiutomo, N. (2019). Analysis of the metals mining sector’s linkages to the national economy. Indonesian Mining Journal, 22(2). https://doi.org/10.30556/imj.Vol22.No2.2019.705
Todaro, M. P., & Smith, S. C. (2020). Economic development (13th ed.). Pearson Education.
Wijaya, F. M., & Purnamadewi, Y. L. (2013). Analysis of the leading sector’s impact on employment in East Kalimantan and the factors influencing it. Bogor Agricultural University. https://repository.ipb.ac.id/handle/123456789/65464
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