ANALYSIS OF TOTAL FACTOR PRODUCTIVITY GROWTH IN THE INDUSTRY OF TEXTILE AND TEXTILE PRODUCTS IN INDONESIA

Abstract

This study aims to analyze the growth of TFP in the textile industry and textile product (TPT) in Indonesia. Productivity analysis is carried out to determine the extent of performance development and how efficient the textile industry in Indonesia. Calculation of the growth value of Total Factor Productivity (TFP) by decomposing the components of TFP namely TEC, TC, and SEC using the Stochastic Frontier Analysis (SFA). This study uses the type of firm level TPT data in the years 2010-2014. The data used is secondary data which is the result of an annual survey of large and medium manufacturing industry companies conducted by the Central Statistics Agency (BPS) in the form of raw data. The data is in the form of unbalance raw data which is then selected and adjusted to balance data. With 2 industry groups namely the textile industry (ISIC 13) and the garment industry (ISIC 14). Based on the results of the study showed that the average value of TFP growth in 2010-2014 experienced negative growth or <1, this is due to the average growth value of TEC, SEC, and TC which decreased and tended to have negative values in the study period. This shows that the level of efficiency, use of technology, and scale of efficiency of the textile industry tends to be weak in the 2010-2014 period. The reduced level of industrial productivity can affect the decline in the competitiveness of textile products in the global market. Keywords: Textile Industry and Textile Products (TPT), Total Factor Productivity (TFP), Stochastic Frontier Analysis (SFA)Jel : L67, C23; O47