The Effect of Infrastructure Investment on the Indonesian Economy: An Analysis of the 2020 Input-Output Table

The study aims to analyze the impact of infrastructure investment on the Indonesian economy using the 2020 Input- Output (I-O) Table approach. Infrastructure is a strategic sector that plays a crucial role in creating interconnections between economic sectors and generating multiplier effects on output, household income, and job creation. The focus of this study includes three main infrastructure sectors according to the classification of the Ministry of Finance, namely the electricity, gas, and water sector; construction; and transportation, warehousing, and communication. The analysis methods include calculating backward and forward linkage coefficients, dispersion indices, and multiplier analysis on output, income, and employment. The results indicate that the infrastructure sector has strong backward linkages and is identified as a key sector in the national economic structure. Infrastructure investment not only contributes directly to increased production but also drives growth in supporting sectors through improved efficiency and productivity. The 2020 Indonesian Input-Output Analysis shows that infrastructure investment of Rp 2,899 trillion can increase total economic output to Rp 756,09 trillion, with the constructio n, transportation, and electricity and gas supply sectors as the main contributors. However, on the other hand, household income decreased by Rp 110,62 trillion and there was a reduction in the workforce of 8,3 million people.