This research investigates the relation between research and development (R&D) expenditure and the industrial concentration in the Indonesian manufacturing industry. Pooled least square dummy variable is applied to estimate the relation between the two variables. This research uses firm-level data taken from the survey of the manufacturing industry sourced from the Indonesian Bureau of Central Statistics. This research makes contributions in calculating the percentage of R&D expenditure using the recent data and freshly estimating the relation between R&D and industrial concentration in the industry. This research finds that the percentage of R&D expenditure is relatively low in the industry. There is also a declining trend in the percentage of the R&D expenditure from the period 1994–1995 to 2017. The higher industrial concentration increases the percentage of R&D expenditure. This research also finds that R&D expenditure can be higher in the firms with market power.

Demographic transition in Indonesia indicated by an increase in the productive age population, a decrease in the unproductive age population, and leads to a decrease in the dependency ratio. This study analyzes the relationship between demographic transition and Indonesia's economic growth. If the population structure changes contribute positively to economic development, it means that Indonesia has enjoyed a bonus from their demographic transition. The analysis used was multiple regression, with economic growth rate as dependent variable and population growth rate, capital, young age dependency ratio and old age dependency ratio as independent variables. This study has found that the demographic transition, represented by growth of young age dependency ratio, growth of capital, and economic crisis dummy variable partially contributes positively to economic growth. It can be concluded that the demographic transition in Indonesia provides a bonus that is in the form of a positive contribution to economic growth. Keywords: economic growth, capital, population, dependency ratio Transisi Demografi dan Pertumbuhan Ekonomi Indonesia Abstrak: Transisi demografi di Indonesia ditandai dengan penurunan tingkat fertilitas dan mortalitas, yang berdampak pada peningkatan persentase penduduk usia produktif dan penurunan persentase penduduk usia tidak produktif. Hal ini menyebabkan angka beban tanggungan menjadi semakin kecil. Penelitian ini bertujuan untuk menganalisis hubungan transisi demografi dengan pertumbuhan ekonomi Indonesia. Jika transisi demografi berkontribusi positif pada pertumbuhan ekonomi, maka dapat dikatakan Indonesia telah menikmati bonus demografi. Model analisis menggunakan persamaan regresi, dengan pertumbuhan ekonomi sebagai variabel terikat. Variabel bebasnya adalah pertumbuhan penduduk, pertumbuhan modal, pertumbuhan dependency ratio penduduk usia muda, dan pertumbuhan dependency ratio penduduk usia lanjut. Hasil regresi menunjukkan bahwa transisi demografi yang diwakili oleh pertumbuhan dependency ratio penduduk usia muda, pertumbuhan modal, dan variabel dummy krisis ekonomi secara parsial berpengaruh positif terhadap perumbuhan ekonomi Indonesia. Hasil tersebut dapat disimpulkan bahwa transisi demografi memberikan bonus berupa kontribusi positif terhadap pertumbuhan ekonomi di Indonesia. Kata kunci: pertumbuhan ekonomi, modal, penduduk, dependency ratio

The purpose of this research is to determine the total factor productivity (TFP) of Indonesia's micro and small-scale manufacturing industries. The production function estimation approach established by Levinsohn-Petrin as the basis for computing TFP is employed in this study, with value added as the dependent variable and the value of labor costs and capital value proxied by the value of investment as the independent variables. This study uses secondary data from the Central Statistics Agency (BPS), which includes 23 sub-sectors of Indonesia's micro and small scale manufacturing industries that are included in the 2-digit ISIC, with the exception of the ISIC code 19 sub-sector, and covers the years 2010 to 2019, excluding 2016. The TFP value in the micro-scale Indonesian manufacturing industry was often higher than the TFP value on the small scale, according to this study. This research also demonstrates that low-tech sub-sectors, such as the food processing industry, have low productivity. On a small size, the estimated TFP value shows a decreasing trend, but on a micro scale, the estimated TFP value indicates an increasing trend.