Effect of Population Growth on Employment Opportunities and Per Capita Income in the Special Region of Yogyakarta

Abstract

Indonesia is a country with a large population. During the New Order government, Indonesia’s population was relatively large, which led to the notion that the population was the basic capital of development. Development planners see that a large population is both an asset and a burden in development. Population growth is an important indicator in a country. The classical economists pioneered by Adam Smith considered that population is a potential input that can be used as a factor of production to increase the production of a corporate household. If the population in an area increases, it will positively impact the economy but must be accompanied by capital formation, which at certain times will directly impact state revenues. Economic development is multidimensional in nature covering various aspects of people’s lives, not just one aspect, namely the economic aspect. According to Lincoln, "Economic development can be defined as any activity carried out by a State to develop economic activities and the standard of living of its people". Meanwhile, one indicator of economic development is population. The population in Indonesia has increased from year to year, this has resulted in a decrease in the level of welfare. DI Yogyakarta Province is one of the 34 provinces in Indonesia. DI Yogyakarta Province has a dense population and is divided into 5 (five) autonomous regions, namely: Yogyakarta City, Kulonprogo Regency, Gunungkidul Regency, Sleman Regency, and Bantul Regency. The population in DI Yogyakarta Province has also increased from year to year. To achieve prosperity as the main goal of development, in addition to paying attention to population growth, economic growth must also be a concern. The rate of economic growth is one indicator to see the success of the development. The rate of economic growth in Indonesia can be seen from its Gross Domestic Product (GDP), while the rate of economic growth in Yogyakarta Province can be seen from its Gross Regional Domestic Product (GDP).