GROUP 4

Name:
1. Irma Hanifah 1817201014
2. Laely Novia 1817201019
3. Rahma Anggita L 1817201031
4. Zaenab Aulia 1817201128
5. Mega Rizki U 1817201233

A. Definition of National Production

National production is the production produced by the Indonesian state
(tonnes/year). National production or national income is a value that describes
national economic activities (activities) in a certain period. National income is
the total amount of income received by people in a country in one year.
National Production can be obtained by adding up the market value of all goods
and services produced by various sectors of the economy in a certain period.
Thus, according to the GNP (Gross National Production) or GDP method, the
sum of the prices of each individual good and service multiplied by the number
or quantity of those goods and services produced can be calculated using the
prices prevailing in a given year as a basis (Jaelani, 2016).
The Gross National Product, which is the value of all goods and services
produced by domestic activities and international activities of a country which
at that time was said to be the widest of an economic development. There are
factors that affect national production, among others:
1. Consumption and Saving
Consumption is the total expenditure to obtain goods and services in an
economy within a certain period of time (usually one year), while saving is
the part of income that is not spent on consumption. Between consumption,
income, and savings are very closely related. We can see this from Keynes's
opinion, known as psychological consumption, which discusses people's
behavior in consumption if it is related to income.
2. Investment
 Expenditure on investment is one of the important components of aggregate
expenditure. Investment is the activity of placing capital in the form of money
or other valuable assets into an object, institution, or party with the hope that
the investor or investor will benefit after a certain period of time.
3. Aggregate Supply and Demand
Aggregate demand shows the relationship between the overall demand for
goods and services according to the price level. Aggregate demand is a list of
all goods and services that will be purchased by economic sectors at various
price levels, while aggregate supply shows the relationship between the
overall supply of goods and services offered by companies at a certain price
level (gramedia, 2021).
B. Various kinds of national production
1. Gross domestic product (GDP)
GDP is the number of products in the form of goods and services that
obtained from production units within the boundaries of a country
(domestic) for a period. In calculating the GDP of the total market, what
must be considered is that there should be no double accounting or double
accounting. The concept of GDP includes goods and services produced by
citizens of a country, both abroad and domestically.
2. Gross National Product Gross national product (GNP)
Includes the value of products in the form of goods and services
produced by people in a country (nationally) for 1 period. In calculating the
amount of GNP based on market prices, what must be considered is that
there should not be a double calculation (Firdaus, 2012). In this GNP, the
results of the production of goods and services produced by citizens who are
in the country or abroad, but do not include the production of foreign
companies operating in the territory of the country.
3. Net National Product Net National Product (NNP)
NNP is the amount of GNP minus capital goods as replacement.
Depreciation for equipment used to produce goods in the production process
is generally interpretive, so it can lead to errors even though it is relatively
small (Firdaus, 2012). Depreciation is the loss of old goods due to use.
 4. Net National Income Net National Income (NNI)
NNI is income calculated from the amount of remuneration received
by the people as owners of factors of production. The amount of NNI can be
obtained from NNP minus indirect taxes and subsidies. Indirect taxes are
taxes whose weight can be shifted to other parties, for example sales taxes,
import taxes, export duties, and excise duties. While subsidies are assistance
from the government to the community.
5. Personal Income (PI)
Individual income is the amount of income received by each resident
in the community including income earned without providing any other
activity (Arsad, 2009).
6. Disposable Income (DI)
Disposable income is income that is ready to be spent or utilized.
Disposable income is obtained from personal income after deducting direct
taxes. Direct tax is a tax whose weight cannot be transferred to another party
or directly borne by the taxpayer. Example of income tax.
C. Case study of Indonesia’s economics growth in 2018-2020
Graph 1.1 economics growth in 2018-2020

References: Badan Pusat Statistik

Based on the graph above, Indonesia experienced a decline of 2.09%
(YoY) from 2018 in the first quarter to the first quarter of 2020. This happened
because in the first quarter of 2020 there was a global crisis that had an impact
on the domestic market economy. Growth in almost all sectors slowed, this was
due to falling global and domestic demand accompanied by weakening
international commodity prices. However, this condition is better than other
countries because in the first quarter of 2020 Indonesia's economic growth grew
by 2.97% (YoY). Meanwhile, in the United States, it only grew by 0.3% (YoY),
in China it decreased by 6.8% (YoY), Japan also experienced a decline of 3.4%
(YoY), while South Korea still grew positively by 1.3%. (YoY), and Singapore
fell 2.2% (YoY).
The Indonesian economy is still supported by the manufacturing, trade,
and agriculture sectors, although growth is slowing. Some of the fast-growing
sectors are financial and insurance services, information and communication,
education services, as well as health services and social activities (Bappenas,
2020). The following is a comparison of GDP growth in terms of production in
2018 to first quarter of 2020.

References: Badan Pusat Statistik, processed data

Based on table 1.1 above, it can be seen that the industry grew 2.1%
(YoY), slower than the previous period. This is due to the growth of the non-oil
and gas processing industry. This slowdown is indicated by contracting imports
of raw materials throughout the first quarter of 2020 accompanied by slowing
 non-oil and gas exports. Then in the first quarter of 2020 the agricultural sector
did not change much, the performance of the agricultural sector tended to
stagnate. This happened because the sub-sector of agriculture, livestock, hunting
and agricultural services was offset by high growth in the forestry sub-sector.
Meanwhile, the fisheries sub-sector grew slower. Then in the wholesale and
retail trade sector, car and motorcycle repairs in the first quarter of 2020 grew by
1.6% (YoY). The growth of the trade sector was mainly driven by the wholesale
and retail trade sub-sectors instead of cars and motorcycles. Furthermore,
financial services and health services grew above 10%. Financial services and
insurance grew 10.7% (YoY), much higher than 8.5% (YoY) in 2019.
Meanwhile, health services and social activities grew 10.4% (YoY). This
performance is related to the pandemic conditions that drive demand for health.
References
Kagandhi, Arsad.2009. "Pengaruh Pendapatan Nasional, Inflasi Dan Suku Bunga
Deposito Terhadap Konsumsi Masyarakat Di Indonesia" dalam Jurnal Studi
Ekonomi Islam
Firdaus.2012. "Analisis Pendapatan, Pertumbuhan Dan Struktur Ekonomi Negara"
dalam Jurnal Plano Madani Vol.1 Nomor 1 tahun 2012
Bappenas, 2020. Perkembangan Ekonomi Indonesia dan Dunia: Ancaman Resesi
Dunia Akibat Pandemi. Jakarta: Kementerian Perencanaan Pembangunan
Nasional Republik Indonesia/Badan Perencanaan Pembangunan Nasional.
gramedia. (2021, Mei). Pengertian Pendapatan Nasional: Manfaat dan Faktor Yang
Mempengaruhinya. Retrieved September 30, 2021, from gramedia.com:
https://www.gramedia.com/literasi/pendapatannasional/amp/#C_Faktor_yang_M
empengaruhi_Pendapatan_Nasional
Rita mariati, 2019, “pengaruh produksi nasional, konsumsi dunia dan harga dunia
terhadap ekspors crude palm oil (CPO) di Indonesia” dalam jurnal EPP, vol. 6,
no.1
Jaelani, Ahmad. 2016. Produksi Nasional. Diakses pada 1 Oktober 2021, dari
https://www.kompasiana.com/ahmadjailanips4/57fd09fb129773c00b65385a/
produksi-nasional