The Influence of Average Wages, Population Growth, and Inflation on Gross Domestic Product in Indonesia, 2010–2024

Abstract

Abstract

This study examines the influence of average wages, population growth, and inflation on Gross Domestic Product (GDP) in Indonesia over the period 2010–2024. A quantitative approach was employed using secondary time-series data obtained from the official publications of the Central Statistics Agency (BPS). Multiple linear regression analysis was applied with the assistance of SPSS statistical software. The results indicate that, partially, average wages have a positive and significant effect on GDP (sig. = 0.018 < 0.05), population growth has a positive and significant effect on GDP (sig. = 0.001 < 0.05), while inflation has a negative but insignificant effect on GDP (sig. = 0.738 > 0.05). Simultaneously, the three variables jointly have a significant effect on GDP, as indicated by an F-statistic of 83.969 with a significance level of 0.000 (< 0.05). The Adjusted R Square value of 0.950 shows that 95.0% of GDP variation is explained by the three independent variables, while the remaining 5.0% is attributed to other factors not included in the model. These findings suggest that labor market and demographic aspects play an important role in driving Indonesia's economic growth, while relatively controlled inflation during the study period did not significantly affect GDP.