CHANGES IN THE STRUCTURE OF LABOR AND THE REALIZATION OF LEWIS TURNING POINT IN INDONESIA
As a region with a relatively high and sustainable economic growth, Indonesia is transfor-ming into an industrial and service country. This has prompted a shift in the concentration of economic activity and manpower, from the agricultural sector to the non-agricultural sector, both industry and services. In contrast to a number of previous studies which focused more on analyzing patterns of structural change and their impact on poverty and sectoral inequality, this research places more emphasis on discussing the achievement of Lewis turning point conditions, which is one of the important theses within the framework of structural transfor-mation analysis, as formulated by Lewis (1954). As a result, it is known that Indonesia has not yet reached the Lewis Turning Point stage as a result of the process of structural change. Indonesia almost reached the Lewis turning point in the 1990s, which is considered the peak of industrialization and the take-off period, with an average agricultural surplus ratio of <5%. However, the Asian financial crisis caused the Indonesian economy to contract by up to -13.7%, which had an impact on the ability of the non-agricultural sector, especially industry, to absorb surplus agricultural labor. This condition caused the surplus of agricultural labor to increase again in the post-Asian financial crisis period. The intensification of the use of technology in the Indonesian agricultural sector has had different impacts on capital and labor. In this case, the impact of technology leads to intensive use of capital in the Indonesian agricultural sector, or what is known as input intensive. Meanwhile, the opposite condition occurs for the workforce, where technological developments lead to the use of less labor or input saving.