The Role of Information, Communication, and Technology (ICT) and Tourism on Economic Growth in Indonesia

Abstract

This study aims to find an overview of economic growth, ICT, and the tourism sector and to analyze the influence of ICT and the tourism sector on economic growth in Indonesia in 2015–2021 using panel data regression analysis with the Feasible Generalized Least Square-Seemingly Unrelated Regression (FGLS-SUR) estimation method. The results of the study show that the proportion of individuals who use the internet, the number of fixed broadband subscribers, the Room Occupancy Rate of star hotels, Foreign Investment, labor, and government spending have a positive and significant effect on economic growth in Indonesia in 2015–2021. In this regard, it is hoped that each province will have equal access to the Internet and further enhance hotel services, especially for star-rated hotels. The effects of ICT and the tourism on economic growth have both been extensively studied, it is still uncommon to discover research that combines the effects of ICT and the tourism on economic growth. The positive impact of this research in Indonesia is that it can help enhance the Gross Regional Domestic Product (GRDP) in each province, thereby influencing the overall economic growth through the fields of ICT and tourism.