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"The aim of this thesis is showing the relation between population transition and economy transformation. The methods used in this thesis are bibliographical review and simple nonparametric correlation among the variables. It begins with demographic transition, that is, mortality, fertility, and mobility transition. These transitions affect another two group of transitions, namely transition of population quantity and transition of population quality. Transition of population quantity consists of transitions in population magnitude, population growth, and population composition. Transition of quality consists of transitions in population education and population health. Then, those transitions—and transition of urban population, simultaneously—affect economy transformation, which includes transformation in demand structure, transformation in production structure, and transformation in labor. The process of economy transformation, reciprocally, correlates to income per capita and income distribution as well. Finally, income per capita and income distribution will affect the demographic transition. The analysis uses available empirical data in Indonesia. This thesis shows two conclusions. First, Indonesia economy, so far, is stressed on demand side rather than supply side—which is the population. Second, the efforts to improve our human resources should always pay attention not only to the quality of the population, but also to the quantity of the population."