The increasingly frequent financial crises have developed the thought to rethink the export-led growth strategy (ELG) to shift to domestic-demand-led growth (DDLG). We employed growth accounting approach to determine DDLG and the autoregressive distributed lag (ARDL) bound test to cointegration to determine the effect of domestic demand on economic growth in the closed and opened economic system. The study revealed that the Indonesian economy was characterized by DDLG in the period 2000 - 2018, and in the open economic system, domestic demand and export have a positive and significant effect on economic growth both in the short- and long-run.