The spatial distribution of manufacturing industries : an analysis of Central Java

TitleThe spatial distribution of manufacturing industries : an analysis of Central Java
Publication TypeJournal Article
Year of PublicationSubmitted
AuthorsRietveld P, Kameo DD
JournalEkonomi dan keuangan
Date Published26-12-02
Call NumberTA 4278
Keywordseconometrics, Economics, Excerpta Indonesica, INDONESIA, industry, Jawa Tengah, statistical analysis

During the last two decades the manufacturing sector in Indonesia has proved very dynamic. Since the stagnation of the international oil market it has become the leading sector in economic growth . Resource based industries have been mainly located in Kalimantan and Sumatra but so called footloose industries has been prevalent in Java. In Central Java this manufacturing presence has been quite modest. There is no marked industrial centre and attracts little overseas investment. Since early Pelita 1 there has been a marked increase in investment both domestic and from abroad. As far as large and medium scale industry is concerned this tends to be concentrated near urban areas and offers work to about 296,000 workers. Most workers were employed in the clove cigarette industry followed by sugar, tea and tobacco, while the cloth industry has also played a prominent role. Ninety per cent of all workers in the industrial sector (1,968,000) were engaed in small scale and cottage industry which was relatviely evenly distributed over the whole province.The study shows that certain variable factors are bound to influence the setting up of manufacturing industry, the most important being infrastructure. There is a statistical breakdown of industry per kabupaten.