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Industrial Development In East Java: A Special Case?

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  • Bambang-Heru Santosa

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  • Heath McMichael
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    Abstract

    This paper examines the development of manufacturing in East Java in comparison with other major industrial provinces in Indonesia, with a focus on employment, output and investment in the pre-and-post crisis periods. East Java's 'winner' and 'loser' industries and the geographical distribution of manufacturing in the province are described. The paper attempts to account for manufacturing patterns in East Java in terms of infrastructure constraints, the investment climate, access to finance and the relationship between central, provincial and local governments, following the advent of regional autonomy. The paper finds that East Java manufacturing has been less export oriented and responsive to global demand, thus failing to match the performance of the other major manufacturing centres in Indonesia.

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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2004/wp-econ-2004-07.pdf
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    Bibliographic Info

    Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2004-07.

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    Length: 38 pages
    Date of creation: Jul 2004
    Date of revision:
    Handle: RePEc:pas:papers:2004-07

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