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Agglomeration and Manufacturing Activities in Indonesia / Sjamsu Rahardja.
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Rahardja, Sjamsu.
- Series:
- Policy Notes
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Accountability.
- Autonomy.
- Business Environment.
- Decentralization.
- Economic Development.
- Economics.
- Economies of Scale.
- Electricity.
- Electronics Industry.
- Employment.
- Enterprise Development & Reform.
- Enterprise Surveys.
- Financial Institutions.
- Foreign Direct Investment.
- General Manufacturing.
- Housing.
- Human Capital.
- Industrial Economics.
- Industry.
- Infrastructure Economics and Finance.
- Innovation.
- Labor Costs.
- Licensing.
- Marketing.
- Mobility.
- Natural Resources.
- Private Investment.
- Private Participation in Infrastructure.
- Private Sector.
- Private Sector Development.
- Private Sector Economics.
- Public Policy.
- Public Safety.
- Tax Administration.
- Technical Training.
- Traffic Volumes.
- Transport.
- Travel Costs.
- Urbanization.
- Wages.
- Local Subjects:
- Accountability.
- Autonomy.
- Business Environment.
- Decentralization.
- Economic Development.
- Economics.
- Economies of Scale.
- Electricity.
- Electronics Industry.
- Employment.
- Enterprise Development & Reform.
- Enterprise Surveys.
- Financial Institutions.
- Foreign Direct Investment.
- General Manufacturing.
- Housing.
- Human Capital.
- Industrial Economics.
- Industry.
- Infrastructure Economics and Finance.
- Innovation.
- Labor Costs.
- Licensing.
- Marketing.
- Mobility.
- Natural Resources.
- Private Investment.
- Private Participation in Infrastructure.
- Private Sector.
- Private Sector Development.
- Private Sector Economics.
- Public Policy.
- Public Safety.
- Tax Administration.
- Technical Training.
- Traffic Volumes.
- Transport.
- Travel Costs.
- Urbanization.
- Wages.
- Place of Publication:
- Washington, D.C. : The World Bank, 2012.
- System Details:
- data file
- Summary:
- The importance of the agglomeration process in facilitating growth and productivity increases in Indonesia's manufacturing sector cannot be ignored. The agglomeration process is associated with improved productivity as firms enjoy external benefits from either urbanization or from the sharing of inputs available in certain locations. Evidence suggests that Java remains the main corridor for manufacturing activities, with large cities attracting manufacturers that are looking for externalities from urbanization. However, there are signs that some firms are shifting to new locations in other cities and forming new agglomerations in areas that these firms find more favorable. With regional autonomy, issues relating to local governance, infrastructure, and uncertainties in local regulations are increasingly important and can undermine the process of agglomeration. Some programs promoting certain locations as special economic zones (SEZs) are experiencing difficulties in attracting manufacturing investors. Understanding these challenges should help policymakers to strengthen the underlying factors that facilitate manufacturing agglomeration.
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