The Regional Patterns of Manufacturing Industries in Java Region, Indonesia

Abstract

Empirical studies on geographical distribution of manufacturing in Indonesia demonstrate that manufacturing are localized in major metropolitan areas as well as a set of emerging regions. The objective of the paper is to investigate the patterns of manufacturing industries located in the three biggest region in Java namely West, Central and East of Java. Further, the study aim to explore whether regional specialization and industrial concentration patterns had changed during the 1998-2007. Based on the contribution analysis, the study found that distribution of manufacturing in Java was concentrated only in several areas. Turning to concentration index based on the Herfindahl-Hirschman Index (HHI), the study show that during 1998-2007, Java’s region became more specialized and industry became more concentrated.

Keywords: Specialization, Concentration, Manufacturing industries

JEL Classification: N65, 014, R12