Agglomeration and Manufacturing Activities in Indonesia

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 o...

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Main Authors:	Rahardja, Sjamsu, Kuncoro, Ari, Fitriani, Fitria, Varela, Gonzalo, Dipo, Mohammad Adhi
Format:	Policy Note
Language:	English en_US
Published:	World Bank, Jakarta 2017
Subjects:	ACCESS TO SERVICES ACCESSIBILITY ACCOUNTABILITY ACTION PLANS ARTERIES AUTONOMY AVERAGE PRODUCTIVITY BANKS BOTTLENECKS BUSINESS ACTIVITIES BUSINESS ENVIRONMENT BUSINESS LICENSES BUSINESS REGISTRATION BUSINESS REGISTRATIONS BUSINESSES CAPITALS COMMODITY COMPANY COMPETITIVENESS CONGESTION COSTS CONNECTIVITY COPYRIGHT CUSTOMS DECENTRALIZATION DECONCENTRATION DISTRICT GOVERNMENTS DIVERSIFICATION DRIVERS DRIVING ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC REFORM ECONOMICS ECONOMIES OF SCALE ELECTRICITY ELECTRONICS INDUSTRY EMPIRICAL EVIDENCE EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS ENVIRONMENTAL ENVIRONMENTAL PROTECTION ENVIRONMENTS EQUIPMENT EXPANSION EXTERNALITIES FINANCIAL INSTITUTIONS FIRMS FIXED COSTS FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT GAS SECTOR GENERAL POPULATION GEOGRAPHICAL ADVANTAGES GLOBAL MARKETS GOVERNMENT CONTRACT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REGULATIONS HOUSING HUMAN CAPITAL INDUSTRIAL DEVELOPMENT INFRASTRUCTURE ACCESS INNOVATION INSTALLATION INTERMEDIATE INPUTS INVENTORY LABOR COSTS LABOR PRODUCTIVITY LAND USE LARGE CITIES LICENSE LICENSES LICENSING LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL INDUSTRIES LOCALIZATION MANUFACTURERS MANUFACTURING MANUFACTURING INDUSTRIES MARKET VALUE MARKETING MATERIAL METROPOLITAN AREAS MOBILITY NATURAL RESOURCES NEGATIVE EXTERNALITIES NEW ENTRANTS OIL ONE-STOP SERVICES ONE-STOP SHOP POLICE POLICY FRAMEWORK POLLUTION POSITIVE EXTERNALITIES POTENTIAL INVESTORS PRIVATE FIRMS PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR PRODUCTION COSTS PRODUCTION PROCESSES PUBLIC INFRASTRUCTURE PUBLIC POLICY PUBLIC SAFETY PUBLIC SERVICES PUBLIC TRANSPORT PUBLIC TRANSPORT SYSTEMS QUALITY STANDARDS RAIL REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY FRAMEWORK RESULT RESULTS RETURNS TO SCALE ROAD ROAD INFRASTRUCTURE SEARCH SERVICE PROVIDERS SITES SUPERVISION SUPPLIERS SUPPLY CHAINS TAX TAX ADMINISTRATION TAX RATES TECHNICAL TRAINING TELEPHONE TELEPHONE CONNECTION TRADE FACILITATION TRADE OUTCOMES TRADITIONAL TECHNOLOGY TRAFFIC TRAFFIC CONGESTION TRAFFIC VOLUMES TRANSMISSION TRANSPORT TRANSPORT SYSTEMS TRANSPORTATION TRAVEL COSTS URBANIZATION USER WAGES WATER CONNECTION
Online Access:	http://documents.worldbank.org/curated/en/183211468267347449/Agglomeration-and-manufacturing-activities-in-Indonesia http://hdl.handle.net/10986/26714

id	okr-10986-26714
recordtype	oai_dc
spelling	okr-10986-267142021-04-23T14:04:37Z Agglomeration and Manufacturing Activities in Indonesia Rahardja, Sjamsu Kuncoro, Ari Fitriani, Fitria Varela, Gonzalo Dipo, Mohammad Adhi ACCESS TO SERVICES ACCESSIBILITY ACCOUNTABILITY ACTION PLANS ARTERIES AUTONOMY AVERAGE PRODUCTIVITY BANKS BOTTLENECKS BUSINESS ACTIVITIES BUSINESS ENVIRONMENT BUSINESS LICENSES BUSINESS REGISTRATION BUSINESS REGISTRATIONS BUSINESSES CAPITALS COMMODITY COMPANY COMPETITIVENESS CONGESTION COSTS CONNECTIVITY COPYRIGHT CUSTOMS DECENTRALIZATION DECONCENTRATION DISTRICT GOVERNMENTS DIVERSIFICATION DRIVERS DRIVING ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC REFORM ECONOMICS ECONOMIES OF SCALE ELECTRICITY ELECTRONICS INDUSTRY EMPIRICAL EVIDENCE EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS ENVIRONMENTAL ENVIRONMENTAL PROTECTION ENVIRONMENTS EQUIPMENT EXPANSION EXTERNALITIES FINANCIAL INSTITUTIONS FIRMS FIXED COSTS FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT GAS SECTOR GENERAL POPULATION GEOGRAPHICAL ADVANTAGES GLOBAL MARKETS GOVERNMENT CONTRACT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REGULATIONS HOUSING HUMAN CAPITAL INDUSTRIAL DEVELOPMENT INFRASTRUCTURE ACCESS INNOVATION INSTALLATION INTERMEDIATE INPUTS INVENTORY LABOR COSTS LABOR PRODUCTIVITY LAND USE LARGE CITIES LICENSE LICENSES LICENSING LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL INDUSTRIES LOCALIZATION MANUFACTURERS MANUFACTURING MANUFACTURING INDUSTRIES MARKET VALUE MARKETING MATERIAL METROPOLITAN AREAS MOBILITY NATURAL RESOURCES NEGATIVE EXTERNALITIES NEW ENTRANTS OIL ONE-STOP SERVICES ONE-STOP SHOP POLICE POLICY FRAMEWORK POLLUTION POSITIVE EXTERNALITIES POTENTIAL INVESTORS PRIVATE FIRMS PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR PRODUCTION COSTS PRODUCTION PROCESSES PUBLIC INFRASTRUCTURE PUBLIC POLICY PUBLIC SAFETY PUBLIC SERVICES PUBLIC TRANSPORT PUBLIC TRANSPORT SYSTEMS QUALITY STANDARDS RAIL REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY FRAMEWORK RESULT RESULTS RETURNS TO SCALE ROAD ROAD INFRASTRUCTURE SEARCH SERVICE PROVIDERS SITES SUPERVISION SUPPLIERS SUPPLY CHAINS TAX TAX ADMINISTRATION TAX RATES TECHNICAL TRAINING TELEPHONE TELEPHONE CONNECTION TRADE FACILITATION TRADE OUTCOMES TRADITIONAL TECHNOLOGY TRAFFIC TRAFFIC CONGESTION TRAFFIC VOLUMES TRANSMISSION TRANSPORT TRANSPORT SYSTEMS TRANSPORTATION TRAVEL COSTS URBANIZATION USER WAGES WATER CONNECTION 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. 2017-05-23T15:06:03Z 2017-05-23T15:06:03Z 2012-09 Policy Note http://documents.worldbank.org/curated/en/183211468267347449/Agglomeration-and-manufacturing-activities-in-Indonesia http://hdl.handle.net/10986/26714 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Jakarta Economic & Sector Work :: Policy Note Economic & Sector Work East Asia and Pacific Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCESS TO SERVICES ACCESSIBILITY ACCOUNTABILITY ACTION PLANS ARTERIES AUTONOMY AVERAGE PRODUCTIVITY BANKS BOTTLENECKS BUSINESS ACTIVITIES BUSINESS ENVIRONMENT BUSINESS LICENSES BUSINESS REGISTRATION BUSINESS REGISTRATIONS BUSINESSES CAPITALS COMMODITY COMPANY COMPETITIVENESS CONGESTION COSTS CONNECTIVITY COPYRIGHT CUSTOMS DECENTRALIZATION DECONCENTRATION DISTRICT GOVERNMENTS DIVERSIFICATION DRIVERS DRIVING ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC REFORM ECONOMICS ECONOMIES OF SCALE ELECTRICITY ELECTRONICS INDUSTRY EMPIRICAL EVIDENCE EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS ENVIRONMENTAL ENVIRONMENTAL PROTECTION ENVIRONMENTS EQUIPMENT EXPANSION EXTERNALITIES FINANCIAL INSTITUTIONS FIRMS FIXED COSTS FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT GAS SECTOR GENERAL POPULATION GEOGRAPHICAL ADVANTAGES GLOBAL MARKETS GOVERNMENT CONTRACT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REGULATIONS HOUSING HUMAN CAPITAL INDUSTRIAL DEVELOPMENT INFRASTRUCTURE ACCESS INNOVATION INSTALLATION INTERMEDIATE INPUTS INVENTORY LABOR COSTS LABOR PRODUCTIVITY LAND USE LARGE CITIES LICENSE LICENSES LICENSING LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL INDUSTRIES LOCALIZATION MANUFACTURERS MANUFACTURING MANUFACTURING INDUSTRIES MARKET VALUE MARKETING MATERIAL METROPOLITAN AREAS MOBILITY NATURAL RESOURCES NEGATIVE EXTERNALITIES NEW ENTRANTS OIL ONE-STOP SERVICES ONE-STOP SHOP POLICE POLICY FRAMEWORK POLLUTION POSITIVE EXTERNALITIES POTENTIAL INVESTORS PRIVATE FIRMS PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR PRODUCTION COSTS PRODUCTION PROCESSES PUBLIC INFRASTRUCTURE PUBLIC POLICY PUBLIC SAFETY PUBLIC SERVICES PUBLIC TRANSPORT PUBLIC TRANSPORT SYSTEMS QUALITY STANDARDS RAIL REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY FRAMEWORK RESULT RESULTS RETURNS TO SCALE ROAD ROAD INFRASTRUCTURE SEARCH SERVICE PROVIDERS SITES SUPERVISION SUPPLIERS SUPPLY CHAINS TAX TAX ADMINISTRATION TAX RATES TECHNICAL TRAINING TELEPHONE TELEPHONE CONNECTION TRADE FACILITATION TRADE OUTCOMES TRADITIONAL TECHNOLOGY TRAFFIC TRAFFIC CONGESTION TRAFFIC VOLUMES TRANSMISSION TRANSPORT TRANSPORT SYSTEMS TRANSPORTATION TRAVEL COSTS URBANIZATION USER WAGES WATER CONNECTION
spellingShingle	ACCESS TO SERVICES ACCESSIBILITY ACCOUNTABILITY ACTION PLANS ARTERIES AUTONOMY AVERAGE PRODUCTIVITY BANKS BOTTLENECKS BUSINESS ACTIVITIES BUSINESS ENVIRONMENT BUSINESS LICENSES BUSINESS REGISTRATION BUSINESS REGISTRATIONS BUSINESSES CAPITALS COMMODITY COMPANY COMPETITIVENESS CONGESTION COSTS CONNECTIVITY COPYRIGHT CUSTOMS DECENTRALIZATION DECONCENTRATION DISTRICT GOVERNMENTS DIVERSIFICATION DRIVERS DRIVING ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC REFORM ECONOMICS ECONOMIES OF SCALE ELECTRICITY ELECTRONICS INDUSTRY EMPIRICAL EVIDENCE EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS ENVIRONMENTAL ENVIRONMENTAL PROTECTION ENVIRONMENTS EQUIPMENT EXPANSION EXTERNALITIES FINANCIAL INSTITUTIONS FIRMS FIXED COSTS FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT GAS SECTOR GENERAL POPULATION GEOGRAPHICAL ADVANTAGES GLOBAL MARKETS GOVERNMENT CONTRACT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REGULATIONS HOUSING HUMAN CAPITAL INDUSTRIAL DEVELOPMENT INFRASTRUCTURE ACCESS INNOVATION INSTALLATION INTERMEDIATE INPUTS INVENTORY LABOR COSTS LABOR PRODUCTIVITY LAND USE LARGE CITIES LICENSE LICENSES LICENSING LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL INDUSTRIES LOCALIZATION MANUFACTURERS MANUFACTURING MANUFACTURING INDUSTRIES MARKET VALUE MARKETING MATERIAL METROPOLITAN AREAS MOBILITY NATURAL RESOURCES NEGATIVE EXTERNALITIES NEW ENTRANTS OIL ONE-STOP SERVICES ONE-STOP SHOP POLICE POLICY FRAMEWORK POLLUTION POSITIVE EXTERNALITIES POTENTIAL INVESTORS PRIVATE FIRMS PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR PRODUCTION COSTS PRODUCTION PROCESSES PUBLIC INFRASTRUCTURE PUBLIC POLICY PUBLIC SAFETY PUBLIC SERVICES PUBLIC TRANSPORT PUBLIC TRANSPORT SYSTEMS QUALITY STANDARDS RAIL REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY FRAMEWORK RESULT RESULTS RETURNS TO SCALE ROAD ROAD INFRASTRUCTURE SEARCH SERVICE PROVIDERS SITES SUPERVISION SUPPLIERS SUPPLY CHAINS TAX TAX ADMINISTRATION TAX RATES TECHNICAL TRAINING TELEPHONE TELEPHONE CONNECTION TRADE FACILITATION TRADE OUTCOMES TRADITIONAL TECHNOLOGY TRAFFIC TRAFFIC CONGESTION TRAFFIC VOLUMES TRANSMISSION TRANSPORT TRANSPORT SYSTEMS TRANSPORTATION TRAVEL COSTS URBANIZATION USER WAGES WATER CONNECTION Rahardja, Sjamsu Kuncoro, Ari Fitriani, Fitria Varela, Gonzalo Dipo, Mohammad Adhi Agglomeration and Manufacturing Activities in Indonesia
geographic_facet	East Asia and Pacific Indonesia
description	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.
format	Policy Note
author	Rahardja, Sjamsu Kuncoro, Ari Fitriani, Fitria Varela, Gonzalo Dipo, Mohammad Adhi
author_facet	Rahardja, Sjamsu Kuncoro, Ari Fitriani, Fitria Varela, Gonzalo Dipo, Mohammad Adhi
author_sort	Rahardja, Sjamsu
title	Agglomeration and Manufacturing Activities in Indonesia
title_short	Agglomeration and Manufacturing Activities in Indonesia
title_full	Agglomeration and Manufacturing Activities in Indonesia
title_fullStr	Agglomeration and Manufacturing Activities in Indonesia
title_full_unstemmed	Agglomeration and Manufacturing Activities in Indonesia
title_sort	agglomeration and manufacturing activities in indonesia
publisher	World Bank, Jakarta
publishDate	2017
url	http://documents.worldbank.org/curated/en/183211468267347449/Agglomeration-and-manufacturing-activities-in-Indonesia http://hdl.handle.net/10986/26714
_version_	1764462540497092608

Agglomeration and Manufacturing Activities in Indonesia

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