Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4776-IND 4776 VOL. 2 INDONESIA SELECTED ASPECTS OF SPATIAL DEVELOPMIENT (A Main Report and Four Annexes) Annex 1 INDUSTRIAL LOCATION PATTERNS AND POLICIES November 1, 1984 Country Programs Department East Asia and Pacific Regional Office This document has a restricted distribution and may be used by recipients onI3 their official duties. Its contents may not otherwise be disclosed without Worlo kn..... z. CURRENCY EQUIVALENTS Currency unit = Rupiah (Rp) US $1.00 = Rp. 970 (1983) US $1.00 = Rp. 625 (1980) US $1.00 = Rp. 450 (1978) FISCAL YEAR January 1 to December 31 FOR OFFICIAL USE ONLY INDONESIA SELECTED ASPECTS OF SPATIAL DEVELOPMENT ANNEX 1 INDUSTRIAL LOCATION PATTERNS AND POLICIES Tables of Contents Page No. CHAPTER 1: INTRODUCTION ............................................ 1 Objectives of this Study .. 1 Organization of the Study .................. 1 Recent Trends in the Manufacturing Sector ... . 1 CHAPTER 2: THE REGIO)NAL DISTRIBUTION OF INDUSTRIES .. .... 8 The Overall Patterns , , ... 8 Regional Distribution of Specific Industrial Groups 10 Industrial Development Among the Provinces . . .. 13 CHAPTER 3: FACTORS AFFECTING THE REGIONAL DISTRIBUTION OF INDUSTRIES .... 17 Int;roduct:ion .. ......... 1 , 17 Uneven Subsector Growth: Effects on Regional Growth 17 The Attractiveness of West Java/Jakarta . .19 Factors Affecting Location: The Indonesian Provinces in General .. 20 CHAPTER 4: EFEECT OF' GOVERNMENT POLICIES ON LOCATION ................. 23 Foreign Trade Policy and Industrial Location . ............. 23 Recent Import Regulations .. 24 The Effect of the 1982/1983 Investment Coordinating Board Guidelines on Industrial Location . . 26 CHAPTER 5: SUGGESTIC)NS FOR FURTHER STUDY ...................... ...... 30 Field StuLdies ...................................... 30 Location Economies ....................... 30 Infrastructure Development Policies ... 30 Government Policies ..31 APPENDIX 1 Tables on Provincial Industrial Development, 1979 .32 APPENDIX 2 Tabulations on Location Guidelines, 1982/83 .81 This document has a restricted distribution and may be used by recipients Dnly in the perFormance of their official duties. Its contents may not otherwise be disclosed without WAorld Bank autiorization. - ii.1 - Page No. Tables in Text Table 1.1 Growth of the Manufacturing Sector in Relation to Gross Domestic Product, 1975-79 ............................. 2 Table 1.2 Rates of Growth of Manufacturing (1975-79) by Three Board Sizes and 2-Digit Industry Code ...................... 4 Table 1.3 Structure of the Manufacturing Sector, 1975 and 1979 ..... 5 Table 1.4 Estimates of Manufacturing Employment, 1971-1980 ......... 6 Table 2.1 Changes in Geographic Distribution of Employees in Manufacturing ............9............................ 9 Table 2.2 Changes in Geographic Distribution of Value-Added in Manufacturing .. 11 Table 2.3 Evenness of Industrial Development Among Provinces in 1979 ................................. 12 Table 2.4 Classification of Provinces According to Value-Added Location Quotients (Small, Medium and Large Establishments) .14 Table 2.5 Percentage of Manufacturing Value-Added at Market Prices Accounted for by Each Industry by Province in 1979 (Small, Medium and Large Establishments) ............. 15 Table 3.1 Rates of Growth of Manufacturing Industries .18 Appendix I Table 1 Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price (Small, Medium and Large Establishments) .33 Table 2 Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price (Medium and Large Establishments) .42 Table 3 Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price (Small Establishments) 51 Table 4 Provincial Industrial Development In 1979 as Measured by Employment (Small, Medium and Large Manufacturing Establishments) .................................. 60 Table 5 Provincial Industrial Development in 1979 as Measured by Employment (Medium and Large Manufacturing Establishments) .67 Table 6 Provincial Industrial Development In 1979 as Measured by Employment (Small Manufacturing Establishments) 74 Appendix 2 Table 1 Location Guidelines on Domestic Industrial Investment by ISIC Category 1982/83 .82 Table 2 Location Guidelines on Foreign Investment by ISIC Category 1983/83 ..................................... 89 Table 3 Location Guidelines on Domestic Investment by Location 1982/83 .................... 91 Table 4 Location Guidelines on Foreign Investment 1982/83 .99 - ]lii - Page No. Table 5 Shares of Industrial Fields with Location Guidelines 1982/83 ............................................... 101 Table 6 List of Industries Closed to Investment 1982/83 .... ...... 102 Table 7 Location Guidelines in the 1977 List of Investment Priorities . .................. 104 - 1 - CHAPTER 1 INTRODUCTION Objectives of this Study 1.01 The main objectives of this study are :o describe the present pattern of industrial location in Indonesia, anaLyze the changes over time, and discuss the factors which have affected and are affecting industrial location. Organization of the Study 1.02 This chapter describes in macro terms some of the recent: develop- ments in Indonesian manufacturing industries. In Chapter 2 the pattern of industrial location and changes between 1974 and 1979 are reviewed. Chapter 3 has a discussion. of th,e factors affecting the distribution and changes in the distribution of industries by region. Policies affecting location are discussed in Chapter 4. Finally in the concludi:ng chapter some suggestions are made for further study. Recent Trends in the Manufacturing Sector 1.03 Value-added by manufacturing industries as a whole and lalue-added by medium and large manufacturing establishments have grown much rnore rapidly than GDP since 1974 (Table 1.1). The annual growth rate (1975 to 1979) of GDP from manufacturing was 13.3% compared with 7.4% for totavl GDP. Value-added from medium and large manufacturing establishments grew at a rate of 12.9% during the same periocl./l The sub-group of small and household mianufacturing industries also grew at an annual rate of 13.6%./2 The record of the sector on the employment front was somewhat uncertain. Comparing the employment estimates from the Population Censuses of 2.84 million persons in 1971 and 4.59 million persons in 1980, one would get a 5.5% annual growth rate in employment, much less than the average growth rate of value added. In fact, the estimated employment in manufacturing in 1975 was 4.86 million, which would point to (a) the rapid increase in employment in t:he sector in the first half of the 70s and (b) the reduction/stagnation of employment in the second /1 Table 1.1 combines data from national accounts and industriaL censuses and surveys. It may be noted that value-added from manufactaring in the form of processing of tree crops when it is done byr estates (palm oil, crumb rubber, tea, etc. but not sugar), and processing of minerals mainly for export (copper concentrates, nickel concentrates, tin, LNG, etc.), are not included in the industrial census and survey data (Statistik Industri) but are included in the GDP from manufacturing in the national accounts. /2 The sub-group includes, in addition to small and household industries, some of the processing industries mentioned in footnote 1. -2- Table 1.1: GROWTH OF THE MANUFACTURING SECTOR IN RELATION TO GROSS DOMESTIC PRODUCT, 1975-79 Annual growth rate 1975 1976 1977 1978 1979 % (1975-79) GDP at constant (1973) prices (Rp billion) 7,630.8 8,156.3 8,870.9 9,566.5 10,164.9 7.4 GDP at constant (1973) prices minus GDP of mining and quarrying (Rp billion) 6,802.7 7,204.0 7,800.9 8,517.7 9,118.0 7.6 GDP from manufacturing at constant (1973) market prices (Rp billion) 847.9 930.0 1,057.7 1,235.6 1,395.3 13.3 Manufacturing sector price deflator 0.755 0.640 0.582 0.510 0.421 Value-added at market prices of large and medium manu- facturing establishments (Rp billion)/a 570.0 739.0 921.9 1,251.1 1,660.5 Value-added at constant (1973) prices of large and medium manufacturing establishments (Rp billion) /b 430.1 472.9 536.7 638.7 699.8 12.9 Value-added at constant (1973) prices of other manufacturing establishments (Rp billion) /c 417.8 457.1 521.0 596.9 695.5 13.6 /a Data are from Statistik Industri, the annual surveys of large and medium establishments, defined as those empoying 20 or more persons. These annual surveys were conducted since 1970. In 1974, however, instead of the survey, a full Industrial Census, 1974/75 was taken covering all establish- ments. At that time the medium and large establishments cut-off was raised to "20 persons or more" from the previous cut-off of 10 persons or more. The small and household industries were on,ce surveyed in 1974/75 at the time of the Industrial Census. The only time they were surveyed again was in 1979. /b Manufacturing sector deflator was used. /c Obtained as a residual (manufacturing GDP less the value added of medium and large industries). Sources: For 1974 and 1975, data are from Buku Saku Statistik Indonesia 1978,1979 and for 1976-1978 and 1979 data are from Statistik Indonesia 1980/1981 -3- half. The trends of the second half are analyzed below in terms of large and medium, small and household industries. 1.04 Table 1.2 shows the sizes of manufacturing sectors at the two-digit level as measured by number of employees and value-added at 1975 constant prices. Table 1.3 indicates the structure of manufacturing in 1975 and 1979. Medium and large manufacturing establishments accounted Eor 78% of value-added in 1979 but only 19% of employment. Small manufacturing enter- prises account:ed for only 9% of value-added but 18% of employmrent. Household industry contributed a high 62% to total emplcyment and 14% to value-added. Employment in the medium and large industries increased at an annual rate of 3.4% during 1975-79., The rate of increase was 24.6% in the smaLl scale sec- tor. Employment in the household industry, hcwever, declined./3 Value-added per employee in the medium and large establishments in 1975 was Rp 750 thou- sand, or almost five times that of small establishments which was Rp 154 thou- sand. From 1975 to 1979 value-added per employee of small establishments decreased slightly t;o Rp 149 thousand while fcr medium and large establish- ments it increased to Rp 1,252 thousand. There were thus large increases in labor productivity in the medium and large establishments sector. The small industry sector is in general relatively more labor intensive than the medium and large sector. ]:n food processing, for instance, within the small industry sector, employment increased at an average annual rate of 28%, and the value added grew at 16%. In contrast, in the mediuirm and lar-ge food processing, employment increased at a rate of only 0.8%, while va]ue added grew at 8.6%. Though not to the same extent, such differentials in employment intensity between small and large sectors can be observed in many other industrial groups. 1.05 Manufactur-ing employment trends in the 70s: Data from different sources provide the "guesstimates" for employment by size shown in Table 1.4. Comparinig 1971 and 1980, persons engaged in the manufacturing /3 In this sector, the term "employee" is used to include all persons work- ing in the establishment, not just those receiving a fixed wage or salary. Also, a large percentage of employees in the household sector was part-time and seasonal, because many of them are doing other kinds of work such as agricultural work at the saffe time. It is, therefore, con- ceivable that employment in this sector can differ, depending on whether an enumerator includes/excludes a member of the family helping another principal member in a household enterprise. This limitation cannot fully explain the very large decline from 3.8 million persons in 1975 to 2.8 million persons in 1979. In fact, a major decline to a tune of 0.8 million occurred in the industry subgroup 33 (wood processing and furniture). The period 1978/79 was one cf uncertlainty for log exports (as the Government restricted such exports to encourage domestic processing industries), but it is not clear whether it has a bearing on employment in household industry in wood processing and furniture. Thble 1.2: RATES OF GROWTH 0F MANUFACTURINDS (1975-79) BY THREE BROAD SIZES AND 2-DIGIT INDUSTRY CODE /a ____ ao 1e3i lArge ane eta,OSSlDODeD _ ____ Small eafahllehoeDta ____________ __ Household establishments VSl-e added at Val-e added at Vala. added at No. of Rte _ i75 prices Eate No. of Raet 1975 prRcts Sate N.. of Rtte 1975 peicee Rote IndusL,y _1DSoyDOD of 1975 1979 of employees oi 1975 1979 of emplovees of 1975/c 1979 of codelb 1975 1979 gE-vth (Rp mill) (Rp mill) gE thl 1975 1979 growh (Rp mill) (Rp mill) growth R175 19 grth (Np mEil) (Rp mill) groeth 31 284,955 294,441 0.8 270,923 376,528 8.6 151,194 403,517 27.8 25,638 46,075 15.8 1,397,514 1,362,762 -0.6 41,774 74,384 15.5 32 2,4,850 227,787 -1.8 88,84R 115,679 6.8 55,537 91,402 13.3 6,263 15,463 25.4 419,622 293,198 -8.6 7,821 11,519 10.2 31 38,538 51,221 7.4 18,980 35,024 16.6 41,680 11o1,932 27.8 h,992 16,342 23.6 1,530,D11 735,816 -16.7 23,853 32,408 8.0 34 26 041 29,876 3.5 18,031 27,524 11.1 8,D67 11,931 10.3 1.699 2,603 11.3 5,824 - - 315 - 35 63,154 103,803 13.2 78,253 147,727 17,2 2,422 17,363 8.7 3,339 4,891 10.0 12,763 - - 737 - - 36 33,470 43,000 625 26,608 64,255 24.7 4t,916 113,687 29.9 4,503 10,361 23.2 258,960 221,113 --3.9 10,431 15,052 9.6 37 2,883 8,247 34.1 i,175 33,036 130.3 - - - - - - - 30 61,548 105,636 14.5 66,038 124,942 17.3 22,113 49,527 22.3 3,874 7,904 19.5 57,711 79,447 8.3 2,879 12,891 45.5 39 4,592 5,958 t.7 1,140 2,745 24.6 5,473 8,676 12.2 720 992 8.3 72,271 102,497 8.9 2,702 16,5333 57.3 oDeal 767,031 870,019 3.4 569,9 1 494s9 2.9 312 l 20 827,035 24.6 S 3,028 104,634 18.5 3,755.176 2794,833 -7.1 90,511 162,787 15.8 /a Sofa are assembled tram differenL- orces. -ot prace- miog actIvti-es are -o - covcred (Dee f-otaote /1 00 page 1). Total -O1-faccorleEoalue added it 1975 according to this table i Rp 714 billio repre-e-tiRg 63.52 of the m.f.aC.... GSP of Rp 1,124 61111c- accardiog taoonalonal actnunts. This pe-cc-tcge 1n 1979 De 67.27.. A aiil-ar p-ohl-e af aadercover-re mvst apply In -ega-d t0 -ploymyeot dat] hohever, the 1979 e-playme-t idfoated here (4.492 mIlilol) as qait acaOD tfo the 1980 poprIltioc censas estim.-c (4.590 ollol. /b 31 (food, b--erage, tfbacco), 32 (teafilc, appacel, Itather). 33 (wood, acod pr-dacts, f ron(oec, 34 (,,apor, pr(itclg, publishing), 35 (che-ials, petroleaM, pool p-od-otF), 36 (eoo tefollic =ineral pradocts e.e.c.), 37 (bRoic metals), 38 (m-aaL products, -achl-ry sod eq-lpment), 39 (ath.r). /c Eatliates fr-n the -rIgDilal dafa for Aug-t 1974- Jlly 1975. Soarce: StatistLk ndustri 1975 and 1979, lnd-tarla Censs i974/1975, a-d Statistik Indutrti Eecl 1979. Table 1.3: STRUCTURE OF THE MANUFACTURING SECTOR, 1975 AND 1979 1975 1979 Percentage of value-added at Percentage of value-added at market prices and employees accounted for by market prices and employees accounted for by Medium/large Small Household Medium/large Small Household establishments establishments establishments establishments establishments establishments Industry Value Value Value Value Value Value code added Employees added Employees added Employees added Employees added Employees added Employees 31 80 16 8 8 13 76 76 14 9 20 15 66 32 86 34 6 8 8 58 81 37 11 15 8 48 33 38 2 14 3 48 95 42 6 20 12 39 82 34 90 65 8 20 2 15 91 71 9 29 - - , 35 95 71 4 14 1 14 97 86 3 14 - - 36 64 10 11 14 25 76 72 11 12 34 17 56 37 100 100 - - - - 100 100 - - - - 38 90 44 5 16 5 41 86 45 5 21 9 34 ,1 2, 6 is , ou 00 vi 5 i8 7 3i 88 Total 80 16 7 7 13 77 78 19 9 18 14 62 Source: See Table 1.2. -6- Table 1.4: ESTIMATES OF MANUFACTURING EMPLOYMENT, 1971-1980 Employment in thousands Size class 1971 1975 1979 1980 Medium and large industry 600 760 870 969 Small industry } 343 827 } 3,621 Household industry } 2,243 3,755 2,794 } Total 2,843 4,858 4,491 4,590 Sources: Bank Staff estimates based on data from the 1971 and 1980 Population Censuses, industrial census of 1974/75 and industrial surveys of 1970 through 1979. See also World Bank, Indonesia: Selected Issues of Industrial Development and Trade Strategy, Annex I (July 1981) and World Bank, Indonesia - Cottage and Small Industry in the National Economy Volume II (November 1979). sector increased by 1.7 million, of which 20% was in the medium and large sector. Household and small-scale industries accounted for 80% o:E the increase; evidence for 1975-1979, however, indicated that while the small-scale industries improved their contribution to total employment, house- hold industry employment declined. -8 CHAPTER 2 THE REGIONAL DISTRIBUTION OF INDUSTRIES The Overall Patterns 2.01 Measured in relation to employment in 1974, the most industrialized to the least industrialized provinces in Java were Jakarta, East Java, Central Java, Yogyakarta and West Java (Table 2.1). The measure of industrialization used here is the employee location quotient for medium and large manufacturing establishments defined as the ratio of two ratios: the share of a region in employment and the share of that region in total population. In spite of higher rates of growth of manufacturing employment from 1974 to 1979 in Jakarta and West Java relative to the rest of Java, the ordering of the pro- vinces in Java in terms of industrialization remained the same in both years except that West Java came before Yogyakarta in the ranking. From 1974 to 1979, given the degree of measurement error, one must consider the percentage of medium and large manufacturing estalishment employees in Sumatra and Java unchanged, while the percentage in Kalimantan increased from 2.2 to 2.7, in Sulawesi decreased from 1.3 to 1.1 and decreased in other parts of Indonesia from 1.8 to 1.2%. The location quotients show that West Java with a value of 1.07 is not more industrialized than the rest of Indonesia, whereas especiaLly Jakarta and East Java but also Central Java are relatively more industrial-- ized. Jakarta's location quotient was 3.67 that of East Java was 1.43 and that of Central Java was 1.17 (see Table 2.1). This fact partially refutes the popular view that industrialization has gone very far in West Java (due to closeness to Jakarta) compared with Central and East Java. 2.02 If employment in small, medium and large manufacturing establish- ments, not just medium and large ones, is considered, the ranking of the pro- vinces in Java in 1979 is the same, except that Yogyakarta has a higher loca- tion quotient than West Java. It is surprising that Sulawesi has a large location quotient for small, medium and large manufacturing enterprises than Sumatra, especially in the light of its very low quotient value for medium and large manufacturing establishments. Taking just employment in small manufac- turing establishments the data show that Sulawesi has the highest ranking followed by Yogyakarta, with both Jakarta and West Java doing rather poorly. There are two sets of possible explanations for the predominance of small industry and relative absence of medium and large industries in Sulawesi. First, there may be problems associated with the size of the market which hinder the graduation of the small firms to higher size classes. Since the island is not very densely populated, and has per capita GDP on the low side with many areas of high levels of poverty. Second, there may be other problems not particularly related to market size. For instance, some smaLl firms may find it profitable to enlarge their operations, but, may not be able to do so because of lack of credit, infrastructure and similar facilities. Table 2.1: CHANGES IN GEOGRAPHIC DISTRIBUTION OF EMPLOYEES IN MANUFACTURING Large and medium industry Small industry Household Small, medium and large industry Location Location industry Location 1974 1979 quotient/b 1975 1979 quotient/b 1974/1975 1974/1975/a 1979 quotient/b (%) (%) 1979 (%) (%) 1979 (%) (%) (%) 1979 Sumatra 8.3 8.4 0.44 n.a. 16.0 0.84 8.1 n.a. 12.1 0.63 Java 86.5 86.6 1.39 71.2 64.7 1.04 76.9 81.3 75.9 1.22 Jakarta 13.3 16.2 3.67 5.4 3.8 0.86 1.5 10.6 10.2 2.30 West Java 17.6 20.0 1.07 20.8 16.5 0.88 12.1 18.7 18.3 0.98 Central Java 22.4 20.2 1.17 21.6 19.4 1.12 41.9 22.1 19.8 1.15 Yogyakarta 2.1 1.7 0.92 2.7 2.6 1.39 6.9 2.3 2.1 1.15 East Java 31.1 28.4 1.43 20.7 22.5 1.13 14.6 27.6 25.5 1.28 Kalimantan 2.2 2.7 0.58 n.a. 2.5 0.54 3.1 n.a. 2.6 0.56 Sulawesi 1.3 1.1 0.16 6.9 10.6 1.49 7.9 3.2 5.7 0.81 Others 1.8 1.2 0.17 n.a. 6.2 0.87 4.0 n.a. 3.6 0.51 Indonesia 100.0 100.0 100.0 100.0 100.0 100.0 100.0 /b Tio of re i= on she in7 manufacn memp Alo to its shAr i0n populatio Populatio daa a1 4from the 1980e 4Asus /b Ratio of region's share in manufacturing employment to its share in population. Population data are from the 1980 Census. - 10 - 2.03 In respect of the five major regions, Sumatra, Java, Kalimantan, Sulawesi and the rest of Indonesia, the levels of industrial development of the regions is similar regardless of whether value-added location quotients /4 or employment location quotients are used. It can be noted that ordering of the regions in descending order of industrialization is Java, Sumatra, Kalimantan, Sulawesi and rest of Indonesia (Table 2.1 and 2.2). 2.04 Location Quotients by province are given in the detailed tables in Appendix 1. The employee location quotients for small, medium and large establishments in 1979 show that West Java was slightly more industrialized than Central Java and Indonesia as a whole, but was still behind East Java and Jakarta. Small manufacturing establishments relative to medium and large ones were much more developed in the Outer Islands provinces which have relatively large location quotients for small estalishments and small location quotients for medium and large industries. In Java, in Jakarta in particular, small estalishments are, relative to the situation in other provinces, much less important than medium and large establishments. 2.05 The vaLue-added location quotients for small, medium and large establishments give a slightly different picture about provincial levels of industrialization than the employee location quotients. The value-added location quotients for the small, medium and large manufacturing as a whole show that West Java is about as industrialized as Jakarta while East Java is slightly less industrialized than those two provinces. Central Java is a poor fourth while Yogyakarta is fifth with a value-added location quotient of 1.05. Bringing in value-added from household manufacturing enterprises would increase the importance of Central Java, Yogyakarta and Sulawesi because household industries are relatively more abundant in these provinces. The value-added location quotients for small manufacturing establishments in Sumatra and the Outer Islands are higher than the value-added quotients for medium and large establishments. Regional Distribution of Specific Industrial Groups 2.06 It can be expected from the dynamic comparative advantage of dif- ferent provinces in different industries that the degree of evenness of de- velopment of different industries across the provinces varies substantially as shown in Table 2.3. Industry 31 (food, beverage, tobacco) is relatively more evenly distributed because it uses mainly locally available raw materials and production is for local demand. The sector has a small-scale orientation and can be easily established in every geographical region. Industry 36 (non- metallic mineral products) also is very evenly distributed due to the fact that the low ratio of value of the final product to transport cost makes it market oriented. Partly contributing to the spread in this case is the sub-- stantial cement production in West Sumatra and South Sulawesi. Industry 33 (wood, furniture) is also fairly well-distributed using the employment 14 Definition is analogous to the employment location quotient. In the value added location quotient, the denominator is the region's share irn total GDP. See Appendix 1. - 11 - Table 2.2: CHANGES IN GEOGRAPHIC DISTRIBUTION OF' VALUE-ADDED IN MANUFACTURING Large and medium industry o-cation quotient 1974 1979 1979 Sumatra 12.1 10.4 0.50 Java 82.6 85.5 1.46 Jakarta 19.4 20.2 1.64 West Java 18.9 21.7 1.54 Central Java 15.3 14.7 1.12 Yogyakarta 1.3 1.2 0.98 East Java 27.7 27.6 1.51 Kalimantan 2.7 3.0 0.38 Sulawesi 1.9 0.7 0.11 Other Indonesia 0.6 0.3 0.06 TOTAL 100.0 100.0 1.00 Source: Calculated from Biro Pusat Statistik., Census Industri 1974/1975 (various volumes) and unpublished dat:a from IBiro Pusat Statistik for 1979. (See Appendix 1, Table 2). - 12 - Table 2.3: EVENNESS OF INDUSTRIAL DEVELOPMENT AMONG PROVINCES IN 1979 Coefficients of variation of provincia.l. location quotients of small, medium and large manufacturing establishments /a Value-Added Employment 31 (Food, beverage, tobacco) 1.35 1.21 32 (Textile, apparel, leather) 2.02 1.73 33 (Wood, furniture) 1.52 1.31 34 (Paper, paper products, printing, publishing) 1.62 2.03 35 (Chemicals, chemical products, etc) 1.71 1.72 36 (Non-metallic mineral products) 1.36 0.83 37 (Basic metals) 3.56 3.32 38 (Metal products, machinery equipment) 2.49 1.99 39 (Other manufacturing) 1.78 1.33 Total 0.93 0.81 /a The coefficients of variation are calculated from the tables in Appendix 1 showing the location quotients for value-added and employment for the individual provinces in 1979. - 13 - criterion than the value-added criterion because the higher value-added saw- mill and plywood industries are concentrated in the main wood producing areas in Riau, Jambi, South Sumatra, Kalimantan and Southeast Sulawesi whereas the relatively more labor intensive handicraft and furniture industries are con- centrated in Java and Bali. Industry 32 (textile, weaving and Leather) is unevenly distributed because of concentration in West and Central Java and Yogyakarta and to a lesser extent in Jakarta. Historically this concentration existed. Favoring the concentration in recent years was the lower cost of labor in Java, and the existance of the highly developed harbor facilities in Tanjung Priok to facilitate the importation of the cotton and syrnthetic fibres. Industry 34 is unevenly distributed becuase the production of paper products is concentrated in Jakarta and the production of paper is concen- trated in West Java, East Java and South Sulawesi. 2.07 Of the value-added of the basic metals industry 68% and 29% are in West Java and Jakarta respectively making it the most unevenly distributed and highly concentrated industry. The downstream industries from basic metals, namely, fabricated metal products, machinery and equipment is a]so very unevenly distributed. Among the five major sub-sectors of this industry, the following percentages of Indonesian value-added of small, medium and large establishments in L979 were accounted for by Java: fabricated metal products, 87%; nonelectrical mtachinery, 96% (mostly in East Java); electrical machinery, appliances and supplies, 99% (mostly in Jakarta); transport equipment, 93% (mostly in Jakarta); and scientific measuring and optical equipment, 82%. 2.08 The chemicals and chemical products, petroleum, coal, rubber and plastic products industry is somewhat evenly distributed because its major components tend to be concentrated in different parts of Indonesia. The major components are basic chemicals including fertiLizer; other chemical products; rubber goods and plasticwares. The basic chemicals industry is concentrated in South Sumatra (54% of Indonesian value-added) and Java; the rubber goods industry is widely scattered in Sumatra, Kalimantan and Java, and other chem- ical products and plasticwares are mainly in Java but with 5% of Indonesian value-added in plasticwares being in North Sumatra. Industrial Development Among the Provinces 2.09 Table 2.4 summarizes the characterislics of industrial development in Indonesia's provinces. The pre-eminent position of Jakarta, West Java and East Java in particular and Java in general is clearly indicated. Economies of agglomeration seem to operate here. The localization of specific material input based industries is also very well depicted by the large number of provinces with very low overall location quotients and very few industries with large quotients. Table 2.5 confirms that provinces in the outer islands tend to be little developed industrially and heavily dependent cn one or two export oriented industries. Crumb rubber and rubber remilling (part of industry 35) are found in Riau, Jambi, West Sunatra, Lampung and West and South Kalimantan. Likewise, the relatively more important industries in other regions are wood and wood products in Aceh, Riau, Jambi, Bengkulu, all of Kalimantan, Bali, Central and Southeast Sulawesi, Maluku and Irian Jaya; processing of coffee in Lampung; fertilizer in South Sumatra along with wood and wood products, crumb rubber and rubber remll1ing; sugar milling in Aceh, Table 2.4: CLASSIFICATION OF PROVINCES ACCORDING TO VALUE-ADDED LOCATION QUOTIENTS (SMALL, MEDIUM AND LARGE ESTABLISHMENTS) Number of industries with location quotient greater than 0.40 Location quotient (province) category Zero one Two Three Four Five or /a more Less than 0.20 E. Nusatenggara E. Kalimantan/b Aceh/c Malaku Bengkuklu Irian Jaya C. Sulawesi 0.20 - 0.40 Bali Jambi Riau/b W. Sumatra W. Nusatenggara S. Kalimantan S. Sulawesi N. Sulawesi S.E. Sulawesi 0.40 - 0.60 C. Kalimantan Lampung 0.60 - 0.80 N. Sumatra 0.80 - 1.20 S. Sumatra/b Yogyakarta W. Kalimantan C. Java Over 1.20 Jakarta W. Java E. Java /a This is based on the value-added location quotients for all industries shown in Appendix 1, Table 1. Industries with the largest location quotients in a province do not necessarily account for the highest percentage of value-added from manufacturing. lb For these provinces the absence of petroleum refining from the value-added makes a significant difference on to the category of the province. /c Apparently natural gas liquification is not included in manufacturing which results in Aceh being in the least developed category. - 15 - Table 2.5: PERC]ENTAGE OF MANUFACTURING VALUE-ADDEI) AT MARKET PRICES ACCOUNTED FOR BY EACH INDUSTRY BY PROVINCE IN 1979 /a. (Small, Medium and Large Establishments) Province Industry code 31 32 33 34 35 36 37 38 39 Total /b D.I Aceh 53 0 21 2 9 10 0 1 4 100 North Sumatera 48 2 8 3 28 1 1 8 0 100 West Sumatera 15 9 5 3 19 41 0 7 0 100 Riau 35 1 20 1 34 0 - 8 1 100 Jambi 11 0 36 0 44 6 0 3 0 100 Bengkulu 4 0 70 4 0 20 0 3 0 100 South Sumatera 8 1 6 0 80 3 0 2 0 100 Lampung 62 0 3 0 23 5 0 7 0 100 DKI Jakarta 12 13 1 7 15 7 5 39 0 100 West Java 24 21 1 2 19 12 10 9 1 100 Central Java 59 23 2 1 3 7 0 5 0 100 Yogyakarta 48 34 4 3 2 3 0 5 2 100 East Java 72 6 3 2 5 6 0 7 0 100 Bali 56 9 26 1 0 8 0 1 0 100 West Nusatenggara 69 1 5 2 0 21 0 1 0 100 East Nusatenggara 29 32 10 10 0 19 0 1 0 100 West Kalimantan 6 0 50 0 42 0 0 1 0 100 South Kalimantan 13 0 65 3 19 0 0 0 0 100 Central Kalimantan 9 0 82 2 7 1 0 0 0 100 East Kalimantan 8 1 84 1 0 3 0 3 0 100 North Sulawesi 64 0 17 1 1 2 0 13 0 100 Central Sulawesi 34 0 44 8 0 10 0 3 0 100 South Sulawesi 51 4 5 7 1 14 0 16 2 100 Southeast Sulawesi 20 0 61 10 0 5 0 3 0 100 Maluku 62 0 19 1 8 5 0 4 0 100 Irian Jaya 15 7 38 15 0 10 0 15 0 100 /a Value-added in current prices data are frota Appendix 1, Table 1. /b Numbers may not add to 100 because of roundling. - 16 - South Sulawesi, Yogyakarta and Central and East Java; coconut oil in North Sulawesi and Maluku; tobacco drying and processing and rice milling in West Nusa Tenggara; and cement in West Sumatra and South Sulawesi. All of the above listed industries process local raw materials either for export or for sales to other provinces. 2.10 Widely scattered but minor in importance are market oriented indus- tries characterized by full realization of economies of scale at outputs small relative to market size, such as soft drinks, ice cream, brick making, etc. The import substitution industries based on imported intermediate inputs are mainly located in Java and North Sumatra, although there are flour milling and structural metal products industry in South Sulawesi. Industries based eit:her directly or indirectly on imported intermediate inputs such as yarn, cloth, garments, electronic products, etc., are almost entirely located in Java. Outside of Java the main provinces with a relatively diversified industrial. sector are North Sumatra, and to a less extent, West Sumatra with printing and publishing, rubber processing and cement and South Sulawesi with sugar, flour, paper, and cement. - 17 - CHAPTER 3 FACTORS AFFECTING THE REGIONAL DISTRIBUTION OF INDUSTR]:ES Introduction 3.01 In this chapter, subject to the constraints of the limited informa- tion, the focus is on the major factors which have affected and are affecting at the present time the rates of industrial devElopment and location of indus- tries in different regions. Uneven Subsector Growth: Effects on Regional Growth 3.02 To analyze the factors affecting the rates of industrial growth in regions one can begin by examining which industries have grown relatively more rapidly and in which provinces they have been dcminant. From Table 3.1 it is seen that sectors 36, 37 and 39 have been growing at very high rates while sectors 31, 32 and 34 have grown at less than average rates. The first group were relatively more concentrated in Java and parts of the Outer Islands. The second group were relatively more evenly distributed, 3.03 The growth of industry 35 was hindered by the low 5 percent annual compound growth rate from 1975 to 1979 in the production of smallholder rubber and 4.5% growth rate i.n total rubber production, which was the main determinant of the growth of the crumb rubber and rubber remilling industry. This hindered industr:Lal growth especially in Riau, Jambi, West and South Sumatra, Lampung, and West and South Kalimantan. Value--added from manu- facturing in all of these provinces except South. Sumatra and West Kalimantan grew slower than the national average. Wood and. wood products (33) grew at about the same rate as total manufacturing. This tended to bolster the industrial growth rates in Aceh, Riau, Jambi, Bengkulu, South Sumatra, all of Kalimantan, Bali, Central and Southeast Sulawesi, Maluku and Irian Jaya, but apparently did Inot have much positive effect in Jambi, Riau, South Kalimantan, Southeast Sulawesi and Irian Jaya as their industrial growth rates are low, less than 9% per annum and lower than the growth. rates of any of the two-digit industries. Other provinces which did substantially less well than the nation as a whole in terms of industrial growth (i.e., grew at less than 9% per annum) were Lampung, Yogyakarta, Central and East Java, North and South Sulawesi and West Nusa Tenggara. To summarize, 12 out of the 24 provinces for which there are data grew at less than 9% per annum. In general, provinces in the outer islands grew rather slowly except for some characterized by a rapidly growing wood and wood products industry, Aceh with its rapidly growing LNG industry, West Surmatra with its rapidly growing cement industry, North Sumatra with a relatively diversified industrial base, and South Sumatra with its rapidly growing fertilizer industry. - 18 - Table 3.1: RATES OF GROWTH OF MANUFACTURING INDUSTRIES /a Value added Number of employees (000) Value added (Rp million) (small, medium and large establishments) Industry Growth Growth Growth code 1975 1979 rate (Z) 1975 1979 rate (x) 1975 1979 rate (x) 31 1,834 2,061 3.0 338,335 496,987 10.1 296,561 422,603 9.3 32 720 612 -4.0 102,932 142,661 8.5 95,111 131,142 8.4 33 1,610 898 -13.6 49,825 83,774 13.9 25,972 51,366 18.6 34 40 42 1.2 20,045 30,127 10.7 19,730 30,127 11.2 35 88 121 8.2 82,329 152,6183 16.7 81,592 152,618 16.9 36 339 398 4.1 41,542 89,668 21.2 31,111 74,616 24.4 37 3 8 30.1 1,175 33,036 130.3 1,175 33,036 130.3 38 141 235 13.5 72,791 145,737 19.0 69,912 132,846 17.4 39 83 117 9.0 4,562 20,270 45.2 1,860 3,737 19.1 Total 4,858 4,492 -1.9 713,536 1,194,878 13.8 623,024 1,032,091 13.4 /a Value-added at market prices in 1975 constant prices and employment of household, small, medium and large establishments. Source: See notes under Table 1.2. * - 19 - 3.04 Some of the fast growing industries (e.g., 35 and 38) are all concentrated in Java. This has the effect of increasing the industrial growth rate of Java relative to the rest of Indonesia, although the industrial growth rate of Java is apparently lower than Sumatra, Kalimantan and other provinces of Indonesia because of the slow growth rates of Yogyakarta, Central Java and East Java. 3.05 Some insight into the slow industrial growtlh rates of Yogyakarta, East Java and Central Java is obtained by examining the structures of their industrial sectors. The three provinces are all heavily dependent on the food, beverages and tobacco industries, which are among the slowest growing industries. In East Java and Central Java respectiveLy 24% and 11% of manufacturing value--added at market prices (medium andi large establishments) were derived irom the sugar sub-sector while respectively 40% and 48% were derived from the sub-sectors of regular and clove cigarettes. However, cane sugar and cigarette production in Indonesia increased only at annual rates of 6.9% and 5.3% respectively from 1975 to 1979. The rapidly growing chemical, petroleum, coal, rubber and plastic products (35) and fabricated metal pro- ducts machinery and equipment (38) industries are concentrated in West Java and Jakarta compared to the rest of Java, as is the fast growing basic metal industry (37). The Attractiveness of West Java/Jakarta 3.06 Jakarta anLd West Java possess some characteristics which make them attractive to investors compared to the rest of Java. Import substitution in- dustries directly dependent on imported internmediate inputs such as wheat flour, condensed and powdered milk, cigarettes, textiLes and wearing apparel, paint, drugs and medicine, automobile tires, plastic wares, fabricated metal products, machinery and equipment, and various export-oriented industries are attracted to areas near a major harbor with frequent connections to the major ports of the world. This factor tends to strongly favor location of these types of industry near Jakarta, Surabaya and M[edan, and not in Central Java or Yogyakarta. The queastion, however, arises of why invlestors are more attracted to Jakarta and West Java than East Java. Two indications of this tendency are that as of the end of 1979, realized foreign investments in manufacturing in West Java and Jakarl:a were $872 and $454 million respiectively while in East Java and Central Java they were only $178 and $157 miLlion respectively. Planned foreign investments at the end of 1979 in manufacturing in West Java and Jakarta were $1,721 and $847 million respectively, while in East Java and Central Java they were only $217 and $140 million respectively/5. Large investments in the textile and chemical industries were made in West Java and Jakarta but not in East and Central Java. It is especially important to study why East Java has not attracted more investments and industries. Some tenta- tive answers are suggested in the following paragraphs pending further de- tailed studies. /5 Bank Indonesia data. - 20 - 3.07 A major factor affecting the location of some industries in West Java and Jakarta instead of East Java was the extent of the market. First, the combined GRDP of West Java and Jakarta in 1979 was 56% greater than East Java, indicating the differences in the extents of the domestic markets. Second, in regard to the closeness to regional markets, both West Java/Jakarta and East Java are roughly equally positioned to supply Central Java and Yogyakarta with manufactured goods. This factor favors both regions equally for the development of market-oriented industries characterized by economies of scale only realizable at output levels large relative to local market size. Third, in relation to markets outside Java, Jakarta/West Java is in a better position to supply the Sumatran market while Surabaya is in a better position to supply the Sulawesi, Bali, Nusa Tenggara and other eastern Indonesian markets. However, because the Sumatran market is larger than the markets of eastern Indonesia (which are regions of low incomes and high poverty incidence), Jakarta/West Java has an additional advantage. Fourth, GRDP at 1975 constant prices in Jakarta and West Java grew at annual compound rates of 10.2% and 8.1% from 1975 to 1979 while East Java GRDP grew at a rate of only 6.1%. Therefore the market for manufactured goods in the western part of Java was growing around 50% faster than in East Java. Fifth, (and quite important), there is the inherent preference for Jakarta if the operation of an industry requires regular approvals of some type or the other from the Central Government. For example, if licenses to import some intermediate inputs used in the production of exported goods can onLy be obtained in Ja- karta, then there is some advantage in being close to Jakarta, especially if the firms concerned are small and cannot afford having a liaison office in Jakarta. Finally, better access to credit from foreign or government banks also favors a location close to Jakarta. Factors affecting Location: the Indonesian Provinces in General 3.08 There are two types of factors affecting the location of manufac- turing industries: natural and man-made. The location of the industries in the outer islands is strongly affected by natural factors. Because of favor- able natural conditions, minerals and forests are being exploited and crops are being grown which form the basis for most of the processing industries. These industries processing local raw materials are mostly located close t:o the raw material source /6. Their rate of growth is usually constrained by the rate of growth of raw material availability and in the case of export products, also by the vagaries of the external economic situaition. In the case of palm kernels, coconut, rubber, and sugar the possibilities for simple processing are pretty much exhausted, and therefore increased value-added from simple processing is dependent on growth in the supply of the raw materiaL and external demand. This is in contrast to wood processing, brick and cement: manufacturing, and fruit, vegetabLe and fish processing where the raw materi- als are still in abundant supply. /6 In the cases of some raw material industries such as coconut oil and wood processing it may sometimes be more efficient to locate them close to the market, especially if waste materials can be better utilized there. - 21 - 3.09 There are three major man-made factors affecting industrial loca- tion. They are the industrial technologies, investment in infrastructure and government policies. Due to their technologies some industries are raw mater- ial-oriented, some are market-oriented, and some are footloose, i.e. transport costs have little effect in determining their optimal location. Economies of scale are important in practically all industries, the question is at what level of output are the economies fully realized. In some they are fully realized at a low output level while in others they are only fuLly realized at very large output levels. Finally, the degree to which an industry is or is not affected by agglomeration economies also affects its location. The presence of agglomeration economies in the textile industry is an important cause of the clustering of the industry in West Java. The degree of labor and capital intensity also affects optimal industrial location. The very labor- intensive clove (kretek) cigarette industry is concentrated in Central and East Java partly because wage rates are the lowest and the work force is quite well-disciplined. 3.10 If there are no economies of scale at all, then market:-oriented industries would be very widely scattered. One can then find soft drinks, concrete products, metal furniture, etc. even in many villages. Instead, there are varying degrees of economies of scale, so that market-oriented industries with economies of scale at very low levels of output are widely scattered, while those with economies of scale only being realized at higher levels of output may be located in medium or large towns. For example, one finds brick, furniture, bread, mattress, wooden container, and other indus- tries being widely scattered whereas soft drinks, ice, metal furniture, clay and plastic pipes, concrete products, sheet me:al products, simple agricul- tural implements, etc., are relatively more concentrated. Service industries such as printing and publishing, tire retreading, and electroplating and metal polishing also tend to be relatively widely scattered. 3.11 Results of Regression Analysis: Regression analysis has been used to investigate the possible relationship between various independent variables and one dependent variable, namely, the location quotient (LQ) based on value- added for small, medium and large establishmenls in 1979. The method was cross-sectional regression analysis across provinces using the 1979 data. The independent variables tried (for a positive reLation with LQ) were population size, non-mineral GRDP, length of roads, distance from harbor, and credit available for manufacturing. 3.12 The regression analysis supported the hypothesized positive associa- tion between population and LQ, and GRDP and LQ. Population and GRDP could not be used in the same equation because of a high inter-correlation between them. The results show that an increase in population of 1 million, would be associated with an increase of about 0.04 in the LQ, or a province of 25 mil- lion people comnpared to 2 million would have a value-added LQ roughly 0.8 higher because of the larger population. This is probably somewhat on the high side. The hypothesized positive effect of a larger population on market size, and therefore on the possibilities for greater realization of economies of scale, and i-herefore on the level of industrialization, is slightly circui- tous and can be disputed. The relationship between nonmineral GRDP and the value-added LQ implies that an increase in non-mineral GRDP of Rp I trillion - 22 - is associated with a value-added LQ increment of about 0.27. This would mean, for instance, that if the province of Lampung were as large as that of West Java in GRDP terms, ceteris paribus, its value-added LQ would be 1.16 instead of 0.44 (the observed value). These inferences point to some of the "rational and justifiable" forces behind the observed industrial concentration patterns in Indonesia. In the next chapter, the impact of some of the government policies on industiral location is reviewed. - 23 - CHAPTER 4 EFF'ECT OF GOVERNMENT POLICIES ON LOCATION Foreign Trade Policy and Industrial Location 4.01 Foreign trade policy strongly affects the pattern of industrial location. It affects the relative profitabilityr of industries located in different geographic areas./7 High levels of protection against imports for especially light import substitution industries both through high rates of import duties and quantitative import restrictions have resulted in the rapid growth of these industries. Because many of them are heavily dependent on directly or indirectly imported intermediate inputs, th(ey tend to be located on Java, especiially niear or in Jakarta. Examples are motor vehicle assembly, pharmaceuticals, paints, plastic goods, electronic products, refrigerators and washing machines, electrical appliances, textiles and garments, etc. Because of the high levels of protection the rupiah has a higher value than would otherwise be the case. The higher value of the rupiah decreases the incentive to the private sector to increase the production of both primary commodities and manufactures for export. In addition there are import duties on most imported intermediate inputs which also raise the cost of production of pres- ent and potential export goods. 4.02 The Bank's Industrial Sector Report, Annex 2, The Foreign Trade Regime, showed that the effective rates of protection oE exportable manufac- turing sectors were mostly negative with the ERP's of onLy 4 out of 15 of them being positive, but si:ill low. The principal exportable sectors are dried cassava and tapioca f:Lour, rubber processing, palm oil, tobacco processing, sawmills, planning and other wood processing, and wood and cork products. These are mainly located in the Outer Islands and the trade regime did not favor the development of these industries. This leads to a lagging industrial sector in the Outer Islands. However, the adverse effect is not only directly on the manufacturing process, but it also adversely affects the development of the raw material sectors themselves, i.e., the production of cassava, rubber, palm kernels, tobacco, wood and a number of less important primary products. It has been noted above that rubber and wood processing are the major indus- tries in many oi- the Outer Island provinces. The development of exportable manufacturing sectors located primarily on Java such as cocoa, chocolate and sugar confectionery and batik industries are also retarded by these policies, but their importance within the manufacturing sector reLative to others on Java is much less. The protection system also hinders the development of most basic metal and basic chemical industries which have low effective rates of protection and which also can be profitably located in the Outer Islands. /7 Indonesian foreign trade policy and its eff'ects on industrial development are discussed in the World Bank report, Inconesia: Selected Issues on Industrial Development and Trade Strategy. July 15, 1981, especially in Annex 2, The Foreign Trade Regime. - 24 - 4.03 It is not as if the protective tariffs do not affect Java. The export development of the labor-intensive textile, garment, leather products, electronic assembly, and sports and athletic goods industries, which for the most part are rightly located on Java where labor costs are lower, is also somewhat hindered by these policies. However, the export certificate system started in November 1978 partly offsets the adverse effects of the protect:ion system. Under the export certificate system for every dollar of goods ex- ported, producers are given a payment based on the estimated average amount of imported inputs required to produce goods in the industry. This incentive, while helping the import dependent industries of Java does not help the ex-- porters of the outer islands. 4.04 Import bans also may adversely affect industrial location. If imports are restricted by import duties, then the prices of the domestically produced import substitutes will be roughly the same in major harbor areas because they are determined by the landed cost of the imported products. This is true even though domestic import substitution industries are developing in one part of the country, say, in Jakarta. If the imported goods are intermediate goods used by other industries, then, all users of the inputs regardless of location will pay roughly the same price for them. The situation is very different if imports of the input are banned and production is started up in one part of the country. For example, if nylon filament production is started up in Jakarta and imports of nylon filament are banned, users of nylon filament in the outer islands are likely to have to pay higher prices for nylon filament than those close to Jakarta. This retards development of the industries using nylon filament outside of Jakarta and the nearby West Java. The reverse will happen if the Government bans imports of aluminum ingots with the establishment of the Asahan aluminum smelter, as long as the smelter uses a FOB factory plus freight cost pricing system. Before the import ban the prices of these ingots into Jakarta would most likely be the same as in Medan, but with the import ban the prices of ingots in Jakarta relative to Medan are likely to increase, thus hindering the development of upstream industries in Jakarta and West Java. Recent Import Regulations 4.05 Compared to the period before January 18, 1982 the present list of banned goods is much shorter./8 Presently banned are printed matter in Indonesian, Indonesian local languages and Chinese; offset-printed cigarette and medicine wrapping paper which uses Indonesian or other foreign languages; completely assembled motor vehicles, motor cycles and scooters (only for Java and Sumatra except for sedans and station wagons); and a few items banned because they are considered to be dangerous. The major items no longer banned are monosodium glutamate, mosquito coils, truck and passenger tires, matches, notebook cover paper, certain types of cloth, certain used glass bottles, /8 See the Decision No. 29/Kp/I/82 of January 18, 1982 of the Minister of Trade and Cooperatives. - 25 - galvanized iron sheets, metal sheets for roofs, dry cell batteries, certain types of light bulbs and fluorescent lamps, and textiles with batik motifs./9 4.06 Between November 2 and 5, 1982, the Government made the decision that 7 groups of goods could only be imported by importers designated by the Department of Trade and Cooperatives./l0 These groups are: (1) electronic and electrical products; (2) chemical products; (3) parts for motor vehicles; (4) metal products; (5) equipment, machinery and parts; (6) textile products; and (7) large equipment and parts. On December 27, 1982 the following groups were added to the list: (8) certain types of algricultural products, (9) rerolling scrap and melting scrap; (10) foods, ilrinks and fruits; (11) and sheet and plate steel. On February 16, 1983, previously issued lists were adjusted and two more groups were added: (12) goods made from imported iron or steel and (13) finished goods made from imported iron or steel. In a press release on November 9, 1982, the Department of Trade stated that it hoped the following would be achieved through these measures: (a) The development of domestic industry can be made secure with respect to both the volume of production and fair prices; (b) domestic industry can increase its efficiency of production, because its capacity of production can be fullv utilized; (c) the position of weak entrepreneurs can be strengthened; (d) the practice of dumping imported goods which ruins domestic production can be prevented; (e) speciaLized activity can be formed in a more directed way and importers can increase their capabilities in these specializations, and (f) through supervision over manipulative activities, they can be prevented. 4.07 The Government regulations also stated that for manufactured goods experiencing sufficiently strong competition from imported goods of the same type, in addition to the imports being carried out by the designated importer(s) the amount of import (quota) will also be fixed. For groups 1, 3 and 7 mentioned above, the only importers designated will be the sole agents/brand name holders or firms recommended by them. For some groups only 1 or 2 importers are to be designated. Import of products in groups 9 and 11 are to be obtained onLy by PT Krakatau Steel or its agent Persero Niaga, and PT Dharma Niaga and PT Kerta Niaga are the only firms allowed to import goods /9 Tires and batick together with the following items are now subject to import quotas: m:ilk, 3 types of dyes, kraft. liner, and some types of piston rings. /10 Now separated into Department of Trade and Department of Cooperatives. - 26 - in group 13. BULOG is the sole importer of sugar, flour and rice, Cipta Niaga of tapioca, and Kerta Niaga of dates. For some of the other groups also only 1 or 2 importers have been designated. In addition to the above, imports of all types of fertilizers, weapons, and pure gold are in the hands of one or a few designated importers. 4.08 What are the possible effects of these regulations on the pattern of industrial location? The main effect is likely to be hindering development of industries in one area relative to another if a factory operator using an imported intermediate input is unable to become a designated importer and there is only one or a few designated importers in his geographic area. In this case he will probably face higher costs of imported intermediate goods because either he has to purchase the imported goods from an importer from another region, or he will be in a weak bargaining position relative to the one or few designated importers in his area. Especially in the case where there is only one designated importer in a geographic area but many factories are using the imported input, the designated importer will have a partial monopoly position confronting these factories. However, the Department of Trade and Cooperatives has stated in private that except where there are only I or 2 approved importers, factories using the intermediate inputs will be given a high priority to become approved importers. Even if this is the case it does not solve the potential problem of factories too small to import for themselves to obtain these inputs from designated importers at competitive prices. When there are only 1 or 2 importers for the whole country there is the danger that they will import the inputs into only 1 or 2 harbors, when previously they were being imported into a larger number of harbors. This might result in the prices of the inputs increasing relative to what they were before in some localities, and thus harm manufactures in those areas. More research is required to determine the effects on the pattern of industrial location of these regulations. The Effect of the 1982/1983 Investment Coordinating Board Guidelines on Industrial Location 4.09 The Investment Coordinating Board (BKPM) guidelines on investment in selected geographic areas can potentially greatly affect industrial loca- tion. The location guidelines are examined and their intent and impact are briefly discussed. 4.10 In the last six years the number of manufacturing investment fields subject to location guidelines has expanded. In the 1977 list of investment. priorities only 21 of 671 fields of industrial investment (manufactured items) were subject to location restriction. (See Table 7 of Appendix 2 for a detailed list.) A slightly larger number were closed to foreign investment. In the 1982/83 list of investment priorities 250 of 1,877 industrial items were subject to location guidelines while another 75 items were closed to all investment. (See Tables 1 and 2 of Appendix 2 for a detailed list of guidelines and Table 6 for a listing of fields closed.) 4.11 The Indonesian Government has applied two types of location guide- lines to domestic and foreign industrial investment. The most common guide- line is the requirement that investment be outside of a province or island or - 27 - in a location outside a number of listed provinces or islands. A less frequent guideline is that investment in manuEacturing be in a particular location that the Government has specified. Frequently a specific site is named; it can be a city or an existing or planned industrial estate. However, there are some cases where the investor is required to invest in a particular province or to choose from a list of provinces. 4.12 Guidelines which recommend specific sites or provinces: Many of these location guidelines are in industries in which economies of agglomera- tion apply. This is particularly the case where the Government of Indonesia has nominated a specific site for investment. Sixty-eight of the manufactured items in this category are restricted to the Olefin Center - a petrochemical complex in Lho Seumawe, Aceh. (See Tables 3 and 4 of Appendix 2.) This is a case where the GOI is investing in infrastructure development and where the Indonesian Government hopes to attract investors to carry out downstream processing of a locally available resource (natural gas). Similar economies may apply to the guidelines on the manufacture of aluminum rods near the Asahan project in North Sumatra and gypsum manufacturing in Gresik, East Java. Many of these site-specific investment guidelines are requiring the investor to make a decision which the Indones"an Government has made attractive through its previous infrastructure and resource development. To the extent that this is so these guidelines are unlikely to discourage investment or adversely influence productivityr and competitiveness. 4.13 A second category of guidelines recormend investment in certain fields of manufacturing to be located in spL ecfic provinces or groups of provinces. For example, vegetable and fruit packing and processing is limited to Sulawesi and fish packing and preserving to provinces in Eastern Indonesia. (See Tables 3 and 4 of Appendix 3.) The intent of the Government with these guidelines would seem to be to dissuade the investor from making investment choices that would lead to a widening disparity in the size of the manufactur- ing sector among regions, and prevent investment decisions that would lead to underutilization of plant in other provinces. Such guidelines could well discourage investment or lead to investment with relatively lower levels of productivity because of higher local labor costs or the inability to realize economies of scale in production for limited markets. For example, there might be cost advantages in locating additional fish packing and preservirg in Java and off loading fish from Eastern Indonesia in East Java where labor is plentiful and local markets larger. Similarly, the recommendation that, for example, oxygen and acetylene factories be located in provinces without such factories may be intended to spread the growth of manufacturing and protect existing factories from being underutilized. However, it could be argued that the development or expansion of oxygen and acetylene factories in some provinces would allow these industries to realize economies of scale and also offer better service to provinces without such factories. 4.14 Guidelines excluding investment in some provinces or regions: There are 122 industrial investment fields/manufacttLring itiems which have regula- tions discouraging the investor from locating a factory in certain provinces. Seventeen items are restricted to locations outside Jakarta. Sixteen categories are prohibited from JABOTAEIEK (an urban complex comprising Jakarta, Bogor, Tangerang and Bekasi). Three items are prohibited from - 28 - Jakarta and West Java provinces. Seventy-four items are restricted to locations outside Java. Twelve investment fields are prohibited in Java and some other province or provinces. (See Tables 3 and 4 of Appendix 2.) All of these guidelines on investment location could deny the investor the opportunity to engage in some subsectors in all or some parts of the island of Java. Potentially, the impact of these guidelines could be considerable. 4.15 Particular attention needs to be paid to labor-intensive industries which may be prohibited from locating .n Java. Industry groups which are highly labor-intensive include ceramics, other nonmetallic minerals, plastics, printing, food industries, and fabricated metal products. Their ISIC codes are 361, 369, 390, 356, 342, 311-12, and 381. (For a listing of location guidelines by ISIC numbers, see Tables 1 and 2 of Appendix 2.) In the ceramics industry 5 out of 17 fields and in nonmetallic minerals 6 out of 43 potential investment fields are subject to guidelines. Two out of 15 cate- gories are restricted in the printing industry. Fifty out of 254 items in the fabricated metal products industry are prohibited from certain regions. Sixteen out of 150 items in the food and food processing industries are restricted to certain locations. Almost all of these industries are denied access to some or all of the island of Java. These location guidelines may have the effect of reducing employment creation not only in Java but also in the Outer Islands. This is so because investors may respond to higher labor costs in the outer islands both by investing less and by choosing more capital-intensive methods than would have been chosen without the location guidelines. Furthermore, to the extent that light industries such as elec- trical appliances, metal fabrication and wood products are denied access to less expensive labor markets in Java they may incur higher production costs and so be unable to compete on the export market. 4.16 Java has an abundant labor supply but it also offers some other advantages for the location of industrial investment. While it has fewer natural resources than some of the other islands it does have some natural and some man-made resources that might provide the raw materials for further manufacturing. These resources include fish, cassava, iron and steel, nonmetallic minerals and teak. The restriction of fish packaging, animal feed manufacture, tapioca flour milling, the manufacture of some prefabricated metal parts and some wooden products from all or most of Java is probably intended to prevent oversupply but it might impede productive investment. Increased competitiveness in these industries might enable them to export and realize further scale economies. 4.17 While market-oriented industries such as soft drinks, dairy products, and tires are unlikely to be export industries there still may be costs incurred in restricting them to areas outside Jakarta or outside Java. Investors may find that they are unable to realize economies of scale if they are required to build factories in the outer islands rather than build or expand factories in Java. 4.18 Another category of industries which might suffer from location guidelines is those with some export potential. While investment which is 100% for export may be freed from guidelines on location, such guidelines might still have a dampening effect on industries which can produce partly for - 29 - export. This is so for three principal reasons. First, investors who are investing mainly for an export market are inclined to desire at least some access to a local market to provide their firms with some protection against the vagaries of the foreign markets. Second, domestic, firms engaged in industries where transport costs are low may be made uncompetitive in the world market because of high labor costs or because they are unable to realize economies of scale in a limited market. Third, producers may find that locations available for investment are non optimal for transport: purposes. For example, industries like electrical applia:nces assembling and prefabri- cated metal products. might have their export potential curtailed if they cannot be located near the major ports in Java. 4.19 Conclusion: The Government's goals oE increased output, growth and employment are better achieved through increased allocative efficiency. There are some areas of industrial investment in which the Government location guidelines could have adverse effects on employment creation, labor product- ivity, and export potential. The wide range o:E investment fields with loca- tion guidelines and the smaller range of industrial areas closed to investment may not always lead to the desired goals. - 30 - CHAPTER 5 SUGGESTIONS FOR FURTHER STUDY Field Studies 5.01 This study was almost wholly based on an analysis of published data. Field research needs to be undertaken in selected areas in order to get a better picture of the most critical factors limiting and facilitating indus- trial development and in order to plan for the promotion of industrial estates, export processing zones etc. The suggested geographical areas are East Java, Central Java, North Sulawesi, South Sulawesi, West Kalimantan, North Sumatra, and West Sumatra. East Java is of particular interest because potentially its industries can grow as rapidly as West Java and like the rest of Java must experience rapid labor-intensive export-oriented industrial growth if it is to solve its potential unemployment problems. Central Java is of importance for these same reasons plus hopefully once the Semarang harbor expansion is completed export-oriented and import substitution industries will both be able to grow more rapidly. North Sulawesi probably is a province which is more isolated than necessary from the rest of the world. It is an area where the possibilities of increased industrial development through increased direct trade with Hong Kong, the Philippines, and Japan can be explored. South Sulawesi potentially is a much larger supplier of manufac- tured goods to Eastern Indonesia than presently is the case. West Kalimantan is of interest to study because it has both developed wood processing and rubber processing industries and also is in a geographic position to potentially supply the rest of Kalimantan with selected manufactured goods. It should also be useful to explore how far its potential can be developed through increased trade with Singapore. Both North and West Sumatra are of interest because they still have considerable potential for industrial development. They have good harbor facilities, dense populations and a relative abundance of both natural resources and human capital. Location Economies 5.02 A second interesting area of study is to examine more closely scome industries where it seems equally attractive to locate them close to their raw material sources or close to the market for their products. Possibili- ties are coconut oil and wood processing because some of them are located in Java (the market) and some in Outer Islands close to their raw material sources. Infrastructure Development Policies 5.03 The Government has master plans in relation to infrastructure development. For instance, the Integrated Sea Transport Study, conducted by the Netherlands Maritime Institute and accepted by the Government, has come up with a number of recommendations on port and route developments. These have important implications for industrial location and development which need careful review from an industrial location standpoint. Similarly, future, plans on road and railway developments also need to be reviewed. - 31 - Government Policies 5.04 This study has briefly touched on trade policy and the iocation guidelines of the Investment Coordination Board. There are other policies such as government pricing policies and subsidies which affect the efficiency of industrial location. Policies such as the uniform pricing policies of some of the state enterprises and transport and fuel pricing have an important impact on industrial location and need to be reviewed. -32- APPENDIX 1 TABLES ON PROVINCIAL INDUSTRIAL DEVELOPNENT, 1979. Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small; Medium and Large Establishments) INDONESIA ACEH NORTH SUMATRA WEST SUMATRA RIAU Industry Value- Value- VA Province Location Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 756,598 1,777 0.002349 0.15 36,221 0.047874 0.76 2,022 0.002672 0.13 3,551 0.004693 0.20 32 234,698 13 0.000055 0.00 1,730 0.007371 0.12 1,149 0.004896 o.25 94 0.000401 0.02 33 91,962 692 0.007525 0.49 6,353 0.069083 1.09 713 0.007753 0.39 2,079 0.022607 0.98 34 53,177 67 0.001260 0.08 1,957 0.036802 0.58 458 0.008613 0.43 62 0.001166 0.05 35 273,237 286 0.001047 0.07 20,789 0.076084 1.21 2,524 0.009237 0.47 3,511 0.012850 0.56 1 36 133,586 336 0.002515 0.16 1,018 0.007621 0.12 5,418 0.040558 2.05 46 0.000344 0.01 . 37 59,145 0 0 0 420 0.007101 0.11 0 0 0 0 0 0 38 237,839 37 0.000156 0.01 6,231 0.026198 0.42 914 0.003843 0.19 773 0.003250 0.14 39 6,690 120 0.017937 1.16 32b 0.048729 0.77 1 0.000149 0.01 119 0.017788 0.77 TOTAL 1,846,932 3,328 0.001802 0.12 75,045 0.040632 0.64 13,199 0.007146 0.36 10,235 0.005542 0.24 /a The Value-added figures are in millions of rupiahs. The location quotients equlal VA industry i i4 Province j . CRDP minua mining and quarrylatg VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. Source Value-Added, GRDP and GDP data from Biro Pusat Statistik. m 0 x Provinciai lnLustri.i Deve-opmcnt in 1,79 as Measured by Value-Added in Market Price /a (Small, Medium and Large Establishments) JAMBI BENGKULU SOUTH SUMATRA LAMPUNG Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 86o 0.001145 0.11 18 0.000024 0.01 6,146 0.008126 0.19 13,251 0.017514 0.65 32 0 0 0 0 0 0 433 0.001845 0.04 0 0 0 33 2,692 O.Oz9273 2.7. 3.9 0.00357b 0.89 4,495 0.048835 1.12 727 0.007905 0.29 34 33 0.000621 0.06 19 0.000357 0.09 117 0.002200 0.05 0 0 0 35 3,300 O.i0270 1.13 0 0 0 60,3,o 0.220900 5.06 4,919 0.018003 0.67 36 460 0.003443 0.32 93 0.000696 0.17 2,133 0.015967 0.37 988 0.007396 0.28 37 0 0 0 0 0 0 0 0 0 0 0 0 38 191 0.000803 0.08 12 0.000050 0.01 1,843 0.007749 0.18 1,476 0.006206 0.23 39 0 0 0 0 0 0 .8 0.001196 0.03 0 0 0 TOTAL 7,542 0.004084 0.38 472 0.000256 0.06 75,532 0.040896 0.94 21,361 0.011566 0.43 /a The Value-added figures are in million,s of rupiahs. The location quotients equal VA industry i in Province j . tRDP minus mining and quarrying VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. Source Value-Adoed, GRDP and GDP data irom Biro Pusat Statistik. I H Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (ml,Medium. arid I.arge. Establishm,ents, DiI JAKARTA WEST JAVA CENTRAL JAVA Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indornesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 43,402 0,057365 0.46 93,804 0.123981 0.88 162,429 0.214683 1.63 32 44,455 0.189414 1.53 83,674 0.356518 2.53 64,015 0.272755 2.07 33 3,830 0.041648 0.33 5,205 0.056599 0.40 6,200 0.067419 0.51 34 25,883 0.466733 3.94 8,505 0.159938 1.13 3,760 0.070707 0.54 35 52,793 0.193213 1.56 76,669 0.280595 1.99 7,313 0.026764 0.20 36 25,584 0.191517 1.55 46,245 0.346181 2.45 18,375 0.137552 1.04 37 16,944 0.286482 2.32 40,336 0.681985 4.83 205 0.003466 0.03 38 138,596 0.582730 4.72 35,719 0.150181 1.06 14,081 0.059204 0.45 39 1,038 0.155157 1.26 3,030 0.452915 3.21 710 0.106129 0.81 TOTAL 352,525 0.190870 1.55 393,187 0.212789 1.51 277.089 0.150027 l1l4 /a The Value-addea figures are in millions of rupiahs. iTe location quotients equal VA industry i in Province j , GRDP minus mining and quarrying VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. 1<1 HI>I> Source : Value-Added, GRDP and GDP eata from Biro Pusat Statistil. M t Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small, Medium and Large Establishments) YOGYAKARTA EAST JAVA Industry Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient 31 11,620 0.015358 1.24 355,324 0.469634 2.58 32 8,178 0.034845 2.82 29,261 0.124675 0.68 33 867 0.009428 0.76 14,858 0.161567 0.89 34 697 0.013107 1.06 9,182 0.172669 0.95 35 411 0.001504 0.12 23,951 0.087657 0.48 36 691 0.005173 0.42 27,480 0.205710 1.13 37 0 0 0 1,240 0.020965 0.11 38 1,121 0.004713 0.38 32,408 0.136260 0.75 39 376 0.056203 4.56 526 0.078625 0.43 TOTAL 23,961 0.012973 1.05 494,230 0.267595 1.47 /a The Value-added figures are in millions of rupiahs. The location quotients equal VA industry I in Province j . GRDP minus mining and quarrying VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. e Source Value-Added, GRDP and GDP data from Biro Pusat Statistik. 4-, Provincial Industrial Development in 1979 as Measured by Value--Added in Market Price /a (Small, Medium and Large Establishments) B A L I WEST NUSA TENGGARA EAST NUSA TENGGARA Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 3,962 0.005236 0.37 2,825 0.003734 0.36 256 0.000338 0.03 32 618 0.002633 0.19 55 0.000234 0.02 284 0.001210 0.12 33 1,822 0.019812 1.40 214 0.002327 0.22 86 0.000935 0.09 34 83 0.001561 0.11 82 0.001542 0.15 86 0.001617 0.16 35 31 0.000113 0.01 7 0.000026 0 1 0.000004 0 36 553 0.004140 0.29 854 0.006393 0.62 169 0.001265 0.12 37 0 0 0 0 0 0 0 0 0 38 36 0.000151 0.01 48 0.000202 0.02 10 0.000042 0 39 24 0.003587 0.25 4 0.000598 0.06 0 0 0 TOTAL 7,129 0.003860 0.27 4,089 0.002214 0.21 892 0.000483 0.05 /a The Value-added figures are in millions of rupiahs. The location niintients eqoual vA industry i in Pr ce - GRDP mi.us mi.r, and quarrying VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. Source : Value-Added, GRDP and GDP data from Biro Pusat Statistik. 'L n Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small, Medium and Large Establishments) _ WEST KALIMANTAN SOUTH KALIMANTAN Industry Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient 31 1,965 0.002597 0.16 1,308 0.001729 0.11 32 4 0.000017 0 0 0 0 33 16,183 0.175975 10.84 6,551 0.071236 4.72 34 71 0.001335 0.08 314 0.005905 0.39 35 13,415 0.049097 3.02 1,882 0.006888 0.46 36 117 0.000876 0.05 0 0 0 37 0 0 0 0 0 0 oo 38 353 0.001484 0.09 29 0.000122 0.01 39 0 0 0 .38 0.005680 0.38 TOTAL 32,108 0.017385 1.07 10,122 0.005480 0.36 /a The Value-added figures are in millions of rupiahs. The location quotients equal VA industry i in Province j . fRDP minus mining and quarrying VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. ,X Source Value-Added, GRDP and GDP data from Biro Pusat Statistik. l t Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small, Medium and Large Establishments) CENTRAL KALIMANTAN EAST KALIMANTAN NORTH SULAW--S1 Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 978 0.001293 0.13 502 0.000663 0.02 4,323 0.005714 0.35 32 0 0 0 56 0.000239 0.01 1 0.000004 0 33 8,728 0.094909 9.22 5,058 0.055001 1.41 1,180 0.012831 0.79 34 178 0.003347 0.33 32 0.000602 0.02 92 0.001730 0.11 35 706 0.002584 0.25 0 0 0 101 0.000370 0.02 36 100 0.000749 0.07 169 0.001265 0.03 143 0.001070 0.07 37 0 0 0 0 0 0 0 0 0 38 6 0.000025 0 176 0.000740 0.02 902 0.003792 0.23 39 0 0 0 8 0.001196 0.03 17 0.002541 0.16 TOTAL 10,696 0.005791 0.56 6,001 0.003249 0.08 6,759 0.003660 0.23 /a The Value-added figures are in millions of rupiahs. Tne location quotients equal VA Industry i in Province j . URDP minus mining and quarrying VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. a1 Soirce : Vnlnp-Aritipd GRD)P ttd GDnP deit from Birr P,,ate ttt-6 ll Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small, Medium and Large Establishments) CENTRAL SULAWESI SOUTH SULAWESI Industry Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient 31 217 0.000287 0.04 8,392 0.011092 0.28 32 3 0.000013 0 623 0.002655 0.07 33 283 0.003077 0.42 854 0.009286 0.24 34 54 0.001016 0,14 1,086 0.020422 0.52 35 0 0 0 162 0.000593 0.02 36 63 0.000472 0.06 2,286 0.017113 0.44 37 0 0 0 0 0 0 1 38 20 0.000084 0.01 2,614 0.010991 0.28 39 3 0.000448 0.06 340 0.050822 1.30 TOTAL 643 0.000348 0.05 16,356 0.008856 0.23 /a The Value-added figures are in millions of rupiahs. The location quotients equal VA industry i in Province j . QRDP minus mining and quarrying VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. Source Value-Added, GRDP and GDP data from Biro Pusat Statistik. rD I-(D D X m X OD Provincial Industrial Development in 1979 as Measured by Value-Added in Market Priee In (Small, Medium and Large Establishments) SOUTH EAST SULAWESI M A L U K U IRIAN JAYA Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added 'VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 474 0.000626 0.20 849 0.001122 0.09 112 0.000148 0.02 32 5 0.000021 0.01 0 0 0.00 48 0.000205 0.02 33 1,420 0.015441 4.84 265 0.002882 0.23 280 0.003045 0.35 34 232 0.0043b3 1.37 15 0.000282 0.02 114 0.002138 0.25 35 - 14- 108 0.000395 0.03 0 0 0 36 116 0.000868 0.27 74 0.000554 0.04 73 0.000546 0.06 37 0 0 0 0 0 0 0 0 0 38 73 0.000307 0.10 58 0.000244 0.02 110 0.000462 0.05 1 39 0 0 0 0 0 0 0 0 0 TOTAL 2,320 0.001256 0.39 1,369 0.000741 0.06 737 0.000399 0.05 1 vQlue_-adeuu iiLgures are in miillons or rupiahs. TIhe location quotients equal VA industry i in Province j GRDP minus mining and quarrying VA industry i in Indonesia . of province j GDP minus mining and quarrying of Indonesia GRDP for W. Sumatra is estimated. Source: Value-Added, GRDP and GDP data from Biro Pusat Statistik. | 4 |d I-. Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Medium and Large Establishments) INDONESIA ACEH NORTH SUMATRA WEST SUMATRA RIAU Industry Value- Value- VA Province Location Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 674,109 1022 0.001516 0.10 30,415 0.045119 0,71 391 0.000580 0.03 2,007 0.002977 0.13 32 207,104 0 0 0 1,506 0.007271 0.12 339 0.001637 0.08 93 0.000449 0.02 33 62,704 442 0.007049 0.46 4,82b 0.076965 1.22 342 0.005454 0.28 2,052 0.032725 1.42 34 49,278 67 0.001360 0.09 1,493 0.030297 0.48 411 0.008340 0.42 55 0.001116 0.05 35 264,481 286 0.001081 0.07 20,184 0.076316 1.21 2,398 0.009067 0.46 3,487 0.013184 0.57 36 115,037 0 0 0 335 0M002912 0.05 5,016 0.043603 2.20 32 0.000278 0.01 37 59,145 0 0 0 420 0.007101 0.11 0 0 0 0 0 0 1. 38 223,688 0 0 0 5,184 0.023175 0.37 229 0.001024 0.05 99 0.000443 0.02 ; 39 4,914 92 0.018722 1.22 192 0.039072 0.62 0 0 0 0 0 0 TOTAL 1,660,459 1,910 0.001150 0.07 64,555 0.038878 0.62 9,126 0.005496 0.28 7,825 0.004713 0.20 /a The value-added figures are in millions of rupiah6. See footuote /a of Annex 2 Table 1 Source Value-added, GRDP and GDP data are from Biro Pusat Statistik. M x' D (D:H> Provil,ial Indubtial Development in 1979 as Measured by Value-Added in Market Price /a (Medium and Large Es tablishmen ts) JAMBI SOUITH SUMATPRA BErNGK7uLU LAMPUNG Industry Value- VA Piovince Location Value VA Province Location Value- VA Province Location Value- VA Piovince Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 270 0.00040± 0.04 5,0U. 0.00/514 0.17 0 0 0 6,767 0.010038 0.38 32 0 0 0 419 0.002023 0.15 0 0 0 0 0 0 33 2,1u9 0.034591 3.25 2,4,9 0.0.889i 0.8' 216 0.003445 0.86 349 0.005566 0.21 34 0 0 0 43 0.000873 0.02 0 0 0 0 0 0 35 3,292 0.012447 1.17 b6,28z 0.-,7926 5.2, 0 0 0 4,914 0.018580 0.69 36 0 0 0 1,306 0.011353 0.26 46 0.000400 0.10 81 0.000704 0.03 37 0 0 0 0 0 0 0 0 0 0 0 0 38 35 0.000157 0.01 858 0.003836 0.09 0 0 0 1,458 0.006518 0.24 39 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL 5,766 0.003473 0.33 70,412 0.042405 0.97 262 0.000158 0.04 13,569 0.008171 0.30 Thie vaiue-adced tigures are in millions of rupiat.s. See footnote /a of Annlex 1 Table 1 Source Value-added, GRDP and GDP data are from Biro Pusat Statistik. bOg'1t ImiI:ii{D HI 'l2.1 Provincial Inuustrial Development in 19,9 as Measured by Value-Added in Market Price /a (Necium and Large Establishments) DKI JAKARTA WESri JAVA Industry Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient 31 39,703 0.058897 0.48 78,854 0.116975 0.83 32_ 40,229 0.194245 1.5/ 77,687 0.375111 2.68 33 1,712 0.027303 0.22 2,391 0.038132 0.27 34 24,978 0.50b879 4.10 8,009 0.162527 1.15 35 50,432 0.190683 1.54 74,011 0.279835 1.98 36 24,395 0.212062 1.7. 42,472 0.369203 2.62 37 16,944 0.286482 2.32 40,336 0.681985 4.83 38 136,422 0.609876 4.94 34,118 0.152525 1.08 p 39 865 0.176028 1.43 2,753 0.560236 3.97 p TOTAL 335,680 0.202160 1.6L. 36,0631 0.217108 1.54 /a The value-adoed figures are in millions of rupiahs. See footnote /a of Annex 1 Table 1 Source Value-addeci, GRDP and GDP data are from Biro Pusat Statistik. CD CD CDX HCH 7~~~~~~~~~~~~~~~~~~~ Provincial lr.d0ustrial Development in 1979 as Measured by Value-Added in Market Price /a (Medium and Large Establishments) CENTRAL JAVA YCGYAKARTA EAST JAVA B A L I Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 152,083 0.225606 1.71 10,919 0.016198 1.31 337,512 0.500679 2.75 2,324 0.003448 0.24 32 51,946 0.250821 1.90 6,814 0.032901 2.67 27,099 0.130847 0.72 564 0.002723 0.19 33 1,785 0.028467 0.22 195 0.003078 0.25 9,144 0.145828 0.80 147 0.002344 0.17 34 3,450 0.070011 0.53 651 0.013211 1.07 8,765 0.177868 0.98 57 0.001157 0.08 35 6,770 0.025597 0.19 333 0.001259 0.10 21,800 0.082426 0.45 2 0.000008 0 36 16,198 0.140807 1.07 143 0.001243 0.10 22,997 0.199910 1.10 177 0.001537 0.11 37 205 0.003466 0.03 0 0 0 1,240 0.020965 0.11 0 0 0 38 11,650 0.052081 0.40 779 0.003483 0.28 29,411 0.131482 0.72 23 0.000102 0.01 39 503 0.102361 0.78 199 0.040497 3.28 288 0.058608 0.32 0 0 0 TOTAL 244,590 0.147303 1.12 20,031 0.012064 0.98 458,256 0.275982 1.51 3,293 0.001983 0.14 /a The value-added figures are in millions of rupiahs. See footnote /a of Annex 1 Table 1 SOurce . value-added, GRDP and GDP data are from Biro Pusat Statistik. KIPI 1N11 Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Medium and Large Establishments) WEST NLSA TENGGARA EAST NUSA TENGGARA WEST KALIMANTAN Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Adaed VA Indonesia Quotient Added VA Indonesia Quotient 31 692 0.001027 0.10 16 0.000024 0 262 0.000389 C.02 32 51 0.000246 0.02 0 0 0 0 0 0 33 81 0.001292 0.12 49 0.000781 0.08 15,941 0.254226 15.66 34 5 0.000101 0.01 84 0.001705 0.16 69 0.001400 0.09 4. 35 0 0 0 0 0 0 13,411 0.050707 3.12 O 36 88 0.000765 0.07 9 0.000078 0.01 117 0.001017 0.06 37 0 0 0 0 0 0 0 0 0 38 38 0.000170 0.02 6 0.000027 0 338 0.001511 0.09 39 0 0 0 0 0 0 0 0 0 TOTAL 955 0.000575 0.06 164 0.000099 0.01 30,137 0.018150 1.12 /a The value-added figures are in millions of rupiahs. See footnote /a of Annex 1 Table 1 Source Value-added, GRDP and GDP data are from Biro Pusat Statistik. (D r(D X(D H' - Provincial Inoustrial Development in 1979 as Measured by Value-Added in Market Price /a (Medium and Laige Establishments) SOUTH KALIMANTAN CENTRAL KALIMANTAN Industry Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Guotient Added VA Irndonesia Quotient 31 33 0.000049 0 1 0.000002 0 32 0 0 0 0 0 0 33 5,513 0.087921 5.82 7,677 0.122432 12.04 34 11 0.000223 0.01 51 0.000102 0.01 35 1,882 0.007116 0.47 706 0.002669 0.26 36 0 0 0 0 0 0 1 37 0 0 0 0 0 0 > 38 8 0.001319 0.09 0 0 0 39 5 0.000022 0 0 0 0 TOTAL 7,451 0.004487 0.30 8,390 0.005052 0.49 /a The value-added figures are in millions of rupiahs. See footnote /a of Annex 1 Table 1 Source Value-added, GRDP and GDP data are from Biro Pusat Statistik. MD F-D CD I x' x ON 0 Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Medium and Large Establishments) EAST KALLMANTAN NORTH SULAWESI CENTRAL SULAWESI Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 13 0.000019 0 2,323 0.003446 0.21 0 0 0 32 51 0.000246 0.01 0 0 0 2 0.000010 0 33 4,293 0.068465 1.75 13 0.000207 0.01 164 0.002615 0.36 34 0 0 0 80 0.001623 0.10 0 0 0 35 0 0 0 98 0.000371 0.02 0 0 0 36 91 0.000791 0.02 0 0 0 9 0.000078 0.01 37 0 0 0 0 0 0 0 0 0 1 38 57 0.000255 0.01 684 0.003058 0.19 0 0 0 0 39 0 0 0 17 0.003460 0.21 0 0 0 TOTAL 4,506 0.002714 0.07 3,214 0.001936 0.12 174 0.000105 0.01 /a The value-added figures are in millions of rupiahs. See footnote /a of Annex 1 Table 1 Source Value-added, GRDP and GDP data are from Biro Pusat Statistik. a,~D I~d (DS (D C D M M. < CD Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Medium anid Large Establishments) SOUTH SULAWESI SOUTH - EAST SULAWESI Industry Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient 31 2,665 0.003953 0.10 14 0.000021 0.01 32 303 0.001463 0.04 2 0.000010 0 33 161 0.002568 0.07 263 0.004194 1.32 34 1,029 0.020881 0.05 0 0 0 35 145 0.000548 0.01 0 0 0 36 1,480 0.012865 0.33 27 0.000235 0.07 1 37 0 0 0 0 0 0 > 38 2,178 0.009737 0.25 5 0.000022 0.01 39 0 0 -0 0 0 0 TOTAL 7,961 0.004794 0.12 311 0.000187 0.06 /a The value-added figures are in millions of rupiahs. See footnote /a of Ann-ex 1 Table 1 Source Value-added, GRDP and GDP data are from Biro Pusat Statistik. IrD H' s. Mx 00 ' Provincial industrial Development in 1979 as Measured by Value-Added in Market Price /a (Medium and Large Establishments) M A L U K U IRIAN JAYA Industry Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient 31 759 0.001126 0.09 0 0 0 32 0 0 0 0 0 - 33 147 0.002344 0.19 196 0.003126 0.36 34 0 0 0 18 0.000365 0.04 35 48 0.000181 0.01 0 0 0 36 1 0.000008 0.00 17 0.000148 0.02 37 0 0 0 0 0 0 38 0 0 0 109 0.000487 0.06 ° 39 0 0 0 0 0 0 TOTAL 956 0.000576 0.05 340 0.000205 0.02 /a The value-added figures are in millions of rupiahs. See footnote /a of Annex 1 Table 1 Source: Value-added, GRDP and GDP data are from Biro Pusat Statistik. ir a t r (D D g X Fx Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small Establishments) INDONESIA ACEH NORTH SUMATRA WEST SUMATRA Industry Value- Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 82,489 755 0.009153 0.59 5,806 0.070385 1.12 1,631 0.019772 0,00 32 27,594 13 0.000471 0.03 224 0.008118 0.13 810 0.029354 1.48 33 29,258 250 0.008545 0.55 1,527 0.052191 0.83 371 0.012680 0.64 34 3,899 0 0 0 464 0.119005 1.90 47 0.012054 0.61 35 8,756 0 0 0 605 0.069096 1.09 126 0.014390 0.73 36 18,549 336 0.018114 1.18 683 0.036821 0.59 402 0.021672 1.09 1 38 14,151 37 0.002615 0.17 1,047 0.073988 1.17 686 0.048477 2.44 39 1,776 28 0.015766 1.02 134 0.075451 1.20 1 0.000563 0.03 TOTAL 186,473 1,419 0.007610 0.49 10,490 0.056235 0.89 4,074 0.021848 1.10 /a The value-added figure are in million of rupiahs. See footnote /a of Annexl , Table 1. e 3> >t D- 0 CD XXQx I-M. Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small Establishments) R I A U J A M B I B E N G K U L U Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 1,544 0.018718 0.81 596 0.007225 0.68 18 0.000218 0.05 32 1 0.000036 0.00 0 0 0 0 0 0 33 27 0.000923 0.04 523 0.017875 1.68 113 0.003862 0.96 34 7 0.001795 0.08 33 0.008464 0.79 19 0.004873 1.21 35 24 0.002741 0.12 8 0.000914 0.09 0 0 0 36 14 0.000755 0.03 460 0.024799 2.33 47 0.002534 0.63 1 38 674 0.047629 2.07 157 0.011095 1.04 12 0.000848 0.21 39 119 0.067004 2.91 0 0 0 0 0 0 TOTAL 2,410 0.012924 0.56 1,777 0.009530 0.90 210 0.001126 0.28 /a The value-added figure are in million of rupiahs. See footnote /a of Annex 1i Table 1. (V CD CD Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (S--all Establis.hentsL J SOUTH SUMATRA L A M P U N G DKI JAKARTA Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 1,084 0.013141 0.30 6,484 0.078604 2.93 3,699 0.044842 0.36 32 14 0.000507 0.01 0 0 0 4,226 0.153149 1.24 33 2,052 0.000923 1.61 378 0.012919 0.48 2,118 0.072390 0.59 34 74 0.070135 0.43 0 0 0 905 0.232111 1.88 35 76 0.018979 0.20 5 0.000571 0.02 2,361 0.269644 2.18 36 827 0.008680 1.02 907 0.048897 1.82 1,189 0.064100 0.52 38 985 0.044585 1.59 19 0.001343 0.05 2,174 0.153629 1.24 39 8 0.069606 0.10 0 0 0 173 0.097410 0.79 TOTAL 5,120 0.004504 0.63 7,794 0.041797 1.56 16,844 0.090329 0.73 /a The value-added figure are in million of rupiahs. See footnote /a ofA.nnex 1, Table 1. x' Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small Establishments) WEST JAVA CENTRAL JAVA YOGYAKARTA Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 14,950 0.181236 1.28 10,347 0.125435 0.95 701 0.008498 0.69 32 5,987 0.216968 1.54 12,069 0.437378 3.32 1,364 0.049431 4.01 33 2,814 0.096179 0.68 4,416 0.150933 1.15 674 0.023036 1.87 34 495 0.127212 0.90 310 0.079508 0.60 46 0.011798 0.96 35 2,658 0.303563 2.15 543 0.062015 0.47 78 0.008908 0.72 36 3,773 0.203407 1.44 2,177 0.117365 0.89 548 0.029543 2.39 38 1,601 0.113137 0.80 2,431 0.171790 1.31 342 0.024170 1.96 39 277 0.155968 1.11 208 0.117117 0.89 178 0.100225 8.12 - TOTAL 32,556 0.174588 1.24 32,499 0.174283 1.32 3,932 0.021086 1.71 /a The value-added figure are in million of rupiahs. See footnote /a of A nnexl , Table 1. :IQ DS L S f-.> w CD Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a tSmall Establis.merts% EAST JAVA B A L I WEST NUSA TENGGARA Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 17,812 0.215932 1.18 1,638 0.019857 1.40 2,134 0.025870 2.49 32 2,162 0.078350 0.43 54 0.001957 0.14 4 0.000145 0.01 33 5,714 0.195297 1.07 1,675 0.057249 4.05 133 0.004546 0.44 34 417 0.106951 0.59 26 0.006668 0.47 78 0.0200051 1.92 35 2,151 0.245660 1.35 29 0.003120 0.22 7 0.000799 0.08 36 4,483 0.241684 1.33 376 0.020271 1.43 766 0.041296 3.97 1 38 2,997 0.211787 1.17 13 0.000919 0.06 10 0.000707 0.07 @ 39 238 0.134009 0.73 24 0.013513 0.96 4 0.002252 0.22 TOTAL 35,974 0.193918 1.06 3,835 0.020566 1.45 3,136 0.016817 1.62 /a The value-added figure are in million of rupiahs. See footnote /a of Annex 1 Table 1. mtl xl 0" C Lo-. C Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small Establishments) EAST NUSA TENGGARA WEST KALIMANTAN SOUTH KALIMANTAN Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 240 0.002910 0.28 1,703 0.020645 1.27 1,275 0.015457 1.02 32 284 0.010292 0.99 4 0.000145 0.01 0 0 0 33 37 0.001265 0.12 242 0.008271 0.51 1,038 0.035478 2.35 34 2 0.000513 0.05 2 0.000513 0.03 303 0.077712 5.14 35 1 0.000114 0.01 4 0.000457 0.03 0 0 0 36 161 0.008680 0.84 0 0 0 0 0 0 1 38 4 0.000283 0.03 15 0.001060 0.07 21 0.001484 0.10 U 39 0 0 0 0 0 0 33 0.018581 1.23 0' TOTAL 729 0.003909 0.38 1,970 0.010565 0.65 2,669 0.014313 0.95 /a The value-added figure are in million of rupiahs. See footnote /a of Annex 1, Table 1. Mp k(( O O( Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small Establishments) CENTRAL KALIMANTAN EAST KALIMANTAN NORTH SULAWESI Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia Quotient 31 977 0.011844 1.15 489 0.005928 0.15 2,000 0.024246 1.50 32 1 0.000036 0.00 5 0.000181 0.00 1 0.000036 0.00 33 1,051 0.035922 3.50 765 0.026147 0.67 1,167 0.039886 2.46 34 173 0.044370 4.32 32 0.008207 0.21 12 0.003078 0.19 35 0 0 0 0 0 0 4 0.000457 0.03 36 100 0.005391 0.52 79 0.004259 0.11 143 0.007709 0.48 38 6 0.000424 0.04 120 0.008480 0.22 218 0.015405 0.95 :1 39 0 0 0 8 0.004504 0.12 0 0 0 TOTAL 2,308 0.012377 l.zU 1,49Y 0.008028 0.21 3,544 0.019005 1.17 ITed igure aie £11 ui±±ioi o i uJiar. See footnote /a or Annex I, Table 1. tD I- (D a _, X x' Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price Ia (Small Establishments) SOUTH EAST SULAWESI CENTRAL SULAWESI SOUTH SULAWESI Industry Value- VA Province Location Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Quotient Added VA Indonesia quotient 31 460 0.005577 1.75 217 0.002631 0.36 5,727 0.069427 1.78 32 3 0.000109 0.03 2 0.000073 0.01 320 0.011597 0.30 33 1,157 0.039545 12.41 119 0.004067 0.56 693 0.023686 0.60 34 232 0.059502 18.67 54 0.013850 1.89 57 0.014619 0.37 35 0 0 0 0 0 0 17 0.001941 0.05 36 89 0.004798 1.51 54 0.002911 0.40 806 0.043452 1.i1 1 uL 38 68 0.004805 1.51 20 0,001413 0.19 436 0.030810 0.79 c 39 0 0 0 3 0.001689 0.23 340 0.191441 4.89 TOTAL 2,010 0.010779 3.38 469 0.002515 0.34 8,394 0.045015 1.15 /a The value-added figure are in million of rupiahs. See footnote /a of Annex 1, Table 1. -' (D LX cy xr Provincial Industrial Development in 1979 as Measured by Value-Added in Market Price /a (Small Establishments) M O L U C C A S IRIAN JAYA Industry Value- VA Province Location Value- VA Province Location Code Added VA Indonesia Quotient Added VA Indonesia Qjuotient 31 90 0.001091 0.08 113 0.001370 0.16 32 0 0 0 48 0.001740 0.20 33 118 0.004033 0.32 84 0.002871 0.33 34 15 0.003847 0.31 96 0.024622 2.87 35 61 0.006967 0.56 0 0 0 36 73 0.003935 0.32 56 0.003019 0.35 38 58 0.004099 0.33 1 0.000071 0.01 1 39 0 0 0 0 0 0 m' TOTAL 415 0.002226 0.18 398 0.002134 0.25 /a The value-added figure are in million of rupiahs. See footnote /a of Annex 1, Table 1. > eD Cr >t : F" @ DX' Provincial Industrial Development in 1979 as Measured by Employment /a (Small, Medium and large Manufacturing Establishments) /c INDONESIA ACEH NORTH SUMATRA WEST SUMATRA RIAU Industry No. No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees Employees No.Empl.Ind. Quotient Employees No.empl.Ind. Ouotient Employees No.empl.Ind, Quotient Employees No.empl.T-d. Quotient 31 701,958 4,088 0.00582 0.34 17,864 0.02545' 0.45 10,189 0.01452 0.67 5,670 0.00808 0.68 32 319,189 396 0.00124 0.07 3,307 0.01036 0.18 4,878 0.01528 0.70 117 0.00036 0.03 33 162,153 2,010 0.01240 0.72 12,755 0.07866 1.38 1,649 0.01017 0.47 2,242 0.01382 1.16 34 41,807 36 0.00086 0.05 1,899 0.04542 0.80 354 0.00847 0.39 87 0.00208 0.17 35 121 ,166 116 0.0009b 0.06 11,836 0.09768 1.71 1,390 0.01147 0.53 1,984 0.01637 1.38 36 179,256 674 0.00376 0.22 3,009 0.01679 0.29 3,975 0.02218 1.02 114 0.00064 0.05 37 /b 8,247 0 0 0 373 0.04508 0.79 0 0 0 0 0 0 1 38 155,213 165 0.00606 0.35 6,606 0.04256 0.75 7,009 0.04515 2.07 1,759 0.01133 0.95 c 39 14,634 644 0.04401 2.56 821 0.05610 0.98 5 0.00034 0.02 727 0.04968 4.17 1 TOTAL 1,703,623 8,129 0.00477 0.28 58,470 0.03432 0.60 29,449 0.01729 0.79 12,660 0.00743 0.62 /a The location quotient is No. Employees in industry i in region j * Total No. of employees in region j No. Employees in industry i in Indonesia Total No. of employees in Indonesia The location quotients for Maluicu and Irian Jaya are overestimated because the ratios of total No. of employees in these provinces to total no. of employees in Indonesia are underestimated, because of insufficient coverage. /b There were no small establishment in this industry. /c Small, medium and large establishments have 5 or more paid or unpaid employees. source: Data on the total number of employees by province and for Indonesia are from Biro Pusat Statistik, Statistik Indonesia 1980/1981, pp.90-91. The data are for 1978. Other data are from Biro Pusat Statistik. IPI >1 1 ' m' xo Provincial Industrial Development in 1979 as Measured by Employment /a {Stall, Medium ar.d Large Manufacturing Establishments t 3 A M B I SOUTH B E N G S T U L U L A M P U N G Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl.T0d. Quotient Employees No.empl.Ind. Quotient Employees No.empl.Ind. Quotient Employees No.emp1.T,d Quotient 31 2,938 0.00419 0.56 7,695 0.01096 0.40 90 0.00013 0.03 37,692 0.05370 2.14 32 7 0.00002 0.00 905 0.00283 0.10 0 0 0 0 0 0 33 3,122 0.01925 2.56 5,261 0.03244 1.20 252 0.00155 0237 1,644 0.01014 0.40 34 54 0.00129 0.17 281 0.00672 0.24 32 0.00076 0.18 0 0 0 35 2,607 0.02152 2.86 10,359 0.08549 3.15 0 0 0 963 0.00794 0.31 36 1,533 0.00855 1.14 2,963 0.01653 0.61 258 0.00144 0.34 10,575 0.05899 2.35 37 /b 0 0 0 0 0 0 0 0 0 0 0 0 38 243 0.00156 0.21 887 0.00571 0.21 49 0.00031 0.07 1,407 0.00906 0.36 w 39 0 0 0 39 0.00266 0.10 0 0 0 6 0.00041 0.02 TOTAL 10,504 0.00617 0.82 33,968 0.01994 0.74 681 0.00040 0.10 27,883 0.01637 0.65 The location quotient is No. Employees in industry i in region j Total No. of employees in region j No. Employees in industry i in Indonesia Total No. of employees in Indonesia The location quotients for Maluicu and Irian Jaya are overestimated because the ratios of total No. of employees in these provinces to total no. of employees in Indonesia are underestimated because of insufficient coverage- /b There were r.o small .stablisFmer.t in this industry. /c Small, medium and large establishments have 5 or more paid of unpaid employees. source: Data on the total number of employees by province and for Indonesia are from Biro Pusat Statistik, Statistik Indonesia 1980/1981, pp.90-91. The data are for 1978. Other data are from Biro Pusat Statistik. CD CD C 4.1 FI F| a KR:oxl Provincial Industrial Development in 1979 as Measured by Employment /a (Small, Medium and Large Manufacturing Establishments) /c DKI JAKARTA WEST JAVA CENTRAL JAVA YOGYAKARTA Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl.T1n. Quotient Employees No.empl.Ind. Quotient Employees No.empl.Ind. Quotient Employees No.empl.T,d. Quotient 31 21,439 0.03054 0.88 91,228 0.12996 0.73 151,096 0.21525 1.07 7,578 0.01080 0.38 32 35,596 0.11152 3.21 110,851 0.34729 1.96 105,362 0.33009 1.65 12,592 0.03945 1.40 33 6,789 0.04187 1.20 12,922 0.07969 0.45 25,293 0.15598 0.78 4,910 0.03028 1.08 34 12,245 0.29289 8.43 8,264 0.19767 1.12 6,178 0.14777 0.74 1,141 0.02729 0.97 35 29,417 0.24279 6.99 22,220 0.18338 1.04 12,577 0.10380 0.52 370 0.00305 0.11 36 11,017 0.06251 1.80 35,492 0.20137 1.14 20,021 0.11359 0.57 5,753 0.03264 1.16 1 37 /b 2,232 0.07064 7.79 3,939 0.47763 2.70 371 0.04499 0.22 0 0 0 38 53,113 0.34219 9.85 23,116 0.14893 0.84 13,988 0.09012 0.45 2,819 0.01816 0.65 39 1,504 0.10277 2.96 3,639 0.24867 1.40 2,606 0.17808 0.89 1,423 0.09724 3.46 TOTAL 173,352 0.10175 2.93 311,671 0.18295 1.03 337,492 0.19810 0.99 36,586 0.02148 0.76 The location quotient is No. Employees in industry i in region j Total No. of employees in region j No. Employees in industry i in Indonesia * Total No. of employees in Indonesia The location quotients for Maluicu and Irian Jaya are overestimated because the ratios of total No. of employees in these provinces to total no. of employees in Indonesia are underestimated because of insufficient coverage. /b There were no small establishment in this industry. /c Small, medium and large establishments have 5 or more paid of unpaid employees. source: Data on the total number of employees by province and for Indonesia are from Biro Pusat Statistik, Statistik Indonesia 1980/1981, pp.90-91. The data are for 1978. Other data are from Biro Pusat Statistik. H Provincial Industrial Development in 1979 as Measured bv EmDlovment /a (Small, Medium and Large Manufacturing Establishments) /c EAST JAVA B A L I WEST NUSA TENGGARA EAST NUSA TENGGARA Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl.Ind. Quotient Employees No.empl.Ind. Quotient Employees No.empl.Ind. Quotient Employees No.empl.Ind. Quotient 31 237,583 0.33846 1.52 8,225 0.01172 0.61 20,296 0.02891 1.42 440 0.00063 0.03 32 37,680 0.11805 0.53 2,436 0.00763 0.40 214 0.00067 0.03 1,406 0.00440 0.21 33 34,310 0.21159 0.95 9,859 0.06080 3.16 892 0.00550 0.27 446 0.00275 0.13 34 8,397 0.20085 0.90 175 0.00419 0.22 140 0.00335 0.16 166 0.00397 0.19 35 22,578 0.18634 0.84 153 0.00126 0.07 21 0.00017 0.01 6 0.00005 0.00 36 60,687 0.33855 1.52 3,591 0.02003 1.04 8,221 0.04586 2.25 994 0.00555 0.27 37 /b 1,332 0.16151 0.73 0 0 0 0 0 0 0 0 0 38 29,610 0.19077 0.86 71 0.00046 0.02 135 0.00087 0.04 49 0.00032 0.02 39 2,281 0.15577 0.70 980 0.06693 3.48 30 0.00205 0.10 0 0 0 TOTAL 434,438 0.25501 1.15 24,755 0.014531 0.76 29,922 0.01756 0.86 3,507 0.00206 0.10 /a The location quotient is No. Employees in industry i in region j Total No. of employees in region j No. Employees in industry i in Indonesia . Total No. of employees in Indonesia The location quotients for Maluica and Irian Jaya are overestimated becadse the ratios of total No. of employees In the,e provinces to total no. of employees in Indonesia are underestimated because of insufficient coverage. /b There were no small establishment in this industry. /c Small, medium and large establishments have 5 or more paid of unpaid employees. source: Data on the total number of employees by province and for Indonesia are from Biro Pusat Statistik, Statistik Indonesia 1980/1981, pp.90-91. The data are for 1978. Other data are from Biro Pusat Statistik. >1 0 a v- (b t x Provincial Industrial Development in 1979 as Measured by Employment /a (Small, Medium and Large Manufacturing Establishments) /c WEST KALIMANTAN CENTRAL KALIMANTAN SOUTH KALIMANTAN EAST KALIMANTAN Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl. Ind. Quotient Employees No.empl. Ind. Quotient Employees No.empl.Ind Quotient Employees No.empl.Ind . Quotient 31 5,295 0.00754 0.40 1,614 0.00230 0.34 5,925 0.00844 0.57 470 0.00067 0.10 32 16 0.00005 0.00 5 0.00002 0.00 0 0 0 78 0.00024 0.04 33 7,268 0.04482 2.40 5,137 0.03168 4.66 7,726 0.04765 3.21 3,658 0.02256 3.53 34 67 0.00160 0.09 97 0.00232 0.34 218 0.00521 0.35 58 0.00139 0.22 35 2,575 0.02125 1.14 608 0.00502 0.74 1,158 0.00956 0.64 0 0 0 36 97 0.00054 0.03 260 0.00145 0.21 0 0 0 345 0.00192 0.30 37 /b 0 0 0 0 0 0 0 0 0 0 0 0 38 184 0.00119 0.06 12 0.00008 0.01 89 0.00057 0.04 341 0.00220 0.34 4 39 0 0 0 0 0 0 333 0.02274 1.53 77 0.00526 0.82 TOTAL 15,502 0.00910 0.49 7,733 0.00454 0.67 15,449 0.00907 0.61 5,027 0.00295 0.46 /a The location quotient is No. Employees in industry i in region j Total No. of employees in region j No. Employees in industry i in Indonesia Total No. of employees in Indonesia The location quotients for Maluica and Irian Jaya are overestimated because the ratios of total No. of employees in theae provinces to total no. of employees in Indonesia are underestimated because of insufficient coverage. /b Thera were no small establishment in this industry. /c Small, medium and large establishments have 5 or more paid of unpaid employees. source: Data on the total number of employees by province and for Indonesia are from Biro Pusat Statistik, Statistik Indonesia 1980/1981, pp.90-91. The data are for 1978. Other data are from Biro Pusat Statistik. mai mA (nD xro p.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 Provincial Industrial Development in 1979 as Measured by Employment /a (Smali, Medium and Large Manufacturing Establishments) /c NORTH SULAWESI CENTRAL SULAWESI SOUTH SULAWESI Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl.Ind. Quotient Employees No.emplInd,. Quotient Employees No.empllnd . Quotient 31 29,661 0.04225 3.77 5,504 0.00784 0.15 14,117 0.02011 0.61 32 30 0.00009 0.01 92 0.00029 0.04 3,081 0.00965 0.29 33 2,211 0.01364 1.22 914 0.00564 0.83 3,209 0.01979 0.60 34 136 0.00325 0.29 119 0.00285 0.42 1,216 0.02902 0.88 35 104 0.00086 0.08 0 0 0 123 0.00102 0.03 36 1,644 0.00917 0.82 241 0.00134 0.20 4,662 0.02601 0.79 37 /b 0 0 0 0 0 0 0 0 0 38 1,736 0.01118 1.00 3,061 0.01972 2.90 2,078 0.01339 0.41 39 17 0.00116 0.10 142 0.00970 1.43 95 0.00649 0.20 TOTAL 35,539 0.02086 1.86 10,073 0.00591 0.87 28.581 O.01f;7 0.R /a The location quotient is No. Employees in industry i in region j * Total No. of employees in region i No. Employees in industry i in Indonesia Total No. of employees in Indonesia The location quotients for Maluica and Irian Jaya are overestimated because the ratios of total No. of employees in these provinces to total no. of employees in Indonesia are underestimatedbecause of insufficient coverage. /b There were no small establishment in this industry. /c Small, medium and large establishments have 5 or more paid of unpaid employees. source: Data on the total number of employees by province and for Indonesia are from Biro Pusat Statistik, Statistik Indonesia 1980/1981, pp.90-91. - - The data are for 1978. Other data are from Biro Pusat Statistik. Cm I- DC aj.0 Provincial Industrial Development in 1979 as Measured by Enployment /a (Small, Medium and Large Manufacturing Establishments' /c SOUiH EAST SULAWESI M 0 L U C C A S IRIAN JAYA Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl.Ind. Quotient Employees No.empl.Ind. Quotient Employees No.empl.Ind. Quotient 31 14,288 0.02035 4.18 766 0.00109 0.55 227 0.00032 0.98 32 65 0.00020 0.04 11 0.00003 0.02 64 0.00020 0.61 33 5,900 0.03639 7.46 1,021 0.00630 3.16 753 0.00464 14.12 34 308 0.00737 1.51 24 0.00057 0.29 115 0.00275 8.36 35 0 0 0 41 0.00034 0.17 0 0 0 36 2,351 0.01312 2.69 587 0.00327 1.64 192 0.00107 3.26 37 /b 0 0 0 0 0 0 0 0 0 1 38 570 0.003u7 0.75 121 0.00078 0.39 417 0.00269 8.17 v 39 0 0 0 0 0 0 0 0 0 TOTAL 23,482 0.01378 2.83 2,571 0.00151 0.76 1,768 0.00104 3.16 /a The location quotient is No. Employees in industry i in region j _ Total No. of employees in region j No. Enployees in industry i in Indonesia Total No. of employees in Indonesia The location quotients for Maluica and Irian Jaya are overestimated because the ratios of total No. of employees in these provinces to total no. of employees in Indonesia are underestimated because of insufficient coverage. /b There were no small establishment in this industry. /c Small, medium and large establishments have 5 or more paid of unpaid employees. source: Data on the total number of employees by province and for Indonesia are from Biro Pusat Statistik, Statistik Indonesia 1980/1981, pp.90-91. The data are for 1978. Other data are from Biro Pusat Statistik. m S S3> hz P wK p. Hrt r (DX' Provincial Industrial Development in 1979 as Measured by Employment /a (Medium and Large Manufacturing Establishments) /b INDONESIA ACER NORTH SUMATRA WEST SUMATRA RIAU Industry No. No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees Employees No.Empl. Ind. Quotient Employees No.empl.Ind.. Quotient Employees No.emplInd,. Quotient Employees No.empl.Ind,. Quotient 31 298,441 1,735 0.00581 0.34 7,680 0.02573 0.45 901 0.00302 0.14 1,132 0.00379 0.32 32 227,787 0 0 0 2,586 0.01135 0.20 737 0.00323 0.15 101 0.00044 0.04 33 51,221 994 0.01941 1.13 6,143 0.11993 2.10 449 0.00876 0.40 2,130 0.04158 3.50 34 29,876 36 0.00120 0.07 1,298 0.04344 0.76 243 0.00813 0.37 66 0.00221 0.19 35 103,803 116 0.00112 0.07 10,506 0.01024 1.78 1,183 0.o1iAo 0.52 1,856 0.01788 1.50 36 43,027 0 0 0 816 0.01896 0.33 1,808 0.04202 1.93 79 0.00184 0.15 1 37 8,247 0 0 0 373 0.04508 0.79 0 0 0 0 0 0 38 105,686 0 0 0 3,819 0.03613 0.63 227 0.002148 0.10 102 0.00097 0.08 39 5,958 205 0.03441 2.00 282 0.04733 0.83 0 0 0 0 0 0 TOTAL 874,046 3,086 0.00353 0.21 33,503 0.03833 0.67 5,548 0.00635 0.29 5,466 0.00625 0.53 /a Same as footnote /a of Annex -, Table 4. /b Medium and Large establishments are defered as establishment having 20 or more paid and unpaid employees. Source Same as Annex 1, Table 4. WV I CD1 la Ix Provincial Industrial Development in 1979 as Measured by Employment /a (Medium and Large Manufacturing Establishments) /b J A M B I SOUTH SUMATRA B E N G K U L U LAMPUNG Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Emnployees No.EmP1.nd. Quotient Employees No.empl.Ind. Quotient Employees No.empl.Ind. Quotient mployees No.empl.Ind. Quotient 31 160 0.00054 0.07 771 0.00258 0.10 0 0 0 2,032 0.00681 0.27 32 0 0 0 844 0.00370 0.14 0 0 0 0 0 0 33 2,259 0.04410 5.86 2,917 0.05695 2.10 56 0.00109 0.26 523 0.01021 0.41 34 0 0 0 149 0.00499 0.18 0 0 0 0 0 0 35 2,566 0.02472 3.29 10,092 0.09722 3.59 0 0 0 895 0.00862 0.34 36 0 0 0 1,429 0.03321 1.23 97 0.00225 0.54 139 0.00323 0.13 1 37 0 0 0 0 0 0 0 0 0 0 0 0 a, 38 55 0.00052 0.07 848 0.00802 0.30 0 0 0 350 0.00331 0.13 0 39 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL 5,040 0.00577 0.77 17,050 0.01951 0.72 153 0.00018 0.04 3,939 0.00451 0.18 /a Same as footnote /a of Annex 1, Table 4. /b Medium and Large establishments are defered as establishment having 20 or more paid and unpaid employees. Source Same as Annex 1, Table 4. m jx I-.r>1 Provinciai Industrial Development in 1979 as Measured by Employment /a (Medium and Large Manufacturing Establishlments) /'b DKI JAVA ART SWLT JAVA CENTRAL JAVA YOGYAKARTA Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl.Ind. Quotient Employees No.empl.Ind. Quotient Employees No.empl.Ind. Quotient Employees No.empllnd. Quotient 31 12,578 0.04215 1.21 22,399 0.07505 0.43 79,292 0.26569 1.32 4,044 0.01355 0.48 32 29,576 0.12984 3.74 89,648 0.39356 2.22 67,025 0.29424 1.46 7,013 0.03078 1.10 33 2,458 0.04799 1.38 2,459 0.04801 0.27 2,651 0.05176 0.26 530 0.01034 0.37 34 9,892 0.33110 9.53 6,292 0.21060 1.19 4,348 0.14553 0.72 884 0.02969 1.05 35 25,680 0.24739 7.12 19,117 0.18417 1.04 10,634 0.10244 0.51 249 0.00239 0.08 36 8,532 0.19829 5.71 10,744 0.24970 1.41 4,210 0.09795 0.49 457 0.01062 0.38 37 2,232 0.27064 7.79 3,939 0.477t,3 2.70 371 0.04499 0.22 0 0 0 38 49,972 0.47283 13.61 18,528 0.17531 1.00 6,737 0.06374 0.32 1,280 0.01211 0.43 39 975 0.16364 4.71 1,696 0.28466 1.61 1,412 0.23700 1.18 619 0.10389 3.70 TOTAL 141,895 0.16234 4.67 174,822 0.20001 1.13 176,680 0.20214 1.01 15,076 0.01725 0.61 /a Same as footnote /a of Annex 1, Table 4. /b hedium and Large establishments are defered as establishment having 20 or more paid and unpaid employees. Source Same as Annex 1, Table 4. am mn ! 0¢ll Provincial Industrial Development in 1979 as Measured by Employment /a (Medium and Large Manufacturing Establishments) /b EAST JAVA B A L I WEST NUSA TENGGARA EAST NUSA TENGGARA Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl. Ind. Quotient Employees No.empl. Ind. Quotient Employees No.emplJnd . Quotient Employees No.empllnd . Quotient 31 157,121 0.52647 2.37 2,791 0.00935 0.49 1,796 0.00602 0.30 60 0.00020 0.01 32 27,112 0.11902 0.53 2,108 0.00925 0.48 194 0.00085 0.04 0 0 0 33 6,404 0.12503 0.5o 363 0.00708 0.37 191 0.00373 0.18 328 0.00640 0.31 34 5,166 0.17291 0.78 68 0.00227 0.12 21 0.00070 0.03 147 0.00492 0.24 35 16,381 0.15781 0.71 61 0.00059 0.03 0 0 0 0 0 0 36 11,991 0.27869 1.25 340 0.00790 0.41 296 0.00688 0.34 45 0.00105 0.05 37 1,332 0.16151 0.73 0 0 0 0 0 0 0 0 0 38 21,862 0.20685 0.93 45 0.000426 0.02 37 0.00035 0.02 38 0.00036 0.02 o 39 735 0.12336 0.55 0 0 0 0 0 0 0 0 0 TOTAL 248,104 0.28386 1.28 5,776 0.00661 0.34 2,535 0.00290 0.14 618 0.00071 0.03 /a Same as footnote /a of Annex 1, Table 4. /b Medium and Large establishments are defered as establishmeoL having 20 or more paid and unpaid employees. Source Same as Annex 1, Table 4. no 1m n Provincial lndustrial Development in 1979 as Measured by Employment /a (Medium and Large Manufacturing Establishments) /b WEST KALIMANTAN CENTRAL KALIMANTAN SOUTH KALIMANTAN EAST KALIMANTAN Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl. d. OQuotient Employees No.empl. Ind. Quotient Employees No.empllnd . Quotient Employees No.empl.Ind,. Quotient 31 142 0.00048 0.03 12 0.00004 0.01 74 0.00025 0.02 18 0.00006 0.01 32 0 0 0 0 0 0 0 0 0 55 0.00024 0.04 33 6,534 0.12756 6.82 2,811 0.05488 8.06 5,532 0.10800 7.27 3,059 0.05972 9.34 34 62 0.00207 0.11 17 0.00057 0.08 31 0.00103 0.07 0 0 0 35 2,514 0.02422 1.29 608 0.00586 0.86 1,158 0.01115 0.75 0 0 0 36 97 0.00225 0.12 0 0 0 0 0 0 118 0.00274 0.43 37 0 0 0 0 0 0 0 0 0 0 0 0 38 134 0.00127 0.07 0 0 0 40 0.00038 0.02 129 0.00122 0.19 ' 39 0 0 0 0 0 0 17 0.00285 0.19 0 0 0 TOTAL 9,483 0.01085 0.58 3,448 0.00395 0.58 6,852 0.00784 0.53 3,379 0.00387 0.60 /a Same as footnote /a of Annex 1, Table 4. /b Medium and Large establishments are defered as establishment having 20 or more paid and unpaid employees. Source Same as Annex 1. Table 4. e ,' I't1> 1Qa (De :f Iullk, l Provincial Industrial Development in 1979 as Measured by Employment /a (Medium and Large Manufacturing Establishments) /b NORTH SULAWESI CENTRAL SULAWESI SOUTH SULAWESI Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl.Ind. Quotient Employees No.emplInd . Quotient Employees No.empllnd . Quotient 31 933 0.00313 0.28 0 0 0 2,014 0.00675 0.21 32 0 0 0 60 0.00026 0.04 668 0.00293 0.09 33 27 0.00053 0.05 220 0.00429 0.63 655 0.01279 0.39 34 111 0.00372 0.33 0 0 0 1,017 0.03404 1.04 35 99 0.00095 0.08 0 0 0 61 0.00058 0.02 36 0 0 0 20 0.00046 0.07 1,419 0.03298 1.00 1 37 0 0 0 0 0 0 0 0 0 38 204 0.00193 0.17 0 0 0 835 0.00079 0.24 39 17 0.00285 0.25 0 0 0 0 0 0 TOTAL 1,391 0.00159 0.14 300 0.00034 0.05 6,669 0.00076 0.23 /a Same as footnote /a of Annex 1, Table 4. /b Medium and Large establishments are defered as establishment having 20 or more paid and unpaid employees. Source Same as Annex 1, Table 4. LA FI- t (tX xqv Provincial Industrial Development in 1979 as Measured by Employment /a (Medium and Large Manufacturing Establishments) /b SOUTH EAST SULAWESI M 0 L U C C A S IRIAN JAYA Industry No. No.Empl.reg. Location No. No.empl.reg. Location No. No.empl.reg. Location Code Employees No.Empl.Ind. Quotient Employees No.empl.Inci Quotient Employees No.emplIn&. Quotient 31 273 0.00091 0.19 483 0.00162 0.81 0 0 0 32 60 0.00026 0.05 0 0 0 0 0 0 33 792 0.01546 3.17 128 0.00250 1.25 608 0.01187 36.08 34 0 0 0 0 0 0 28 0.00094 2.85 35 0 0 0 27 0.00026 0.13 0 0 0 36 293 0.00681 1.40 28 0.00065 0.33 69 0.00160 4.87 37 0 0 0 0 0 0 0 0 0 38 14 0.00013 0.03 30 0.00028 0.14 400 0.00378 11.51 39 0 0 0 0 0 0 0 0 0 TOTAL 1,432 0.00164 0.34 696 0.00080 0.40 1,105 0.00126 3.84 /a Same as footnote /a of Annex 1, Table 4. /b Medium and Large establishments are defered as establishment having 20 or more paid and unpaid employees. Source Same as Annex 1, Table 4. (D H- (D (D Hi(DX- Provincial Industrial Development in 1979 as Measured by Employment /a (Small Manufacturing Establishments) /b INDONESIA ACEH NORTH SUMATRA WEST SUMATRA RIAU Industry No. No. Empl No.Empl.reg. Location No.Empl No.empi.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location Code Employees Regional No.Empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient 31 403,517 2,353 0.00583 0.34 10,184 0.02524 0.44 9,288 0.02302 1.06 4,538 0.01125 0.95 32 91,402 396 0.00433 0.25 721 0.00789 0.14 4,141 0.04531 2.08 16 0.00018 0.01 33 110,932 1,016 0.00916 0.53 6,612 0.05960 1.05 1,200 0.01082 0.50 112 0.00101 0.08 34 11,931 0 0 0 601 0.05037 0.88 111 0.00930 0.43 21 0.00176 0.15 35 17,363 0 0 0 1,330 0.07660 1.34 207 0.01192 0.55 88 0.00507 0.43 36 136,229 674 0.00495 0.29 2,193 0.01610 0.28 2,167 0.01591 0.73 35 0.00026 0.02 38 49,527 165 0.00333 0.19 2,787 0.05627 0.99 6,782 0.13693 6.29 1,657 0.03346 2.81 39 8,676 439 0.05060 2.95 539 0.06213 1.09 5 0.00058 0.03 727 0.08379 7.04 . TOTAL 829,577 5,043 0.00608 0.35 24,967 0.03010 0.53 23,901 0.02881 1.32 7,194 0.00867 0.73 /a Same as footnote /a of Annex 1, Table 4 /b Small establishments are defined as establishments having 5 to 19 paid ano unpaid empioyees. Source Same as Annex 1, Table 4. 1 H- a a ad Dxt (D 0.C o lfr. - Provincial Industrial Development in 1979 as Measured by EBployment /a (Small Manufacturing Establishments) /b J A M B 1 B E N G K U LU L A M P U N G DKI JAKARTA Industry No. Empl No.Empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location Code Regional No.Empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient 31 2.778 0.00688 0.92 90 0.00022 0.05 35,660 0.08837 3.52 8,861 0.02196 0.63 32 7 0.00008 0.01 0 0 0 0 0 0 6,020 0.06586 1.89 33 863 0.00778 1.03 19b 0.00177 0.42 1,121 0.01011 0.40 4,331 0.03904 1.12 34 54 0.00453 0.60 32 0.00268 0.64 0 0 0 2,353 0.19722 5.68 35 41 0.00236 0.31 0 0 0 68 0.00392 0.16 3,737 0.21523 6.19 36 1,533 0.01125 1.50 161 0.00118 0.28 10,436 0.07661 3.05 2,485 0.01824 0.52 38 188 0.00380 0.50 49 0.00099 0.24 1,057 0.02134 0.85 3,141 0.06342 1.82 39 0 0 0 0 0 0 6 0.00069 0.03 529 0.06097 1.75 TOTAL 5,464 0.00659 0.88 528 O.OOO4 0.15 48,348 0.05828 2.32 31,457 0.03792 1.09 la SamE as fvvtuuLe /a ur Annex 1, -uabie 4 /b Small establishments are defined as establishments having 5 to 19 paid and unpaid employees. Source Same as Annex 1, Table 4. K 1M 1 ( Provincial Industrial Development in 1979 as Measured by Ekaployment /a (Small Manufacturing Establishments) /b WEST JAVA CENTRAL JAVA YOGYAKARTA EAST JAVA Industry No. Empl No.Empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location Code Regional No.Empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient 31 68,829 0.17073 0.96 71,804 0.17795 0.89 3,534 0.00876 0.31 80,442 0.19935 0.90 32 21,203 0.23198 1.31 38,337 0.41943 2.09 5,579 0.06104 2.17 10,568 0.11562 0.52 33 10,463 0.09432 0.53 22,642 0.20411 1.02 4,380 0.03948 1.41 27,906 0.25156 1.13 34 1,972 0.16528 0.93 1,830 0.15338 0.76 257 0.02154 0.77 3,231 0.27080 1.22 35 3,103 0.17871 1.01 1,943 0.11190 0.56 121 0.00697 0.25 6,197 0.35691 1.60 36 24,748 0.18167 1.03 15,811 0.11606 0.58 5,296 0.03888 1.38 48,696 0.35746 1.61 38 4,588 0.09264 0.52 7,251 0.14640 0.73 1,539 0.03107 1.11 7,748 0.15644 0.70 9 39 1,943 0.22395 1.26 1,194 0.13762 0.69 804 0.09267 3.30 1,546 0.17819 0.80 TOTAL 136,849 0.16496 0.93 160,812 0.19385 0.97 21,510 0.02593 0.92 186,334 0.22461 1.01 /a Same as footnote /a of Annex 1, Table 4 /b Small establishments are defined as establishments having 5 to 19 paid and unpaid employees. Source Same as Annex r, Table 4. x Provincial Industrial Development in 1979 as Measured by EmIloyment /a (Small Manufacturing Establishments) /b B A L I WEST NUSA TENGGARA EAST NUSA TENGGARA WEST KALIMANTAN Industry No. Empl No.Empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location Code Regional No.Empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient 31 5,434 0.01324 0.69 18,500 0.04585 2.25 380 0.00094 0.05 5,153 0.01277 0.68 32 328 0.00359 0.19 20 0.00022 0.01 1,406 0.01538 0.74 16 0.00018 0.01 33 9,496 0.08560 4.45 701 0.00632 0.31 118 0.00106 0.05 734 0.00662 0.35 34 107 0.00897 0.47 119 0.00997 0.49 19 0.00159 0.07 5 0.00042 0.02 35 92 0.00530 0.27 21 0.00121 0.06 6 0.00035 0.02 61 0.00351 0.19 36 3,251 0.02386 1.24 7,925 0.05817 2.86 949 0.00697 0.34 0 0 0 38 26 0.00052 0.03 98 0.00198 0.10 11 0.00022 0.01 50 0.00101 0.05 39 245 0.02824 1.47 30 0.00346 0.17 0 0 0 0 0 0 TOTAL 18,979 0.02288 1.19 27,414 0.03305 1.62 2,889 0.0035 0.17 6,019 0.00726 0.39 /a Same as f ootnote /a of Annex .1, Table 4 lb Small establishments are defined as establishments having 5 to 19 paid and unpaid employees. Source Same as Annex 1, Table 4. hHIc>I lasro DQ Provincial Industrial Development in 1979 as Measured by Employment /a (Small Manufacturing Establishment s) /b CENTRAL KALIMANTAN SOUTH KALIMANTAN EAST KALIMANTAN NORTH SULAWESI Industry No. Empl No.Empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location Code Regional No.Empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient Regional No.empl.Ind. Quotient 31 1,602 0.00397 0.58 5,851 0.01450 0.98 452 0.00112 0.18 28,728 0.07119 6.35 32 5 0.00005 0.01 0 0 0 23 0.00025 0.04 30 0.00033 0.03 33 2,326 0.02097 3.08 2,194 0.01978 1.33 599 0.00540 0.84 2,184 0.01969 1.76 34 80 0.00671 0.99 187 0.01567 1.05 58 0.00486 0.76 25 0.00210 0.19 35 0 0 0 0 0 0 0 0 0 5 0.00029 0.03 1 36 260 0.001910 0.28 0 0 0 227 0.00167 0.26 1,644 0.01207 1.08 38 12 0.00024 0.04 49 0.00037 0.02 212 0.00428 0.70 1,532 0.03093 2.76 X 39 0 0 0 316 0.03642 2.45 77 0.00888 1.39 0 0 0 TOTAL 4,285 0.00517 0.76 8,597 0.01036 0.70 1,648 0.00198 0.31 34,148 0.04108 3.67 /a Same as footnote /a of Annex 1, Table 4 /b Small establishments are defined as establishments having 5 to 19 paid and unpaid employees. Source Same as Annex 1, Table 4. (D H X (D x Provincial Industrial Development in 1979 as Measured by Employment /a (Small Manufacturing Establishmentps ) /b CENTRAL SULAWESI SOUTH SULAWESI SOUTH EAST SULAWESI M . L U C C A S Industry No. Empl No.Empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location No.Empl No.empl.reg. Location Code Regional No.Empl.ind. Quotient Regional No.empl.Ind. Quotient Regional No.empI.Ind. Quotient Regional No.empl.Ind. Quotient 31 5,504 0.01364 2.01 12,103 0.02999 0.91 14,015 0.03473 7.13 283 0.00070 0.35 32 32 0.00035 0.05 2,413 0.02640 0.80 5 0.00005 0.01 11 0.00012 0.06 33 694 0.00626 0.92 2,554 0.02302 0.70 5,108 0.04605 9.45 893 0.00805 4.04 34 119 0.00997 1.47 199 0.01668 0.51 308 0.02582 5.30 24 0.00201 1.01 35 0 0 0 62 0.00357 0.11 0 0 0 14 0.00081 0.40 36 221 0.00162 0.24 3,243 0.02381 0.72 2058 0.01511 3.10 559 0.00410 2.06 38 3,061 0.06180 9.10 1,243 0.02510 0.76 556 0.01123 2.30 91 0.00184 0.92 1 39 142 0.01637 2.41 95 0.01095 0.33 0 0 0 0 0 0 TOTAL 9,773 0.01176 1.73 21,912 0.02636 0.80 22,050 0.02653 5.44 1,875 0.00226 1.13 /a Same as footnote /a of Annex 1, Table 4 /D bmall establishments are defined as establishments having 5 to 19 paid and unpaid employees. Source Same as Annex I, Table 4. P0 i noDi :1> al S Provincial Industrial Development in 1979 as Measured by Employment /a (Small Manufacturing Establishments) /b IRIAN JAYA SOUTH SUMATRA Industry No. Empl No.Empl.reg. Location No.Empl No.empl.reg. Location Code Regional No.Empl.Ind. Quotient Regional No.empl.Ind. Quotient 31 227 0.00056 1.71 6,924 0.01716 0.63 32 64 0.00070 2.13 61 0.00067 0.02 33 145 0.00131 3.97 2,344 0.02113 0.78 34 87 0.00729 22.17 132 0.01106 0.41 35 0 0 0 267 0.01538 0.57 36 123 0.00090 2.74 1,534 0.01126 0.42 38 17 0.00034 1.04 5,617 0.11341 4.18 1 39 0 0 0 39 0.00450 0.17 o l TOTAL 663 0.00078 2.42 16,918 0.02035 0.75 /a Same as footnote /a of Annex 1, Table 4 /b Small establishments are deiined as establishments having 5 to 19 paid and unpaid employees. Source Same as Annex 1, Table 4. |(I-. (D x x H - 81 - APPENDIX 2 TABULATIONS ON LOCATION GUIDELINES 1982/83 - 82-- Annex 1 Appendix 2 Table 1 Page 1 LOCATION GUIDELINES ON DOMSTIC INDUSTRIAL IWNESTMENT BY ISIC CATEGORY 1982/1983 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Outsice Total Items b 3111 Slaughter, processing and preservation of meat : I-Java, Sumatra, Ka- Preservation of meat limantan, Sulawesi, in cans & by freezing a Moluccas, E. Nusa Tenggara (16 Provinces) 1/17 3112 Dairy Foods: Pasteurized and Sterilized milk O-Jkt & W. Java 3/20 Condensed and evaporated milk O-Java, Bali, Lampung UHT Milk O-Java, Bali, Lampung 3113 Vegetable and fruit Preserving a Selective near raw 1/9 materials 3114 Preservation and processing of fish and shellfish 2,10 Fish and shellfish I-Kalimantan & E. canning a Indonesia (7 provinces) Fish freezing a O-Java & S. Sulawesi 3115 Animal and Vegetable oils: 2/12 Coconut oil O-Java selective Cooking oil a O-Java 3116 Cereal milling 3/16 Sago flour a I-Moluccas & Irian Jaya Tapioca Flour a 0-java, N. Sumatra, Lampung Powdered coconut O-Java 3121 Miscellaneous food 2/32 Industries : Salta I-Madura lodised slat a I-Nusa Tenggara 3122 Animal feed : 2/4 Animal feed a O-W. Java & Jkt Animal feed O-W. Java & Jkt Components a Annex 1 - 83 - Appendix 2 Table 1 Page 2 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Cutside Total Items b 3134 Alcoholic and non 4,14 alcoholic beverages: Beer & stout I-E. Indonesia Carbonated beverages I-Kalimantan, E Nusa Tenggara, Moluccas & Irian Jaya Non-carbonated beverages 0-Java Traditional Jamu I-E. Indonesia, (Medicine) Moluccas & Irian Jaya 3231 Leather Tanning : a 1/5 Crust :Leather 0-Java Finished leather I-Java 3233 Leather products :1/7 Other .Leather products a 0-Java 3311 Timber and timber 15/38 Products : ChopstLcks 0-Java Sawmill a I-Irian Jaya Veneer induslry a I-Irian Jaya Wood Preserving 0-Java Timber drying (kiln) 0-Java Interior plywood a 0-Java Interior plpyood, decorative a 0-Java Exterior plywood a o-Java Exterior plywood, decorative 0-Java Polywood a 0-Java Decorative PJywood a 0-Java Chipmill a 0-Java Door and windiow framesa 0-Java Pencils a 0-Java Blockboard a I-Java 3319 Miscellaneous Wood and 4/9 (Gabus) : Wooden boxes and packaging I-Sumatra, Sulawesi, Kalimantan, Moluccas - 84 - Annex 1 Appenix 2 Table 1 Page 3 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Outside Total Items b Flooring I-Sumatra, Sulawesi, Kalimantan, Moluccas Parquette flooring from I-Sumatra, Sulawesi, Sandust Kalimantan, Moluccas Rattan curing and I-Sumatra, Sulawesi processing Kalimantan, Moluccas 3411& Pulp, paperboard and 15/96 3419 cellulese fibers Pulp and paper a Interalia: I Sumatra (lho'Seumawe & South Sumatra), Java (Cila cap, Probolinggo, W/C Java), E & S. Kalimantan. Dissolving pulp & Interalia I-S. Suma- rayon a tra, Riau, W. Kalimantan Wrapping paper ordinary a,x 0-Java Cardboard a,x O-Java Poster Paper a,x O-Java Wallpaper a,x O-Java Special-purpose O-Java papers a,x Building papers a,x O-Java Roofing paper a,x O-Java Board a,x O-Java Kraft paper O-Java Asbestos-filled paper O-Java Blotting paper O-Java Cover paper O-Java Crepe paper O-Java 3420 Printing : 2/15 Printing press a O-Java Cansa O-Java 3511 Basic chemical Industry 44/149 Oxygen a,x Acetylene a,x Basic petrochemicals: Olefin Center a I-Sumatra(Lho'seumawe) 35 items Annex 1 Appendix 2 Table 1 Page 4 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Outside Total Items b Critic acid O-Lampung, pref.0-Java a (asam fosfat) I-Java (Gresik', Gypsuma Interalia: I-JaLva (Gresik) Calcium carbonate O-Java Sodium carbonate I-Java (gresik, Sodium Chloride (Industrial salt) a I- E. Nusa Tenggara Oil and natural gas: Olefin Center a I-Sumatra(lho"Seumawe) 3513 Synthetic resins : 1/26 Urea formaldehyde I-E. Indonesia,, espec. Moluccas & Irian Jaya 3521 Paints, dyes, finishes 5/15 and other coloring materials Printers ink O-Java Wall paint O-Java & Sumatra Wood paint O-Java & Sumatra Metal paint O-Java & Sumatra Ships paint O-Java & Sumatra 3551 Tires and other rubber Processing : 2/11 Motorcycle & motor scooter tyres a,x ---- Retreads for heavy vehicles x O-Java 3560 Plastics : 1/33 Plastic bags a O-Java 3610 Ceramic Products : 5/17 Ceramics; & porcelain for househiold use (Plateis, cups, bowls O-Java etc) a Ceramic sanitary Products (toilet, bowls Annex 1 - 86 - Appendix 2 Table 1 Page 5 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Outside Total Items b wash basins, urinals) a O-Java Ceramic building materials: Wall tiles, mosaic tiles, floor tilesa O-Java Electrical equipment (insulation, fittings) a O-Java Building materials from slate/shade a O-Java 3620 Glass & glass products : 2/15 Glass products for household use (Excl. high quality) O-Java Bottles and sheet glass O-Java 3710 Iron and steel (basic 9/61 materials and products) Pellets & (sinter) I-Java (Cilegon) Pellets I-Java (Cilegon) (sinter) I-Java (Cilegon) Pellets from iron sand I-Java (WOC. Java & Yogya) Iron casting a I-Java (Cilegon) & Sumatra (Medan) Forged steel a I-Java (Cilegon, Surabaya, Jkt) & Su- matra (Medan). [Only limited for cer- tain 2 & 4 wheel ve- hicle componentsl Steel Manufacturing Profile Steel a I-Java (Cilegon, Surabaya), & Sumatra (Medan) Seamless pipes a I-Java (Cilegon) Concrete bars O-Java Welded steel pipes O-Java Galvanized steel sheet I-Kalimantan, Moluccas, Irian Jaya & E. Timor 3720 Basic aluminium industry : 2/48 Aluminium rods a I-Java (1 project) Aluminium profile O-Java 87 - Annex 1 Appendix 2 Table 1 Page 6 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Outside l'otal Items b 3811 Aluminium kitchen items 1/100 Gas Stovres O-Jabotabek (Jakarta- Bogor-Tanggerang-Beka- si area) 3812 Metal Products 20/29 Metal beds O-Java Spring beds O-Jabotabek Metal tables O-Jabotabek Metal Chlairs O-Java Metal Sofas O-Java Display cabinets O-Jakarta Display shelves O-Jakarta Filing cabinets O-Java Safe boxes O-Jakarta Cash boxes O-Jakarta Portable! storage cabinets O-Jakarta Letter boxes O-Java Lockers O-Java Bookshelves O-Java Book Cupboards O-Java Desks O-Java Revolving chairs O-Java Typing tables O-Java Office lamps O-Java Laboratory furniture O-Jakarta 3813 Metal buildinR materials 2'3/29 Door Framework O-Jakarta Door bars O-Jakarta Door frames O-Jakarta Window framework O-Jakarta Window bars O-Jakarta Window frames O-Jakarta Louvre windows O-Jabotabek Metal Ladders O-Jabotabek Rolling doors O-Jakarta Sliding doors O-Jakarta Barbed wire O-Jakarta Welded mesh (for O-Jakarta Concrete) Corrugated metal O-Jakarta sheeting Annex 1 - 88 - Appendix 2 Table 1 Page 7 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Outside Total Items b Nails O-Java & N. Sumatra Woods sews 0-Java Rivets O-Java Concrete nails O-Java Roofing nails 0-Java Washers O-Java Paperclips O-Jabotabek Staples O-Jabotabek Hinges 0-Jabotabek (3 items), Selective (1 item) Locks excl. door locks 0-Jabotabek (5 items), Selective (1 item) 3832 Electrical fittings 4/108 Switches 0-Java & N. Sumatra Plugs O-Java & N. Sumatra Sockets (power points) O-Java & N. Sumatra Lamp holders 0-Java & N. Sumatra 3833 Electrical appliances 7/55 Freezers 0-Jabotabek Air conditioners 0-Jabotabek Irons O-Jabotabek Rice Cookers O-Jabotabek Mixers O-Jabotabek Cooking appliances O-Jabotabek Hair Dryers O-Jabotabek 3839 Storage batteries I-Jabotabek 1/89 3844 Bicycles & motorcycles 2/95 Standard bicycles semi manufacturing incl full assembly 0-Java & N. Sumatra Manufacturing of bicycles & becaks O-Java (selective) 3903 Sports Equipment Gymnastics O-Java 1/13 a = Additional conditions apply b = The total items if the number of Department of Industry code items in each International standard industrial code (ISIC) category. Republic of Indonesia Source Investment Coordinating Board Priority List For Domestic Investment 1982/1983, Book I and list of enterprises outside the Foreign & Domestic Investment Acts 1982/83. Book III -89- Annex 1 Appendix 2 Table 2 Page 1 LOCATION GUIDELINES ON FCOREIGN INVESTMENT BY ISIC CATEGORY BY ISIC 1982/83 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Clutside Total Items 3111 Slaughter and 1/17 Preservation of meat: Preservationof meat in 12 provinces in cans incl. preservation Sumatra, Kalimantan, by freezing (cow, Sulawesi, NTT, buffalo, sheep, goat Moluccas pig a 3112 Manufacture of dairy 1/20 foods: Soybean milk/milk fat substitute. a 0-Java 3113 Preservation of fruits 5 provinces in 1/19 and vegetables by canning Sumatra & Kalimantai and other means. a 3116 Cereal milling : 1/16 Sago flour a I-Moluccas & Irian Jaya 3411 Manufacture of pulp, 2/96 3419 paper, paperboard a cellulose fibers: pulp & paper Interalia I-Aceh, E & S Kalimantan Dissolving pulp and Interalia rayon I-S. Sumatra 3511 Basic chemical industries: 34/149 Olefin center a I-Sumatra 33 items (Lho' Seumawe) (Petrochemical) Basic inorganic chemicals : Sodium I-Java (Gres-Lk) Carbonate 3692 Cement, lime and plaster: 1/15 portland cement a I-Java (Purwodadi, Gombong, Pamotan), N. Sulawesi, E. Kali- mantan. -90- Annex 1 Appendix 2 Table 2 Page 2 ISIC Name of Industry Location Guideline Location-Guided Items I = in, 0 = Outside Total Items 3699 Nonr-metallic mineral 2/16 products not elsewhere classified: Mineral wool a O-Java Grindstones O-Java 3710 Iron and steel (basic 4/61 materials and products): Iron casting a I-Java (Cilegon) Forged steel a I-Java (Cilegon) Steel manufacturing Profile steel a I-Java (Cilegon, Surabaya), Sumatra (Medan) Seamless pipes a I-Java (Cilegon) 3720 Basic aluminium 1/48 industries: Aluminium rods a I-Sumatra (Asahan) Republic of Indonesia Investment coordinating Board Source : Priority List for Foreign Investment 1982/83 a = additional conditions apply. Annex 1 - 91 - Appendix 2 Table 3 ]?age 1 LOCATION GUIDELINES ON DOMESI'IC INVESTnENT BY LOCIATION 1982 /:198 3 BY LOCATION OUTSIDE Outside Java 3115 Coconut oil (selective) Cooking oil a 3116 Powdered coconut 3134 Non-carbonated beverages 3231 Leather tanning: Crust leather 3233 Other leather products 3 311 Chopsticks (wooden) Wood preserving Timber drying (Kiln) Interior plywood a Interior decorative plywood a Exterior plywood a Exterior decorative plywood a Polywood a Decorative polywood a Chipmill Door & window frameworks (wooden) Pencils a 3319 Rattan curing & processing 3411 & Wrapping paper 3419 Wrapping paper - ordinary a,x Cardboard a,x Poster paper a,x Wallpaper a,x Special-purpose papers a,x Building papers a,x Roofing paper a,x Board a,x Kraft paper Asbestos-filled paper Blott:ing paper Cover paper Crepe paper Annex 1 - 92 - Appendix 2 Table 3 Page 2 LOCATION GUIDELINES ON DOMESTIC INVESTMENT BY LOCATION 1982/1983 BY LOCATION OUTSIDE Outside Java 3420 Printing by printing press a Printing for cans a 3511 Calcium carbonate 3521 Printers ink 3551 Tire retreads for heavy vehicles x 3560 Plastic bags a 3610 Ceramics & porcelain for household use (plates, cups, bowls etc) a Ceramic wall tiles, mosaic tiles, floor tiles a Porcelain electrical equipment (insulation, fittings) a Ceramic sanitary products (toilet bowls, wash basins, urinals) a Building components from slate/shade a 3620 Glass products for household use (excl. high quality) Bottles and sheet glass 3691 Bricks, tiles, pipes (earthenware) a 3692 Asbestos cement Building materials from other fibres 3699 Store crushing a 3710 Steel bars for concrete Welded steel pipes 3720 Aluminium profile 3812 Metal beds Metal chairs Metal sofas Metal filing cabinets Metal letter boxes Metal lockers Metal book shelves Metal book cupboards Metal desks Annex 1 - 93 - Appendix 2 Table 3 Page 3 LOCATION GUIDELINES ON DOMESTIC INVESTMENT BY LOCAT ION 1982/1983 BY LOCATION OUTSIDE Outside Java. Metal revolving chairs Metal typing tables Metal office lamps 3813 Woodscrews Rivets Concrete nails a Roofing nails Washers (metal) 3844 Manufacturing of bicycles & becaks (selective) 3903 Gymnastics equipment Outside Jakarta 3812 Metal display cabinets Metal display racks Metal safe boxes Metal cash boxes Metal portable storage cabinets Metal laboratory furniture 3813 Metal framework for doors Metal door bars Metal door frames Metal window framework Metal window bars Metal window frames Metal rolling doors Metal sliding doors Barbed wire Welded mesh (for concrete) Corrugated metal sheeting Outside Jabotabek : 3811 Aluminium gas stoves Annex 1 - 94 - Appendix 2 Table 3 Page 4 LOCATION GUIDELINES ON DOMESTIC INVESTMENT BY LOCATION 1982/1983 BY LOCATION OUTSIDE 3812 Metal spring beds Metal tables 3813 Metal louvre windows Metal ladders Paperclips Staples Hinges (or selective) Locks other than door locks (or selective) 3833 Electric freezers Electric airconditioners Electric irons Electric rice cookers Electric mixers Electric cooking appliances Electric hair dryers. Outside Jakarta & West Java 3112 Pasteurized and sterilized milk 3122 Animal feed a Animal feed components a Outside Java (Pref.) & Lampung 3511 Citric acid Outside Java, Bali & Lampung 3112 Condensed & evaporated milk. VHT milk Outside Java, Sumatra 3521 Wall paint Wood paint Metal paint Ships paint Outside Java & North Sumatra 3813 Nails 95 - Annex 1 Appendix 2 Table 3 Page 5 LOCATION GUIDELINES ON DOMESTIC INWESTMENT BY LOCATION 1982/1983 BY LOCATION OUTSIDE 3832 Electrical fittings Switches Plugs Sockets (power points) Lamp holders 3844 Standard bicycles - semi manufacturing including full assembly Outside Java, Narth Sumatra & Lampung 3116 Tapioca flour a Outside Java & South Sulawesi 3114 Fish freezing a IN In Java 3231 Leather tanning : finished leather 3311 Block board a 3720 Aluminium rods a In Jabotabek 3839 Storage batteries In West Java, Central Java, Yogya 3710 Iron pellets from iron sand In Madura (East Java) 3121 Salt aq - 96 - Annex 1 Appendix 2 Table 3 Page 6 LOCATION GUIDELINES ON DOMESTIC INVESTMENT BY LOCATION 1982/1983 BY LOCATION IN In Gresik (East Java) 3511 Gypsum a (interalia) Phosphoric acid (asam fosfat) a Sodium carbonate a In Cilegon (Central Java) 3691 Refractory bricks, morter, monolithic clay products a 3710 Iron pellets and sinter a Stell seamless pipes a In Cilegon & Medan 3710 Iron casting a In Cilegon, Jakarta, Surabaya & Medan 3710 Forged steel a (Some components with free location) In Cilegon, Surabaya & Medan 3710 Profile steel a In Madura, Purwadadi (Central Java), Pamotan (East Java) , Gombong (East Java) , North Sulawesi, East & South Kalimantan, Moluccas, Irian Jaya 3692 Portland cement a In Cilacap (Central Java), Probolinggo (East Java), C/W Java, Lho'Seumawe (Aceh), Palembang (South Sumatra), Sesayap (East Kalimantan), South Kalimantan 3411 & Pulp & paper a 3419 97 - Annex I Appendix 2 Table 3 Page 7 LOCATION GUIDELINES ON DOMESTIC INVESTMENT BY LOCATION 1982/1983 BY LOCAT ION IN In Java, Sumatra, Kalimantan, Sulawesi, Moluccas, Easi: Nusa Tenggara (16 Provinces) : 3111 Preservation of meat in cans & by freezing a' In Irian Jaya, Moluccas, South & North Sulawesi, West East & South Kalimantan 3114 Fish packing & preserving a In Moluccas and Irian Jaya 3116 Sago flour a In Kalimantan, E.ast Nusa Tenggara, Moluccas & Irian Jaya 3134 Carboniated beverages In East Indonesia, Moluccas & Irian Jaya 3134 Traditional Jamu (medicine) In East Indonesia: 3134 Beer & Stout 3513 Urea f ormaldehyde In Irian Jaya 3311 Sawmi].l a Veneer industry a In East Nusa Tenggara: 3511 Sodium chloride (industrial salt) a In East & West Nusa Tenggara 3121 lodised salt a Annex 1 - 98 - Appendix 2 Table 3 Page 8 LOCATION GTJIDELINES ON DOMESTIC INVESTMENT BY LOCATION 1982/1983 BY LOCATION IN In South Sumatra, Riau and West Kalimantan 3411 & Dissolving pulp & rayon a (interalia) 3419 In Lho'Seumawe (Aceh) 3511 Olefin Center a ( 35 items ) In Sumatra, Kalimantan, Sulawesi & Moluccas 3319 Wooden boxes & packing Flooring (timber) Parquette flooring from sawdust In Kalimantan, Moluccas, Irian Jaya & East Timor 3710 Galvanized steel sheet Near sources of raw materials in Sumatra, Java & Sulawesi 3113 Vegetable & fruit packing a In Provinces without the industries : 3511 Oxygen a Acetylene a Republic of Indonesia Source Investment Coordinating Board Priority List For Domestic Investment 1982/1983, Book I and list of enterprises outside the Foreign & Domestic Investment Acts 1982/83. Book III a = additional conditions apply. - 99 - Annex 1 Appendix 2 Table 4 Page 1 LOCATION GUIDELINES ON FOREIGN INVESTMENT 1982/1983 BY LOCATIONI By Location : Outside Outside Java 3112 Soybean milk/milk fat substitute a 3699 Mineral wool a Grindstones By Location : In In Gresik (East Java) 3511 Sodium carbonate In Cilegon (Central Java) 3710 Iron casting a Forged steel a Seamless steel pipes a In Cilegon (Central Java), Surabaya (East Java) and Medan (North Sumatra) 3710 Profile steel a In Gombong (East Java), Pamotan kEast Java), Purwadadi (Central Java), North Sulawesi and East Kalimantan (one project each) 3692 Portland cement a In Asahan (North Sumatra) 3720 Aluminium rods a In Lho' Seumawe (Aceh) 3511 Olefin Center a - 33 items - 100 - Annex 1 Appendix 2 Table 4 Page 2 LOCATION GUIDELINES ON FOREIGN INVESTMENT 1982/1983 By Location * In Interalia: In Aceh, East & South Sumatra 3411 & Pulp and paper a 3419 Interalia: In South Sumatra 3411 & Dissolving pulp and rayon a 3419 In Sumatra, Kalimantan, Sulawesi, Moluccas and East Nusa Tenggara (12 Provinces) 3111 Preservation of meat in cans including preservation by freezing (cow, buffalo, sheep, goat, pig) a In 5 Sumatra and Kalimantan provinces 3113 Preservation of fruits and vetagables by canning and other means a In Moluccas and Irian Jaya 3116 Sag f lour Republic of Indonesia Source Investment Coordinating Board Priority List For Domestic Investment 1982/1983, Book II a = additional conditions apply - 101 - Annex 1 Appendix 2 Table 5 SHARES OF INDUSTRIAL FIELDS WITH LOCATION RESI'RICTIONS 2.982/83 Items Closed to LOCATION-GUIDED ITEMS Domest:ic & Foreign Total Items Investment ISIC DOMESTIC FOREIGN TOTAL ITEMS Dep't of Central Dep't of central Dep't of Central Industry Bureau of Industry Bureau of: Industry Bureau of Statistics Statistic Statistic 3110312 161150 10/26 4/150 4/26 61150 3/26 313 4/14 2/4 - - - 314 - - - - 2/13 314 321 - - - 11'63 1/11 323 2/12 2/2 - - -- - 331 19/54 6/7 - - - - 341 15/97 314 2/97 2/4 4/97 1/4 342 2/15 1/1 - - -- - 351 45/202 2/4 34/202 1/4 8J202 3/4 352 5/1129 2/7 - - - 355 2/28 1/5 - - 4/28 1/5 356 11/35 1/1 - - - - 361 5/17 1/1 - - 362 2/(15 2/2 - - - - 369 6/43 1/1 3/43 1/1 - - 371 11/61 1/1 4/61 1/1 - - 372 2/48 1/1 1/48 1/1 - - 381 501254 4/7 - - 34/254 1/7 382 - - - - 6/201 1/1 383 12/265 2/5 - - 4/265 1/5 384 2/346 1/6 - - 6/346 3/6 390 1/51 1/6 - - - - Republic of Indonesia Source Investm,ent Coordinating Board Books I, II, III and IV and Central. Statistical Bureau Statistik Industri 1980 * Uses B.P.S. Listing of Industrial Fields - 102 - Annex I Appendix 2 Table 6 Page 1 LIST OF INDUSTRIES CLOSED TO INVESTMENT 1982/1983 ISIC NAME OF INDUSTRY 3112 Milk, Cream and butter Malted milk Powdered milk Flavored powdered milk/baby food made of milk 3116 Cereal milling Wheat flour 3118 Sugar and related product Glucose & Maltose Saccharine and cyclamates 3140 Tobacco Redrying tobacco Filtered kretek cigarettes 3212 Weaving Weaving gunny sacks with mechanized looms 3411 & 3419 Pulp and paper: Writing and printing paper Cigarette paper Tissue paper and related paper Toilet paper BASIC CHEMICALS 3511 Petrochemicals and coal chemicals Methanol Xylene Organic Industrial chemicals Ethyl alcohol Other basic chemicals Aluminium sulphate (asam sulfat) 3512 Fertilizer, pesticides & related products Ammonia chloride 3513 Petrochemicals and coal chemicals Alkyd resin Polyethylene - 103 - Annex 1 Appendix 2 Table 6 Page 2 ISIC NAME OF INDUSTRY 3551 Tires and inner tubes Car tires Truck & bus tires Tires & tubes for heavy vehicles and aircraft Tires and tubes for industrial vehicles and military vehicles 3811 Ki.tchen utensils made of aluminium, enamel and other metals 34 items 3821 Engines : Assembly of diesel engines Under 30 h.p. Between 30 and 500 h.p. 3824 Air Conditioning : Central air conditioning Commercial refrigerators Machines and other industrial equipment, e:xcluding The Metal Industr : Machines and equipment for the construction industry, or parts there of Earth rollers Concrete mixers 3839 Electric lamps : Incandescent lamps Fluorescent lamps Reflectors for fluorescent lamps Rapid start lamps 3843 Manufactiuring and assembly of motor vehicles Assemb:Ly of passenger vehicles Assembly of commercial vehicles 3844 Semi manufacturing of bicycles with sidecars etc ]Becaks 3845 Manufacturing, assembly and repair of aircraft Assembly of light aircraft Passenger planes Military planes Lighl: helicopter assembly Source : RepubliLc of Indonesia Investment Coordinating Board List of Industries closed to Investment 1982/1983, Book IV - 104 - Annex 1 Appendix 2 Table 7 Page 1 LOCATION GUIDELINES IN THE 1977 LIST OF INVESTMENT PRIORITIES ISIC NAME OF INDUSTRY GUIDELINES Food Industries 3111 Preserving and canning of Foreign capital investment outside Java meat (other conditions). 3112 Dairy Industry Selective location, domestic capital investment only. 3113 Fruit and vegetable Foreign capital investment for export, processing Outside Java. 3114 Fish and Sea food processing Domestic capital investment only, outside Java. 3115 Vetegable and animal oils Outside Java (other conditions). 3117 Bakery products Domestic capital investment only. Bread outside Java; biscuits & dry bakery products outside Jakarta. 3119 Cocoa/Chocolate and Sugar Foreign capital investment outside confectionary Java; (other conditions) 3121 Other food products Domestic capital investment only, Ice outside Java. 3122 Animal feed Pellets etc. Closed for Java. 3134 Non-alcoholic beverages Domestic capital investment only, outside Java. 3211 Textile Foreign capital investment outside Java for export. Domestic capital investment, outside Java. 3420 Printing and publishing General printing Domestic capital investment only, closed for Java and Madura. Press printing Domestic capital investment only, closed for Jakarta and Medan. -185- Annex I -185 - Appendix 2 Table 7 Page 2 ISIC NAME OF INDUSTRY RESTRICTIONS 3522 Drugs and Medicines Domestic capital investment, outside Java. Foreign capil:al investment Closed for Java. 3523 Soap and clearing and Domestic capiLtal investment only, toiletries: out side .ava. 3620 Glass products Bottles Domestic capital investment, selective locations. Foreign capit:al investiaent, outside Java 3710 Iron and Steel products Steel bars Domestic cap;-tai invesltment only, outside Java. 3717 Steel Wire Foreign capit:al investment, outsice uava. Domestic capi.tal invest:ment, outside Java. 3813 Wire products Wire rope Foreign capital investment, outside Java. 3819 Other metal products Carl manufactuiing Domestic capital investment, outside Java. Republic of Indonesia Source Investment Coordinating Board List of Priorities 197i