FILE COPY
Report No. 502-IND
A Framework for
Regional Planning in Indonesia
(In Three VoluMes)
Volume II: Spatial Aspects of the Economy
August 15, 1974
I-ast Asia and P'a(if( Regional Office
Not for Public Use
Document of the International Bank 'or Reconstruction and Development
International Development Association
This report was prepared for orli, ,,l'd§ }Qw1i CrGrop I ma. n0f
be published quored or-ited ..SCIUwkank CrTh'r.; Bar,. Croup does
not accept responstibility for tfie  or contile1  1 0 lb? repic.ri



CURRENCY EQUIVALENTS
1 US$          3  Rupiah (Rp) 415
1 Rupiah       =  $0.0024
Rp 1 million   -  $2,400
Rp 1 billion   -     $2,400,000



This report is based on the findings of a mission,
which visited Indonesia during November, 1973,
consisting of:
Colin Bruce         -  Economist (Mission Leader)
(c)  Brian Berry         -  Economic Geographer/Regional Planner
Wolfram Drewes      -  Geographer/Physical Planner
Joseph Goldberg     -  Economist
Irfan ul Haque      -  Economist
(c)  Koichi Mera         -  Regional Economist
(c)  Gerard van de Goor  -  Agriculturalist
(c) - Consultant






A FRAMEWORK FOR REGIONAL PLANNING
IN INDONESIA
VOLUME II: THE SPATIAL ASPECTS OF THE ECONOMY
Page No.
I.   PHYSICAL GEOGRAPHY ....................................         1
Backgrotnd ....................   ....                     I
Climate          ...........................              1
Geology and Minerals ..................                   2
Soils and Land Capability ................                7
II.   IIUMAIl GEOGRAPHY .......................................      J1
Population .1 
Employment .13
Urbanization .15
Economic Wellbeing .16
Regional Discrepancies in Educational
Development .20
Health and Family Planning .21
Transmigration .22
Migration and the Growth of Jakarta .29
III.    SPATIAL IMIPLICATIONS OF SECTORAL DEVELOPMENTS .37
Introduction .37
Minerals .40
Agriculture, Forestry and Fishing .47
Apriculture .47
Forestry .55
Fisheries .57
Industrv           .....58
Transport, Communications and Trade.                     59
Education.                                               72
Health Services .73
Tourism .74
Public Finance and Regional Development .75
Spatial Aspects of Recent-Trends:     Summarv .83
IV.   THE IMPLICATIONS FOR DEVELOPMENT POLICIES .85



APPFENDICES
A.   Cartographic Appendix
B.   Statistical Appendix
C.   Review of Mineral Production
D.   Highway Needs of Java
LIST OF MAPS IN TEXT OF THE REPORT
Page No.
Figure 1:  Administration and Population .....     ..............  9
Figure 2:  Surface and Air Transportation .....     .............  66



TABLES IN THE TEXT
Page No.
PHYSICAL GEOGRAPHY
Table 1: Area by Region and Type of Terrain/Soil ....      ......    6
HUMAN GEOGRAPHY
2: Population, 1930, 1961, 1971, Average Annual
Growth Rate 1961-1972 and Population Density,
by Region and Province .....      ......................  11
3: Population, Labor Force and Employment -
1961-1971  ...................................      13
4:  Employment by Major Economic Sector, Urban
and Rural Areas, Indonesia, 1961-1971 ....     ........  14
5: Average Annual Rates and Distribution of
Employment Change by Major Economic Sector,
Indonesia, 1961-1971 ............  ..    ...............  15
6: Per Capita GDP of Selected Provinces,
1969 and 1971 ..................     ..................  17
7: A Rough Estimate of Net Movements of
Population Between Regions, 1961-1971 ....      ........  23
8:  Number of TransmiE;rants Settled Since 1950 ....   ...   26
9:  Planned Transmigration in 1972/73, by Province ...       28
10:  Population Growth of Cities Over 250,000 ....     .....  30
11:  The Distribution of the Origin of Migrants
Into Jakarta and the Propensity to Migrate
During 1961-1971 ...................................     31
12:  Educational Attainment of Urban and Pural
Population and Migrants to Jakarta ....      ...........  33
13:  Approved Projects UJnder Domestic Investment
Law to be Located in Jakarta from NZovember 1968
to Mav 1972     ................... ...................  34
14:  Approved Foreign Investment Projects to be
Located in Jakarta from January 1967 to
July 1972     .................... ....................  35
15:  Share of Jakarta in Indonesian Economy ....     .......  36



- iv -
Page No.
SPATIAL IMPLICATIONS OF SECTORAL DEVELOPMENTS
Table 16:   Real Growth Rates of Sectors by Province
from  1969 to 1971 .......      .........................  3s
17: Approved Investment Projects by Provinces ....      ....   39
18:  Indonesian Mineral Production ....        ................  41
19:  Export Receipts from Hard Mineral Products .......        4 t
20: Harvested Area and Production of Principal Farm
Food Crops in Java and Outer Islands, 1971 .......        49
21: Imports and Exports into Different Islands,
1967-71 ...........     ...............................   61
22: Number of Cars, Buses and Motorcycles
by Province and its Average per 10,000
Population, 1971 .......       ..........................  63
23: Passenger Traffic Studies for Selected Area
Railway Systems .......       ...........................  65
24: Length of Trunk Roads and Railway Track,
1970, by Region .......       ...........................  67
25:  Composition of Provincial Budgets, 1972/73 .......        77
26:  Development Expenditure of Provinces ....       .........  80
27: Planned Development Budget by Provinces,
1962-72 ..........................................        81



HE SPtAILi ASC?ES C F      COZAOJXY
CHAPTER I
PHYSICAL GEOGRAPHY
Backgr. a.k
;ndonesia, Lne world's second largest unitary state, is aiso tho
world's largest archipelago. Straddling the equator, it extends some 3,400
miles (5,110 kilometers) from northwestern Sumatera, wesz of the Malay
Peninsula, to and including West New Guinea (Irian Jaya).
2.        The total land area of the more than 3,000 islands that compose
the archipelago is some 779,000 square miles (2,020,000 km2), making it
the third largest country in Asia, after China and India.
3.        Many of the country's ceve±opmental problems arise from its size
and from the fact that it is an archipelago. Other problems are to be found
in the great diversity of the islands. Thus, a recurrent theme in govern-
mental thinking is that of the need to achieve national unity while respecting
socio-cultural diversity related to the great regional differences.
4.        Many of these differences reside in the country's geology and climate.
Mountainous spines and swampy coasts limit the agricultural potential of
many of the islands. In earlier geological periods the eastern and south-
eastern regions of Asia went through several stages of folding which can be
discerned in two long mountain systems which intersect each other in Sulawesi
and Halmahera. The first, which is a continuation of the western Burmese
chain, runs through Sumatera, Java, Bali and Timor and curves sharply back
in a semicircle through the southeastern islands to Ceram and Buru to Sulawesi.
The second arc runs southwest from Japan, through the Philippines into eastern
Indonesia - hence the complexity of the mountain structure and the peculiar
shape of Sulawesi and Halmahera, which have ranges running north-south and
east-west.
5.        The hills and mountains of Sumatera follow the west coast and are
intersected by short but rapid streams which water the narrow western coastal
plains; to the east the mountains level out to broad expanses of lowland cut
by sluggish streams which run through the interminable marshes to the Strait
of Malacca and the Java Sea. In Java, too, the mountains lie close to the
shoreline of the Indian Ocean, but, less continuous than those of Sumatera,
they allow frequent access from nortn to south which has facilitated the
development of a network of roads and railroads.
Climate
6.        Tne Indonesian climate is tropical, moderated only by the situation
of the islands between LwU Large continentai land masses and by wide differ-
ences in elevation. The climate of the lowlands is marked by heavy rainfall,
low winds, high temperature and very high h.umidity. Because of its position



astride the equator Indonesia has no seasox.s as underscooG in the temperate
zones; the days and nights are each twelve hours long; there is less than 20F.
variation between the warmest and coolest months, and humid_ry aveiages over
80 percent the year round.   Temperatures never reach excessive levels; t-.e
daily maxima and minima range between 86'F. (30- C.) and 68"F. (20C.), at
the lowest 66eF.
7.        Rainfall, although naturally ir.i:_encec vy tr.e o          r  z_-
creasing with altitude, is nowhere less than 40 inchez (',Ca    ia; a 7ea:.
In the equatorial rain belt which covers most of Sumarera, Kalimantan arnd
Sulawesi, 90 to 100 inches (2,286 - 2,540 mm) annually are regu.arly re-
corded. In this region rainfall is fairly evenly diszributed throughout
the year; cloud covering is often heavy; thunderstorms, frequent. Bogo;,
south of Jakarta, regularly has thunderstorms on more than 300 days a year.
However, there is a progressive lessening of precipitation towards the
southern and eastern parts of the archipelago as the rainfall map In the
cartographic appendix reveals. The climate is drier in Java, Sulawesi and
the Nusa Tenggara Islands than in the larger islands of Sumatera and
Kalimantan. Typical differences between drier and wetter areas (at sea
level) can be illustrated by average rainfall for Padang, on the west coast
of Sumatera of 187 inches (4,760 mm) and Kupang in Timor to the east with
57 inches (1,460 mm). (See Appendix Table A.1.)
8.        The wind pattern and the only two recognizable seasons--"wet and
dry"-- are determined by the monsoons.   The southeast wind carries dry air
from the interior of Australia during the "northern" summer, giving a com-
paratively dry period of about 4 months--June to October--to eastern Java and
Nusa Tenggara. At the same time warm, humid air from the Indian Ocean denies
relief to Sumatera, western Java and the islands of the equatorial rain belt.
During the "southern" sunuer the direction of flow is from the Asian mainland,
south and then southeast to Australia. This northwest monsoon, which lasts
from November to March, brings rain to all parts of the archipelago.
9.        The amount and distribution of zainfall has marked effects on soil
and vegetation. In areas of heaviest precipitation all soluble soil. ingre-
dients are dissolved and carried away. This leaching accounts for the gen-
erally poor nature of the soils of Sumatera, Kalimantan and Sulawesi and is
an important contributory factor to the low population density. Conversely,
in central and eastern Java, Bali, Lombok and Nusa Tenggara generally, the
dry season gives the soil a respite from the constant leaching. More important
still, in areas of volcanic activity the wet-season leaching process is to
some degree beneficial since it exposes new, fertile volcanic soil.
Ceolog and Minerals
10.       As indicated bv the foregoing, :.e g2ology of the Indonesian
Archipelago is structurally very complex. z:e result of various periods of
changes of the earth's crust in recen_ geolo-c times in which progressive



structural and subsurface or magmatic events 1/ hdve taken place.   Not only
has this complexity of mountain structures and a long geological history of
active mountain forming processes given form to the country as it is seen
today, but it has-also endowed it with a great variety and wealth of minera'ls.
The island chain lies along three interface zones: between the Asiatic ShieLd
and the Sunda Shelf to the northwest; the ancient landrmass referr.ec to by
geologists as the Gondwanaland to the south and west (comprising A       la;-1S,
the Sahul Shelf, the floor of the Indian Ocean and India); and the massive
expanse of the Pacific Ocean floor to the northwest.   Mountain for'.-ng
crustal movements along these three interfaces are extensions of thCe  lpine-
Sunda Mountain System extending from the Himalayas southward throughi Bura,
the Andaman Islands, Sumatera and Java and into the Nusa Tenggara Islands;
the East-Asiatic Circum-Pacific System extending southward from the Phiiippines
and then branching off into Kalimantan and Sulawesi; and the Circum-Australiarn
Mountain System extending northwestward from New Zealand through New Caledonia
into Irian Jaya and Halmahera. As a result, this part of the earth's crust
is still highly mobile as illustrated by active volcanism, frequent earth-
quakes and strong gravity anomalies. The inner arc of the archipelago from
Western Sumatera through Java and into Sulawesi is particularly active as
evidenced by more than 500 young volcanoes, 127 of which are still considered
active.  Seismic activity along the fissures of this portion of the earth's
crust is related to the mountain formation process in which the earthquake
focus or epicenters are usually located offshore and at great depths, having
shock ranges of 300 to 700 kilometers. Volcanic earthquakes are of less
importance but, though local in character, can cause considerable damage in
a land with a dense population living on steep slopes much of which is com-
posed of poorly consolidated volcanic materials.
11.       A study of the crustal movement of the island chain indicates that
mountain formation, erosion and sedimentation have taken place over a long
period of geologic evolution. Although little is known of the geologic history
in Palaeozoic times, much more evidence is available of the newer mountain
forming cycles which continued in successive phases throughout the Mesozoic,
Tertiary and Quaternary Periods. During the Tertiary a number of complex
folded basins were formed in which thick series of marine, lagooned and non-
marine sediments have accumulated. This period was followed by another phase
of crustal folding which took place at the end of the more recent Pliocene
Period.  Thus geologically, the archipelago is a relatively young structure,
with active mountain building dominating the scene.
12.       There is a wide range of igneous rocks each related to a distinct
phase of crustal evolution. Mineral deposits in particular, have arisen as
a result of magmatic processes in which materials from deep within the earth
have been forced outward during the mountain forming cycles. Post-Triassic,
granitic batholiths outcrop in the western-part of the archipelago and provide
1/ A magma is a molten rock material within the earth from which an igneous
rock results by cooling.



- 4 -
the cassiterite mineral (tin) found in the Riau Islands, Bangka and Belitung
as well as wolframite (tungsten) and monazite (phosphate) in varying quantities.
The eastward extension of this batholithic mass yields gold, copper, iron,
molybdenite, antimonite, zinc and lead in Kalimantan. In the Barisan Mountains
of late Cretaceous origin in Sumatera, deposits of iron, lead, zinc, gold and
silver are found and nickeliferous iron ore, gold ar.d plat-`num, are found in
the Meratus Mountains in southeastern Kalimanran also dat' ng to the same
Cretaceous mountain formation period.
13.       In the zone of Miocene volcanism in South Sumatera and Westerr.
Sulawesi, gold-silver veins are numerous, sometimes accompanied with copper,
lead and zinc.  Manganese deposits are widely spread ia limestone beds lying
in or upon the younger Tertiary vo'lcanic rocks. The lateritic iron arid
residual nickel ore deposits resulting from the weathered gabbro materials
of the upper Cretaceous and Lower Tertiary are found along the Timor-Ceram-
Sulawesi arc and appear on the island of Waigo and in northern Irian Jaya.
The high grade copper deposit at Ertsberg in Irian Jaya and other associated
gold and silver deposits also relate to the younger Tertiary igneous rock
formations.
14.       Related to the long process of sedimentation in the Tertiary basins
of complex crustal folding, are potentially rich reservoirs of oil and gas
and extensive deposits of coal, only a small portion of which is presently
being exploited.
15.       In summary, the extensive and widespread mineralization of the
island chain can be related directly to the respective periods of mountain
formation in various parts of the country. Indonesia possesses vast re-
sources of oil, coal, tin and lateritic nickeliferous iron and low grade
nickel ore, and geologic conditions are favorable for the occurrence of
additional minerals as well. 1/
16.       A summary on an island by island basis of known metaliferous
deposits, some of which are being exploited and others which are still
being investigated, includes the following:
Sumatera and offshore isles - bauxite, bismuth ores, cinnabar
copper, gold, iron ore, lead
manganese and molybdenite,
monazite, silver, tin and zinc.
1/   For further information, see "The Geology of Indonesia" by R.W. Van
Bemmelen; "Minerals and Mining in Indonesia" by the Ministry of Mines
1969, and the "Mineral Map of Indonesia" by Dr. Soetarjo Sigit of the
Geological Survey of Indonesia.



- 5-
Java and the islands of       -  antimonite, chromite, copper,
Flores, Sumbawa and            gold, iron ore, jorosite, lead,
Timor                          manganese, titaniforous iron
ore, silver and zinc.
Kalimantan                    -  antimonite, bauxite, cinnabar,
gold, iron, lead, molybdenite,
platinum and zinc.
Sulawesi                      -  chromite, copper, gold, iron
magnesite, nickel and silver.
Irian Jaya and Halmahera      -  antimonite, chromite, cooper,
lead, manganese, nickel,
titaniferous iron ore and zinc.
17.       Of the mineral fuels, oil is found on all the major islands, coal
deposits are found on all major islands except Java and natural asphalt
deposits are found on Java, Sulawesi and in Irian Jaya.
18.       Non-metallic minerals on an island by island basis include the
following:
Sumatera              -  diatomaceous earth, feldspar, kaoline,
phosphate, quartz sand, sulphur and talc.
Java                   -  clays, gypsum, jorosite, jodine, kaoline,
marble, phosphorite, pumice, quartz sand,
sulphur and volcanic tuff.
Kalimantan             -  diamonds, kaoline, mica, phosphate and
quartz sand.
Sulawesi              -   asbestos, mica and sulphur.
Irian Jaya            -   asbestos, phosphate and talc.
19.       Limestones, gravels and other building material are widespread
throughout the islands.
20.       Much detailed information is available on specific localities in
which metallogenic and geologic data are related. 1/
21.       The Mineral and Metallogenetic Map published by the Geologic
Survey of Indonesia at the scale of 1:2,000,000 (1968) is revised periodi-
cally and is included in generalized form in the Cartographic Appendix.
1/   'Mineralization of the Malay-Papua Arc" by J.C. Liddy in Australian
inIng, Nov.-Dec. Issue, 1971.



Table 1: AREA BY REGION AND TYPE OF TERRAIN/SOIL
TERRAIN/SOIL GROUPS
(million ha.)
Group I              Group II           Group III                     Total
Area                   Area                Area                  Area       Area
Total  with Agri.    Total  with Agri.   Total  with Agri.     Total  with Agri.  Present
Area  Potential      Area  Potential    Area   Potential       Area  Potential   Cultivation
Java, Madura and Bali        5.3      1.1        4.1      3.2         4.6     3.7         14.0      8.0          8.4
(38%)               (29%)                (33%)                (100%)
Sumatera                    16.4      3.3       17.7    14.2         17.9     1.8         52.0    19.3           5.6
(32%)                (34%)               (34%)               (100%)
Kalimantan                  22.3      2.2       14.0    11.2         18.7     3.7         55.0     17.1          1.6
(41%)                (25%)               (34%)                (100%)
Sulawesi                    15.8      1.6        5.4     4.3          1.8     1.1         23.0      7.0          1.2
(69%)                (23%)                (8%)                (100%)
Nusa Tenggara and Meluku     5.7      0.6        8.8      7.1         0.5     0.2         15.0      7.9          0.7        o
(38%)                (59%)                (3%)                (100%)
Indonesia (Excluding        65.5      8.8       49.3    40.0         43.5    10.5        159.0     59.3         17.5
West Irian)             (41%)               (32%)                (27%)                (100%)
Source: Agricultural Sector Mission estimates.
Group   I:  Mountainous land, mainly lithosols and andosols.
Group II: Almost level or gently undulating to hilly land, mainly red-yellow podzolics, ferralsols, red-brown
mediterranean soils and regosols.
Group III: Swampy lands, mainly organic soils and alluvials.



- 7-
Soils and Land Capability
22.       Of Indonesia's total land area of 202 million ha, the land resource
base for agricultural development is approximately 64 million ha. Of this
area only 17.5 million ha 1/ are presently cultivated and some 12 million ha
are under forestry concessions. A further 12 million ha. are classified as
productive forest reserve. This leaves a potential area for expansion of
agricultural activities of some 20 million ha 2/. Almost half of the present
agricultural land of Indonesia (viz. 8.4 million ha) is cultivated in Java,
which, according to the ASSI team, is well above the agricultural potential.
The severity of erosion in various parts of the island of Java and accelerated
and irregular flooding are indicative of the fact that cultivat-ion has al-
ready proceeded beyond the ecologically suitable level. An unexploited land
resource potential of 20 million ha therefore exists in the other islands of
Indonesia (See Table 1).
23.       The maps on soil, terrain and land use, which are in the carto-
graphic appendix, clearly show the close relation between terrain (elevation)
and different soil groups; On the soil map seven different soil groupL, ea c
comprising a number of soil'types are distinguished and are presented in
Appendix Table A 2. The proportion and extent of the three main terrain
groups, namely mountainous, gently undulating to hilly or almost flat and
swamp land, each characterized by one or more soil groups, provide at the
present time the most useful indication of the agricultural potential for
regional planning purposes. Table 1 shows that on the average 41% of the
land area (excluding Irian Jaya) is mountainous, varying from 69% in
Sulawesi to 30% in Java (including Madura and Bali) and to 32% in Sumatera.
No more than 10-15% of this mountainous area can be brought into sustained
agriculture. Swampy land covers 27% of the land area, varying from 34% of
Sumatera, Kalimantan and Java to only 8% of Sulawesi and to 3% of Nusa
Tenggara and Maluku. Most of the swampy land in Java is in agricultural
use, but in Sumatera not more than 10% and in Kalimantan not more than 20%
can possibly be developed for agriculture.
24.       The gently undulating to hilly or almost level land covering 32%
of the country includes the greatest range of soils, a large number of which
are well suited to cultivation with a wide variety of tropical crops. About
80% of this land in Java, Sumatera and Kalimantan is suitable for agriculture,
and about 50% in Sulawesi, Nusa Tenggara and Maluku.
1/   This 17.5 million ha is taken from the aggregate of 18.8 million ha or
'harvested or planted area of the main crops (for 1969/70) as estimated
by the National Fertilizer Study.
2/   Agricultural Sector Survey Indonesia (ASSI), Annex 1.   (IBRD Report
183-IND.)



-8-
25.       Appendix Tables A. 3 and A. 4 give a more complete range of soils
for the different types of terrain.
26.       Since 1960 soil surveys for various purposes like agricultural
development, regional planning, transmigration, resettlement or intensifica-
tion programs have been carried out. Areas from a few thousand to more
than 100,000 ha have been surveyed at scales ranging from 1:25,000 to
1:500,000 (Appendix Tables A. 5 and A. 6).
27.       The land use map attached to this report is based on a vegetation
map which was published in 1950. By 1974 a more up to date medium-scale map
of the national land use pattern will be available. The survey which will
provide the necessary data for this map has been carried out since 1969
under the supervision of the Director General of Agraria in the Department
of Home Affairs (Departemen Dalsm Negri).
28.       The Land Resources Study and Land Capability Appraisal Project
which started in 1972 and will be continued at least until 1978 will provide
additional useful information on land suitability for agriculture. The main
objectives of the project are, first, collection and interpretation of data
to assist the Government in preparing the Repelita II; and second, as a
longer term objective, to provide land resource and capability information
on a continuous basis as an aid to policy formulation and planning at national
and regional levels.
29.       With regard to the distribution of forest land by region, forest
classification, and the estimated area of the forest plantations by geograph-
ical location and species, reference is made to Appendix Table A. 7.
30.       For fisheries in the different regions reference is made to Appendix
Tables A 37 and A 38.



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- 10 -
CHAPTER II
HUMAN GEOGRAPHY
Population
31.       Indonesia is fifth among the countries of the world in population,
exceeded only by China, India, the U. S. S. R. and the United States. Total-
ling some sixty million in 1930, the number of Indonesians reached douiole
this total in 1971, growing at a rate of 2.26% per annum between 1961 (the
date of the first official Indonesian census) and 1971. This growth rate--
somewhat slower than had been expected--is a compound of a crude birth rate
lying between 43.0 and 48.0 per thousand and a crude mortality rate lying
between 21.0 and 23.0 per thousand. It indicates that, if maintained,
Indonesia's population will double in thirty years.
32.       Neither the population nor rates of growth are evenly distributec
over the archipelago, however (see Table 2).
33.       Some 64% of the people live on the islands of Java and Madura,
which together account for only 6.9% of the total land area of the archi-
pelago, at population densities tenfold those in the Outer Islands, as
illustrated by Figure 2. The high rate of population growth and its con-
centration on the islands of Inner Indonesia 1/, which do not have the
capacity to provide more than a minimal standard of living for their in-
habitants in agriculture, create serious problems for the government and
at the same time provide a vast reservoir of manpower for economic devel-
opment which has scarcely begun to be tapped.
34.       There are also significant differences among the islands in crude
rates of natural increase, for while crude death rates today show relatively
little spatial variation, crude birth rates are significantly lower where
population densities are higher. (See Appendix Table A. 8). These differ-
ences, combined with transmigration from crowded Java to the Outer Islands,
and rural-to-urban movements within the islands, produce the significant
spatial differences in rates of population growth among the provinces and
islands that are shown in Table 2. 2/
1/   Java, Madura, Bali and Lombok.
2/   Population census data need to be treated with some caution, as do
the employment and national income data wnich follow (see Chapter I2I
of Volume III), and should be regarded as giving rough orders of mag-
nitude only.






Table 2:  POPULATION, 1930, 1961, 1971, AVERAGE ANNUAL GROWTH RATE 1961-1972 AND POPULATION DENSITY,
BY REGION AND PROVINCE
(in thousands)
Growth Rate      Density
Area                                                (percent)     (persons/km)   Percentage
(In sq. Km.)  Census 1930   Census 1961  Census 1971      1961/71       1971           Urban
1. D.C.I. Jakarta                592            811       2,907         4,576         4.6          7,944         100.0
2. West Java                  49,144         10,586      17,615        21,633         2.1            440          12.4
3. Central Java               34,353         13,706      18,407        21,877         1.7            634          10.8
4. D.I. Jogjakarta             3,090          1,559       2,241         2,490         1.1            793          16.4
5. East Java                  46,865         15,056      21,823        25,527         1.6            539          14.5
Total Java,. Madura    134,044        41,718       62,993       76,102(63.8%)   1.9            565          18.0
6. D.I. Aceh                  59,904          1,003       1,629         2,009         2.1             34           9.9
7. North Sumatera             71,104          2,541       4,965         6,623         2.9             94          17.7
8. West Sumatera              49,333          1,910       2,319         2,793         1.9             42          17.2
9. Riau                      124,084            493       1,235         1,642         3.1             16          13.3
10. Jambi                      62,150            245         744         1,006         3.5             51          29.1
11. South Sumatera            104,363          1,378       2,733         3,444         2.2             33          29.1
12. Bengkulu                   20,760            323         406           519         2.5             25          11.8
13. Lampung                    33,866            361       1,668         2,777         5.2             82            9
Tota-l Sumatera        524,097         8,255       15,739       20,813(17.4%)   2.8             38          17.8
14. West Kalimantan           157,066            802       1,581         2,020         2.5             13           12.8
15. Central Kalimantan        156,552            203         497           700         3.5              4           15.7
16. South Kalimantan           33,966            835       1,473         1,699         1.4             49           26.7
17. East Kalimantan           202,619            329         551           734         2.9              4           41.2
Total Kalimantan       550,203          2,169       4,101         5,152(4.3%)   2.3              9          21.8
18. North Sulawesi             24,200            748       1,351         1,718          2.8            71           19.5
19. Central Sulawesi           88,655            390         652           914          2.8            10            8.0
20. South Sulawesi             83,799          2,657       4,517         5,189          1.4            63           18.1
21. Southeast Sulawesi         32,454            436         559           714          2.5            22            7.3
Total Sulawesi         229,108         4,232        7,079         8,535(7.2%)   1.9             37           16.4



(Continued)
Table 2:  POPULATION, 1930, 1961, 1971, AVERAGE ANNUAL GROWTH RATE 1961-72
(continued)
Growth Rate      Density
Area                                                 (percent)    (persons/km)    Percentage
(In sq. Km.)   Census 1930  Census 1961   Census 1971     1961/71        1971           Urban
22. Bali                        5,623          1,101       1,783         2,120         1.8            377            9.8
23. West Nusa Tenggara         21,740          1,016       1,808         2,202         2.0            101            8.1
24. East Nusa Tenggara         48,889          1,343       1,967         2,295         1.6             47            5.6
25. Maluku                     83,675            579         790         1,089         2.5             13           13.3
26. West Irian                421,981            179          758          923         2.0              2           16.4
Total Other Islands      581,908          4,218       7,314         8,529(7.3%)   1.8             15            9.4
Total            2,019,360        60,593       97,019      119,232(100X)    2.26            59          17.4
Sources:  Biro Pusat Statistik, 1971 Census and Statistical Pocketbook of Indonesia (Jakarta:      Directorate of
Topography).



- 13 -
Emplovment
35.       While population has been growing at close to 2.3% per annum,
growth of the Indonesian labor force and of employment have been much
slower (see Table 3). The declining labor force participation rate was
most significant among males aged 10-24, presumably as a result of increas-
ing educational opportunities. (An iticrease from 10.5 to 15.0% in the rate
of school attendance by the population age 10 and over corresponds to about
3.6 million students in 1971 or 9% of the labor force.) The shift in popula-
tion from rural to urban areas where participation rates tend to be lower
reinforced the trend while the increases in participation rates of females
aged 20-54 (particularly in rural areas) provided only a partial offset.
The regional variations in the overall rates are shown in Appendix Table A. 9.
Table 3: POPULATION, LABOR FORCE AND EMPLOYMENT - 1961-1971
Average Annual
Rate of Increase
(000's)           (percent)
1961    1971        1961 - 1971
Population (10 years and above)      63,954  80,426           2.3
Labor Force (10 years and above)     34,578  40,100           1.5
Employment                           32,709  39,210           1.8
LF participation rate (%)              54.1    49.9
Employment rate (%)                    94.6    97.8



- 14 -
Table 4: EMPLOYMENT BY MAJOR ECONOMIC SECTOR. URBAN
AND RURAL AREAS, INDONESIA, 1961-1971
1961                     1971
URBAN   RURAL    TOTAL    URBAN  RURAL   TOTAL
(000's)
Agriculture, etc.               502  23,014   23,516      600  24,172  24,772
Mining and quarrying             21      66       87       44      46      90
Manufacturing                   684   1,172    1,856      661   2,270   2,932
Construction                    254     328      582     289      448     737
Transport, communication
and utilities                 454     289      742     541      413     954
Trade, banking and
insurance                     880   1,314    2,194   1,539   2,670    4,208
Services                      1,422   1,673    3,095   1,856    2,067   3,923
Other and Unknown                81     555      635      266   1,327   1,593
Total                      4,298  28,411   32,709   5,796   33,414  39,210
percent
Agriculture, etc.              11.7    81.0    71.9      10.4   72.3     63.2
Mining and quarrying            0.5     0.2     0.3       0.8    0.1      0.2
Manufacturing                  15.9     4.1     6.0      11.4    6.8      7.7
Construction                    5.9     1.1     1.8       5.0    1.3      1.9
Transport, communication
and utilities                10.6     1.0     2.3      9.3     1.2      2.4
Trade, banking and
insurance                    20.5     4.6     6.7     26.6     8.0     10.7
Services                       33.1     5.9     9.5      32.0    6.2     10.0
Other and Unknown               1.9     2.0     1.9       4.6    4.0      4.1
Total                      100.0   100.0   100.0     100.0  100.0    100.0
Source:   1961 Census and preliminary sample results from 1971 Census, Biro
Pusat Statistik.
36.       Details of the sectoral and regional composition of employment and
of employment changes are shown in Tables 4 and 5, and Appendix Tables A. 10
- A. 15. The major shift in sectoral shares of employment has been a decline
from 72% to 63% in agriculture with corresponding increases in the shares
of manufacturing, trade, transport and services (Table 4). Employment in
agriculture grew at a rate of only 0.5% a year compared to increases in
manufacturing employment in rural areas averaging 6.8% a year and an actual
decline in workers employed in urban manufactures (Table 5 and Appendix
Table A. 10). In these changes, marked regional differentials can be
discerned. Agriculture remains more important in tne outer islands, and
manufacturing, trade and services in Java (Appendix Tables A. 11 and A. 12).
In turn these latter sectors are the predominant growth sectors (Appendix



- 15 -
Tables A. 13, A. 14, and A. 15). In addition to growth of trade, finance and
other services in Java's major cities, notably Jakarta, there is evidence of
the increasing importance of small scale rural manufacturing activities in
Java.
Table 5: AVERAGE ANNUAL RATES AND DISTRIBUTION OF EMPLOYMENT CHANGE
BY MAJOR ECONOMIC SECTOR, INDONESIA, 1961-1971
1961-1971              1961-1971
Average Annual Rate    Percent of Total
of change         Employment Change
(percent)
Urban  Rural Total     Urban  Rural Total
Agriculture, etc..              1.8    0.3    0.5      1.5   17.8    19.3
Mining and quarrying            7.7   -3.2    0.3      0.3  (-0.3)    ...
Manufacturing                  -0.3    6.8    4.7     (-0.3) 16.9    16.6
Construction                   1.3     3.2    2.4      0.5    1.9     2.4
Transport, communication
and utilities                5.9     7.3    6.7      1.3    1.9     3.3
Trade, banking and
insurance                    1.8     3.6    2.5     10.1   20.9    31.0
Services                       2.7     2.1    2.4      6.7    6.1    12.7
Other and Unknown              11.5    9.1    9.6      2.8   11.9    14.7
Total                       2.8     1.6    1.8     23,0   77.0   100.0
Urbanization
37.       According to the 1971 Population Census, 17.4% of the population
is defined to be urban in Indonesia; in 1961 the percentage was 14.8.   This
level of urbanization is one of the lowest even among developing countries',
and is consistent with Indonesia's low level of economic development. The
2.6 percentage point increase in the urban population percentage during the
period 1961-1971 was much lower than the 5 percentage points during the
same period in most regions of the developing world.
38.       Despite the large divergences in population density in various
parts of the country, the urban population percentage is quite similar among
the provinces. (See Table 2). The urban population ranges within a few per-
centage points of the national average for each of the major regions, with
the exception of-Nusa Tenggara, which is among the least developed regions
in the country, and of course the city-province of Jakarta.
39.       Urban areas in Indonesia specialize, as elsewhere in the world, in
manufacturing and service functions including trade, transportation, finance
and public administration. As shown in Appendix Table A. 16, the percentage
composition of employment by sectors is quite similar among the urban areas
of all the major regions of the country. As a collorary, the percentage
composition of employment is similar among all rural areas.   Rural areas are



- 16 -
dominated by agriculture with 60 to 80% of labor force engaged in this sector,
whereas urban areas are dominated by trade and service activities. However,
rural areas and urban areas are not independent, but are interdependent: ru-
ral areas specialize in the production of food crops and other raw materials
while urban areas perform trading functions, administrative, financial, edu-
cational and other services. Manufacturing can take place in both areas,
but rural manufacturing tends to be small scale or handicraft and large es-
tablishments tend to concentrate in urban areas.
40.       In terms of the growth of employment, urban employment grew at the
annual rate of 2.8% while the rural employment grew at 1.6% during the same
10 years (see Table 5).  The growth of urban employment was largely due to
growth of employment in the service sector including transportation, and the
manufacturing employment in urban areas did not grow at all. There was, how-
ever, growth in manufacturing employment in rural areas and in the province
of West Java outside of Jakarta. Although too much reliance should not be
placed cn the statistics it would appear that this is a peculiar characteris-
tic of urbanization in Indonesia: urbanization is not supported by the
growth of manufacturing, but, more heavily than in most countries, by the
growth of the service sectors.
41.       The difference in the sectoral compositon of employment is not the
sole difference between urban and rural areas. There are marked differences
in the educational level between them. People in urban areas are much more
educated than those in rural areas in every major region of the country. The
illiteracy rate in rural areas ranges from a low of 30% in Sumatera to a
high of 51% in East Java, but in urban areas ranges from 16 to 26% (see
Appendix Table A. 17). The number of persons who have attended university
per 1,000 persons of 10 years of age and over is 0.4 or less in rural areas
of every region, but ranges from 0.8 to 12.6 in urban areas, many of the
regions having a figure above 5.0.
42.       Comparing the distribution of the illiteracy rate with the rate of
university attendance, it can be concluded that the concentration of educated
people in urban areas is more marked at the highest level of education than
at the lowest level of education. Another significant point in the educational
composition is that the regional disparity is relatively small at the lowest
level of education. Interregional differences in university attendance in
urban areas range from one to fifteen per thousand from Kalimantan to Jogjakarta
and Jakarta. Urban areas in Kalimantan and Sumatera have relatively low
rates of university-educated people.
Ec nomic Wellbeing
43.       With some 65% of the population of Indonesia living in Java, the
bulk of the country's economic activity--investment, generation of income,
trade and commerce--naturally takes place on that island. The concentration
of population in a limited space affords certain economies in the use of the
economic infrastructure (e.g. roads, irrigation, etc.), but by and large,
rather than comparing regional aggregates (e.g. regional income), a com-
parison of per capita indices gives a better idea of the level of economic
wellbeing in different regions.



- 17 -
44.       The economies of individual provinces can be compared in various
ways, but the most common and easily understood index is the per capita
regional income. However, in the case of Indonesia, the data are available
only for the gross regional domestic product (GRDP) for eighteen provinces
(the most important exclusions being North Suinatera and South Sulawesi), and
it is not possible, in the absence of the data on the inter-provincial
transfer of resources, to derive an estimate of the income retained in a
province. (See Table 6.)
Table 6: PER CAPITA GDP OF SELECTED PROVINCES, 1969 and 1971
Per Capita GDP in 1969 prices Percentage Increase
1969           1971       of 1971 over 1969
D. I. Aceh                     22,529           -                 -
West Sumatera                  22,542         24,474            8.57
Riau                          114,334        128,192           12,12
South Sumatera /a              42,294 /b        -                 -
D. K. I. Jakarta               51,410         55,845            8.63
West Java                      16,363         18,817           14,85
Central Java                   17,319         17,938            3.57
D. I. Jogjakarta               17,980           -                 -
East Java                      20,156         21,279            5.57
West Kalimantan                25,317         27,311            7.88
South Kalimantan               21,692         27,471           26.64
North Sulawesi                 26,192         29,578           12.93
Central Sulawesi               11,103         12,116            9.12
Southeast Sulawesi             13,415           -                 -
West Nusa Tenggara             14,796         15,271            3.21
East Nusa Tenggara             11,222         11,510            2.57
Maluku                         22,434           -                 -
Irian Jaya /c                   1,296          1,353            4.40
/a   From LEKNAS/KYODAI, The Regional Economic Survey of the Province of South
Sumatera.
/b   1970 in current prices.
7_   In West Irian Rupia.
Source:   Central Bureau of Statistics.
45.       Most productive activities create income which accrues mainly to
the inhabitants of the region in which they are located. In certain
sectors, however, outward factor payments and/or income transfers leave only
a relatively smal' part of the value added within the region concerned.   -n
the absence of reliable information about the magnitude and destination of
such factor payments and transfers, it appears that for provinces where sLcn
sectors are particularly important the exclusion of their value added frcr;.
the income comparisons will lead to a smaller distortion than inclusion o-
them. The major sector in Indonesia to which the above applies is mining,
and especially oil, and it is particularly important for Riau. If this



- 18 -
adjustment is made to the 1969-71 data, the most prosperous province is seen
to be Jakarta Raya, with an average per capita GRDP of more than Rp 50,000.
The urban character of this province and the fact that it is the country's
capital account for this high level. The second richest province, even after
taking out oil revenues, appears to be Riau (Rp 48,000). In this case the
secondary effects of the oil activities probably are a major contributing
factor, though its close proximity to Singapore may have also some influence.
46.       Half of the provinces for which the regional product data are
available indicate a per capita GRDP falling in the range of Rp 20,000-25,000
(about $50-65), which in view of the large margin of error in estimation,
does not appear to be a large range. This group of provinces consists of
Jogjakarta, East Java, Aceh, West Sumatera, Lampung, West and South Kalimantan,
Maluku and Irian Jaya, 1/ and accounts for 40% of the population. While the
per capita regional product of North Sulawesi was a little above this range
(Rp 28,000), that of West and Central Java was a little below the range
(Rp 18,000).
47.       The poorest provinces comprise Central and Southeast Sulawesi, and
the two provinces of Nusa Tenggara, whose per capita GRDP ranges about
Rp 10,000-15,000 ($24-$37). The share of agriculture in the regional prod-
uct of these provinces is typically high, ranging from 60-70% compared to
the national average of about 50%.
48.       The composition of the GDP differs significantly among the listed
provinces (see Table A. 18). Excluding the special provinces of Jakarta and
Jogjakarta, the share of agriculture in the regional product ranges from 11%
for Riau to 75% for Maluku, but in most cases it exceeds 50%, the approximate
national average. Variation in the shares of manufacturing and mining
sectors is even greater. The most industrialized provinces, i.e. those whose
share of manufacturing is 10% or more, are the provinces of Java (other than
Jakarta), Aceh and West Kalimantan. Contrary to the common impression, the
1969-71 data do not show Jakarta Raya to have an unusually large manufacturing
sector, for it accounts for only 9% of the regional product. This is partly
because such sectors as trade, banking and insurance dominate in this special
province, but partly also because most of the recent manufacturing estab-
lishments have been set up just outside of the limits of Jakarta in what is
actually the province of West Java.
49.       Food grain production and consumption is another indicator of the
relative economic wellbeing enjoyed in the different parts of the country.
Java is the main source of food grains, while Sumatera and Kalimantan, are
1/ The estimates for Irian Jaya were converted to the national currency
on the basis of one Irian Jaya rupiah equal to Rp 16, derived as a
weighted average of the exchange rates existing during 1969-71. Since
1971, the monetary system of Irian Jaya has been more closely integrated
with the rest of the country.



- 19 -
the main producers of the country's major non-oil exports--rubber, timber and
coffee (Appendix Table A. 19). Some seven million tons of rice was produced
in Java in 1971, compared to three million tons in Sumatera and one million
tons in Sulawesi. However, in terms of production per head of population,
the amount of rice produced in Java was about 90 kg., compared to 140 kg. in
Sumatera, 125 kg. in Sulawesi and 118 kg. in Kalimantan. Similarly produc-
tion of maize in Java, while amounting to a little under 75% of the country's
total, was 25 kg. per capita compared to around 35 kg. in Bali, Nusa Tenggara
and Sulawesi.
50.       A comparison of the apparent consumption of rice in various provinces
shows that inter-regional trade or foreign imports of rice reduce only moder-
ately the rather large variations in rice consumption resulting from the local
availability of rice. The consumption of rice in Nusa Tenggara, Maluku and
Irian Jaya averages 35-50 kg. per person per annum, while that of Aceh exceeds
200 kg. The former tend to supplement their diet with generally inferior
substitutes of rice, such as maize, cassava, sweet potatoes and yams. 1/
51.       On the whole, rice consumption-in Sumatera is estimated to be sui'-
stantially above the national average (to a lesser extent this is alBo the
case for Kalimantan) while consumption in Java due to the large weight of its
population is close to the national average of 106 kg. The main rice surplus
areas are East Java and South Sulawesi, which in 1971 exported 142,000 tons
and 66,000 tons, respectively, to other regions. The main rice deficit areas
are West Java (including Jakarta), South Sumatera and North Sulawesi.
52.       Economic wellbeing at least for the bulk of the population in dif-
ferent regions, can also be compared through wage rates in different pro-
vinces, if possible making due allowance for the differences in the cost of
living. The data on regional wage rates for various classes of workers were
compiled by Bappenas from the public works projects and are given in Appendix
Table A. 19. Unfortunately, except for certain urban centers, no regional
cost of living index is available to correct the money wages for the varying
costs of living across the country. The indications are that the cost of
living differences are relatively small in Indonesia and the wide variations
observed in the wage rates would only be reduced somewhat, but not removed,
if an allowance were made for such differences..
53.       Generally, the wage rates for the different classes of workers
display a uniform pattern across the provinces: areas with relatively 'ow
(or high) wages for one category of labor tend to have low (or high) wages
in other categories also. On an average, the provinces in Kalimantan,
particularly East Kalimantan, have the highest wage rate, while labor is
cheapest in Java. Even skilied workers in Java, with the exception of
Jakarta, earn much less than ;he unskilled workers of Kalimantan (excludiag
I/   Inferior with respect to zonasumer satisfaction, not necessarily in
terms of nutritional content.



- 20 -
South Kalimantan). Wage rates in Sumatera and Sulawesi fall in the inter-
mediate range.
54.       Whilst the observed differences in the wage rates among the islands
are perhaps not larger than one would expect in a country as large as
Indonesia, it is noteworthy that within the islands also the labor market
is far from being perfect. In certain cases, wage rate differentials among
the same category of workers within an island are close to 100%. Thus, for
example, the daily wage rate of an unskilled worker in Central Java is Rp 95
compared to Rp 155 in West Java, Rp 168 in Aceh, Rp 200 in Jakarta and South
Kalimantan, Rp 308 in Riau and Rp 375 in East Kalimantan. This is an indi-
cation of rather serious impediments to labor mobility not only between but
also within the islands.
55.       To the extent that the Government revenues are related to the
economic capacity of a region, these data also are a good indication of the
relative well-being of the regions. The non-oil central government tax
receipts have risen very rapidly in recent years, more than doubling in the
last four years (see Appendix Table A. 20). These revenues appear to have
risen fastest in regions which were seen above to be relatively less well
off, i. e. in the provinces of Java, Sulawesi, Irian Jaya, etc. However,
despite this rapid growth, the per capita collection for these areas
(except Metropolitan Jakarta) are less than half of those of the provinces
of Sumatera and Kalimantan. The very high tax collections of Jakarta Raya
are partly due to a much higher level of income but partly also because
many of the corporations and public enterprises which are shown as paying
the tax have their headquarters in Jakarta.
56.       A rather mixed picture seems to emerge from the above comparisons
of the different economic indices, approximate though they may be. It does,
however, seem fairly clear that on average the populations of Sumatera and
Kalimantan are somewhat better off than those of Java, Sulawesi and other
islands. It is noteworthy that there were observed to be fairly wide var-
iations in the economic wellbeing within as well as among the main islands.
Even when Riau and Jakarta are excluded as special cases, and allowance is
made for the poor quality of data, the regional income differentials seem
to be quite significant. Certainly, consistent with findings elsewhere, the
higher the income the greater the level of provincial urbanization (see
Appendix Table A. 21).
Regional Discrepancies in Educational Development
57.       Differences in enrollment rates among provinces are considerable
and as suggested earlier, follow a fairly regular pattern: provinces that
have a higher share of their population concentrated in urban areas obviously
enjoy economies of scale and hence a lead over the other provinces. Apart
from the two urban areas of Jakarta and Jogjakarta, this group includes
North and West Sumatera and North and South Sulawesi. Regional per capita
income plays a supporting role in determining the level of educational
expansion, and has an influence on the quality of local education systems.



- 21 -
Not unexpectedly, differences increase as one moves up the educational
ladder.  Net enrollment rates per thousand range:
(a) in primary education from 52 (West Kalimantan) to 84 (Jambi
and Lampung);
(b) in lower secondary education from 5 (Irian Jaya) to 25 (Riau
and Jogjakarta);
(c) in upper secondary education from 3 (Irian Jaya) to 24
(Jogjakarta).
In higher education the extremes are still further apart, but one should be
mindful of the fact that in Indonesia as elsewhere universities (particularly
the larger and better ones) have catchment areas that far exceed provincial
or regional boundaries. (See Appendix Table A. 22).
58.       Differences in budget allocations are also considerable but d. 'ot
follow exactly the same pattern. Maxima and minima for recurrent expendil -e
per pupil in 1971 were:
in primary education:    Rp 3,494 and Rp 1,148;
in lower secondary education: Rp 14,634 and Rp 4,365;
in upper secondary education: Rp 27,742 and Rp 4,595.
59.       Regional differences in income levels are important influences on
the foregoing differences. This happens mainly in two ways: firstly,
teacher salaries allow for cost-of-living differences, and secondly, school
fees (65% of which are retained by the levying school) distinguish three
areas (high-, medium- and low-cost) and are furthermore based on parents'
income. Since high- and medium-income families are concentrated in the
first two areas, these two factors tend to reinforce one another. The
remaining 35% of the fees are redistributed by the provincial authorities,
mainly according to the urgency of local needs, and thus would appear to
have an--albeit limited--equalizing effect.
lIealth and_Fmiy Planning
60.       Looking at the figures of the number of doctors and paramedical
personnel per head of population in each of the-Provinces, one would be
tempted to draw the conclusion that differentials have not contributed to
the relative backwardness and poverty of some of the Provinces, particularly
the outlying islands, but these figures should be treated with caution. The
distribution of medical personnel, hospital beds and clinics within Provinces
is uneven. In low population density areas the medical facilities are
largely concentrated in the -towns and people in the rural areas have to
travel long distances to receive medical attention. This is not unexpected
because of the higher costs of providing services in low density areas, and
the same pattern is evident even in well developed countries.



- 22 -
61.       The Government is aware of this problem and has been trying to
rectify it by requiring graduating doctors to spend three years practicing
in the Provinces. But this requirement has been extensively evaded and
moreover, it is not sufficient to specify the poorer Provinces: it is
necessary to have a further condition which will ensure that the rural as
opposed to the urban areas are served and rural clinics etc. provided.
62.       There are 25 medical schools of one kind or another in Indonesia,
but only 5 of these--in Jakarta, Surabaya and Bandung in Java, Bali and
Ujung Pandang--are regarded as "Supervising Medical Schools", giving their
own degrees. Before medical students can graduate from the other medical
schools they must sit and pass a national test which is set by the Supervis-
ing Medical Schools; and the standards of this test are fairly high.
63.       There is both a national shortage and a maldistribution of nurses,
particularly midwives. At present, there is one midwife per 45,000 people
in Java-Bali, whereas there is only one midwife per 80,000 people elsewhere
in Indonesia. These figures compare very unfavorably with the optimum figure
given by the medical profession of one midwife per 3,500 people.
64.       There are good smallpox vaccination and malaria control programs
in most parts of the country, but the T. B., leprosy and yaws programs suffer
from being uncoordinated with the rest of the medical services, resulting in
a sub-optimal use of the existing facilities. The public health services are
particularly weak, there is a shortage of sanitarians and the training of
sanitarians needs to be improved.
65.       Indonesia has started a modest family planning program, and it
is making fair progress in Java and Bali, where it is most needed, but it
has made a slow start in Lombok which is badly in need of an effective pro-
gram. The support of the Moslem religious leaders is probably essential
for the Lombok program to make better progress.
Transmigration
66.       In the framework of the differences in economic wellbeing, popula-
tion growth and sectoral shifts in employment are taking place. An important
component of the accompanying factor mobility is migration, of which there
are two streams: the drift to the cities (an important source of urban
growth) and "transmigration" (i. e., interisland movements).
67.       Unfortunately there is distressingly little information about the
recent movement of population. Consumption data suggest that there should
indeed be rural-to-urban and Java-to-Outer Island movements in search of
better opportunities (Appendix Table A. 24), and 1961 and 1971 census figures
do reveal some significant differences in population growth rates between
regions consistent with this view, but they are insufficient to produce
large changes in the regional distribution of population within the next
decade or two. Aside from Jakarta, only East Java showed a decrease and
Sumatera an increase of as much as one percentage point in share of popula-
tion. A crude effort to calculate net movement of population between census



- 23 -
years (Table 7) sbows quite low interregional net migration rates with only
the indicated net outflow from Central Java and the net inflow into Sumatera
amounting to as much as 0.4% per year.
68.       While little credence can be given to the specific estimates of
net population movements, they do provide an indication of the probable
orders of magnitude as well as the general pattern of net interregional flows
generally consistent with impressions and estimates based on other types of
evidence. For example, although no records are kept of interinsular migra-
tion, indications can be found in surveys of passenger traffic on the main
Java-Sumatera ferry, data on organized transmigration and population censuses.
One analysis of these various elements, covering the period 1960-64, estimated
the annual flow out of Java at 112,000 migrants and the annual flow into
Java at 59,000 in these years (40% to Jakarta), thus showinig a net outflow
of 53,000. More than half of the gross outflow consisted of spontaneous
migrants, the remainder being government financed civilian or veteran settlers
and contracted estate workers.
Table 7: A ROUGH ESTIMATE OF NET MOVEMENTS OF POPULATION BETWEEN
REGIONS, 1961-1971
Estimated /a      Actual Rate     Implied/b  Net Movements
Natural Rate of    of Population    of Population 1961-1971
Population Increase     Increase              (000's)
In                Out
DCI Jakarta             2.1               4.6        996               269
West Java               2.2               2.1                          785
Central Java            2.1               1.7                           85
DI Jogjakarta           1.4               1.1                          303
East Java               1.7               1.6
Sub-Total:
Java and Madura         2.0               1.8                          446
Sumatera                2.4               2.8        870
Kalimantan              2.1               2.2         57
Sulawesi                2.2               1.9                          265
Other Islands           2.0               2.0                          215
Indonesia            2.0               2.0        0.0               0.0
/a   Derived from natural rates for 1961 estimated by M. Iskander as reported
in IBRD, Population Projects Report No. PP8a, February 28, 1971.
lb Assuming no net movements between Indonesia and abroad.
It should be noted that, in 1963 and 1965, an unusually high number of people
were moved following natural calamities: 32,000 people in 1963, mostly from
Bali and 53,000 in 1965, of which half from Central Java.



- 24 -
69.       More recently the real presumed employment possibilities in
Jakarta, Surabaya and some other towns on Java have continued to attract
people from the Outer Islands; the number of civil servants has not risen
greatly since 1966, but this may have been compensated by growing employment
for skill-requiring jobs in the private sector. On the other hand, the im-
proved conditions in rural Java have probably reduced the number of departing
spontaneous settlers. For other reasons (budget restrictions and a desire to
promote more successful but costlier settlement schemes), the number of or-
ganized civilian settlers was reported as only 12,000 people (2,700 families)
per year during 1966-71, versus an average of nearly 20,000 people (4,700
families) during 1960, 1961, 1962, 1964. Recruitment of estate labor slowed
down considerably after 1966, and the last few years show that returning
laborers exceed the number of new recruits. On the other hand, the rapid
development of forest exploitation occurring in the last few years has re-
quired a considerable number of additional laborers of whom most have come
from Java.
70.       Some scattered indications about the aggregate of these different
movements can be obtained from recent studies of interinsular shipping in
the ten major ports, and of the Java-Sumatera Ferry (Appendix Table A. 25).
These data show a substantial and grow hg net inflow into Sulawesi in the
late 1960s. For Bandjarmasin (South Kalimantan) figures on incoming and
outgoing passengers were more or less equal, but other Kalimantan ports--
not covered by the studies--must have recorded a sizeable net inflow, namely
labor for the logging industry. Data for the Sumateran ports, other than
Lampung, show a persistent net passenger outflow of several thousands,
probably to Java.
71.       The lion's share of interinsular passenger traffic is performed
by the Java-Sumatera Ferry. Data are only available for 1968 and 1970, but
these are reported to be representative for at least the last ten years.
They show a large net outflow from Java to Lampung along this route.
72.       The incompleteness of the data is shown by several inconsistencies:
for instance, the net inflow into Sulawesi in 1968 and 1969 does not corre-
spond with a net outflow from Java. Nevertheless, it may be a fair conclusion
that in recent years there has been a net outflow of population from Java
to the Outer Islands of some 35-50,000 people per year, mostly to Lampung
and Sulawesi.
73.       The most complete data relate to official transmigration, the
organized migration of people from Java to the Outer Islands. It covers not
only settlement schemes for landless or near landless Javanese farming
families, but also workers recruited by the estates, forestry enterprises
and mines in the Outer Islands. These activities are organized and/or car-
ried out by a number of private and public institutions, of which presently
the most important--in terms of people migrating--is the Ministry of Trans-
migration and Cooperatives (TRANSKOP). This ministry sets up settlement
schemes with the help of a number of other government agencies, and recruits
labor for employment by private or public companies, with the exception of
estate labor, for which the Directorate General of Estates in the Ministry



- 25 -
of Agriculture is responsible. Settlement schemes are also set up by the
Ministry of Defense, by the University Diponegoro (Semarang) (about 100
families per year) and by the Catholic and Protestant Churches (200-300
families per year). The University of Indonesia (Jakarta) organizes the
transmigration of some 100-200 skilled workmen per year to the Outer Islands.
74.       It will be useful to distinguish between transmigration of estate
and forestry labor on the one hand, and settlers on the other. The flow
of Javanese workers to the estates in the Outer Islands has dropped con-
siderably below prewar levels, but there is no precise information on the
net flows prior to 1967.   Appendix Table A. 26 shows the available data .or
North Sumatera (including Aceh).   They show that at least since 1968, thwze
has been a small net outflow of labor from the estates. While this outfiow
is not important in comparison with the total number of unskilled permanent
laborers in Sumatera (about 120,000), it may well become so, if the present
drive to increased labor productivity in the government estates is translated
into a labor force reduction rather than output increase.
75.       The rapid expansion in logging operations in Kalimantan and Su.,
has required a growing number of laborers. Data on this type of labor are
not available, but an estimate can be made on the basis of output figures.
Assuming that one man produces about 400 m3/year, logging operations may
have attracted, between 1966 and 1972 an additional 36,000 men, mostly from
Java. To this must be added a considerable number of traders, artisans and
others to provide services to forestry laborers, who, incidentally, mostly
have come without their families.
76.       The establishment of Javanese peasant farmers on unoccupied land
in Southern Sumatera began in the early part of this century. The objective
was to alleviate the population pressure of some regions in Java. At the
outbreak of World War II, some 200,000 people (about 40,000 families) had
been settled.
77.       Settlement activities were resumed in 1950.   The objectives changed
considerably, with emphasis on Indonesianization (assimilation of Javanese
with other ethnic groups) and, later, on defense considerations. However,
the approach in terms of recruiting policy, organization of the schemes and
benefits received by the settlers remained largely the same. Table 8 shows
the number of transmigrants handled by government agencies over the past
two decades. Considering that activities of private organizations and that
veteran settlers are not incilded, the actual figure for 1950-71 may be close
to 150,000 families (600,000 people), not including an unknown number of
spontaneous settlers. Hiowever, thls number pales alongside the 1.5 millioa
annual population growth in Java.



- 26 -
Table 8: NUMBER OF TRANSMIGRANTS SETTLED SINCE 1950
Number of                      Number of
Families                        People
1950/51               790                          2,954
1952            3,885                          17,605
1953           10,141                          40,009
1954            8,409                          29,638
1955            5,491                          21,389
1956            6,091                          25,549
1957            4,968                          23,201
1958            4,799                          20,603
1959           11,439                          46,096
Total 1950-59                           56,013                      227,044
1960            5,622                          22,075
1961            5,165                          20,548
1962            4,874                          22,003
1963            7,692                          32,159
1964            3,440                          14,361
1965           13,296                          53,362
1966            1,148                           4,648
1967            1,312                           6,166
1968            2,991                          13,742
1969            1,881                           7,934
Total 1960-69                           47,421                      196,998
1970            4,377                          19,696
1971 /a         4,727                          20,954
1972 /b        14,700
Total 1950-71                          112,508                      464,692
/a   Provisional.
/b   Planned.
Source:   Ministry of TRANSKOP.
78.       There are no data on the number of settlers that have returned to
Java.  It is often said that returns have been substantial and that the net
effect of settlement transmigration was negligible. There are several
factors deterring settlers from returning:
-    The shipping data, referred to above, indicate a consistent
and considerable net outflow out of Java.
-    Even if settlers wanted to return to Java, they would, in most
cases, not be able to do so, because they would not have the
means to pay the return trip.



- 27 -
-    Further, they would lose whatever small living base they have
in the scheme without finding a livelihood in their village of
origin.
-    According to a recent study of settlement schemes in Lampung,
few settlers would wish to return to Java inspite of the
difficulties encountered.
79.       The fact that relatively few settlers have returned to Java does
not mean that settlement transmigration has been an overall success. In many
cases, settlers have moved out of the scheme to places with better soil
conditions; in other cases the scheme did not allow them to raise their
material living standards much above those in Java, while their nonmaterial
conditions probably deteriorated.
80.       The objectives of the Government's settlement policy, as stated
officially, have not always been reflected by the actual transmigration
activities. For instance, assimilation between Javanese and other ethnic
groups in the Outer Islands has long been an objective, but settlement
schemes were set up in such a way that there was little contact between the
settlers and the autochthons. Also, in quantitative terms, targets have
been at variance with realizations. The first Five Year Plan called for a
program of 100,000 families, but by the end of the plan period less than
30,000 families will have been moved. The basic reason for this discrepancy
is that the Ministry of TRANSKOP has had to rely almost entirely on other
agencies for carrying out its program. Table 9 shows the plans for 1972/73.



- 28 -
Table 9: PLANNED TRANSMIGRATION IN 1972/73, BY PROVINCE
(number of families)
Lampung                          5,850
Bengkulu                          800
South Sumatera                   3,150
Jambi                              700
West Kalimantan                    300
Central Kalimantan                600
South Kalimantan                   300
East Kalimantan                    300
North Sulawesi                     500
Central Sulawesi                  600
South Sulawesi                    800
Southeast Sulawesi                 700
Maluku                             100
Irian Jaya                        100
Total           14,700
Source:  Ministry of TRANSKOP.
81.       The regulations of the Ministry of TRANSKOP limit recruitment of
prospective settlers to Java, Madura and Bali. There is a case to include
all of the Nusa Tenggara Islands: except for Lombok the population density
in these islands may not be as high as in Java, but the natural conditions
are such that the people there are economically worse off than many in
Java.
82.       Since 1950, most settlers have been recruited in Central Java
(46%) and East Java (27%). These are the provinces with the lowest rural
income levels, the highest underemployment, and the most unfavorable land/
man ratios. The recruitment agencies in these areas are flooded with re-
quests from applicants. The Directorate General of Transmigration estimates
the number of unfilled requests at least at 200,000 families, but there are
undoubtedly a great number of people interested in leaving who do not bother
to apply, knowing their chances are slim. This situation enables the
TRANSKOP authorities to be quite selective in their recruitment.
83.       Main criteria for selection of applicants concern agricultural
skills. After having been proposed by the village chief, applicants must
pass some sort of examination in fanming knowledge. Other criteria concern
the age, political background, family status and health of the applicant.
Unlike the recruitment of estate labor, these is no limit on the number of
dependents a prospective settler may take along.



- 29 -
84.       The location of the schemes is obviously determined by the avail-
ability of suitable land. So far, "suitable" has meant irrigable, as the
schemes were destined to provide each family with 2-2.5 ha of sawah land.
An equally important consideration is the accessibility of the land. In
many schemes, isolation prohibits (or lowers the revenue of) the sale of a
marketable surplus and reduces the scope of further development.
85.       In most cases, the settlement schemes are located oa government-
owned land. But much of this land is not sufficiently suitable for agri-
cultural purposes--and even less for irrigation. Consequently, the author-
ities have in several instances had to acquire land owned by-margas (best
translated by "clan") against payment. The land thus retained has tended
to be poor and less accessible. The difficulty in obtaining land for
settlement is one of the reasons why development of the extensive and vacant
swamp areas of Sumatera and Kalimantan has received major attention in the
last few years.
Migration and the Growth of Jakarta
86.       Although the population census, particularly as related to city
population, is not free from skepticism, the statistics show that only
Jakarta and Surabaya, the two largest cities in the country, have grown with
a substantial amount of net migration among the eleven largest cities (see
Table 10). The growth of other large cities was meagre. Many have grown
more or less in line with the natural rate of growth, and some, such as
Ujung Pandang (Makassar), Surakarta and Jogjakarta had had net outmigration
from 1961 to 1971.
87.       The growth of a city reflects the growth of the economy in the
region. Jakarta grew largely due to the expansion of administrative, trade
and manufacturing activities and Surabaya due to the growth of manufacturing
and trade. Medan grew in response to the rapid growth of North Sumatera
which is based on estate agriculture; Banjarmasin on the phenomenal expansion
of forestry extraction in South Kalimantan. The slow growth of cities in
the central part of Java including Bandung, Semarang, Jogjakarta and Surakarta
is due to the stagnation of agriculture and large and medium size manufacturing
in that part of Java. In addition, recent development policies for freer trade
and international transactions have evidently favored the expansion of cities
having direct access to sea and, in particular, those with a favorable port.



- 30 -
Table 10: POPULATION GROWTH OF CITIES OVER 250,000
Population in 1000's   Annual Rate
of Growth
City          Location               1961         1971          %
D.K.I. Jakarta     Jakarta               2,971        4,576         4.4
Surabaya           East Java             1,008        1,556         4.4
Bandung            West Java               973        1,202         2.2
Semarang           Central Java            503          647         2.5
Medan              Sumatera                479          636         2.9
Palembang          Sumatera                474          583         2.1
Ujung Pandang      Sulawesi                384          435         1.3
Malang             East Java               341          422         2.2
Surakarta          Central Java            368          414         1.2
Jogjakarta         D.I. Jogjakarta         313          342         0.9
Banjarmasin        Kalimantan              214          282         2.8
Source: Central Bureau of Statistics.



- 31 -
Table 11: THE DISTRIBUTION OF niE ORIGIN OF MIGRANTS INTO
JAKARTA AND THE PROPENSITY OF MIGRATE DURING
1961-1971
(1)       Migrants into Jakarta
Population     during 1961-1971      Migrants per
Province             in 1000's                          1000 persons of
1961         (2)         (3)     Provincial Popu-
Persons /a      %      lation (2)/(1)
1.   DKI Jakarta           2,970          -           -             -
2.   West Java             17,673     816,400       43.04         46.2
3.   Central Java         18,456      487,657       25.71         26.4
4.   D.I. Jogjakarta        2,247      65,264        3.44         29.0
5.   East Java             21,880     127,112        6.70          5.8
6..  D.I. Aceh              1,636       9,518        0.50          5.8
7.   North Sumatera        4,984       65,484        3.45         13.1
8.   West Sumatera         2,330       72,873        3.85         31.3
9.   Riau                  1,240       14,584        0.76         11.8
10.  Jambi                    748       7,594        0.40         10.2
11.. South Sumatera )                  57,700        3.04 )
12.  Bengkulu       )      4,865        4,773        0.26 )       15.5
13.  Lampung        )                  12,557        0.66 )
14,. West Kalimantan       1,578       23,789        1.25         15.0
15.  Central Kalimantan      499        1,492        0.07          3.0
16.  South Kalimantan      1,479        9,116        0.48          6.2
17.  East Kalimantan          553       5,757        0.30         10.4
18.. North Sulawesi )        012       16,962        0.89 )107
19.  Central Sulawesi )    2            4,474        0.23 )       10.
20.  South Sulawesi )       5          32,935        1.73 )        7.0
21.  Southeast Sulawesi )               2,843        0.14 )
22.  Bali                  1,790        5,133        0.27          2.9
23.  West Nusa Tenggara     1,814      23,789        1.25         13.1
24.  East Nusa Tenggara     1,971       5,696        0.31          2.9
25.  Maluku                   793       9,499        0.50         12.0
26.  Irian Jaya               761       3,963        0.20          5.2
27.. Abroad                            29,919        1.57           -
Total                     1,896,703      100.00
/a   Suharso, "Cityward Migration and Educational Attainment in Jakarta-
Indonesia", UNESCO/PDEP/7-1, September 1973.
Source:   Central Bureau of Statistics and Suharso.



- 32 -
88.       The growth of Jakarta deserves special attention.   According to
analysis by Suharso 1/ based on 1971 population census, nearly 2 million
persons migrated to D. K. I. Jakarta during the period of 1961 to 1971
(see Table 11). Of them, 43% came from West Java and another 36% from the
rest of Java and Madura. As shown in the fourth column of Table 11, the
propensity to migrate to Jakarta (migrants per 1,000 persons of provincial
population) is extremely high in West Java which is explainable by geograph-
ical proximity. Jogjakarta and Central Java have also high migration pro-
pensities, which are, however, less than that of West Sumatera. The migra-
tion propensity of East Java is among the lowest. Some geographically
distant areas such as West Nusa Tenggara, Maluku and North and Central
Sulawesi also have relatively high migration propensities. Only short
distance migration is influenced by geographical proximity. The higih mi-
gration propensities from West and Central Java and Jogjakarta are probably
due to a "push factor", the relative poverty of the areas, whereas East
Java's relatively low propensity to migrate to Jakarta appears to be due to
its relatively high income (see Table 6) and having another competing growth
pole, Surabaya, within it. On the whole, the provinces of Sumatera have
high propensities to migrate relative to other outer islands, particularly
those east of Java. This appears due to the fact that Surabaya is absorbing
a large part of migrants from the eastern part of the archipelago.
89.       The same paper also reports the results of a survey on migrants
to Jakarta.   According to the survey, 4% of migrants came due to transfer
of job, 6% to study and 30% in search of jobs. Additionally 49% were
dependents, and 11% of the migrants came for other and unknown reasons.
It would appear that the single most important reason for migration to
Jakarta was the expectation of better job opportunities.
90.       Despite a large amount of migration to Jakarta in search for jobs,
the unemployment rate in Jakarta is not particularly high relative to other
urban areas in the country. According to the Population Census of 1971,
the unemployment rate in Jakarta was 5.3% and that for all urban areas in
the country was 4.8%. There were other regions which had higher urban
unemplovment rates: 5.3% in Sumatera and 7.5% in Sulawesi. It seems there-
fore that despite the large inflow of migrants to Jakarta, many of them were
finding jobs.
91.       The composition of migrants to Jakarta in terms of education attain-
ment is also reported in the paper by Suharso. As shown in Table 12 the
distribution of migrants to Jakarta by education attainment is close to the
distribution of the entire urban population of the country. Ilowever, relative
to the urban population of the country, the migrants to Jakarta contain
1/   Suharso, "Cityward Migration and Educational Attainment in Jakarta--
Indonesia", UNESCO/PEDP/7-1, September 1973.



- 33 -
higher proport4ons of senior high school and academy/university attendants.
Another point which is revealed by the paper (See Appendix Table A. 27) is
that niore of the migrants from nearby provinces, e. g. West Java and Lampung
are less educated people, whereas the migrants from distant provinces to
Jakarta contain higher proportions of the more highly educated on the whole.
92.       To summarize, Jakarta is absorbing a large number of migrants from
all provinces of the country without alarming increases in unemployment.
Migrants from nearby provinces are geherally less educated, but those 'rom
distant provinces are generally better educated. This implies that distance
is a significant barrier to prospective but poorly educated migrants.
Table 12: EDUCATIONAL ATTAINMENT OF URBAN AND RURAL
POPULATION AND MIGRANTS TO JAKARTA
Junior   Senior
Elementary    High     High   Academy and
No Schooling     School      School    School  University
Indonesia/a   Urban      22.0            56.9       14.1      5.5      1.5
Rural      45.2           51.3         2.2      1.3      0.0
Migrants to Jakarta/b    25.0            48.0       12.5     11.1      3.5
/a   Population of ten years and older, Population census of 1971.
/b   Suharso, Ibid.
93.       One reason why unemployment has not risen rapidly is that Jakarta
has been receiving an extraordinary share of both foreign and domestic in-
vestment. For a population share of about 4%, Jakarta has been the location
of more than 30% in value of intended investment projects approved under
the Domestic Investment Law (see Table 13) and 20% of intended investment
projects approved under the Foreign Investment Law (see Table 14).
94.       The share is particularly high for manufacturing, transportation,
communication and other infrastructure sectors. Two factors appear to be at
work in this process: on one hand, the relatively better physical and ins-
titutional infrastructure of the Jakarta province attracts private invest-
nient in manufacturing and other urban-related activities, and on the other
hand, such investment encourages migration to the area and increases demand
for infrastructure investment. This is an agglomerative process without
anv visible end in sight (see oara 342 for a review of JABOTABEK study).
But, in this process a great n.umber of highly paid jobs will be created and
a further greater number of jobs will be generated for the unskilled labor



- 34 -
force in the trade and services sectors, producing by cumulative causation
an even greater concentration of activity in Jakarta than now exists (see
Table 15).
Table 13: APPROVED PROJECTS UNDER DOMESTIC INVESTMENT
LAW TO BE LOCATED IN JAKARTA FROM NOVEMBER 1968 TO MAY 1972
Number of Projects         Intended Investment
Sector
Jakarta as                     Jakarta as
Number   % of nation     Rp million    % of national
Agriculture               1          3             1,945           31
Estates                   -          - 
Forestry                  -          - 
Fisheries                 1         11               372           14
Livestock                 4         50               412           25
Mining                    -          -               -              -
Manufacturing           272         41            89,661           33
Transportation           34         76            26,682           90
Public Utilities          4         80             2,909           95
Tourism                  34         53            26,831           71
Infrastructure            2         29               178            8
Others                    -           -               -              -
Total        352         34           148,990           32
Source: DKI Jakarta Investment Office.



- 35 -
Table 14: APPROVED FOREIGN INVESTMENT PROJECTS TO BE LOCATED
IN JAKARTA FROM JANUARY 1967 TO JULY 1972
Number of Projects     Intended Investment
Jakarta as             Jakarta as
Sector                         Number   % of national  US$1000 % of nation
Basic and Heavy Industry               33        63          43,802     58
Chemical Industry                      15        79          25,697     29
Plantation and Agriculture              -         -            -         -
Fisheries                               1        10           2,700     16
Forestry                                -         -            -         -
Hotel                                   7        78          54,890     81
Infrastructure                        16        100           9,841    100
Light Industry and Handicraft          86        62         101,088     68
Mining                                  1         6             500      0
Pharmaceutical Industry                18        53          21,522     52
Construction                           25        86          52,116     48
Textile Industry                       12        46          46,199     23
Trade                                   2        18             600      7
Transportation and Communication       11        73           9,339     58
Total            227         47         368,330     20
Source:   D. K. I. Jakarta Investment Office.



- 36 -
Table 15: SHARE OF JAKARTA IN INDONESIAN ECONOMY
Jakarta as
Percentage
Indicator                              of Indonesia
Population 1971                                                  3.8
GDP, 1970                  Total                                 8.5
originating from Manufacturing                            6.5
Construction                         18.1
Electricity, Gas and Water Supply    32.8
Transport and Communication          23.0
Wholesale and Retail Trade           22.7
Banking and other Financial
Intermediaries                     75.8
Ownership of dwellings               15.6
Public Administration                13.9
Services                              3.4
National Government Tax Revenues, 1970/1971                     49.8
Domestic Investment Project, (Rp) 1968 - 1971                   31.7
Foreign Investment Projects, (Rp) 1967 - 1971                   19.7
Savings in Tabanas (small savings) Accounts, 1972               37.5
Large Manufacturers, 1970                                        8.3
Government Emplovees, 1970                                      18.4
Routine Expenditures for Urban Services, 1971/1972              11.3
Development Expenditures for Urban Services, 1971/1972          38.6
Source:   For GDP components, Census and Statistical Office, D. K. I. Jakarta,
Regional Income of D.- K. I. Jakarta, 1966-1971.
For others, Planned Community Development, Ltd. Urban Development
Study Jakarta, 1973.



- 37 -
CHAPTER III
SPATIAL IMPLICATIONS OF SECTORAL DEVELOPMENTS
Introduction
95.       As the preceding discussion of Jakarta indicates, every sectoral
development has a specific location and carries with it a set of spatial
implications; thus sectoral and regional developments are interdependent.
To the extent that sectoral development depends on the existing distribu-
tion of natural and man-made resources, sectoral development will follow
the geography which is already given 1:o decision-makers as a precondition
for development. In agriculture and the extractive industries in particular,
development depends almost entirely upon the resource endowment. However,
beyond this, the given spatial conditions are rarely the leading factors
determining growth and development. There are, for example, groups of
relatively "footloose" activities in the sense that their location depends
to a lesser degree upon the spatial distribution of natural and man-made
resources. Non-material oriented manufacturing activities such as textile.
and the electronics industries are of this kind. For them, there is a
wider scowa of locational choice than there is for resource oriented activ-
ities, so that a variety of other goals can enter into the locational
decision. Frequently, however, their location is conditioned by the avail-
ability of transportation and the adequacy of available infrastructure, to
cite other determinants of location.
96.       Sectoral developments are in turn conditioned by external as
well as internal demand and technical development. Among these, external
demand appears to be most significant at present for Indonesia's develop-
ment. External demands encourage and help to sustain the continued growth
of such sectors as petroletum, forestry, rubber and labor intensive manu-
facturing. Rapid rates of growth of these sectors can lead to development
of those regions endowed with the relevant resources, provided that ade-
quate backward and forward linkages can be developed. Growth of sectors
both requires and induces the transfer of labor and capital within the
country as well as between countries. Therefore, the speed of development
depends to a degree upon the relative mobility of the factors of produc-
tion. The importance of backward and forward linkages needs emphasis.
Sectoral developments can proceed in enclaves in almost total isolation
from the regions in which they are located. When this occurs, the benefits
arising from economic growth are of little consequence for properly in-
tegrated regional development.



Table 16: AVERAGE REAL GDP GROWTH RATES OF SECTORS BY PROVINCE, 1969 - 1971
West           D.K.I.  West Central East West Nusa East Nusa    West      South       North     Centrea   Southeastlv   Iriep
AcebA/ Sumatera Riau  Jakarta   Java  Java  Java  Tenggara  TenRgara  Kalimantan Kalimantan  Sulawesi   Sulawesi  Sulawesi       Java
1. Agriculture                 11.9      7.0    4.2     21.7   25.7   5.7  13.5    7.0       1.3       14.8       36.9        18.5         9.5       8.2        3.0
a. Farm Food Crops           0.2      14.4    7.6    29.3   34.5   6.9  21.0    6.4      -7.5        4.6       28.4        23.3        13.9     -17.9       -1.4
b. Farm Non-Food Crops      27.9    -16.5    -7.6     -    -11.9   8.8  -6.9     -       33.5       -6.0       -1.6         9.5        -1.9      31.8      -29.9
c. Estate Crops             28.6      3.1     0.5     -     -1.2   6.6  -2.6    8.0      33.2        -          9.1        39.5        -1.9        -         -
d. Animal Husbandry        -70.2      32.0  -11.1     8.5   20.7  -9.2  27.8   32.1      -3.4      -22.5        58.1       37.1        15.3     107.9       26.4
e. Forestry & Hunting      426.7    113.5   101.0     -     65.4 -11.6   3.2   52.8     -41.0      263.0      972.1       260.3        61.0     135.0      -47.4
f. Fishing                  17.5     -4.2    9.7      1.6    1.7 -11.9  -4.8   -3.6     134.5       31.5       31.8        17.3         1.4     283.8       20.9
2. Mining & Quarrying           -       23.2    23.7     -     43.7  79.3  25.9     -        -          -          22.7       25.1         -       209.8       -8.7
3. Manufacturing               -7.6      15.1   16.5     2.3   13.3   7.4  15.3   16.5      33.3       17.6       44.3        14.5        33.6     101.9       -8.0
a. Large & Medium Estab.                     22.7     1.1   16.4   3.7  13.9   29.6      78.0       19.4       45.1        14.3        52.9     103.6
b. Small & Household Estab.                   6.2     6.4    4.3  20.0  17.6   10.3      25.8        9.3        32.9       17.8        10.9      91.0
4. Construction                 8.4     44.4     6.1    15.5    4.3  16.1   2.6    5.1      42.5       -14.1        5.0       42.0       133.4       6.1      -18.9
5. Electricity, Gas & W.S.     51.0      -0.7   25.5    12.9    3.8   8.9  23.9   20.3      16.0       22.7        27.1       25.5         7.7     603.3        31.0
6. Transportation & Communic.   7.1      55.0   14.4    11.9   15.7  11.9   5.1   29.7      23.7         7.8       19.0       55.4        33.9     113.7        35.5
a. Land Transport                             6.2     4.4          9.5  49.8   42.9      26.9       26.3         6.6                   38.5     576.0        39.2
,ib. Air Transport                            97.3    93.0        301.7  57.5   -17.2      20.6)      -2.3       86.,                   81.0      611.3       90.8
c. Sea & River Transport                     31.4     1.2         29.9  -7.3    5.2      13.3)       -          16.2                   68.5     -14.1        80.0 
d. Communication                             55.1    39.4   34.7   5.3   6.1   83.2      15.2       43.2        11.9                   -1.4      6'.8       -10.1  CL
e. Others                                             1.4                                            6.)        62.8
7. Trade                       14.1      12.6   15.6    23.8   21.7  12.1  -7.7   -8.2      15.2        18.0       43.0       15.7         1.4      50.1        24.0
8. Banking & Others            30.6      14.1    8.4     1.5   42.1  63.4  96.6   189.1     -17.0        5.5       58.1      -16.2        35.2       15.8      239.0
a. Banking                                    7.3                 61.8 110.7  184.6      -17.3        5.7       56.5                   34.7       14.5
b. Insurance                                711.3                 56.4  67.3              61.3      -11.1       71.4                  356.3        -
c. Others                                   -29.1                 89.9  -7.3  193.1)                                                             300.0
9. Ownership of Dwellings      14.5       4.7    5.9    11.8    4.2   4.7  10.8    18.4      3.1         5.2        5.1        5.6         4.6        8.0       10.5
10. Public Administration       10.3      24.4   23.0    40.7   16.7   2.0  69.9    98.5      19.9      -10.2        1.5       33.5         73.5       6.9       14.6
11. Services                     6.7      20.1   42.4    10.0    4.2  16.1  17.6   94.4       22.0        8.5       10.5       12.0          1.2      69.8      -15.0
12. Gross Regional Domestic
Product                    9.4      12.6   18.9    19.8   20.0   8.1  10.7    8.1        5.6       13.3       33.0       19.6         14.2      37.6       10.4
1/  Two year compounded growth rate based on figures for 1969 and 1970.
Source:  Computed from Central Bureau of Statistics, Regional income from 17 Provinces in Indonesia, Jakarta, 1973.



Table 17: APPROVED INVESTHENT PROJECTS BY PROVINCES
Approved by Domestic Investment Law           Approved by Foreign Investment Law
by April 1973                                 by March 1973
Investment                                   Investment              Total Investment         Share
Number of Projects      Rp billion         Number of Projects     equiv. Rp billion--       equiv. Rp billion           %
D.K.I. Jakarta                 449                246.5                   270                  205.4                      451.9                25.6
West Java                      240                 141,3                   58                    90.9                     232.2                13.2
Central Java                   127                 50.0                    16                    14.0                      64.0                 3.6
D.I. Jogjakarta                 18                  5.0                    -                      -                         5.0                 0.3
East Java                      149                 67.5                    48                    36.8                     104.3                 5.9
D.I. Aceh                       15                  6.5                     4                     3.9                      10.4                 0.6
North Sumatera                  94                  56.1                   40                    39.8                      95.9                 5.4
West Sumatera                   26                  12.2                    3                      .6                      12.8                 0.7
Riau                            27                  4,7                    13                     9.5                      14.2                 0.8
Jambi                           16                   2.1                    3                     3.3                       5.4                 0.3
Bengkulu                         1                    .2                   -                      -                         0.2                  .e
Lampung                         22                  7.8                     3                     3.7                      11.5                 0.7
South Sumatera                  21                 50.0                    15                    17.4                      67.4                 3.8
West Kalimantan                 45                  13.5                    7                     2.7                       16.2                0.9
East Kalimantan                 68                  53.5                   26                   123.1                      176.6               10.0
Central Kalimantan              27                  19.0                    6                     6.8                       25.8                1.5
South Kalimantan                12                  2.9                     8                    27.2                       30.1                1.7
North Sulawesi                  15                  28.0                    3                    32.2                       60.2                3.4
Central Sulawesi                 2                   1.3                    1                     2.5                        3.8                0.2
Southeast Sulawesi               2                  11.2                                          -                         11.2                0.6
South Sulawesi                  13                   7.5                    9                    41.5                      49.0                 2.8
Maluku                          12                   9.6                    9                    37.3                       46.9                2.7
Bali                             8                   4.2                    2                     5.3                        9.5                0.5
West Nusa Tenggara               2                    .2 )                                        1.8                        2.6                0.1
East Nusa Tenggara               2                    .6 )
West Irian                       2                    .7                    9                   181.2                      181.9               10.3
Others                                                                      5                    32.6                       32.6                1.8
Total             1,415                802.1                   561                   961.8                    1,763.9              100.0
1/ Calculated on the basis of $1=Rp4l5.
Source: Domestic and Foreign Investment Board



- 40 -
97.       Table 16 shows the recent real growth rates of sectors by Provinces
in Indonesia, 1/ and Table 17 the regional distribution of approved foreign
and domestic investment projects. We should now examine the spatial implica-
tions of these different sectoral developments in more detail.
Minerals
98.       Mlineral production in Indonesia is dominated at this time by
State mining enterprises as indicated by the following commoditv review.
Basically, however, mining activities are small scale onerations which
focus on panning of gold and diamonds and quarrying of ceramic clays,
building materials and other industrial .ninerals. With the passage of
Law No. 11 of 1967, the basic mining legislation now in effect, heavily
capitalized foreign mining companies have invested in the country which
will rapidly revamp the domestic mining operations. Since 1967, seven-
teen foreign companies signed "Contracts of Work" with the GOI and two com-
panies are already in production: Freeport Indonesia (copper concentrates)
and Karimun Granite. Several companies have discontinued their projects
after further surveys proved unfavorable, but many others are in various
stages of exploration and project planning. The vigorous exploration and
development activities of foreign firms, backed by their financial and
technical resources, are likely to soon surpass the production of minerals
of the domestic firms. See Table 18 for recent data on minerals production.
1/   Some of the growth rates shown, particularly for some of the small sub-
sectors, cast doubt upon the accuracy of the basic data from which the
growth rates were calculated. Indeed great care must be exercised in
interpreting the data. This is our illustration of the need to improve
the national income accounts, which is referred to in Volume III,
Chapters III and V.



- 41 -
Table 18: INDONESIAN MINERAL PRODUCTION
(excluding petroleum)
Mineral and Unit           1940     1966      1971        1972     1972/71
Tin-in-concentrates, MT    44,000   12,769    19,765      21,765   +10.1%
of which:
Tin Metal, MT             nil       nil       9,217      12,009   +30.3
Bauxite, MT                274,000 701,223 1,237,610   1,275,957   +03.1
Nickel Ore, MT              55,500 117,402   900,000     935,n75   +03.9
Gold, Kg                     2,798     128       329         339   +03.0
Silver, Kg                  46,847   6,867     8,876       8,684   -02.2
Manganese Ore, MT           11,900     900    11,958       7,538/  -37.0
Rock Asphalt, MT             8,000  13,905   143,303     115,000`/ -19.8
Coal, MT                2,001,000 319,829    198,257     178,241   -10.1
Iron Sands, MT              0        0       270,900     265,915   -01.9
Diamonds, Kg              N.A.     N.A.        3,000L=    18,000 a 600.0
Copper concentrates, MT    nil      nil        nil         9,750   (new)
/a   Estimates.
/b   Preliminary.
Source:  Department of Mines.
99.       Since the passage of the Foreign Investment Law in 1967, 18 for-
eign companies have been licensed under contract-of-work arrangements to
survey, explore and develop mineral resources in Indonesia.   During the
period 1968-72 over $300 million was spent for these purposes, including
the construction of infrastructure and mining facilities.   Within the next
five years, further major investments with an estimated cost of about
$1.3 billion are planned for this sector, mostly by foreign companies. Of
the 18 companies that have obtained concessions, only one enjoys full tax
holidays for three years from start of operations ("first generation con-
tract"). The other- 17 companies have signed so-called "second generation"
contracts and are required to pay varying amounts of corporation taxes,
royalties and rents. The "third generation" contracts under which another
group of 18 applicants is being considered, require in addition to tax
and other payments the full reporting to the Central Bank of all foreign
exchange transactions and transfers - both in Indonesia and abroad.



- 42 -
100.      Except for a limited quantity of coal - which is produced at a
considerable loss - nearly all of Indonesia's hard mineral products are
exported. Table 19 below lists the exports in the last several years.
While they have been rising in absolute terms, their share in total ex-
ports has declined to 5% in 1972 and less than 3% in 1973. Tin accounts
for about 80% of hard mineral exports. Under bilateral aid from several
countries, the rehabilitation of run-down facilities serving these tradi-
tional mining activities is well underway and will continue until about
1978.
Table 19: EXPORT RECEIPTS FROM HARD MINERAL PRODUCTS
(in US$ million)
1968  1969  1970  1971   1972   1973
(est.)
1.  Tin                   50.6  55.0  62.4  60.7  71.1   82.5
2.  Bauxite                4.0   4.7   6.3   6.3   6.0    5.2
3.  Nickel                 2.3   2.8   7.4  11.0  11.8    10.6
4.  Silver                  -     -     -    0.5   0.3    0.3
5.  Iron Sand               -    _      -    1.2 _1.1      1.3
Total              56.9  62.5  76.1  79.7  90.3   99.9
% of total exports 6.5    6.3   6.5   6.1   5.1    2.8
101.      At present only about 5 to 6% of the total area of Indonesia has
been geologically mapped.   In these areas only a few economically extracta-
ble deposits have been discovered.   Apparently there are many deposits of
industrial minerals, but these are widely scattered, generally of low grade,
and often too small for immediate economic exploitation. The image of
Indonesia as a potentially rich country (in terms of hard mineral resources),
has yet therefore to be substantiated. Geological mapping and surveys will
continue to be conducted by both the government state mining enterprises and
foreign mining companies.
102.      In view of the nature and limited extent of presently known
mineral reserves the government is trying to find ways to process non-
exportable low-grade ores. But this it cannot do without foreign partici-
pation in the form of credits and/or direct investment. Inevitably, then,
the net returns of these activities to the economy will be limited in view
of either debt repayment or investment income transfers. Moreover, the
various tax incentives and accelerated depreciation allowances available
to foreign investors under their work contracts will also reduce the net
foreign exchange and tax revenues. This applies particularly to the
first few years of operation, when net returns to Indonesia, in the form
of royalties, will often not be higher than 10% of gross production. In
the later years, when profits are being taxed, these returns may go up to
20-25% of gross production.



- 43 -
103.      On the basis of the above data it can be concluded that, although
investments in the hard mineral sector mav be substantial, the returns to
the Indonesia economy of projects now foreseen will remain fairly small,
certainly in relation to those in the oil sector. The government should
consider what means are available to increase the returns to Indonesia of
existing and future mining activities.
104.      In summary, over the past five years activities in the hard
mineral sector concentrated on (a) efforts to restore existing productive
capacity, (b) exploration and (c) exp'loitation of additional mineral
deposits. Since these efforts require substantial amounts of financing,
skills and new technology, the government has encouraged foreign partici-
pation in each of these activities through incentives provided under the
1967 Foreign Investment Law. It also has allowed the state mining compa-
nies to retain 90% of their foreign exchange earnings for investment in
rehabilitation and expansion programs. Foreign project aid and tech-
nical assistance from UNDP and bilateral aid sources have also played a
significant role in these efforts. It should be mentioned, however, -__
the mining industry is an extractive industry and important as it may be
in the economic development of a country its influence in regional devel-
opment is frequently considerably less. Only on some of the "Tin islands"
are the effects of the mining industry readily evident in infrastructure
development. To date the influence of the nickel and copper operations
is still confined to restricted localities.
105.      A detailed review is given in Appendix C of the main minerals
other than petroleum, to which we now turn.
106.      Petroleum.  If the advance in the broad mineral development
field has been noteworthy during the past year, the advance in the
petroleum field has been spectacular. In 1972, Indonesia's crude oil
production increased 21.5% over 1971 to a record 395.6 million barrels.
In terms of barrels per day, production has increased from 1.08 million
b/d in 1972 to 1.47 million b/d in February, 1974. Accounting for about
2% of the world crude oil production and reserves, Indonesia maintained its
position as the tenth largest oil producing country in the non-communist
world. Indonesia's exports of crude oil and refined products during 1972
exceeded 347 million barrels, a 26% increase in quantity over 1971. De-
pending upon future prices, this share of earnings is likely to become much
greater. Japan continued to take about 70% of exports while about 16% went
to the United States. Indonesia's imports of petroleum and petroleum prod-
ucts increased by 36% (12 million barrels or 3% of domestic production) due
largely to an increase in demand, especially for kerosene.
107.      The most striking changes during the last year were in prices
paid for Indonesia oil. Since April 1, 1972, the f.o.b. export prices
of Indonesia crude oil had been $2.93 per barrel (net of the value of
90 days' credit). On April 1, 1973, this net price was increased by more
than 25% to $3.70. The increase reflected the devaluation of the dollar,
a faster increase in world oil demand since mid-1972, and an increase
in the quality premium for low-sulphur oil. The new price was, however,



- 44 -
effective only for a relatively short time. In early sumner a contract
was signed for the delivery of 30,000 barrels per day (b/d) from a new
field at $5 per barrel. A general price increase to $4.75 per barrel
for all other Indonesian oil came into effect October 1. Following the
hostilities in the Middle East, another increase to $6 per barrel was
introduced on November 1. The current price is $10.80 a barrel, which
is likely to yield the GOI a revenue from petroleum taxes and royalties
of well over $3 billion in 1974/75, an increase of $20 per capita. Given
these steep price increases, the already strong production incentives have
become even stronger. Expenditures by foreign oil contracts on exploration
and production had already risen from about $40 million in 1968 to $318 mil-
lion in 1972, and are expected to reach roughly $400 million in 1973.
108.      Although Indonesia has been an oil producing country since
1893, it was not until 1967 when offshore exploration was permitted that
intense oil exploration and production activity began. Today, over 30 com-
panies are involved in the search for oil, the majority of them foreign
owned or foreign controlled but differing from the rest of the mining
industry in that they act as "service contractors" to PERTAMINA, the State
enterprise responsible for the development of the country's petroleum
resources. This Government-owned company is responsible for all petro-
leum activities including exploration, development, production, refining
and domestic and international marketing. Rather than entering into
"Contracts of Work" as is done in the mining industry, since 1967 the oil
companies entered into "Production-Sharing Contracts", a major innovation
in the contractual relationship between foreign oil companies and a State
enterprise. Under this arrangement, the State enterprise and the companies
share both the problems and the profits, the State enterprise having full
management control for the companies' operations, and handling political
and bureaucratic problems, while the foreign-owned companies concentrate
on the technical aspects of exploration and production of oil and gas.
Most Production-Sharing Contracts also specify that (a) all equipment
brought into the country becomes the property of PERTAMINA from the date
of entry into the country; (b) companies bear all exporation expenses
and risks; (c) if oil or gas is produced, contractors may recover,
annually, costs up to 40% of the value of production; (d) the net
production split varies from 65% to 80% for PERTAMINA and 30% to 35%
for the contractors; (e) there may be direct Indonesian equity partici-
pation if a company commences production; (f) companies must provide
"pro-rata" crude oil for the domestic market at US$0.20 per barrel in
proportion to total production and consumption; (g) companies agree to
pay bonuses based on levels of production; (h) companies agree to relin-
quish tip to half of the contract area over a specified period; and (i) if
production exceeds a certain level companies must participate in some form
of investment in refineries or projects related to the petroleum industry.
Althotugh appearing stringent, this type of "Production Sharing Contract"
lias worked well in Indonesia and is being critically reviewed for more
extensive utilization by companies and governments in other countries.



- 45 -
109.      PERTAMINA and the foreign firms working under it completed
drilling about 550 wells in 1972 including 155 exploration wells. The
success ratio of exploration wells, including both onshore and offshore
drilling sites, has increased from 15% to 24% in the past year which is
well above the worldwide industry average. Ten companies 1/ have success-
fully discovered new sources of low-sulphur crude oil during the last
year. Of the various success stories, Petromer-Trend's Kasim and Jav;a
fields located onshore in the northwestern part of Irian Jaya have been
most spectacular in that their reported production rate has been stabilized
at 211,000 b/d 2/ but additional drilling should increase rhis figure _i
50,000 b/d from the field within the next six months.   T-e other new -le,
which has come into production in 1973 is PERTAMINA's Jatibarang develop-
ment in West Java expected to yield 40,000 b/d.
110.      Among the production-sharing arrangements which were alrealy in
effect in 1972, important production increases have been cbtained by
IIAPCO and ARCO offshore the North Java coast and by Union Oil offsh?.-
East Kalimantan. Total production tnder these contracts, which ran a..
an average level of 89,000 b/d in 1972, reached 136,000 b/d in January- ane
nearly 200,000 b/d in September 1973, with expectations of further in-
creases. The bulk of total production, however, continues to come from;
Caltex's older fields in central Sumatera, which operate under so-called
Contracts of Work. There, production surpassed the milestone of one mil-
lion b/d for the first time in June. Since then it appears to have
stabilized. Not long ago the output from this area was expected to peak
in 1973, and to decline rapidly thereafter. After the recent price in-
creases it appears likely, however, that secondary recovery techniques
will be employed to a much larger extent and that the decline will come
later. On the other hand, Caltex's prbduction costs, which have been
low in the past, will then tend to increase gradually.
111.      In addition to various oil discoveries and confirmation wells,
Mobile Indonesia operating in northern Sumatera and HUFFCO operating in
eastern Kalimantan continued evaluation drilling to determine the extent
of previously discovered natural gas condensate and oil reserves. The
same two companies and PERTAMINA have signed agreements regarding the
development of the fields and have been discussing marketing. Several
other companies have indicated interest in constructing the necessary
liquefaction and loading facilities as well as in purchasing the Liquified
Natural Gas (LNG) and providing LNG carriers, projects that could run as
high as $2 billion. Last year three new Production Sharing Contracts were
signed and although millions of square kilometers have been allocated to
1/   The companies include C.LX,    ;A¸.\A, STANVAC, ASA.MERA, ARLO,
IIAPCO, Union, Cities Seues        SO   and Pecromer-Trend.
2/   Some reporzs present fi_u-es of 32,30CO b/d for these wells in
these fields.



- 46 -
various companies, many millions more have not yet been contracted. Of
Indonesia's estimated 1.7 million km2 of land area and 3.4 million of
water area, only 172,000 km2 of land area and 1.9 million km2 of water
area have been extensively explored. Much still awaits the application
of modern exploration techniques.
112.      Mining _olicy.  The Indonesian policy in the mining sector is
based on the principle that the mineral wealth of the country is the
inalienable property of the Indonesian people. However, it is recognized
that the mineral potential cannot be realized without a substantial
investment by foreign capital and technical expertise, that investment
in the mining sector is of a high risk type, and also that such capital-
intensive investments do not necessarily lead to high returns to the
economy. Thus, the government has sought various ways to increase
Indonesian participation in the industry. Foreign mining companies today
are obligated to offer a minimum of 20% of their shares for sale to
Indonesians within five years of reaching a production stage. They are
required to hire a maximum of Indonesia citizens for their operations,
must strive to obtain their supplies from domestic sources and must
provide amenities for the communities in which they operate.
113.      At present the Government is engaged in reviewing the mining
"Contract of Work" which presents the terms under which foreign companies
may operate in the country. The draft of a "Third-generation Contract"
contains an entirely new investment allowance provision that permits mining
companies to deduct 20% of their investments from earnings at a rate of
5% per year for four years. The duty free import period has been reduced
from thirty years to five. One proposal which may be objectionable to
the mining companies is the condition that would require them to deposit
their receipts from export sales in Indonesia rupiah accounts from which
amounts required for foreign payments would be drawn. It is based on
Government Regulation No. 16 of 1970 which made the surrender of foreign
exchange earnings the rule for all exports. The Indonesian position is
that the established free-exchange policy of the government should pro-
vide adequate assurance against the imposition of multiple exchange rates
or other restrictions on foreign remittances. The mining companies, many
of them foreign owned or foreign controlled, remain apprehensive about
this condition if it is enforced.
114.      Consistent with the basic principle of maximizing domestic value
added, strong encouragement is being given to the processing of mineral
exports within Indonesia. Thus, mining proposals which involve any in-
tegrated operation through the metal stage are normally reviewed more
favorably than those which export ore directly.



- 47 -
A&riculture, Fores try and Fishi
Agriculture
115.      It is usual to characterize Indonesian agriculture by dividing
it into two broad types: the "Central Core" of Indonesia, consisting of
the Islands of Java, Madura, Bali and Lombok, and the Outer Islands which
includes all the rest of Indonesia. In one sense this is an important
and interesting division because it highlights the fact that 67% of the
population is concentrated in the Central Core of Indonesia, producing by
and large food crops and very little by way of exports; while the bulk of
Indonesia's agricultural exports come from the Outer Islands. The dif-
ferences between the Central Core and the Outer Islands of Indonesia are
in a large measure due to differences in soils and climate. Thus, in
general, the soils of Java, Madura, Bali and Lombok which have developed
from basic volcanic rocks are on the whole more fertile and less acidic
than soils elsewhere in Indonesia. There are variations in fertility
within the Central Core Islands. For example, because of rainfall dif-
ferences, the soils of West Java are more leached than those of Central
and East Java. But the combination of fertile soils and a favorable
rainfall distribution, coupled with natural irrigation facilities in Java
and the other Central Core islands, has resulted in a very intensive system
of agriculture. The average size of holdings in most parts of the Central
Core Islands is less than half a hectare and the average size is likely to
fall due to the inheritance laws. In Lombok, for example, property has to
be divided in the ratio of 2:1 sons to daughters, and after this division,
the land allocated to the sons is divided equally between them and simi-
larly for the daughters. With an average completed family size of about
four to five it can be seen that this is going to cause serious problems
in the not too distant future.
116.      The differentiation of Indonesian agriculture given above hides
the fact that there are important differences within the Outer Islands.
Thius, because of differences in both soils and climate, the agricultural
systems prevailing in Sumatera are as different from those prevailing in,
say, the Eastern Nusa Tenggara islands as between Java and Sumatera.
Although the soils of many of the Outer Islands are indeed poor relative
to the volcanic soils of the Central Core Islands and are not in general
suitable for growing wet paddy, they are adequate for growing a large
variety of tree crops, such as rubber, oil palm, cocoa, coffee and tea,
spices, coconuts and some food crops on a selected basis. It is in these
islands also that the bulk of Indonesia's forest reserves are situated
(see next section).
117.      Although agriculture plays an important part in the lives of
the people of Indonesia -- it constitutes 41% of the total GDP, and 63%
of the population of Indonesia make their living in the agricultural
sector -- there is no breakdown of the agricultural GDP to the provincial
level. Indeed, there is no provincial breakdown of the area planted and
of the production of all the main crops growing in Indonesia. Thus Appendix
Table A.35, which is taken from the Volume I of the Bank's Agriculture Sector



- 48 -
Survev of Indonesia, gives the overall figures with respect to crops for
Indonesia as a whole, including the projections made by the Agricultural
Sector Mission for the years 1975 and 1980, but no regional breakdown of
these figures is available. Text Table 20, however, gives an island break-
down of the harvested area and of the production of the principal food crops
in Java and the Outer Islands for 1971. It is interesting to note that
Table 20 illustrates just how heavily concentrated food production is in
Java. For example, just over 50% of the total area devoted to paddy is in
Java; the percentage is even higher for maize (70%), cassava (76%) and even
higher still in such things as peanuts and soybeans, and almost all sugar
is grown in Java. If a similar table were available for the non-food crops
it would show an equally heavy emphasis of production in the Outer Islands.
Thus all the rubber is grown in Sumatera and in Kalimantan; virtually all
of the palm oil is grown in Sumatera and most of the coconuts are grown in
the other Outer Islands of Indonesia.



Table 20: HARVESTED AREA AND PRODUCTION OF PRINCIPAL FARM FOOD CROPS IN JAVA AND OUTER ISLANDS, 1971
frrigated        Non-trrigated        Total                                           Sweet                               Soy
Paddy              Paddy            Paddy            Maize           Cassava       Potatoes         Peanuts            Beans
Area    Production   Area    Prod.     Area   Prod.     Area    Prod.    Area   Prod.   Area   Prod.    Area   Prod.     Area     Prod.
(IOO0OA) (1000 MT)
Jakarta                      12         24.9       1      1.3      13      26.2       1       .8       3     28.0   -      2.3        1     .3        -        -
West Java                  1539       4938.9    194     275.7    1733    5214.6     107    99.2      218   1816.0   60   341.4       59   45.6       27     19.8
Central Java               1201       4188.0     55     89.2     1256    4277.2     523   632.0      322   2253.4   45   259.4       75   59.1      127     83.9
Jogjakarta                   88        308.0     41     59.0      129     367.3      38    41.9       60    386.6    2     10.4      21   12.5       25      12.2
East Java                  1107       3931.2     68     128.0    1175    4059.2    1161   1122.6     454   2846.5   64   332.4      137   99.7      388     288.2
(including Madura)
Total _ava                 3947      13391.0    359     553.5    4306   139.4.5    13279  ;96.6     1057   7330.5  171   945.o      292  2ii.2      567    404.2
Swmatera                   1396       4931.7    587     936.9    1983    5868.5     127    179.5      95    926.3   50    321.3      18   18.6       26      18.9
Kalimantan                  470        926.0    234     297.1     704    1223.1      15     11.1      33    288.5    4     24.8       2    1.6        2       1.1
Sulawesi                    598       1950.5    118     179.5     716    2130.0     351    284.9      79    626.6   28    156.0      33   23.6        5       3.7
Maluku and Irian Jaya         1          3.0      14     21.2      15      24.3       27    21.1      22    213.0    35   290.4       6    3.5         3      1.9
Nusa Tenggara               371       1233.4     122    133.1     493    1366.5     272    238.3      95    656.9   59    415.5      23   15.7       63      45.4
Indonesia                  6783      22435.6   1439    2121.3    8222   24556.8    2616   2631.5    1382  10041.7  347   2153.7     375  280.1      666     475.3
Source: Statistical Pocketbook of Indonesia, 1970-71, pgs. 110-113.



- 50 -
118.      What are the prospects for agricultural development in the
various parts of Indonesia taking- into E:ccount the differences in soils,
in climate, and in stages of economic growth and development? This
question can best be answered within the context of two important related
issues. The first issue is whether, given the high population density,
overcrowding and lack of land in the Central Core Islands, scarce
resources should be devoted to trying to increase output and productivity
in these islands, or whether the resources should not rather be devoted to
developing the Outer Islands where there is plenty of space and scope for
general agricultural development. This immediately raises the second
important issue which is whether transmigration schemes can solve the
overcrowding in the Central Core Islands and be-used to populate and
develop the Outer Islands. The past attempts at transmigration have
hardly been a conspicuous success, but it does not follow from this that
properly devised and implemented transmigration schemes cannot help to
alleviate the overcrowding of the Central Core Islands. On the other
hand, the juxtaposition of the fact that the Javanese population alone is
increasing at the rate of just over one and a half million people a year
with the known administrative and absorptive capacity constraints which
are so evident in Indonesia, make it quite obvious that transmigration
cannot solve the problem of overcrowding in the Central Core Islands. In
the longer run, unless the rate of growth of population can be reduced
significantly, either through natural means or with the assistance or
family planning programs, it is fairly evident that with the existing
state of knowledge, agricultural productivity could not be increased suf-
ficiently to cater for the growing needs for food of the people of the
Central Core Islands. In the short and medium term, however, it should
be possible to increase productivity and output significantly througlh
greater intensification of paddy and other food crops. The World Bank
has financed four irrigation rehabilitation programs in Java and the
effect of this investment has yet to have its full effect on output. It
is important to continue monitoring the results that have been achieved
in these rehabilitation programs and to apply the lessons learned to other
irrigation areas in Java, Bali and Lombok. More and better on-farm
irrigation development together with improved seeds and the application
of fertilizers through credit should do much to increase the productivity
and output needed over the next few years. The BIMAS program for rice
provides credit for greater intensification in the Central Core islands,
but it needs to be administered more efficiently, and it is important that
the Central Research Institute for Agriculture should-provide improved seed
for other food crops as well as rice. In addition, in some parts of the
highlands of Java overfelling of timber has resulted in serious soil erosion
and there is a need over the next few years to improve- soil conservation
practices and to carry out some reforestation, perhaps in conjunction with
pulp and paper production.
119.      Rather than viewing transmigration as- a means of solving the
overcrowding in the Central Core Islands it should be treated- in its own
right as a means of developing the Outer Islands. There have been four
basic problems with the past and existing transmigration projects. These



- 51 -
are, first, that the land has been allocated on ad hoc basis, with a
quite arbitrary figure of 2 hectares allocated to each family; second,
the resettlement areas have tended to be too small and scattered and this
has resulted in diseconomies of management and marketing, etc.; third,
there has been insufficient cooperation between the various government
departments to provide a basic infrastructure and social services; and
fourth, the Department of Transmigration is weak and has not been opera-
tionally orientated.
120.      In planning future settlement schemes, it is suggested that
two closely monitored types of settlement schemes be tried: (a) some
midi, fairly intensive settlement projects, which are relatively expensive
in terms of investment per settled family, but not so intensive or expensive
as, for example,-the FELDA settlement projects in Malaysia; and (b) mini-
settlement projects which, coupled with improved inter-island transportation,
seek to channel and guide spontaneous resettlement.
121.      Tye A-i Midi-Settlement Schemes
(a) the early setting aside of land for settlement in
large enough blocks, preferably not less than
40,000 hectares, to help keep down administrative
costs.
(b) The importance of aerial survey and land use planning
in preparing settlement schemes.
(c) The use of a target income rather than a fixed hectarage
as a basis for each farming unit. The present thinking
is that the area allocated to each farmer should be
sufficient to provide subsistence food plus a cash
income of about US$500 a year.
(d) The necessity of providing support services such as
roads, schools, health centers, planting material,
markets, etc.
(e) Priority should be given to spontaneous settlers as
they are likely to make the best ones.
(f) Emphasis should be put on juxtaposing the new
settlement schemes alongside the existing ones in
order to improve the existing ones and provide them
with-better infrastructure and social services.
122.      Care should be exercised to ensure-that in those areas not
suitable for irrigated or wet paddy that the Javanese system of agri-
culture is not perpetuated in areas in which it is not well suited.
For examDle, in Lampung Province in Sumatera, emphasis should be on
growing cassava or other food crops, and on legumes or other grasses
to clean the land from Alang alang grass (Imperata cylindrica (L)-beauv);



- 52 -
and then to plant with a cash crop such as rubber or oil palm.   A major
reason for the failure of past settlement schemes has been the absence of
infrastructure and social services. Hence, it is import'ant to provide
such services in any future resettlement schemes. This may perhaps best
be done through the provision of a number of Service centers which would
eventually develop into self-governing villages. Such Centers would provide
some of the following services for about 2,000 families: (a) facilities
for the extension and credit staff, (b) education and medical services,
(c) shops, (d) a cooperative center, (e) provide improved planting material,
(f) hold cattle for sale to farmers, (g) demonstrate the planting and tending
of crops and livestock, and (h) provide a limited tractor hire service for
the first few years of the resettlement scheme. The World Bank's Resident
Mission in Jakarta is in fact preparing a settlement project along the lines
given above.
123.      Type B - Mini-Settlement Schemes
(a) Selection of fairly large blocks of land'to minimize
administrative costs - pre'f-erably not less th'an about
40,000 hectares.
(b) Application of land use planning through aerial
surveys to provide demarcated settlement plots large
enough for both subsistence crops and 'some cash crops.
(c) Provision of simple extension advice.
(d) Provision of low cost farm-to-market roads, using
labor-intensive methods and food aid.
(e)  Reservation of sufficient land for marketing/village
centers and other economic and social infrastructure
facilities in the future.
(f) Provision of some elementary schooling and rural clinics
staffed by paramedical personnel.
124.      We envisage that mini-type settlement schemes will over time be
progressivley upgraded to midi-type schemes. It is important for the success
of mini-type schemes that transport services between the emigration and im-
migration area be improved and maintained.
125.      Turning now to the development prospects of the Outer Islands,
the lack of extensive soil surveys below the exploratory level, particu-
larly in Sumatera and Kalimantan, makes planning extremely difficult. The
soils of particular interest are those grouped as red-yellow podzolic soils
and organic soils (including the acid-'sulphace soils) in the swampy areas
of both of these islands. The red-yellow podzolic soils cover an area
51 million hectares of which 48.3 million are outsi'de Java. These soils
have a good potential for a wide variety of crops such as maize, cassava



- 53 -
and pasture, etc. Much of this area at present is covered with forest
(18 million hectares) and Alang alang (12 million hectares). The soils of
the tidal swamps and marshland consist predominantly of acid-sulphate soils
which need intensive investigation before extension of cultivation of these
areas should be considered. Parts of the tidal swamps have been developed
through the traditionalPasang-Surut irrigation-cum-drainage systems, and
it has been proposed to develoo an additional 150 thousand hectares with a
modification of this system. Under this system, during high tides fresh
water from the rivers is let into the fields by means of canals connected
to the river bank. At low tide the discharging water is supposedly ramcving
the acidity from the soil.   However, it is probable that this so-cail.d
"washing" function of the water is also removing essential nutrients from
the soil. 1/ Not all of the swamps and marshland consist of the acid-sul-
phate soils:  about 17 million hectares or 8% of the total Indonesia land
under cultivation is covered with organic soils and these soils have a fairly
good potential for the cultivation of rice and dry (-rops like cassava, coconut,
pineapple and citrus, etc. These organic soils can be made highly pvoductive
under appropriate management systems.   In April 1974, with assistance i-,-
the Netherlands Government, the UNDP/FAO Land Appraisal Project working ac
the Soils Research Institute embarked upon a three year program to investi-
gate the problems of management of these organic soils.
126.      References have been made to the problem of Alang alang grass.
There are large areas of Indonesia under Alang alang grass. The grazing
value of this grass is low when it is young and it rapidly becomes in-
digestible for cattle. Alang alang grass has spread as a result of forest
and bush clearance and the system of shifting of cultivation in the islands
of Sumatera, Kalimantan and Sulawesi.   Although Alang alang is a serious
problem, preliminary investigations indicate that good results can be
obtained from plowing and then by sowing with different leguminous and
grass species. Leguminous plants like Stylosanthes guyanensis, Centrosema
pubescens, and Pueraria phaseoloides and grasses like Paspalum notatum and
other paspalum species show great promise.
127.      At this point it is appropriate to look at the livestock industry.
Except in Nusa Tenggara and Sulawesi provinces, where cattle are kept to
produce beef from natural grassland,-cattle and buffalos are generally
kept as draft animals for crop cultivation and transport, with meat and
hides as by-products. In the World Bank's Agricultural Sector Mission
Report, it is suggested that livestock development be looked at primarily
as a tool for raising the aggregate income of existing small holder
communities. We would support this but would not rule out projects
which would increase the output of beef from ranching. One such project
is that proposed in a report by a New Zealand consultant which looked
into the development of beef cattle irdustry in Sumatera and Kalimanran.
'./  Schopnuvs, fi.J.. !976.  Perspec_ve. c-- __:-LngpWater for Irrigation
and Drainage in indone._. a in genera. and in Sumatera and Kalimantan
in particular.



- 54 -
It proposed that during the first ten years cattle ranches would be
developed for Bandera (9,000 hectares) and Sebuhur (8,600 hectares), both
of which are in Kalimantan-Selatan; and for Balang Bitang (9,400 hectares)
and Padang Lawas (16,000 hectares) in Sumatera. At full production the
ranches are estimated to carry the following number of cattle: Bandera
(7,588), Sebuhur (13,384), Balang Bitang (7,305) and Padang Lawas (12,432).
These operations would be in addition to the existing operations in South
Sulawesi (11,000 hectares) and in Timor (40,000 hectares).
128.      The Agricultural Sector Survey Mission further proposed that for
ecological and economic reasons livestock development should be grouped
under two long-term land use patterns: (a) the introduction of mixed
farming with a grass/legume phase for cattle production, in rotation with
dry land cash crops (rain-fed rice, soyabeans, maize, ground nuts and
cassava); and (b) the establishment of mono-culture pasture farming for
ranching -- in many cases, as a first phase of development proceeding to
the establishment of mixed farming. The ley farming system proposed would
be completely new to Indonesia and further investigation is needed before
it can be practiced at all widely. On the other hand, some aspects of this
system may find support from such projects as the Mitsugoro farm where it
has been demonstrated that, for example, maize can be grown with success on
forner Alang alang infested land.
129.      In summary, the development of Java should take the form of
further intensification of crops, particularly irrigated paddy by the
furtlher rehabilitation of existing infrastructure and the provision of
new infrastructure by increasing the amount of on-farm irrigation devel-
opment (additional tertiary canals and drains, land consolidation and
leveling) and additional extension services. The Central Research Insti-
tute for Agriculture in Bogor and the regional research stations should
step up their work to provide improved seeds particularly rice and the
other food crops. At the same time, in the highlands of Java soil con-
servation and reforestation programs are badly needed to prevent further
soil erosion and to protect the watersheds of the rivers. The agricul-
tural prospects for Sumatera are very bright. There are good possibili-
ties for further developing rubber, oil palm, cocoa, coconuts, etc., on an
estate basis, and also increasing the number of smallholders, particularly
in connection with nucleus estates which would provide services (including
processing facilities) which would otherwise be provided by an agricultural
extension service. Possibilities are also good for other crops in Sumatera
and the vegetable exporting industry to Singapore and JIalaysia can be devel-
oped further. As the next section points out, the main potential for devel-
opment in Kalimantan lies with forestry, but if the rivers of Kalimantan can
be opened up, then large areas can be made available for development of rice
and other food crops and for the further development of rubber and other
tree crops. The mountains of Sulawesi limit the possibilities for agricul-
tural development of rice and other food crops. Too little is known about
the agricultural potential of East and West Nusa Tenggara, the Maluku
Islands and Irian Jaya, although it is believed that the potential for
;igricultural development in Irian Jaya is good. There is a need to mount



- 55 -
a cross-sectoral study of the rehabilitation of agriculture, particularly
the growing of coconuts and spices, in the smaller Outer Islands together
with improvement in the sea and air transport services to these Islands.
The vicious circle of deteriorating transport services leading to a
fall-off in the management of coconuts and other crops, which in turn
leads to further deterioration in transport services, and so on, must
be broken and this can only be done by a project which will integrate
in carefully phased steps the rehabilitation of both agriculture and
transport.
Forestr
130.      The forestry sector has witnessed an expansion in recent years
in production, export volume and export values exceeded only by the petro-
leum sector. Exports of lumber totalled about US$170 million in 1971,
climbed to US$230 million in 1972, and had already passed US$386 million
by the end of the third quarter of 1973. The greatest expansion in logging
operations has taken place in Kalimantan, with substantial development
also taking place in eastern Sumatera, Maluku and Sulawesi. Unfortunately,
most of the lumber exported to date has been in log form, with concentra-
tion of saw-milling operations chiefly around Banjarmasin in South Kali-
mantan and Pontianak in West Kalimantan. The well-established milling
industry of South Kalimantan is reported to be operating well below
capacity, due to the comparative depletion of that small province's forest
resources and the tendency of Central Kalimantan to promote direct export
of logs over shipment to Banjarmasin for processing, in order to receive
the substantial export tax and royalty revenues. The expansion of milling
operations (and the installation of a large plywood factory) is still
proceeding at a rapid rate in West Kalimantan, 1/ where logging has yet
to make serious inroads on the forest resource. East Kalimantan, which
may possess the most valuable tropical hardwood reserves in Indonesia,
still exports logs almost exclusively.
131.      The 1971 Industrial Establishment Registration reports about
18,000 persons employed in large and medium-sized sawmills, 2/ of whom
about 7,000 worked in the teak mills on Java.   This number has increased
sOb)stantially since then, with the rapid increase in milling operations
and exports in the Outer Islands. 3/ Despite the great scope for increases
in employment in processing, much more employment is generated by logging
1/ 35% of West Kalimantan's,timber export is sawnwood processed by
36 exporting mills, according to the Governor of the province.
2/ Statistical Pocketbook of Indonesia, 1970-71, pp. 157, 179.
3/ The Capital Investment Coordinating Board estimates that over
5,000 new jobs in wood manufacturing will result from investments
approved in 1971 and 1972 alone.



- 56 -
operations, which in Indonesia are quite labor-intensive. The labor
demand of these operations has helped raise the average daily wages of
unskilled labor in provinces in Kalimantan and eastern Sumatera to up to
five times the levels in Java. In one sense this is a constraint on dev-
elopment of lumber extraction, but in another it is a signal that a new
kind of opportunity for transmigration - albeit on a small scale compared
to Java's population problem - is opening up in the Outer Islands.
132.      The strategy for the future development of forest industries
outlined in the Agriculture Sector Review Report is in keeping with the
requirements of balanced regional development. This strategy puts first
priority on major investments in processing - i.e., a puLp and paper mill -
at Cilacap, in Central Java, where labor is abundant, demand for paper
goods is many times the level of local production, and existing coniferous
plantations and empty land at suitable elevations are available for
supply. 1/
133.      The most immediate need for Government action in the forestry
sector, however, is not in the field of production but in the area of
forest inventory and conservation, particularly in Kalimantan. At
present, almost all of the most valuable forest areas of Kalimantan
have been covered by concession contracts with private firms, with little
knowledge on the Government's side as to the extent and value of the
resources, the impact that logging operations will have.on the forest
resources, or any effective supervision and control of logging operations.
There are two basic requirements. First, the proposed National Resource
Survey and Mapping Program would aid immeasurably in the effort to prevent
destruction of this vital resource, both through its aerial photography
and mapping components and through its provisions for resource inventory
and evaluation work, and for the establishment of an up-to-date resource
data bank. Until an integrated effort on-this scaie is implemented, know-
ledge of the forestry resource, continually menaced by slash-and-burn
agriculture and the uncontrolled operations of logging entrepreneurs in
the Outer Islands and by the high demand for fuelwood and construction
material on overcrowded Java, will remain in the "guesstimate" stage
portrayed by Appendix Table A.36. Second, all existing forestry concessions
are in need of review and revision to the extent considered essential and
feasible legally. Additionally, it would be desirable to devise -- with
the help of technical assistance -- a standard form of concession contract
which would ensure sound forestry and conservation practices.
1/   An additional pulp and paper complex in Aceh or North Sumatera may
be profitable in the future, based on exploitation of nearly 150,000 ha
of natural pine forest in Aceh.



- 57 -
Fisheries
134.      The fishing industry derives its importance from the fact that
it provides the largest single source of protein in the Indonesian diet
(particularly in the Outer Islands), and that it provides employment to
over two million people. Government statistics show a total of nearly
900,000 men engaged in marine fisheries, of whom nearly 600,000 are
classified as full-time fishermen, while over 1,200,000 people are en-
gaged in inland fisheries (including fish culture), about 400,000 on a
full-time basis. The known fishing grounds are shown in Cartographiz
Appendix, Map 6, and conform to technical studies of food productivitv
of the waters surrounding Indonesia. 1/   At present, the most economically
productive grounds are in the Straits of Malacca and around the coast of
Kalimantan, including the Makassar Straits between Kalimantan and Sulawesi.
135.      The level of development of the fishing industry is uneven
throughout thp country, with the most capital-intensive methods beirg
used in Sumatera and Kalimantan; over 80% of all the motorized fishic,
boats are registered in those two islands, and 34% of all motorized claLt
are found in the province of Riau alone. On the other hand, Last Java
had only 13 registered motorized craft as late as 1971, Central Sulawesi
had 4, and none at all were registered in Southeast Sulawesi or Nusa
Tenggara Timor. 2/ This situation is reflected in the much higher pro-
ductivity of boats and men in Eastern Sumatera and Kalimantan (see
Appendix Table A.37) and is typical of the higher capital-intensity and
labor-productivity of most industries in those regions. Appendix
Table A.38 shows the total fish production (inland and sea) by region and
production per head of population. While the differences in the latter
are evened out to some extent by trade, the fact remains that the people
of Java, Bali and Nusa Tenggara generally must eat fish more as a delicacy
rather than as a staple element in their diet. In this regard, the
strategy for fisheries development outlined in the recent Agriculture
Sector Survey Report, which stresses small trawlers for Java (to provide
shrimp for export and numerous varieties of seafood as well as shrimp
for domestic consumption) and tuna fishing (mainly for export) in the
eastern islands, is quite appropriate. There is also scope for the
further development of the brackish water fishing areas.
1/ *See Doty, Maxwell, and Soegiarto, Aprilany, "The Development of
Marine Resources in Indonesia", in lndonesia, Resources and Their
Technological Development, harold W. Beers, ed.
2/   Based on DG Fisheries daca in t.he Statistical Pocketbook of Indonesia,
1970-71, pp. 140-145.



- 58 -
Industr
136.      Manufacturing is still a relatively small sector of the Indonesian
economy, accounting for less than 10% of the GDP and 7.5% of employment, and
has grown only moderately faster than the rest of the economy in recent years.
As noted earlier, urban manufacturing actually declined in the 1961-71 de-
cade, and the greatest growth was in rural manufacturing on Java. This was
of two kinds: (a) encircling Jakarta; and (b) small scale production in East
and Central Java. In the coming years, industry should grow rapidly not only
because this sector normally plays a lead-ing role as economic development
proceeds, but also from the viewpoint of regional development, because the
GOI is promoting it in the growth centers of Surabaya, Medan and Ujung
Pradang.
137.      On;e of the most commonly expressed concerns of 'the people in the
Outer Islands is that industry is heavily codncentrated in JaVa, particu-
larly in the Jakarta area. This is certainly the case when the value-added
of manufacturing is compared in aggregate terms, but the available gross
regional product data (Appendix Table A.18) also indicate that during 1969-71
the provinces of Java accounted for 60% of the national value-added from the
manufacturing sector, or a little less than the proportion of population
living there. However, due to their urban character, Jogjakarta and Jakarta
have the highest per capita value-added in manufacturing -- Rp 4,400 and
Rp 4,200 respectively, compared to the national average of Rp 2,300.
138.      The data on manufacturing activity in Indonesia are scarce and
the regional information is even scarcer. The Central Bureau of Statistics
conducts annually a sample survey of medium and large scale industry, but,
as of now, 1970 is the latest year for which the raw data have been proc-
essed. These data indicate that, out of the country's total installed ca-
pacity of 1.4 million horsepower (which is a good indicator of the modern
sector), the provinces of Java accounted for some 82% (Jakarta and East
Java alone accounting for 31% and 27%). Similarly, of the total labor
force of 848,000 employed in these enterprises, Java accounted for 86% of
the total, with West, Central and East Java each accounting for 20-30%.
The data do indicate that industry outtside Java is strongly raw material
oriented. (See Appendix Table A.15.)
139.      The GOI's policies on industrialization to date have not dis-
played any strong regional orientation, even though 33% of the recent
domestic and 50% of the foreign investment in manufacturing has been
largely located in the vicinity of Jakarta. With only limited opportuni-
ties for expanding employment in the agricultural sector in Java, growth
of industry for that region does provide a feasible and attractive alter-
native. Since most of the consumer demand also originates here, light
consumer goods industry may make good economic sense. However, at present
the Indoneslan exports consist mostly of raw materials, which originate
primarily in the Outer Islands. It would seem desirable to orientate
industrialization in these islands towards the processing of the local
raw materials. In the case of timber and rubber -- the two leading non-



- 59 -
oil exports -- a stage has been reached to expand the processing facili-
ties and export these products in processed form (e.g., crumb rubber and
plywood). Other possibilities for industrialization of the Outer Islands
are in the field of rubber manufactures, paper, petro-chemicals, and
aluminum goods.
Transport, Communications and Trade
140.      The outstanding fact about the Indonesian transport system is
the extent to which the physical geography of the country has dictated
the predominance of different modes in different regions, partly directly,
because of the great areas of dense forests, swamps and rugged mountains
and the great distances between the islands, and partly indirectly, through
the geographical influences on patterns of economic activity. The major
geographical influence is, of course, the archipelago nature of the country,
which means that the most important integrative transport mode for the
country as a whole is shipping. The importance of shipping in the country's
transport system is further compounded by the difficult terrain and conse-
quent difficulties in land transport in the larger Outer Islands (thus
enlarging the role of coastal shipping) and by the associated importance
of river transport as a means of access to the interior of Kalimantan
and Sumatera. The large rivers of those islands have discouraged the
building of roads parallel to the coastline and the absence of roads has
inhibited internal trade. Production for export, particularly of rubber,
timber and forest products is moved cheaply downriver, assembled and
processed at river ports like Palembang, Pontianak, Banjarmasin, Jambi,
Balikpapan and others.
141.      The potential integrative role that shipping could play in
Indonesia's regional development has been limited by the slow growth of
manufacturing in Jakarta and its environs. Colonial policy encouraged
export directly from the export-producing regions with little emphasis
on manufacturing of consumer goods for internal trade, at least until
the collapse of export markets during the great depression.
142.      There is still little complementary regional specialization in
manufacturing, and most inter-island trade is in agricultural consumer
goods (e.g., rice and sugar from Java to other islands, copra and fish
to Java); basic natural resources and derivatives like petroleum products,
asphalt and timber (from the Outer Islands to Java); and reexports from
Jakarta and Surabaya to the nearby provinces. The slow pace of develop-
ment of import-substitution on Java, together with the increase in economic
activity in Java, help explain the ever-worsening trade balance of Java 1/
(see Table 21), an imbalance which is not compensated for by the small
1/   90% of Java's deficit is accounted for by the imports into and exports
from Tanjung Priok, Jakarta's port.



- 60 -
surplus 1/ Java may enjoy on interisland trade. Meanwhile, over 73% of all
recorded outgoing sea freight heads directly overseas (93% for the four
Kalimantan provinces).   This for: of development is partly due to the dearth
of industries using native raw materials, 2/ partly due to the inefficiency
and corruption which plague shipping and port operation, and partly due to
the geography of the country which injects a foreign port, Singapore, into
the middle of Indonesia's inter-island and international trade.
1/   TCAS estimated a surplus of about US$30 million for Java's inter-
island trade in 1969, but since then shipments of petroleum products
from Sumatera have probably increased substantially. In 1959, Java's
surplus on interisland trade was about US$214 million, while in 1960
it was over US$300 million, more than enough to balance its foreign
trade deficit. See Statistical Pocketbook of Indonesia, 1961, pp. 147,
148.
2/   Two of the major domestic manufacturing industries, cigarettes and
textiles, are located in the predominantly agricultural regions of
Central and East Java and use a high proportion of imported raw
materials.



- 61 -
Table 21:   IMPORTS AND EXPORTS INTO DIFFERENT ISLANDS 1967-71
(000 $ U.S.)
1967      1968      1969      1970       1971
Java - Madura      Exports f.o.b.               87,756     85,173    72,640   115,284   153,224
Imnorts c.i.f.              511,245   536,935   578,660    754,010   796,686
Trade balance              -423,489  -451,762  -5C6,020   -638,726  -643,462
Sumatera           Exports                      501,682   542,872   666,972   862,672   843,484
Imports c.i.f.              113,678   155,319   167,703   193,059    217,444
Trade balance               388,004   387,553   499,269    669,613   626,r'40
Kalimantan         Exports f.o.b.                53,900    61,136    84,176   123,3:6   160,128
IMports c.i.f.                9,433    16,925    16,904     24,399    48,329
Trade balance                44,467    44,211    v7,272     98,947   111,799
Sulawesi           Exports f.o.b.               15,450     32,484    22,751    34,533    35,105
Imports c.i.f.               14,368     6,285    17,137     27,352    30,582
Trade balance                 1,082    26,199     5,614      7,181     4,523
Nusa Tenggara      Exports f.o.b.                3,550      4,461     3,638     7,670     6,476
Imports -a.i.f.                 359       346       163      1,703     1,601
Trade balance                 3,191     4,115     3,475      5,967     4,8?5
Maluku             Exports f.o.b.                 3,097     4,543     3,476    16,092    23,458
Imports c.i.f.                  172        37         72     1,022     5,683
Trade t?alance                2,925     4,506     3,404     15,070    17,775
West Irian         Exports f.o.b.                   -         -         _         977     1,716
Imports c.i.f.                  -         -          -         -       2,501
Trade balance                   -          -         -         977      -785
Total above        Exports f.o.b.               665,435   730,669   853,651 1,160,574 1,223,591
Imports c.i.f.              649,255   715,847    780,639 1,001,545 1,102,826
Trade balance                16,180    14,822     73,012   159,029   120,765
Source: Biro Pusat Statistik



- 62 -
143.      The second factor has become more important since Independence.
The State-owned shipping line of the Netherlands East Indies was' obliged,
from 1931 onwards, to call directly at 280 ports-with a minimum frequency
of four weeks, while another 202' ports, were serve:d optionally.- While
this system wo-uld be too dense for modern shipping and port technologies
and for a system. with an improving road network and; ifncreas1ing numb'ers of
motor vehicles, the present situation is one where the eastern; islands
of Indonesia have no reliable shipping service-att all. A vicious circle
has set in of deteriorating shipping service pro-ducing neglect of export
production and reversion to subsistence farming, resulting in reduced
demand for shipping and further deteriorated service. 1/ This situation
is aggravated by inefficiencies: in cargo handling and storage and by
"invisible payments" often amounting to over 100% of the publish-ed freight
rate in the majo'r Indonesian ports, particularly Tanjung Priok, 2/ so that
shippers in the eastern islands are encouraged to attempt to export directly
to foreign countries.
144.      The same port and shipping problems may work to distort modal
choice towards sailing ships 3/ which do not require modern port facilities,
and to road and rail transport on the Java-South Sumatera corridor. Avail-
able statistics 4/ show almiost no shipping along the north coast of Java,
while bulk items like rice, cement, sugar and soybeans are shipped over
700 kilometers by tail from Surabaya to Jakarta. The published coastal
freight rates, given in Appendix Table A.28, indicate extremely low rates
for these commodities (0.6 cents per ton-kilometer for rice, sugar and
cement), while statistics for Japan show that 60% of the freight traffic
moving more than 600 kilometers went by coastal sliip-ping, with substantial
1/   An additional cause may have been lower copra prices at critical
earlier points in time.
2/   The Nedeco Ports and Dredging Team (TSKT) estimate that 33% of the
total throughput costs at Tanjung Priok port (Jakarta) can be allo-
cated to "invisible costs for unnecessary activities".
3/   The Transport Coordination Advisory Service (TCAS) team estimate that
130,000 tons of timber were shipped from South Sumatera by sailing ship
in 1970 (up from 100,000 tons in 1969), compared to the 35,000 tons
recorded for freighters (up from 24,000 tons). Of course, sailing
vessels may have other, purely economic advantages also.
4/   From Interisland Sea Transport (Dry Cargo) Republic of Indonesia, 1971,
compiled by the TSKT team. In 1959', 25,000 metric tons of sugar were
sent from Eas't an-d;Central Java to West Java by sea, while in 1971
no sugar was sent by sea.   Also, in 1959, over 37,000 tons of cement
were shipped by sea from East to West Java, while only 100 tons were
shipped by sea in 1971.  See Statistical Pocketbook of Indonesia, 1961,
pages 156, 164.



Table 22:   NUMBER OF CARS, BUSES AND MOTORCYCLES BY PROVINCE AND ITS AVERAGE PER 10,000 POPULATION, 1971
No.      Province                               NUMBER                                AVERAGE PER 10,000 POPULATION
C a r s        Buses        Motorcycles         C a r s         Buses         Motorcycles
(1)         (2)                     (3)           (4)             (5)               (6)             (7)              (8)
1.   D.I. Aceh                     1,823           579           7,835               9.0           2.9              38.6
2.   North Sumatera               21,903         2,976          52,138              32.6           4.4              77.9
3.   West Sumatera                 3,120         1,196           6,658              11.0           4.2              23.6
4.   Riau                          3,333           242          11,289               20.1           1.5             68.1
5.   Jamubi                        1,147           323           2,529               11.3           3.2             24-.9
6.   South Sumatera)              12,168         3,090          16,153               17.9          4.5              23.7
7.   Bengkulu       )
8.   Lamipung       )
9.   D.K.I. Jakarta               95,077         5,834         129,528              205.4          12.6            279.8
10.  West Java                    36,698         2,162          60,683               16.9           1.0             27.9
11.  Central Java     )           23,068         1,755          80,338                9.5           0.7             32.9
12. D.I. Jogjakarta )
13.  East Java                    42,876         2,147         104,951               16.7          0.8              40.9
14.  Bali                          2,588           931           6,636               12.1          4.3              31.0
15.  West Nusatenggara               811           204           1,581                3.6           0.9              7.1
16.  East Nusatenggara               682            13           1,431                2.9           0.1              6.2
17.  West Kalimantan               1,120           194           4,845                5.5           1.0             23.8
18.  Central Kalimantan              140             2              757               2.0           0.0             10.7
19.  South Kalimantan              2,130            68           6,057               12.4           0.4             35.4
20.  East Kalimantan               2,189            55           4,576               29.6           0.7             61.9
21.  North Sulawesi     )          2,724           286           5,634               10.3           1.1             21.2
22.  Central Sulawesi )
23.   Soutlh Sulawesi     )3827                    606          21,229                6.4           1.0             35.7
24.   Southeast Sulawesi )         3
25.  Maluku                           322           68           1,059                2.9           0.6              9.6
26.  West Irian                    1,536            66           2,179               16.5           0.7             23.4
Indonesia                   259,282        22,797         528,079              21.5           1.9             43.8
Noi.e:  Based on teli estimated end year population.
SoJrce: Head office of State Police



- 64 -
proportions moving by sea over smaller coastal distances (see Appendix
Table A.29). These facts would indicate that other than purely economic
factors are influencing the decisions of shippers along this corridor. An
indication of the extent of price distortion through invisible payments
is the fact 1/ that rice is shipped from Jakarta to Palembang by rail and
ferry although published rail tariffs are 133% higher than published sea
tariffs for that haul, with little difference in time.
145.      Generally, however, inefficiencies in the sh-i,ping system
probably have had less serious effects on trade and communications in
Java and South Sumatera than in other areas because of the alternative
modes available. The TCAS consuitants have estimated that railways
carry about 7% of the passenger traffic and 9% of the freight traffic
on Java, while an IBRD mission estimated that railways carry about
one-tlhird of the intercity passenger traffic 2/ and two-fifths of the
intercity freight traffic on Java. The difference arises because road
transport in Indonesia is basically short-haul (137 kilometers average
haul) and intra-provincial, even on Java (see Appendix Tables A.30 and
A.31). Road freight traffic basically consists of building materials
for consumption there or for interisland and international export, and
imports from abroad or other islands (machinery, petroleum products, fer-
tilizers) moving from ports to surrounding rural areas. The railroad
naturally carries a relatively high proportion of intercity freight traffic
because of its cost advantages on longer hauls (245 kilometer average haul
for railway freight on Java), primarily distributing imports and domestic
manufactures and carrying agricultural and wood products assembled in the
larger cities of East and Central Java (especially Surabaya) to Jakarta.
146.      The finding that the railroad carries a smaller proportion of
total intercity passenger traffic than freight traffic agrees with TCAS
data showing that 80% of rail passengers on Java travel third-class and
that the average haul per third-class passenger on Java is only slightly
more than 20 kilometers. This heavy short-haul traffic may be due to
the very low third-class fares, the comfort advantages over extremely
overcrowded buses and three-wheeled "bemos", and the avoidance of traffic
congestion on commuter runs to Jakarta, Bandung, Surabaya and several
Central Java cities. Third-class traffic is especially heavy in Central
Java (over 15 million passengers in 1971), and this may be related to the
very small number of cars and buses per capita in that province (see
Table 22). Still, as Table 23 indicates, the Indonesian railway does
not seem to be an important passenger carrier when compared to several
other railways in the region, either in terms of the nurmber of passengers
per head of population or in density of traffic per route kilometer.    In
the case of Peninsular Malaysia, it must be noted that tnat region has
1/   Observed by the TSKT team.
2/   if recent TCAS estimates for railway passenger Lraffic are used, the
railway share drops to 2C/ of intercity passenger traffic.



- 65 -
nearly ten times as many cars and motorcycles per capita as Java, has
a very well-developed system of intercity buses and taxis, and that the
Malayan Railway has an average length of haul per passenger several times
larger than that of the railway on Java.
Table 23: PASSENGER TRAFFIC INDICES FOR SELECTED ASIA RAILWAY SYSTEMS
Passengers carried per Passengers carried per
Country               head of population        Route kilometer
Taiwan                        8.45                  125,000
Sri Lanka                    6.84                    55,700
Korea                         4.12                   41,720
India                        3.33                    28,677
Burma                         1.67                   14,964
Thailand                      1.35                   12,817
Malaysia                       .56                    3,063
Indonesia                      .45                    7,534
(Java)                        .63                     8,333
Source: Based on data from Jane's World Railways, 1972-73.
147.      Freight traffic in Sumatera is extremely port-oriented (to
Medan, Tanjung Karang, Padang, Palembang, Pekan Baru, etc.) both because
of the export-orientation of that island and because of the extreme diffi-
culty of overland transport, particularly from the three southern prov-
inces (Lampung, South Sumatera and Bengkulu) to West Sumatera and from
the west coast to the east. Road traffic in Kalimantan, Timor, Irian,
Sulawesi and the other islands (excluding Bali) is negligible except in
the rather immediate vicinity of large ports (Ujung Pandang, Banjarmasin,
Pontianak and Manado) and is almost never inter-provincial in the
character.
148.      The distribution of major (i.e. national and provincial) roads
is given in Table 24, along with the route-length of the railway system.
These data should be handled with care, however. Many paved roads,
particularly in the Outer Islands, are passable only with great diffi-
culty either because of deteriorated pavement or bridge wash-outs, while
the rail system on Sumatera is not an integrated one but rather four sepa-
rate systems. A brief discussion of highway traffic volumes is given in
Appendix D.






IRI 10932
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- 67 -
Table 24: LENGTH OF TRUNK ROADS AND RAILWAY TRACK, 1970, BY REGION
(kms.)
Central Government and Provincial Roads    Railway
Regionj               As2halted           Non-Asphalted      Track
Java and Madura             6,494                 1,999         4,684
Sumatera                    3,530                 9,468         1,956
Kalimantan                    483                 2,301           -
Sulawesi                      828                 3,719           -
Other Areas                 1,156                 2843-
Total/a               12,491                20,330         6,640
/a   46% of total length of Central Government roads are asphalted,
while 35% of Provincial roads are asphalted. Of the 51,000 kilo-
meters of Kabupaten and other roads (not shown here), only 11%
are asphalted.
Source: Statistical Pocketbook of Indonesia, 1970-71, pgs. 324, 240.
149.      Given the geography of the country it is quite natural that
air traffic is an important component in the passenger transport system,
with 845,000 passengers in 1971 and a growth rate of about 35% per annum
from 1969 to 1971. 1/ As might be expected,- air traffic is heavily con-
centrated on Jakarta, which accounted for 37% of all originating passengers
in 1971, a figure which is understated because of the necessity of changing
planes in Surabaya, Ujung Pandang or other points on trips from Jakarta to
the eastern islands.  Surabaya accounted for 15% of total originating pass-
engers and two-thirds of these were bound for Jakarta. The concentration
of traffic on Jakarta is due to the role of the Government in the economy
and to administrative centralization.
150.      The eastern islands cannot depend on reliable scheduled serv-
ices even in the field of air transport, with frequent last-minute can-
cellations of flights even by the national flag-carrier, Garuda. This,
coupled with poor telecommunications and mail service, compound the isola-
tion of several outer island provinces and often force them to fall back
on official government radio links to maintain communications with the
rest of Indonesia.
1/   This discussion of air travel is based on data recently compiled by
TCAS.



- 68 -
151.      Much of the investment in transportation over the last few years
and much of the investment planned for the near future has been rehabilita-
tory in character. The reason for this approach is that all of the major
transport modes have suffered from insufficient maintenance and investment
over the post-war period, and this has contributed to the especially
serious deterioration of service in the outlying or marginal areas reached
by each mode, i.e. roads in Sumatera and Sulawesi; railroads in Aceh, West
Sumatera 1/ and South Sumatera; siltation of ports and rivers in Kalimantan
and eastern Sumatera; and shipping in the eastern islands. There are still
many obvious candidates for rehabilitation projects in all modes of transport,
but attention should be given to three points in formulating and selecting
projects:
(a)  the necessity for rehabilitation in view of changing
patterns of economic activity and transport require-
ments;
(b) the effect specific projects and programs for different
modes will have on regional patterns of investment, and
vice versa; and
(c) the organizational improvements necessary to ensure that
new additions to capacity will be utilized, maintained
and replaced (on an ongoing basis) more effectively
than formerly.
152.      In regard to the first point, there are developments on the
horizon wiich will both increase and decrease freight traffic in Indonesia
in the next few years. New cement plants in Cibinong and Cilacap (as
part of the national plan for major cement production facilities in each
of the country's principal development region) will severely cut into
rail carriage of cement from the Gresik plant near Surabaya to Jakarta
and West and Central Java, 2/ while the PERTANINA refinery complex to be
built at Cilacap and the pipeline to be built from that complex will cut
into the carriage of the railway's major freight commodity group. 3/ A
1/   The railways in these two provinces receive revenues equal to about
10% of their operating expenses.
2/   TCAS data indicate that cement accounted for 5% of major commodity
tonnage carried by rail on Java in 1971, and with an average haul
of 611 kilometers, for 12% of ton-kilometers.
3/   Petroleum products accounted for about one-third of major commodity
tonnage carried by rail on Java in 1971, while the single haul from
Jakarta to Bandung accounted for about one-tenth of total rail ton-
kilometers for major commodities according to TCAS estimates.



- 69 -
general explanation for this trend may be that, as development (and import-
substitution) proceeds, increasing demand for both consumer and intermediate
goods may provide the economies of scale necessary to justify industrial
investments in more and more regions, thus diminishing the long-haul
transportation requirements along certain routes.
153.      On the other hand, the drive for national self-sufficiency in
rice, if successful, will mean an increase in domestic transport require-
ments, both by land, from East and Central Java to West Java, and by sea,
from East Java and South Sulawesi to most of the outer-island provinces.
Import-substitution in new and newly-protected fields of manufacturing
will probably increase domestic sea transport requirements since the
first establishments will probably be concentrated in a few port-cities
(e.g. the flour-mills in Jakarta, Surabaya and Ujung Pandang) which permit
easy access to imported raw materials and easier distribution to other
islands. Land transport requirements will not be increased by this form
of development, since the imported finished product would have to be
distributed inland from ports 1/ anyway.
154.      The second point brings transportation planning directly into
the issues of regional planning, particularly the issue of efficiency
of investment as opposed to regional equity in development expenditure.
N1any agencies of the GOI are deeply and sincerely concerned with this
question, including the central planning agency (BAPPENAS), the Highway
Department (Bina Marga), and the Directorate General of Sea Communications.
The planners of Bina Marga, for example, have realized that selection of
road projects entirely on the basis of benefit-cost criteria would lead
to a concentration of almost all projects on Java, 2/ which would be
impossible politically and probably indefensible from a long-term devel-
opment point of view. Not wishing to completely abandon benefit-cost
criteria (and with it probably any attempt at rational project selection),
they have proposed and attempted to use a system of varying cost-benefit
ratios as selection criteria for highway projects in different regions. 3/
If this system can be made to reflect regional priorities accurately, it
should be used not only for highways but for other modes as well. If the
planning for only one mode consciously follows the regional priorities
enunciated by BAPPENAS, the result will be distortions of the modal shares
1/   The five international base ports -- Jakarta, Surabaya, Medan, Ujung
Pandang and Padang -- are probably also the most likely candidates
for large scale import-substitution industries.
2/   See the Appendix D.
3/   Dr. V.G. Bhatia, Economiston the UNDP transport team working with Bina
Marga, remarked that these differing ratios may be justified on pure
efficiency grounds since they can be used to account for development
benefits neglected in the cost-benefit calculations.



- 70 -
of investment in different regions as well as of the regional allocation
of public investment. Demanding higher C-B ratios or internal rates of
return for all modes on Java than on Sulawesi, for example, would not
only divert some road construction from the former to the latter, but
would also increase the relative share in the total transport budget of
shipping at the expense of railways, predominantly concentrated on Java.
155.      In fact, the Directorate General of Sea Communications has
commissioned a special task force from among the members of the TSKT
team to study the shipping problems and needs of the eastern islands in
conjunction with BAPPENAS. The economics of railroads do not permit the
flexibility in regional allocation of investment enjoyed by either shipping
or highways, so that their investment requirements must, in general, be
evaluated in the context of the total transport requirements of the
regions where the railroads are still capable of operating efficiently.
156.      The third point is obvious but important, and has received
considerable attention in IBRD project design to date. It is simply
that the highways, bridges, merchant fleet, ports, dredging fleet, navi-
gational aids, track, rolling stock and aircraft of the Indonesian
transport system did not all deteriorate in quality by chance, and that
much still serviceable capacity is poorly used, in terms of turn-around
times, terminal throughputs and load factors. Maintenance procedures
and organizational improvements have been emphasized in past Bank projects
in transportation, and this trend of including funds and technical assist-
ance for maintenance and reorganization in loans for additions to capacity
should be encouraged.
157.      The area where transport problems most clearly represent a bottle-
neck to regional development seems to be in the ports and dredging field.
Organizational and physical port problems hamper international and inter-
island trade as well as coastal and inland waterways traffic. The
consequences of this include the increasing isolation of hinterlands from
river ports and of those ports from international and national commerce.
In other words, the development of vast, sparsely-populated river basins
and the proceeds from several of Indonesia's important exports are both
in part constrained by siltation of river mouths and the lack of regular
dredging operations over the last two decades. One example of this
situation is Pontianak in West Kalimantan, where a sandbar has in the
last few years limited the size of ships entering the port to 500 tons.
Mlost of the other large ports of Sumatera and Borneo face similar
problems. The Nedeco Ports and Dredging Team is studying these problems
aIs well as the organizational bottlenecks alluded to previously, but it
may not be too early to urge the advancement of detailed feasibility
studies for dredging and port facilities and rapid implementation of
such high-payoff projects as are identified.
158.      While many of Indonesia's major export ports are in need of
immediate rehabilitation and dredging (or, perhaps, relocation), the river
basins whlich they serve as outlets may form ideal units for longer-term
regional or area planning. An obvious first step in this direction would



- 71 -
be focused resource inventory work in the priority river basins 1/ which
would be integrated with inland waterways improvements and ports and
dredging projects at the river mouths. Since supply prices for rubber,
timber, and other export products, transport costs and potential freight
volumes are inter-dependent, the only way to fully evaluate any of the
components of river basin development is as part of a coordinated program.
Neverthieless, data taken from an Indonesian Inland Waterways Feasibility
Study recently completed by a Belgian team justifies an investment program
almost solely on the basis of waste reduction in the shipment of logs, 2/
mainly in Kalimantan, despite the neglect of benefits which could be gener-
ated through integrated regional development programs. The attractive aspect
of a program of this type is the possibility of high returns; both in terms
of transport cost savings and of development benefits, at rather limited
cost.
159.      Two organization changes would permit much more efficient use
of existing port and shipping capacity. The first would be the elimina-
tion of all taxes and duties on interisland shipping, perhaps under the
rubric of the Wawasan Nusantara ("Integrated Archipelago") Principle pro-
claimed by the MPR (National Assembly) to guide regional planning in
Indonesia. The second change would be to extend the business hours of
port officials beyond the current six or eight hours a day and to simplify
port-clearing procedures. According to many experienced observers of the
Indonesian shipping industry, organizational changes like these may provide
even greater returns than massive capital investments.
160.      Of course, breaking the bottlenecks in ports and shipping is not
an easv proposition. Along with the reformation of bureaucratic administra-
tion, the physical aspects of cargo handling, transfer and storage will
have to be dealt with, and this will probably require substantial invest-
ment, 3/ as will the dredging of harbors and river channels. Also, many
areas, like Timor, the south coast of Java, the Gulf of Gorontalo in
Sulawesi, etc., are almost devoid of good natural harbors and will
probably have to be served by either land-based lighters, lighters aboard
ships, or highway networks to ports, depending on volumes of freight.
1/   For example, the GOI has almost no authoritative inventory information
on the commercial value of the forest resources of Kalimantan, apart
from petroleum probably the single-most valuable natural resource of
the country.
2/   These movements reach enormous volumes.   For example, about 4.4 million
cubic meters of logs (including a high proportion of sinkers) will
move down the Mahakam River (East Kalimantan) in 1977, according to
estimates of the Belgian team.
3/   According to W. Griffiths, Chief of the TCAS team, the volumes of
sugar and rice handled by the port of Surabaya would probably justify
investment in bulk-loading facilities.



- 72 -
161.      Finally, it should be noted that accessibility is a necessary
but not often a sufficient condition for regional development. A
regular scheduled service to Timor, for example, would probably stimulate
an increase in livestock cxports, but it would be a small increase unless
an integrated program of developing water resources and fodder crops were
also implemented. In other words, except for the cases of natural re-
sources attractive to international corporations, such as timber, petro-
leum and hard minerals, production constraints are probably only slightly
less binding than accessibility constraints, and the former will have to
be faced soon after the latter are eased. While no miracles should be
expected from transport projects, however, industrial, agricultural and
transmigration projects must be located with transport costs and access
in mind and accessibility must be included in the design of projects and
regional plans.
Education
162.      Educational administration and planning have been tightly con-
trolled from Jakarta. This centralization often has not permitted the
adaptation of educational content and patterns to regional differences.
163.      The allocation policy of the Central Government follows by
and large the existing pupil concentration. In the case of routine
expenditure this is self-explanatory. With regard to development
expenditure, the Government does attempt to redress regional imbalances
somewhat. The recent extraordinary release of Rp 18.8 billion for
primary school construction is a case in point: although the program
covered eachi of the 26 provinces and the more populous ones received
the largest allocations, a special effort was made to relieve the situa-
tion in those nine provinces where lack of facilities was known to exclude
sizeable numbers of children from primary education. However, no txplicit
policy has been announced to equalize educational opportunities among the
provinces.
164.      Existing patterns of provincial administration make comprehensive
educational planning almost impossible. First, fragmented administrative
control makes coordination difficult among levels and types of education.
The provincial coordinator of the central government Department of Education
(Perwakilan) shares his authority over primary education with the provin-
cial Office of Education (Dinas Pendidikan). The central government through
their Perwakilan controls curricula, books and evaluation of education
while the Dinas controls salaries, buildings and equipment. Planning thus
requires coordination between two offices which have exhibited little
enthusiasm for coordination in the past. 1/ Programs for development of
higher education are prepared by each institution and forwarded directly
1/   Jogjakarra and West Sumatera are exceptions.   There, each educational
supervisor represents both the Dinas and the Perwakilan.



- 73 -
to Jakarta, thus bvpassing completely the provincial administration.
Religious schools have an entirely separate but parallel system of educa-
tion. This separate control over various levels and types of education
inhibits the articulation of plans between levels of education, e.g.,
linking the development of primary and secondary education.
I65.      Second, there is no institutioiial mechanism which would permit
the inte:7ration of educational plans with provincial economic needs. For
cxaimrple, no attempt was made to reduce enrollments in primary teacher
training institutions (SPGs) as a result of the 1968 embargo on hiring
new teachers; consequently, a vast oversupply of primary teachers has
ei erged.
166.      Third, existing data collection provides an inadequate basis
for provincial educational planning. Although seventeen reports are
collected regularly from schools, essential data are missing about
important factors outside the education system.   Data collected by the
i.ureau of Census are not sufficiently detailed for provincial planning.
For example, no data are collected on the number of children who fail to
enter sclhool because of a lack of places, density of school age popula-
tion or employment opportunities.
1'7.     The Office of Educational Development (BPP) in Jakarta recently
bep.aii a program to train provincial staff of the Perwakilans in planning
techlniques. As a result, several Perwakilans have created embryo planning
uniits and draft provincial contributions were made to the Repelita II.
This is a good start, but it does not solve the entrenched problem of
coordination mentioned above and does little to integrate educational
planning with overall provincial policies.
tealtlh Services
168.      In Chapter II, it was pointed out that the main problem with
respect to the spatial distribution of health services is one of partially
correcting the uneven distribution within rather than between provinces.
It must be doubted if Indonesia could afford to completely remove intra-
provincial disparities because of the high cost of doing so in sparsely
populated areas, but greater consideration ought to be given to: (a) the
integration of the various programs and services at the regional level;
(b) the provision of rural clinics, staffed by paramedical personnel;
(c) tightening up and enforcing the post-graduate requirements for the
three-year service in the provinces to ensure that the rural, sparsely
populated areas receive greater coverage than in the past; and (d) re-
structuring the training of medical and paramedical personnel to ensure
a greater emphasis on the public health and the community development
planning aspects of health services.
169.      The Family Planning program which has got off to a fairly
good start in Java/Bali, needs to be reinforced, particularly in Lombok.
In the short and medium run productivity and output of food crops can



- 74 -
be increased in Java/Bali/Lombok through further rehabilitation of the
irrigation systems, further intensification through the anplication of
improved seeds and fertilizers and through some diversification. In tr.e
longer-run, however, due to the already small average size of holding
(less than one half of a hectare in Java and Lombok, for example) and
the inheritance laws, there is a limit on further productivity increases.
Hence it is vitally important to step up the efforts in family planning
in these areas particularly.
Tourism
170.      Indonesia is a very beautiful country with a wide variety of
scenery, ranging from palm-fringed, coral-ringed, white sandy beaches to
afforested mountains, from green terraced rice paddies to rugged volcanic
peaks. The people are friendly and extremely artistic, with Moslem, Hindu
and Buddhist cultural and religious traditions going back centuries. The
island of Bali is rightly the best known tourist attraction, but there are
many other areas with considerable tourism potential.
171.      The tourist statistics lack accuracy and coverage.  However,
it would appear that the rate of growth of foreign visitor arrivals in
Indonesia has been high: over 50% a year between 1967 and 1972, but
it has been a high growth rate from a small base of only 26,000 in 1967.
Althouglh the number of vacation visitors has probably increased at a
faster pace than the number of business and other visitors, the business
traffic, with 42% of the total inflow (in 1971), still constitutes the
largest proportion, compared with 36% vacation and 21% other kinds of
visitors.
172.      Out of a total number of foreign visitors of about 220,000
in 1972, `ali attracted just over 60,000 directly with about another
20,nOo corning to Bali via Jakarta and other ports of fir&t entry.  Nc
distribution by area is available of the balance of 140,00C. The other
tourist vacation areas are the Medan-Brastagi-Parapat (Lake Toba) triangle
in North Sumatera 1/ and Jogjakarta in Central Java, and the capital
Jakarta with visits to Merak on the Sunda Straits, Pelabuhianratu on the
southl coast and places like Bogor in the mountains.
173.      The future growth rate is difficult to project, partly because
of un1certainties about how fast supply constraints are going to be removed
and, more recently, because of uncertainties due to the energy crisis.
Abstracting from the latter, the Bank's draft Appraisal Report on the
Bali Tourism project points out that "the number of visitor arrivals to
Singapore, Thailand and Hong Kong, three highly developed tourist destina-
tion areas in Southeast Asia, grew by 20% per annum on the average over
1/   The number of foreign visitors arriving directly in Medan was 14,122
in 1971.



- 75 -
the last five years reaching 783,000, 821,000 and 1,082,000 respectively
in 1972, of which over 60% were on vacation". The development of tourism
in Indonesia is likely to be complementary to that of the three countries
mentioned above, although parts of Indonesia, particularly Bali, are
likely to attract some single destination tourists from Australia and
Japan because of the relatively short air flights involved. Thus, much
of Indonesia's tourism development will come from the inclusion of
Indonesia in the growing Southeast Asia package tour trade.
174.      How the likely continued high growth in foreign visitors will
be spatiallv distributed will depend partly on the scenic, cultural and
religious inheritance, partly on how quickly supply constraints in the
other areas are overcome, and partly on the government's transportation
policies, which may enhance or reduce accessibility. There can be little
doubt that Bali offers a variety of tourist experience whicli cannot be
matched elsewhere in Indonesia and will therefore continue to be the
largest single tourism growth center. 1/ But there is considerable
potential elsewhere. Mention has already been made to Jogjakarta, which
is the center of the Batik trade, with the nearby 8th century Hindu-
Buddhist temple of Borobudur and the Hindu Temple of Prambanan, and to
the Medan-Brastagi-Parapat triangle. At the moment, most of the foreign
visitors to Sumatera come from nearby Singapore and Malaysia, but with
some upgrading of existing small hotels and the construction of new
accommodation at Parapat and other sites on the shores of Lake Toba,
together with some road improvements and boating, sailing, fishing facil-
ities, the more distant foreign package tourists could probably be at-
tracted. Sumatera has another area of tourism potential wlhich may be even
more attractive. This is the area of Padang/Bukit Tinggi/Danau (lake)
Singkarak and Danau Manindjau, inland, up in the mountains. This area
offers a combination of fresh and sea water bathing and sports, cultural
interest in the matriarchal social system of part of the local population
and great scenic beauty. However, before these areas could be developed
seriously for Lourists a number of higher class hotels/motels and other
tourist facilities would have to be provided. Looking a little further
ahead, there are a number of other possibilities, not the least of which
arc parts of Irian Jaya, particularly around.JTyapura (beaches, mountains
and scenic beauty). Wamena and Agats (primitive tribes and wood carving).
Public Finance and Regional Development
175.      The fact that Indonesia is a unitary state is reflected in
the financial relations between the central government and the regional
governmcnts, particularly the provinces, kabu?atens and kotamadyas, and
in the present extent of devolutio-a of dec.s:Lon making.  These relations
are at present governed by Law 1 of 1957 on regional governmenL and Law 32
i/   Cur -:cly the GOI limits the number of forei-n airlines granted pc-:-
misZion to fly directly to Bali.



- 76 -
of 1956 on regional finance, but a bill on Financial Relations between
the Central Government and the Autonomous Regions, which will replace
these laws, has been under consideration in Parliament since 1967. It
is perhaps a reflection of the constitutional and administrative complexity
of the issues involved that this bill has not yet been passed.
176.      The regional governments depend largely on the central govern-
ment for financing their routine and development expenditures. First one
should identify the development projects directly financed by the central
government (see Appendix Table A.32). Other central government support
consists of direct subsidies to the provinces and transfer of certain tax
receipts which are collected in the first place by the central government.
The latter have until now consisted principally of the allocation of the
export tax (ADO) and land tax (IPEDA). For a few provinces (notably
East, Central and West Kalimantan) royalties and licence fees are also
an important source of revenue. In addition, the development activity
at kabupaten and desa levels is fostered through special subventions
from the central government under the Inpres and Desa Programs.
177.      The administrative capacity of the regional governments for
raising revenue is generally quite limited and partly as a result of
this the legal possibilities for taxation available to them are far
from being fully exploited. Provincial taxes are confined mostly to
household tax, vehicle tax and a tax on the change of the ownership of
motor cars. Provincial tax revenues are also supplemented by retribu-
tions (i.e., charges for services provided) and sometimes, earnings of
provincial enterprises, though frequently the costs of these activities
have been seen to exceed the earnings. The current expenditures of the
regional governments are therefore by and large met by transfers from
the central government, which consist almost entirely of subsidies linked
directly to the size of the regional administrations. In addition, the
provinces also receive an insignificant share of the central government
petrol tax.
178.      Central government transfers in most cases account for more
than three-quarters of provincial government current revenue, but this
proportion varies widely, from more than 90% for such provinces as Central
and South Kalimantan to less than 50% for Jakarta (see Table 25). The
1956 Law stipulates that the amount of the central government subsidy
should relate not only to the number of civil servants employed by the
regional government but should also take into consideration such factors
as the region's population size, general level of prices and economic
potential, etc. Hlowever, in practice, these considerations have not been
fully reflected in the magnitude of the subsidy.



Table 25:   COMPOSITION OF PROVINCIAL BUDGETS, 1972/73
Rp million                                                                                     Rp
Central     ADO                 Develop-
Cov't    Transfer     Total     ment       Central
Transfer  as % of     Expendi   Expendi-      Gov't      ,,DO
of Revenue          as 7% of  Develop-     ture      ture       Transfer   Transfer
Revenue                   Expenditures            Central   Transfer   Routine    ment        Per       Per         Per         Per
Develop-                    Develop-    Gov't    in lieu   Expendi-   Expendi-   Capita    Capita      Capita      Capita
Total  Current   ment       Total  Routine   ment      Transfer   of ADO     ture      ture        (RL)      (Rp -        (Rp)      (RR)
D.K.1, Jakarta        14,200   13,070     1,130   15,000    6,000   9,000        6,000      350     100.0       3.9       3,278     1,967       1,311           76
West Java             13,765   12,280     1,485   13,765   12,235    1,530      10,001      957      81.7      62.5         636         71        462           44
Central Java          14,947   14,270       677   14,947   13,026    1,921      11,383     490       87.4      25.5         683        88         520          22
D.1. Jogjakarta        2,704    2,647        57    2,704    2,538      166       2,215       10      87.3       6.0       1,086        67         890            4
East Java             15,072   13,094     1,978   15,075   13.272    1,804      11,472    1,388      86.4      76.9         591         71        449           54
D.I. Aceh              3,363     2,542      820    3,362    2,546      817       2,229      406      87.5      49.7       1,673       407       1,110          202
North Sumatera        11,076    5,798     5,278   11,076    6,315   4,761        4,672   4,990       74.0     104.8       1,672        719        705          753
Riau                   3,200     1,933    1,267    3,199    1,595    1,604       1,505    1,072      94.4      66.8       1,948       977         917          653
West Sumatera          3,186     2.580      607    3,186    2.619      467       2,281      498      83.9     106.6       1,141        167        S17          178
Jambi                  2,748     1,769      979    2,748    1,103    1,644       1,001      885      90.8       53.8      2,732      1,634        995          880
South Sumatera         7,429    3,095     4,334    7,429    2,371    5,058       2,021   4,159       85.2      82.2       2,157      1,489        587        1,208
Bankulu                  986       889       97      986      786      200         801       35     101.9       17.5      1,900        385      1,543           67
Lampung                3,172     1,423    1,748    4,202    2,243    1,959       1,122    1,488      50.9       76.0      1,513        705        404          536
West Kalimantan        3,815     1,943    1,872    3,815     1,821   1,994       1,767    1,187      97.0       59.5      1,889        987        875          588
Certtral Kalimantan    2,933     1,914    1,019    2,933     1,883   1,050       1,662      321      88.3       30.6      4,190      1,500      2,374          459
South Kalimantan       2,526     1,694      832    2,526    1,716      810       1,593      605      92.8       74.7      1,487        477        938          356
East Kalimantan        5,6V8     2,491    3,117    5,608    2,713    2,895       2,114      898      77.9       31.0      7,640      3,944       2,880       1,223
North Sulawesi         3,119     2,450      669    3,119    2,305      814       1,960      397      85.0       48.8      1,815        474      1,141          231
Central Sulawesi       2,272     1,976      296    2,272     1,896     377       1,139      212      60.1       56.2      2,486        412      1,246          232
South Sulawesi         3,938    3,453       485    3,938    3,359      579       3,070      150      91.4       25.9        759        112        592           29
Southeast Sulawesi     1,226    1,074       152    1,226      730      496         986      113     135.1       22.8      1,717        695      1,381          158
Bali                   1,721    1,601       120    1,725     1,608     117       1,363       82      84.8       74.5        814         55        643           39
Wast Nusa Tenggara     1,454     1,346      100    1,454     1,302     152        1,125      24       86.4      15.8         660        69         511          11
East Nusa Tenggara     3,106    2,929       177    3,106    2,906      200       2,621      134      90.2       67.0      1,353         87      1,142           58
Maluku                 3,137     1,616    1,521    3,137     1,374   1,763        1,215     762      88.4       43.2      2,881      1,619       1,157         700
Total            130,701   99,876    30,825  132,537   90,360   42,117      77,327   21,612      85.6       41.2      1,120        356        654          183
I/ Excludes West Irian.                                                    Sourcee  Department of Finance



- 78 -
179.      A large part of regional development expenditure has been financed
by ADO in the case of provincial goverrments and IPEDA in the case of kabu-
patens (and kotamadyas). Both of these taxes were originally collected by
the central government in the first place and were transferred, after de-
ductions for collection costs, to the regional governments. Ilowever, ADO
is no longer related to the export tax collections, but is a special trans-
fer to the regions from the GOI's general budget. For certain provinces
(e.g., East and Central Kalimantan) royalties and license fees are the prin-
cipal source of the development expenditure.
180.      The main purpose of ADO (Allokasi Devisa Otomatis), or the
automatic transfer of foreign exchange, was to encourage provinces to
export. Until 1970, the allocation was related directly to provincial
non-oil export earnings. Due mainly to the way the origin of exports
was defined, i.e., the port of actual exports, it threatened disruption
of the normal transport routes by making it attractive for the provinces
to have their own port facilities.   The ADO system was modified in 1971
to the extent that the central government transfers were only partially
related to the region's exports, and tbis link has now been completely
severed. The central government is currently transferring 105% of the
amount of ADO received by individual provinces in 1969/70, but in future
the transfers will be linked directly to the development needs of the
province (see Chapter V).
181.      IPEDA (luran Pembangunan Daerah) or land tax is related to land
productivity and amounts roughly to 5% of the net income from land. It
combines two land taxes, one relating to agricultural land and the other
to urban land, which were formerly collected for the central government
but were turned over in 1968 to kabupatens. The latter now receive 80%
of the amount thus collected after deductions of 10% for collection costs
and 10% for the provincial governments, but it is still a national tax
with the central government deciding how the money should be spent.
182.      There are two programs which combine the financial control of
the Center with decentralized decision-making at the kabupaten/kotamadya
and desa level. The kabupaten local public works program was initiated
by Presidential Instruction (hence the name Inpres program) in 1970 to
encourage participation at grass roots level in a program designed pri-
marily to generate employment. The program covers the entire country
and each kabupaten (regency) or kotamadya (municipality), which together
number 281, is entitled to a direct cer,tral government grant strictly
on a per head of population basis. ThE public works progranis are chosen
and designed by the Bupati, but have to be approved by the provincial
governments and BAPPENAS before being funded. Inpres funds are made
available only for the work actually performed and the chosen project
must be approved and completed within a given fiscal year. The types of
projects undertaken have until now beer. mostly rehabilitation and construc-
tion of roads, bridges, and minor irrigation works.



- 79 -
183.      The Inpres program has proved very successful and the GOI has
over the years raised the per capita allocation from Rp 50 in 1970/71
to Rp 100 in 1972/73 and Rp 150 in 1973/74. The program is planned to
be further expanded in size and scope in the Second Development Plan
period.
184.      While the allocation of funds under the Inpres Program is based
on the size of population, under the Desa Program the central government
extends support to village programs biy means of a flat transfer of
Rp 100,000 per annum to each desa.   l'he central government transfers
are almost invariably matched by an equal distribution by the desa itself
through "gotong rojong" (or mutual help) and the supply of local materials.
These projects also are mostly for the building of roads, bridges and minor
irrigation facilities.
185.      Though the government development expenditures include expendi-
tures which could not conventionally be regarded as productive investment,
they do provide a guide to the regional orientation of Central Government
policies and the capacity of the regional governments to undertake devel-
opment expenditure.
186.      The planned development expenditures of the different levels
of administration for 1969-72 are given in Table 27. These data show
that, in general, the contribution of the central government to the
development effort has been considerably more than the combined total
of the expenditure incurred by the regional governments (i.e. provinces,
kabupatens and desa administrations), and accounted for a little under
70%. However, the central government's share in the total development
expenditure shows a marked variation among the provinces. The share is
highest for provinces of Java, Bali and Nusa Tenggara. With the exception
of Jakarta, this was so not because per capita contribution by the Center
was higher in these provinces, but because the provincial government
development expenditure was relatively small (ranging from Rp 155-337
per capita). On the other hand, in the provinces of Kalimantan (except
South Kalimantan), as a result of large royalties from timber exports,
the development expenditure of the provincial governments has been con-
siderably more than that of the central government.



Table 26: DEVELOPMENT EXPENDITURE OF PROVINCES
Rp million                                                Rp
Per Capita    Per Capita Annual
Budget   Annual Average    Annual Average   Average less ADO
1969/70  1970/71   1971/72  1972/73  1969/70-1971/72   1969/70-1971/72      Transfer
1.  D.I. Aceh               473      541      433       685          482              240              38
2.  North Sumatera        3,762    3,119    6,524     4,760        4,468              675             -78
3.  West Sumatera           240      549      373       467          387              139             -39
4.  Jambi                   444    1,010     1,145    1,640          866              861             -19
5.  Riau                  1,158    1,971    1,986     1,604        1,705            1,038             385
6.  South Sumatera        3,342    6,291     5,437    5,058        5,023            1,458              250
7.  Bengkulu                279      506      182       189          322              620             553
8.  Lampung               1,083    1,381     1,408      708        1,291              465             -71
9.  D.K.I. Jakarta        3,805    4,600     6,329    9,000        4,911            1,073           1,149
10.  West Java               523      824       701    1,530          683               32             -12
11.  Central Java          1,009    1,236     1,t50    1,921        1,165               53               31
12.  D.I. Jogjakarta        n.a.     n.a.        744-    166-/         741/             30               26
13.  East Java               982    1,447      902     1,760        1,110               69               15
14.  Bali                    291      314       264      117          290              137               98           1
15.  West Kalimantan       1,073    1,839     1,073    1,997        1,328              657               69           c
16.  East Kalimantan         333    1,628       907    2,895          956            1,302               79           0
17.  Central Kalimantan      393      602       759    1,100           585             836              377           1
18.  South Kalimantan        378      439       575      810          464              273              -83
19.  North Sulawesi          721    1,121       980      980          941              548              317
20.  Central Sulawesi        463      936       666      377          688              753              521
21.  Southeast Sulawesi      245      388       468      440           367             514              356
22.  South Sulawesi          446      501       411      579           453              87              -71
23.  West Nusa Tenggara      144      161       122      152          142               64               53
24.  East Nusa Tenggara       22      101       125      200            83              36              -22
25.  Maluku                  345      728       768    1,734           614             564             -136
26.  Irian Jaya             n.a.     n.a.      n.a.     n.a.         n.a.             n.a.             n.a.
Total                21,954   32,233    33,862   40,868        29,398             247               64
1/ Budget.
Source: Department of Home Affairs



Table 27:  PLANNED DEVELOPMENT BUDGET BY PROVINCES,
1969-72 a/
Planned Development Budget                  Planned per capita Development Budget b/
Central  Provincial   Kabupaten  Desa  Total    Central  Provincial  Kabupaten   Desa  Total
( Rp Billion .. .                         ) (.... Rp.                                     )
DKI Jakarta Raya           123.0     23.5         1.1       .2  147.9    26,739     5,109         239       43  32,152
West Java                   56.5       6.3        4.6      2.7   70.1     2.616       292         213      125   3,245
Central Java                39.2       3.4        5.1      3.5   51.1     1,790       155         233      160   2,338
DI Jogjakarta                8.8        .4         .6       .4   10.1     3,520       160         240      160   4,080
East Java                   43.9      6.1         6.0      3.6   59.6     1,722       239         235      141   2,337
Java/Madura             271.4     39.7        17.4     10.3  338.8     3,566       522        229       135   4,452
DI Aceh                      7.5       2.9         .5      1.0   11.9     3,750     1,450         250      500   5,950
North Sumatera              13.9      17.4        1.4      1.5    34.2    2,106     2,636         212      227   5,181
West Sumatera               11.6       1.6         .7       .4    14.3    4,143       571         250      143   5,107
Riau                         4.5       6.6         .3       .4    11.8    2,812     4,125         188      250   7,375
Jambi                        3.2       5.3         .2       .3     9.0    3,200     5,300         200      300   9,000
South SumLatera             14.8     16.1          .8       .7   32.3     4,353     4,735         235      206   9,529
Bengkulu                     2.2       3.3         .1       .2    5.8     4,400     6,600         200      400  11,600
Lampung                      7.1       5.2         .5       .5    13.3    2,536     1,857         179      179   4,750
Sumatera                 64.9      58.3        4.5      4.9   132.6    3,120     2,803         216      236    6,375
West Kalimantan              4.0       8.6         .4       .7    13.7    2,000     4,300         200      350    6,850
Central Kalimantan           1.2       3.2         .2       .5     5.1    1,714     4,571         286      714    7,285
South Kalimantan            10.4       2.6         .4       .4    13.8    6,118     1,529         235      235    8,117
East Kalimantan              5.1       9.6         .2       .4    15.3    7,286    13,714         286      571   21,857
Kalimantan               20.6     24.0         1.2      2.0   47.8     3,961     4,615         230      385   9,192
North Sulawesi               6.5       2.6         .4       .5     9.9    3,823     1,529         235      294    5,882
Central Sulawesi             2.9       2.3         .2       .4     5.8    3,222      2,556        222      444    6,444
South Sulawesi              13.8       2.9        1.3        .6   18.6    2,654       558         250      115    3,577
Southeast Sulawesi           1.5       1.5         .2       .2     3.4    2,143     2,143         286      286    4,857
Sulawesi                 24.7      9.3         2.0      1.7    37.7    2,908     1,093         232      195    4,428
Bali                         6.9        .7         .5        .3    8.4    3,282        337        235      149    4,004
West Nusa Tenggara           2.0        .6         .5        .3    3.4      905        268        229       140   1,541
East Nusa Tenggara           3.7        .5         .5        .6    5.3    1,622        198        234       261   2,316
Bali/Nusa Tenggara       12.6       1.8        1.5      1.2    17.1    1,912        265        233       185   2,594



Table 27: Continued
Planned Development Budget                  Planned per capita Development Budget b/
Central   Provincial   Kabupaten  Desa   Total   Central   Provincial   Kabupaten   Desa  Total
(.             Rp Billion ..........          ) (... Rp .
Maluku                        3.2       2.0          .2         .4     5.9    2,898     1,841          203       389  5,330
Irian Barat                   9.1       1.9          .2        .1     11.3   10,089     2,067          272        92 12,516
Maluku/Irian Barat        12.3       3.9          .5        .5     17.1    6,134     1,941          235       256  8,565
Indonesia                   406.5     137.0       27.0       20.8    591.3    3,409     1,149          227       174  4,959
a/ Aggregate of fiscal years, April-March.
b/ Derived on the basis of 1971 census data.
Source: Bappenas



- 83 -
187.      Excluding Metropolitan Jakarta and Irian Jaya as special cases,
central government per capita expenditure varied much less widely and
remained within the range of Rp 2,000-3,000 for most provinces. The
central government regional bias, on the basis of this measure, seems
nevertheless to be rather unfavorable to some of the poorest regions,
viz., Central and East Java and the two provinces of Nusa Tenggara, in
whose case the allocations amounted to considerably less than Rp 2,000.
However, in some of these provinces the density of population is very
high, and the creation of social and economic infrastructure usually
requires less expenditures per head of population.
188.      Since the bulk of their development expenditure is financed
through a special central goverrment subvention that is applied strictly
on a per capita basis, the variation in the per capita development
expenditure of the kabupatens is insignificant.
Spatal Asects of       a: T      Suma
189.      Some insight should now have been provided into the regional
differences in the distribution of growth and development shown in
Table 16 at the beginning of this chapter. Generally Sulawesi and
Kalimantan are growing rapidly due to growth in forestry. Jakarta
and West Java also are growing, the former largely on the basis of
public administration, trade and services and the latter on the basis
of rice, forestry and large scale manufacturing. The growth of Riau and
West Sumatera also has been substantial, owing to the growth of forestry
and mining. In these provinces, the growth of public administration and
service sectors also is substantial, implying that the service sectors
are catching up with leading productive sectors. Central and East Java
are rather stagnant, as are West and East Nusa Tenggara. Although small
and handicraft manufacturing establishments in Central and East Java
are growing rapidly, the stagnation of non-food agriculture, large-scale
manufacturing and trade are responsible for the slow growth of these
provinces. In both provinces of Nusa Tenggara, slow growth is due to
the stagnation of agriculture.
190.      Some indications of the future growth of the provinces can be
obtained on the basis of the approved investment projects (refer back to
Table 17). Jakarta is expected to-receive the largest increment in GJ)P.
The growth will be led by the manufacturing, tourism and transportation
sectors. Overspill of manufacturing activities from Jakarta, particularly
textiles, will accelerate the growth of manufacturing, too.   New fertilizer
plants in West and East Java will help the development of agriculture there.
Furtlhermore, a billet steel plant of 1 million ton capacity is planned
in West Java.  Central Java's growth will be supported by the developmcnL
of an indlustrial estate in Cilacap, but will depend to a large extent
on the ;rowth of small-scale industry.   More than 90% of manufacturing
investment, by value, is concentrated in Java. In addition, Java will
grow on the basis of the intensification in agriculture which will be ma(de
possible by on-going irrigation projects.



- 84 -
191.      Sumatera's prospects for growth are good.   The development of
oil, forestry and new farm land will be the major sources of growth
witlh new forestry development concentrated in Riau and Jambi, oil in
central and southern Sumatera and estate development in North and
South Suamtera and Lampung. There also are prospects for manufacturing
development in South Sumatera.
192.      Kalimantan's growth will be fastest in East Kalimantan where
there is still plenty of forestry resources and there are reasonable
prospects for oil exploration. Other provinces in Kalimantan also will
grow on the basis of forestry and new agricultural development. Having
one half of the nation's forest resources, Kalimantan's growth prospects
are excellent, but sustained growth will depend on the establishment of
wood processing plants and infrastructure to support them.
193.      Sulawesi will grow on various fronts including nickel, other
mineral and forestry development, intensification and expansion of farm
crops such as rice, cotton, sugarcane, maize, cassava and soybeans and
the development of livestock. Among the provinces, North and South
Sulawesi will grow most.
194.      Elsewhere, Bali will grow on the basis of tourism and the
intensification of agriculture, Maluku due to forestry and Irian Jaya
(West Irian) as oil, minerals and forests are developed. The prospects
for the development of West and East Nusa Tenggara do not appear to be
good, but the regional development study of Eastern Indonesia will
hlopefully reveal the comparative cost advantages of these islands.
195.      To summarize, the growth of the Outer Islands will continue to
be principally resource-oriented, whereas growth in Java will be based
on existing human and infrastructure resources and concentrated in the
manufacturing and service sectors. Large differences in population density
among the major islands will not be a determining factor of the growth
rate.



- 85 -
CHAPTER IV
THE IMPLICATIONS FOR DEVELOPMENT POLICIES
196.      As stated in the Preface to Volume I, the Regional Planning )I-s-
sion was concerned mainly to suggest a framework in terms of organization,
procedures, methodologies and studies within which regional planning could
be carried out more effectively. This volume was devised and written to
provide bdth new spatial insights into the developing nature of the
Indonesian economy and background data for the analysis of the objectives
and needs of regional'planning which is provided in Volume III. Inevitably,
however, in the course of looking at the spatial dimensions of growth and
development, certain questions arose having a bearing on development
strategies and priorities which might not have come to light in the wav
they did on the basis of aggregate or sectoral economic analysis. So in
this final chapter of Volume II, a few of these questions are put and briefly
analyzed as hypotheses. They can only be put this was as further regional
analysis is needed to test their validity. Before doing this, however,
there is one important conclusion which can be stated with some degree of
confidence. This is that the past emphasis on macro and sectoral planning
in Repelita I tended to accentuate the regional disparities in growth and
development. The virtual absence of effective regional planning and the
relative inattention to the spatial aspects of sectoral planning made it
difficult (a) to provide the economic and social infrastructure necessary
for the growth of new and viable development centers; (b) to identify com-
parative cost advantages of production in the Outer Islands; and (c) to
identify, prepare and implement projects in relation to regional growth
potentials and cross-sectoral requirements -- the formulation and execution
of transmigration schemes are a classic illustration. Hence the importance
of the emphasis put on regional planning in Repelita II. This aspect is
taken up again in Volume III.
197.      Taking now each of the hypotheses in turn, the first is that the
development of the Outer Islands has been significantly held back due to
insufficient priority being given to rehabilitation and improvement of
inter-island transport and communications. As the GOI now recognizes, there
are natural major and minor growth poles or centers, the development of which
will accelerate growth in their'surrounding areas of influence, but the
development of such growth poles has been inhibited by poor and often deteri-
orating transport and communications.   Economic growth in the Maluku Islands,
Nusa Tenggara Timor and in Nusa Ter.ggara Barat has been severely constrained
by deteriorating transport which in turn has affected agricultural output,
and so on in a declining spiral. The regional study of Eastern Indonesia
now under way will hopefully provide the sectoral and reg_on,l planning data
and analysis to provide the basis for a rehabilitation program.
198.      The second hypothesis is also concerned with transport, this time
with priorities within the transport sector. It appears that there is too
much emphasis upon rehabilitating the railways in Java, too little emphasis



- 86 -
on road transport in Java and on inter-island sea and air traffic and
practically no attention has been paid to transport modes which will open up,
for example, the hinterlands of the resource rich islands of Sumatera and
Kalimantan. Consider the geography of Indonesia. Many of its islands are
relatively long and thin, and, in general, transport hauls are relatively
very short. Railways are most efficient and economic for the long distance
haulage of bulky goods. The longest haul on the railways is between Surabaya
and Jakarta -- only 781 km -- yet coastal shipping freight rates are lower
than rail rates. 1/ In general, therefore, even were they efficiently managed
and operated with up-to-date rolling stock, it is questionable whether the
railways would be a more efficient mode of transport for freight than roads
and coastal shipping. Moreover, reference has already been made to defi-
ciencies in inter-island transport and communications, but there are other
transport possibilities which preliminary analysis indicates ought to have
greater prioritv. Two illustrations are the institutional bottlenecks and
dredging requirements at the ports and the opening up of the hinterland of
large parts of Kalimantan and the north coast of Sumatera by river transport,
which are referred to in paragraphs 157 and 158 above.
199.      A good transport coordination study, provided it paid sufficient
attention to geographic and spatial factors, would no doubt pick up many
aspects of the two issues hypothesized above, but such a study would be much
more effective if made on the basis of one or more regional development
studies which integrate the sectoral aspects and bring out the spatial
linkages.
200.      . third hypothesis is that an important cause of the lack of success
with the transmigration program has been the inability to locate transmigra-
tion projects in areas identified as having a high potential by regional
development studies 2/, and because the multisectoral requirements of trans-
migration have been insufficiently studied, coordinated and implemented
according to a carefully worked out phasing of the various components of
the projects.
201.      A fourth hypothesis is that the beliefs quite widely held in
Indonesia and elsewhere that Jakarta is too large, is growing too fast and
its expansion needs to be severely limited, are mistaken and not supported
by the evidence. Not only is the growth rate relatively' low compared with
other capital cities in developing countries, but it is doubtful whether
Jakarta has reached its optimum size in terms of the agglomeration economies
being exceeded by the possible diseconomies of overcrowding, congestion and
pollution. Attempts to limit further growth so far have not succeeded and
1/   Much traffic is, however, diverted to the railwavs by tne unnecessarily
high charges in the ports which greatly exceed the costs.
2/   This has important implications for area development schemes and horizontally
integrated rural development projects.



- 87 -
are unlikely to in the future. Energies and resources should rather be
released to carrying out more effective town planning in Jakarta and in
providing the economic and social infrastructure for other major and minor
growth poles.
202.      Finally, as an illustration of the way in which regional studies
can make sectoral plans more realistic and effective, the case of the
proposed trans-Sumatera highway is cited. No doubt in time there will be a
highway connecting the southeast and the northwest extremities of Sumatera,
but the GOI wisely agreed with the Bank's suggestion that the extent, class
and location of the proposed trans-Sumatera highway should be determined in
the light of regional studies. Accordingly, with assistance from the
Federal Republic of Germany and IDA, a regional planning study of the southern
half of Sumatera was mounted, and it is to be followed by a similar study
of the northern half. In this way the intra-regional/inter-provincial trans-
port needs in terms of wider regional economic and social requirements will
be assessed to determine the nature and feasibility of any trans-Sumatera
transport linkages.
203.      The above are some illustrations of the way in which regional
analysis can throw new light on both aggregate and sectoral planning. More
extensive and greater in-depth regional planning, based on cross-sectoral
and locational studies, would be likely to further improve the effectiveness
of macro, sector and project planning in Indonesia.






A. CARTOGRAPHIC APPENDIX
MAPS
1.   Rainfall
2.   Terrain Classification
3.   Soils
4.   Land Use - Western Area
5.   Land Use - Central Area
6.   Land Use - Eastern Area
7.   Minerals
8.   Fishery Resources
- Food Productivity in the Sea near and within Indonesia
- Locations of known Fishing Grounds in Indonesia
Resource Inventory Index
1.   Geodetic Network
2.   Index of Aerial Photo Coverage
3.   Index of Topographic Map Coverage
4.   Index of Geological l.:ap Coverage
5.   Index of Forestry Inventory Map Coverage
6.   Index of Land-use and Cadastral Mapping
7.   Index of ERTS Imagery






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JAKARTA                                                                                So e   ~i4 ~ ~ B n a'/a  S ea
'A   ~~~~~~~  JAVA~R                                                                                                    XPA?
Inda'Ian                              -e:                                                                                           JANAAISA
0  c e a n  ~ ~ ~ ~   ~  ~~t-~~'s'S~~ ~       Membue AP4CM'r/)                       FT RAROSARES OR MAINS MElT IGNEOUS ROCOA- AC TSR ATMROC~ OF TE LAT
____  ___ ____... __ ___ ___ ___ ___ 400___ ___                                                     S      oNopR*~O                                                    EYS OR  MAINLY  CETAEOEUO S  CROCEN,  M .ITT YO NG
-IRN"--S*                                                                                          K.pMN,g44  -I D                                   RSSOIC IA-EMM  NYC//
ITT  OTT  SOT  400  NAT  TOT  080  NOT                SM/iSA                                                                CA MITEANA MLLETNIC 0/0 AOL/SONIC REENS ANT~~~~~~~~~~~~~AEAS IIH IO(NEPLUONI AN   IOCANC RC~
OL  500  600  700  800                                                                                                                S~~~~~~~~~~~~~~~~~~~~~~~~~~~SA /  T RONMASS   FOI,COETRA MIT/  SR/A  RIMENTS
KI/AMARERA                                                      64Ti           /.Ml~~~~~~~~~~~~0,,lIIe44  4, ~~~~~~~~~'  El  EAROAJARA OR IGNETMA ROE//S OR TAR MIT/SANE GIGNE.S  OC~ .11.1.10EIN
/80  IA?  IRA'               /15                   /2?                    2?   MEo"'III,ftM'.'  /5M             TERTIGAY OTAO/NELINAL ARPOSIOM  IA?~~~~~~~~~~~~~~~~~~ERTARYGEOYNCIN,L .-IT






Food productivity in the sea near and within Indonesia.                      IRD 10931
100o                 "O'                  120'                  1300                  100
N6-             2 ~~~~~~~~~~~~~~~NDNS                      AH ESORCE   N   HERTCNOOIA
g5*  100'                 110~~~~ik             120'130'140
O Produlty It  C/h/m in                                                                   h,4-'e0
_   o-oe                                                                              MRAcLre Rl 
Soure: "The Deveio rent of Misrine Res  in Indonesia trom
INDONESIA: RESOURCES AND THEIR TECHNOLOGICAL
DEVELOPMENT by H. Beers 1970
Locations of kznown fishing grounds in Indonesia.
95-        1004                  t10                   120,                  130°                 1400
9   2  }                              \2ee;>¢>                 [<~~~~~~~~~~~~~~~~~~~~~ ~~~~~elog,c Coosto F.sheriesi
idO.a           i*9g                                                    :v               orse Mtockerel (Rostellstra) t
1m11111 Cossia xanthonotus
am. Scormber Fisheries
*   _vS   &                  f         ;      b           *~~~~~~~~~~~~~~~~~~~~1 Shrimp Fisheries
*                                   ~~~~~~~~~~~~~~~P Pearl
.2    . A   ,     W T A                   *
u~~~~~                                       S                     St
t,  140 
:  ', *             .                                             ' 
4AVA          **  *,*  ~~~~~~~~~,. 6Ai 
95        100t                  110t                 120°                  130°                  1400
Sources: The Development of Marine Resources in Indonesia" from
IKNDONESIA: RESOURCES AND THEIR TECHNOLOGICAL
DEVELOPMENT by H. Seers 1970
IKAN LALUT/MARINE FISH MAP by BAKOSURTANAL 1965






IBAD 10933
O -0°i - \THAILAND  '°T                               1;5'     I'       ' f3_  2                            0ii2' 0135                         50107
Ei - S Aceh n   \ / * >$AI.A                                       /      XR j          _~, 9    ~                                     GEODETIC NETWORK
A,v             <\w~                                                              N            HIIPNEh                                          INDONESIA              s-
P H  I L P P .1.BASE LINE
South    chIoa    Seoa     BRUN >E;            '    /                   /                              AMEASURED AND COMPUTED (PROVISIONALLYI
*r;5   A | IALAYSIA  !                               _    ,                                                              PILLAR SETTLED NOT YET MEASURED
m, .AUNVjA                                           ,       ' f                                                                 * PLANNED FOR FUTURE USE
,-t- I  KuoloLampur X  /   /   c + /+++ASTRONOMICAL POINT DETERMINATION
+  + +                  SA-IIE~~~~~~,00044              ± ASTRONOMICAL STATION FOR TOPOGRAPHICAL SUNSET
Tonjung  ? ,  y  °  v  o       S  e  o   Ulung Pondong  u-  *  0--             . 4X                                     - 
AMAr A LAAYS I A  2+++, + l+ ++               N ... doe                             + ASTRONOMICAL ORIENTATION STATION
NGAPORE/r                                                                                                    PIMAIY TIANOLATI LL AR d  I  a  T IA PILLAR
Si         + + ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1LAPLACE STATION (PRIMARY) 1 IS NE
.,-q                                                                               -I 100                AERODIST TRILATERATION
O  100  200  300  400  500  Aoo  700  bOO             SUblas   SA114S~~~~~~~~~~~~~~~~ *     S4005
M     Nor                               o                                      FIRST ORDER TRAVERSE
100~~~~~~~~~~~~~~C-                                                                                        IOd'Rko.b15'o,T 125-12 125R' b /Of 10
P.-..      A~     ~~~~        15500   V'1                                GO       -       .
+               -,           aso 
++  +  +  +~~~      .- ASopnI                                --Z WiaIo-,
*                                                     .,  .,NOb,-                    IR/AN  JAYA
Ja va            S ea                                         ~g,(~
U/log P..d.fq*- 
In  a' / an                                                               -~JAARAR     na'a 
-  Renar"  Alnlo,  FOA0/S      -      -                                          MeAeok
*            Monen  - Unn"ORES0eeI
TOY0o     350 50  30  oSl  5O                                                          W  00p
100'     lOS'               ~~~~~~~~~~~~~~110-  I-5             12?                 105?              1300               35 114' 






IBRD 10730
THAILAND                                                                                                             INDONESIA
PHILIPPINES    '                  INDEX OF AERIAL PHOTO COVERAGE
ED ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~gos'Photo s-ale 1; 5,000 to 1: 10,000
South    China    Sea       BRUNEI                                                                      Photo scale 1:11,000 t. 1 20,000
MALAYSIA                                       f                                                                           ,oto stole 1: 21,000,01 30,000
f/                                                ~~~~~~~~~~~~~~~~~~~~~~~~~Photo  -1ol g-ete  tlr- 1: 30,000
, ,'  AC phgro  --rge, lp,opoSed) 1 20,000
MALAYSIA    )                                                                         S-W .k Photo  ,nd at least 30 years oId
J~tn                        7           ~             7,.    ~    ,6IA                 Reset SLAR  -o-erg.(Side Looking Aer-o  Rodorl
SIG ORE        ,                                                                                           nect-ono  b6od-rre
Inajrgior                            I                                                                   ,\   HAIMotoRA        Pa ci fic        0 te a n
K A~~~~~~~~~~~~~~~~~~~~~~t~0                      ~        ___'                                      rpr
~~~~  's~~~~~~~~~~~~o  u      -,                    C              o,'SI~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-  ----
< A
1 n of ia n 2-             ,e,              *        *       ,      6,         0     b   BnSa                                              7
0  100  200  300  ,oo  soo                                   en 05 5  .   -    5 ( < g 0cr  .   .-
ILES
0I 20t 3W  100  S   o   g 600  7                                                3O m-
log*               103                Ito'               110'                20'                12S                130'               133  'k--J1Zlo 1-  2






,_~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -.! M_ c"|;.l 0^30O 0O o310oOlmn 0^ F 0
t  .  -;?  |   I _ , rJ                                                        P  r- _ 5r > Ll 1      R~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0~06  0CS9  O  1  0
,  -  l t  I--I 1-l - ! I                  -----    1~~~~~~~~~~~~~~~~~--- --------- ---- --- -  |        1      _ C1A
., =-L X-r :4 
rs6Xdowfoz  {ar9ol/a   l   _   | _  t  |  I         N->  1  N|  V  idr  I   |  . t  i "  11        ¢ ,*          , 11m ~~~~~~~~~~~~~~~~~~~~~~~/0|
ooooool-l~~~~~~~~~L                                         oob                                                                          5I4>< L . 
00O'0o :1| | ---- 3rnr -X n <._ _ / v< ( 1,,2 t_ I | _ l _, rk 't_ l -- 1 __ -v I                                                                 .0
alrds   5561qddl;V                   /                    r  / f'-          %|aUnid   ndd   °dS    OU/yD    y/noy           - pon  <-ld  1tL , -
.s  39VY3AOD  dVW "'I"O IH V O dOl3  3 N                   >  3 l  dlH     .7    \  --ri      j~\\'                                                                     ' 2
Vl53NOONI      &  \n   >      r '.             f    .                                                   \.\5   \               ' *15_~~~~~~~~~~~~~~~~dOd
vLrl~~~--- xHHs  Ol.T                       Oli                il7        ,      orti              .!                  !                 51GVl1p           .r






iiO                    .      2                    <*s,         i2\                                                                 IBRD 10732R
_'1,_, ---X T HAIYLAND  'o"                                          2'YJ                                                                                               04
PH LIPPINES                          INDEX OF GEOLOGIC MAP COVERAGE
Brurni(  /,~~~~~~~~~~~~~~~~~,43 ~~~~Publihehd old                     naps (1905 -1936) el varying scale  number
Li_  v j 1  1  x,        \1        South      Chino     Sea        BRUNFI r!;'                                                                     e       refer to Geola6gnc Su-rve.y fl ndorsa ap n,adee
Mea  MALAYSI                                                                                                                                    npbIseold rp , hes-eot tvrigsae
-Idevianees recent1960 -1964 s 11a  -1scale  rps)
m.-     y series  -931-1941) at 1 200,000 scale In
and- :I;100000 scaer J-v
0.                                                                                                                 Sy~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~stematc map  --in  re--fly pablshed 11971 - 19743 wa
1:200,000 -1 
000 oMErER5 -,.  -'7>  --  It                                                                                                 rN: h.ff= ,,,,, , ,                        ,25.. -d 1
00                                         IOS'    }!° 115' _ 12~~~~~~~~~~~~                                             p0                     12 e  °' n 3'LB.lS{l t10
F   tI             ~~~~~~~                                                                                                     '~~~~,,~~~~Mvrakae~',Ar-N
p  0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  2i~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~   ~  ~   ~~~~~~~~I0
lOSJ            au-  m  7       ando          S
W~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~t
ciuOantlSS                                                                                                                       I  ncvas~~~~~~~~~~~~~~~~-Kd.IR IAaNrsrAsA
00  lot                                                        ioo                    0:0                       ,ovev,,u rsu,',,ioa,,,  00'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~






-'THAILAND                   /0                                                 K                    no               35 ,0Oi RD-3
,>                            Bordo Atleh A {1 . y , y Q ^ 5INDONESIA
-N -'  _  2\,\ W PHILIPPI`E2 S       INDEX OF FORESTRY INVENTORY MAP COVERAGE
-,                                                                                     ' o-/hC/oS RNIr<: {i,J +/ ; Foresrry nuserory reorcb oreor
(/to  ~~~~~~~~~~~~~~~~aI/~~~~~~~oo   China   Sea            CroReU ' N                                                       _
3n0    20       MALAYSIA                  ,) r6 3 -                                                                                   Proect numberso
(C0/A)                                                                            Agr:cuirure ualLump  _  ,r/   -   t C   e  e   b   e   s  S   e   a  %  . -  _.n i lo.d  Ag-0 -
>                                           z i _ 8 1^ 1 ? MALAY S I A {§ c g < , W s <9 /  'No-.                   -.  ote: cldvr r msriorrooojoto6to nd 1oboo- rodu  us
|JMALAYSIA                                                    C         Nero,N SoeIcs rro,-y From project to ocoor. tot e-   Prje  /0
ncodes o/rter et/t20,000, 1:60,000 -od /10q000 i Project18
e     completed, ores d 3 vonSe o  ii. 50,000?; Projec0t22 (t
13~ o 14&\o,00X>.7\ 100X/I /0 ND,O ND                                         332 -Aerudo2                                     /5050 od Project7 29cr 25,000.
14  12   100   32   1  100   J B2nigi  10R3 1~~~~~~~~~~~~~~~~~~~~~~~~~~~~-J1 
16q NDInuPi-g  /                        35 1                          100              /                                   eAMAVA  Pn_t/oc  Oca
9on 40 100  38  7  I v   / f d / sw n   O  c e        KAt_  I  M A Aorortslo                                   r,7
24 ~ ~   /  ssr \00  42 4 0                          .".     K                                                                    1 0 , 29                 @3 t0 sy  90 70  9
26~ ~ ~~~0             T 100  44rtpsre            24 ND'                                cv .SULAWPS/                                                     t 
. N100'                     _   __,° COOrBTE                           IIS               I2 12                                                                           o or W E.**.,p
1  70             PolerrBortg  )P-twi
20  /00                          100          ,o>\    '7.                N~~~~~~~~~J 0 jt "   (FOAM  I        Erorstol,  W   00~~~~~~~~~~~ T  '7 I~k
3  2   C   E coR            4 // O N            Bc js ms je              ji    "- ~ . *Ko ds      BJOu'~                                  I 0  
M-~ ~~~,- 
0  1  100  ,  tore  ooceooreo  _Tlu P o j IJ  a  p aS            aM         k s r -Q     O , >B        n-
/3 ET 14  10  /  Itf.9rbr,509'                                  7 h
/5  EC4  /00,I  23 8 0                                                _j ~ 2 BAI _ t0c"j                         
~~  ~~~  /0  /00          /S2(§)r0O~~~~~~~~~~~~~~~~~%J  ""-s  Bra0  FL 0002  5  '-or---,-~~~~~~~~~~~~~~~~~~~~~~7z  F
/9  4   104                  0I  d o    ~  ~   o                 0 O r p O r 1 0 0                      - K                                 200o    E.oc  oo l   W o E   0 
I7    /00   39  2k/0
22  2    00  40   24 /N 0 PEtpNTflgO(
24  94   00  Dr   o    20N¸                                                                                                                  rtrr
20  6   /00  N3       ND0                                                                                    c    ,a 
121 6 03  /00D  0  ND  ND                       ~                                        ol                e                                        oo cs,   sprr   o
4000         /o0                          I/o






gBRD 10734
'19x  '~-  Tn- -1 t  AND  liO'lS'   11        litO          -           10I                                 liso.             { liO' 1i5          '   EORUORY 97
Bondt Ateh   h  37 . .  ./  %   ,   '  J  7  INDONESIA
7   PHILIPPINES  f   '-         INDEX OF LAND USE AND CADASTRAL MAPPING
< 15   \MLAYSIA 4        South    Chinc    Ser      BRUNe                   7 tj                                         use mom w           :250.000
K    -Lumpu                                              ,                                                 1: 250,000
/*'   7<W g4                                             .11 ,4 MALAYSIA  4t12 -'U nlcn uadasttal mopping completed (thousand he0tonas)
!~~~~~~~~~~~~~~~~~~~~~I                                                   u$0oc      , - Snuwnn , __0 13,en =aI
photo coerge (-;000 to 1:6000 scale) completed
ALAYSIA                                                             25h--/ ( d hectn-es]
'.  O '"                                            MA0A0 20I A00  400  500  °42                                            Codosnl .;,1ecs he.g  photognehed  at1pne0en'(thousandhec-ones)
IJ                                                                              k~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~It-nnt-oc1 bo-d--e  Seuc-   D-,-,renrn  G.-o of teed One
"1  y'~~~~~,  /      "  '  MAPEPA                       M:~~~~~~~~~~~Aiony of lo/ecoo  A(Io-r
KILOM                  ETERS    * -  /7/4  /vm z  tHE                                          w
lO D'  l 5   - fi . . .2                     0'I               Z S'               1 0'              13   w LI  'e"s' G A O   w M i . . o
Vio                "-
0,"~~~~~~~~~
ni.   0          J 0~~~~~          ~ V 0  Sea  Ujg d-
0;5
n   a'  c   n'   0"' 
'7  ~     ~       ~                -  FIQRYOSMB-  AlOe  c                     -nAk
10'm   200   00  00  000                                        IJ- (D
lOt?  200  500  420  000  600  7cc  cO                                             -Kos
lOX-               I0                110                10                t20Y              I25Y               ISO'               M3' s,ec,,'c        O.






TOY                    105~~~~~~~~~~~~~~~~~~~~~~~~D10
iBanO Anet  i I                              11~~~                           ~        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 .1         1000'.                                    4-      -1 1
/  /  ,..    /      IN,  :i~~~~  P/-c LIPPINIS..  o'      Index of Earth Resources and Technology Satellite (ERTS) Imagery
lit.  /~~~~         BRU[' ;,nrii,,         .9            1                                     (incodes F00, bonds of mciii spectral sensedc onaTgetefd~-f -t, v ncl  ed  'g.,Y
j'  -  /MALAYSIA          So                   e   1ccTb/7orots
'550  - ~~~~~~~  -  I  I                ..  ~~~~~~~~   areas OnaCeittOr points as sopocted TO the~~~~~~~~~~~1en1,rp,N,,.  t.th
/  ~ ~ ~ ~ ite5a  /  /  /  OufoGcooasc   16,t-                                I     /     1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  ci..  Geological Sercice of indoceria fions NASA etontat~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~CI.g l  A -.
ft  /~~~~  Koosiaiornpcor  I  ~~~~~~~~~~~/  /  I                                                               instotoatpnejocTtasodnnNASAprottootote,rctsnco6  6577ct19e72b  1973AS   pr1t., frb,s -46-377f 172  197
I..,.  ~  -~7 f          /            .                   ~~5g       egF        .~,               1   7   ~   I     I     I               tigtoaiitpntagoeio-0%siooccnsiiasrpattcsyisrgo  ot Rasain
/  Wi  *-/~~~~~~~~~~~~~~~~~~~~~~~~-~~~~~  N11  lot  ISgc  ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~g,  1  1/  Get/  / ~ ~ ~ ~ ~ ~ ~ 1 9~   PI-dYt I  p..Ag,y(LPN)17
/  7 ~~~~~~i2 ~~~~     /    ~   ~   ~   ~   ~   1   -N'S     /             / /   I             /Mrtsga i.e.   N44,                                                        I  /~~~~~~~~~~~~~~~~~~~~~~~~~~i.  I
/  ~ ~   Prdabg *  I  lscco8saco  /           i     /  tJ  ~~~~~~~~~~~      /           fioi/~~~~~iiG  27/                1  's~~~~~  ecoAosco                  /f
~~/   ~   Joingi  ~~  I~t\  Psngkaiptnang  Th  ~ ~ ~~  I'                 /         I           I       ~~                         ,',7  ~~t     Sia9  1 8a14i8
/  fasttrtan9n~~~~T- /                                                                  7 -.AG/ I                                          MOlc/
P,,d.ng  FR~~~~~~~~~~~~~~~~~~~~ /                                                                                                                         J3I  17/  "*00
tb 7 g1~~I  1--1.1    SULAo/ES    / Jos //056                 Otj/: 'Si39
i-c-c  Tsiokboconq*'/  42  /.I o I  0      lciciigPatdang0/  I~~~~~~~~~~~~~~~~~~~~  I i IK d    II
/  I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~t1
J KA0T~~~~~~~~~~~~~~~~~~~~  /  ,1,~~~~~~~~~~~~~~~~
38          ;   .Ho      63    o    Si    /                     Iiz 0or       / U               /7      71   oiIy       *,    /s    ,
/                                                    /~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3  7
E    TS Incagei, A-aab1s at tee/hSaco . 
Inda-nera  Space Agency (LAPAN)                 .       6                                              06
19 72                 5./                                    J//                               i    1 4  toto  Pts     169   1-   is     8
__ __  I                         195             /10                                    aol)                          I                             I     /~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~N2  3  0~
- coos                                                 7/~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i   /  .              0 000     soo     090 690 700 800~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~O2  0  906019  ?
cos - cOo,  0 , accsca                                   ilo15-12,                                                                             3-
cO,a  - toot, cAts. roost. 00,00. ocOt, coast. cOst, 000cc                                                                                                      vs   us. sasrt  nor   so~~~27  2-  ...1.  11
Z"                                               ..'  -    I          -  012'~~~~~~~~~~5 at  22  50  2 Or TO  asiat 0  os.5i0 514 0  t  54  et TOS i  5 stt-srr  04 3  fl  0-OOO  02 5
Ottn  -conos cong  cotro  onsr cost, corn  coot OttocorattnttOO  -coat  rra  02  ne  0O5  0t55  t5  02 ro  tsr  gtsr  irs  o  its  538 -statS 0200  0   Tm   tr 4  4na5  240   02  t2trOoasIa tOO   0
Oso -OT.7 coi  cor. cni, 005  ts  ost  to  cc  ti a -rs   sr so 0   rsaaO   52 i   O0 000sts3s           0   s.055  35   50     i   08rso  30   s     s     t-ats tr   5      S   cu-ats  55   s
can  -coo. cc, sos, oon  tc.. sat cotsc   sa.0304 no   e   i  cr-ocs  ian an Ottss caass   a    s   itto-osss or 50    Ts   ts  - t55  0   5   5   mr- ttO   505 20455    44-000057    2
-  or.crsc os,ss.coaa               iO-at  50   0      c   trnoa   aa   2     0   05  os  50   2     0    o  sr 1s    3     Ot   tsrao  ss    r    5     s-sts      5      5    2.58t  nl   t
coo,  - con. srcoc cocnr,  iSs  a  oa  soot  so  is  os  0- oars  ssa  is  si 005  sara  ana  5  cirascstr  ir  r  a1  38a.. rto  Oaaa  i  50  400  sttss  ae s-  TO   5ttt -0000  044   t
5  tot nsnns  sose  sa  0   t~~~~~~~~- moos  co  o n  o  rat Ot i  tc ss ,oct   o     -5  or  ic  0    2     5 -502ctis  m    s     o -S    sO  tr   3
coons, coonss        Toot-oar  580  as   rsstss sotoc  Taso  i  to  icos sots  oto  an  rc t;r- non  507  r   icc  non  ct  tar  is  TOO  too - sttsr-0 I8  to   too  sasat 740  
- toac tos,ton, tns  so,.  st,.  500  esrsc  tes-ass  s  ~ s astat   coSS  40  02 Ot  ca  roor  os  8  0  cSt 5502 013  5  sO 5t5  - to  55  0  0  Ot  ttt  ra  0   ir   as-  noa   54   t
octs  ~  s~c               tot-ocos 5220       n   tratoos  aSs  0    on  sat rsso  44  00   0   too - ~o  0138 tO  oc  sostno  si   an    is   385 stos sass  8 2rs  tar-3osne  44   3
coca-onto  5520  02  I  0  5520-0202  45 07.ira  .2s45  is..rant - tO    2ia  T     t   nI-dt   50   4     iO  55  t8  20   8     05  58  O    t
coos  . ciso,, coon, ttctt  in  trio  coos  oso  so  I  0  oats- osos  snos  so  snirOcoartiss  38  40  440 -0n555  son  so  i5tr513  5i205  5000  02  tOt  1384  OtitO  tono  20  050  0384- roOs  5038   50-1~  -2  1  -C
Oti  -  tat,  co, cos,go  sa  i  tos -osa  to  o   s   cas.Osa  m   is    00  0t -020 stt  20    sososotts        02    it   44  OOtO 380 00   isO  44I'tO  TtO 00    ns   538- msa   no I
ct7t  -  tt  oo,cos.co,soo,tcO4cOc  ss  2 t3  -00 ass s     aItn tOsot  rn   i      n  io-ot   ca-2       5    s-ct -os    an    its  s.ta  - rto  3- 3  t    2  t0  it   0    0     4.so   44
000  toss                  i   Tr4  aoao  to  0    5t  Ta5t 0242  t  is   it   10  005  240   s   isc   s  scoo   04   ~   ot            02    Ot4tt oot   ar  23122iTo      ros  set   s
-~~~~~0'~~~         it  i80i50005 tOO  00               -    .-.~~~~~~~~~~~~~~~1-2  ;r.,-=
,  L.  1.   71  1,.or  .,,    O    t    sociS   0   t      n   Iro-ii4 st  c      o   tassats a  t    i  5005 8  0-rn  tIn  02
o0c  20 20  0  24  0  2     5 4     2r   o    n     5   o-On   iO   T      o 2  000Poo      5     ia oo            o     is '03          to0          .20-2  
- t05.50555 00cc.000,  005  sOtt sotocoto,  ot. cos  oT 450 a50 5a  an F  S  Tos  sTo  00 0220 t2   cot,  102to 1.5 to-roor  38  on its 02  stat  s  0  -O to  is-  s2s  o  ci  50- tto Osr   3
oco  - door, toots, sosro112,cot.s-t.000  ,5  c T0204  Ot4   Ot2 5 T5   os 02   s   ooaet  Tro   T     I    tt  To 040  TIt,       55.500-0    0     tT   o   O ss4    2     0   rs  aat 34   t
- costs                00   ito~~~~0 - ot  et 0 5   osmos  eo   2 _  I     or oT aO    an    i      'Ot  ..Tt  O  s TO   rt.sst Oi         iO   tn  04  gs   0     o    4-10   0    0
tt  t0  -5400  Or  02 I  0  O  sis  rt  o  a  12003  00  0     i   t0t OOt  054  O    Ot   45  r2o  sae sIit 2-os        ss t3Ot         oo-ols      0
osto . Oats        __________________ __________________         ___________________ __________________ __________________ ____________I_____ I _-_____-_______...






B. STATISTICAL APPENDIX
A.1       Standard Normal Rainfall (Average 1931-1969)
A.2       Legend for Soil Map of Iudonesia
A.3       Total Area of Great Soil Groups and Its Distribution
A.4       Distribution of Great Soil Groups
A.5       Soil Surveys
A.6       Areas Surveyed and Mapped in the Following Periods:
(a) 1966/1967 until 1968/1969; (b) 1969/1970 until 1971/1972
A.7       Estimated Area of Forest by Geographical Location and
Ecological Type
A.8       Estimates of Regional Fertility and Mortality Differentials
in Indonesia (1961)
A.9       Labor Force and Population - 10 Years Old and Over, 1971
A.10      Regional Distribution of Manpower by Branches of Industry
A.11      Employment ani Labor Force in Indonesia, 1971
A.12      Percentage Distribution of Total Employment Change by
Major Economic Sector and Region Indonesia, 1961-1971
A.13      Employment Growth Rates Java and Madura Selected Sectors,
1961-1971
A.14      Employment in Large and Medium-Scale Manufacturing Industries
1970 & 1972 by Major Regions
A.15      Manufacturing Industries in Indonesia, 1970
A.16      Percentage Share of Employed Persons by Sector, 1971
A.17      Illiteracy and University Attendance Rates in Urban and
Rural Areas by Regions of Population of 10 Years of Age
and Over, 1971
A.18      Gross Domestic Regional Production at Constant 1969 Prices
for Provinces in Indonesia, 1969-71
A.19      Some Basic Regional Economic Data
A.20      Central Government Tax Receipts by Regions, 1969-72



A..21     The Percentage of Urban Population of Provinces Grouped
by the Per Capita GDP in 1969
A.22      Indonesia Enrollment Rates, 1971
A.23      Number of Health Personnel, Hospitals, Clinics, Etc.
by Province
A.24      Percent Distribution of Per Capita Consumption, 1969
A.25      Interinsular Passenger Flows in 10 Major Ports
A.26      Migration of Javanese Labor to and from Estates in North
Sumatera, Since 1961
A.27      The Educational Attainment of Migrants to Jakarta from
1961 to 1971 by Province of Origin
A.28      Java Freight Charges for Selected Coastal Shipping Routes
A.29      Proportion of Total Freight Traffic on Different Modes
of Transport, Japan, 1963
A.30      Total Highway Tons, 1969
A.31      Percent of Highway Traffic, Intra- and Inter-Provincial
by Province, 1969
A.32      Distribution to Provinces of Development Projects Directly
Financed by the Central Government
A.33      Intercity Road Traffic, Java, 1971
A.34      Coefficients Used to Convert Traffic to Transport Units on
the Asian Highway
A.35      Agricultural Sector Mission Expectations
A.36      Estimated Area of Forest by Geographical Location and
Ecological Type
A.37      Marine Fisheries Production, by Province, 1971
A.38      Production of Sea and Inland Fishery, 1971



Table A.1: STANDARD NORMAL RAINFALL (AVERAGE 1931-1969)
(mm)
Name of Station        Jan.    Feb.    Mar.    Apr.   May      June   July     Aug.   Sep.    Oct.    Nov.    Dec.        Total
Jakarta                334      241    201     141     113      97     61       52     78       91    155     196         1,760
Bandung                254      251    255     239     153      86    103       97     81     133     262     245         2,159
Semarang               276     271     216     193    147       79     87       77     84     148     220     235         2,033
Jogjakarta             294      319    279     117     156      69    123       77     29       69    183     287         2,002
Surabajat              278     239     213     131    110       55     39       24     12      46     139     232         1,518
Kutaraja               168      101    101     116     147      93     84      109    137      195    202     170         1,623
Medan                  184       68     91     162     182     140    146      176    237      288    201     178         2,053
Pakanbaru              215      191    250     254     194     113    144      169    186      275    301     284         2,576
Padang                 361      252    355     409     340     289    250      350    459      573    581     545         4,764
Jambi                  286      224    312     305     285     187     147     198    180      306    357      312        3,099
Palembang              254      229    287     242     177     130     98      120    110      174    276     284         2,381
Pontianak              272      198    207     252     281     238    179      176    255      332    345     321         3,056
Muaratewe              300      306    381     389     304     228    178      209    168      244    380     452         3,539
Banjarmasin            333      362    317     257     257     162     148     104    116      142    222      335        2,755
Smarinda               169      167    187     237     183     170    163      122    134      146    197     213         2,088
Menado                 393      400    247     393     254     256     246     170    204      218    294      337        3,352
Ujung Pandang          572      563    370     177     242      87      68      49      35     127    276      614        3,188
Denpasar               353      239    201     120     146     130     145      84     58      146    240      288        2,149
Ampenan                275      197    131      97     120      88      68      38     34       63    143      178        1',432
Kuparg                 341      395    169      83      21      22      24       2      3       43    110      243        1,456
Ambon                  129      126    135     168     446     517     679     501    398      154     72      134        3,499
Source: Meteorological and Geophysical Service, Dept. of Air Communication.



Table A.2: LEGEND FOR SOIL MAP OF INDONESIA
FAO World Soil Resources Report                USDA Soil Classifica-
Legend No.      No. 33 Soil.Classification                      :tioniEquivalent
1        ( 5. Lithosols-and Rendzinas                   Lithosols
(12. Lithosols., Ferralsols and Red-Yellow     Lithosols and Orthic
Podzolic Soils                             Ferralsols
2        (56. Andosols (Humid)                          Ochric Andosols
(59. Andosols and Ferrasols                    Ochric Andosols
3        (16. Red-Brown Mediterranean ,Soils and
Lithosols                                 Orthic Luvisols
(18. Red-Yellow Podzolic Soils and
Lithosols                                 Orthic Acrisols
(40. Red-Brown Mediterranean Soils             Chromic Luvisols
(61. Red-Yellow Podzolic Soils                 Orthic Acrisols
(62. Red-Yellow Ferralsols and.Red-Yellow
Podzolic Soils                            Orthic Ferralsols
(63. Ferruginous Tropical Soils                Ferric Luvisols/Ferric
Acrisols
(66. Dark Red Ferralsols                       Rhodic Ferralsols
4        (73. Regosols (Coastal Sands)                  Eutric Regosols
(74. Regosols (Volcanic Ash)                   Eutric Regosols
(75. Regosols and Vertisols                    Eutric Regosols
(76. Regosols and Rendzinas                    Eutric Regosols
5         (55. Vertisols                                Pellic Vertisols
(69. Low Humic Gley Soils and Grey
Hydromorphic Soils                        Mollic Gleysols or
Plinthic Gleysols or
Gleyic Acrisols
6         (77. Alluvial Soils and Low Humic Gley
Soils                                     Eutric Fluvisols
(78. Alluvial Soils and Saline Soils           Eutric Fluvisols
(79. Acid Sulphate Soils                       Thionic Fluvisols
7        (27. Organic Soils                             Histosols
(31. Podzols and Organic Soils                 Orthic Podzols
Source:  Soil Map of South East Asia, First Draft March 1964, by FAO/UNESCO
Soil Map of the World Project.



Table A.3:  TOTAL AREA OF GREAT SOIL GROUPS AND ITS DISTRIBUTION (x 1.000 ha)
Java     Su-atra _ orneo     Ce.ebes   Lesser                        I
Java      Sumatra   Borneo    Celebes   Sunda    Maluku   Irian Jaya     Total
_  Island
1.  Plain Lol:and
1. Organosol/Hydromorphic             -       14.250     6.820       -        -         -      6.657          27.727
Alluvials
2. Alluvials                        2.039      2.442     4.270       761       243     313     6.758          16.832
3. Regosol                            -          -         -          21      -         -        -                21
4. Rendzina                           -                _              31       156     437       186             811
5. Grumusol                           312         _        _         219        97      13       -               641
6. Meditteranian                       26         -        _         769       -       210       _             1.005
7. Latosol                            271        531       -         -         -       -         _               802
8. Podsolic                           371     9.612     10.935    . 1.356      156     253     5J17           27.800
9. Podsol                             -          812     2.513       _    -        -             -             3.325
T O t a 1                        3.019     27.648    24.544     3.157       653   1.226    18.718          78.965
II. Rolling to UndulThting
1. Regosol                          2.575       -          169        21       400     156       -             3.321
2. Grumusol                           400       _-                    -        -       -         -               400
3. Meditteranian                    2.123       -          -         831     3.031     283       172           6.361
4. Latosol                          2.540      3.218     1.576       830       -       -           21          8.186
5. Podsolic                           -      11.000      5.201       640       _     2.030     4.508          23.349
T ota                            7.638     14.218     6.946     2.322     3.431   2.369     4.701          41.617
IIT.  Hilly/iV,urltainous
1. Latcol                             109        469      .907     2.088       382     800      3.426          8.181
2. Andoc;ol                           950      2.000     1.500        91       172     _           16          4.729
3. Pod.,c,l                           -          484     1.660        --       -                 -             2.144
4. Cow,,lex                         1.500      2.540    18.232    11.145     2.722   3.981     14.576         54.696
1, o t a I  -                    2.559     5.494     22.299    13.324     3.276   4.7 j    18.018          69.751
(tUlD ' '  h' 1 A)l             13.21.7    47.360    53.789    18.83      7.30    8.-'57   41 437 60190.335
turc~      Ve  rJ' ]9.., 1 .I -Pi . K/ . 5 and 6



x/
Table A.4: DISTRIBUTION OF GREAT SOIL GROUPS (xl.OOO ha)
Plain        Rolling to       Hilly to
G.S.G.                       lowland       Undulating     Mountainous     Total
0-8%           8-15%            15%
1. Podsolic (Ultisol)               27.800        23.349              _          51.149
2. Organosol/Hidromorphic           27.727           -                -          27.727
Alluvials
(Histosol/Entisol)
3. Latosol (Oxisol/Inceptisol)         802         8.186           8.181         17.170
4. Alluvials (Entisol/
Inceptisol)           16.832           -               -           16.832
5. Mediteranian (Alfisol)            1.005         6.361             -            7.366
6. Andosol (Inceptisol)                -             -             4.729          4.729
7. Podsol (Spodosol)                 3.325           -             2.144          5.470
8. Regosol (Inceptisol/Entisol)         21         3.321             -             3.342
9. Grumusol (Vertisol)                 641           600                           1.041
10. Rendzine (Mollisol/Rendol)          811           -               -               811
11. Complex                             -             -            54.696          54.696
Total:                         78.965        41.617           69.751        190.335
x/ Source: Generalized Soil map of Indonesia, 1964



Table A.5: SOIL SURVEYS
Period               Region                          Scale         Acreage        Purpose
(Ha)
A. 1950-1960
1. Java & Madura               .     .      .     ............ 13.217400
(1) Java & Madura                        1:1.000.000       13.217400       Agric. develop-
ment
(2) do                                   1:  250.000       13.217400       Intensification
Programs
2. Sumatera .        .        ....... 41.821.400
(1) Eastern part of North Sumatra        1:1.000.000        2.206.000      Agric. develop-
ment
(2) Tapanuli                             1:1.000.000        4.872.700           do
(3) Riau                                 1:1.000.000        9.456.200           do
(4) West Sumatera                        1:1.000.000        4.977.800           do
(5) Jambi                                1:1.000.000        4.492.400           do
(6) Southern part of Sumatera            1:1.000.000       15.816.300           do
3. Kalimantan ...........                                     53.946.000
*/
(1) West Kalimantan                      1:1.000.000       14.676.000      Agric. develop-
ment
*l
(2) South Kalimantan                     1:1.000.000        3.766.000           do
*l
(3) Central Kalimantan                   1:1.000.000       15.260.000           do
*/
(4) East Kalimantan                      1:1.000.000       20.241.000            do
4. Sulawesi                  )
)
5. Bali                      )
6. Nusa Tenggara             )      Small localized areas for specific purposes
7. Maluku                   )
)
8. Irian Jaya                )
*/ The Central part of the island is not covered.



Table A. 5 (continued)
Period                       Region            Scale              Acreage       Purpose
(Ha)
B. 1960-1966
1. Java & Madura
(1) West Java                       1:   250.;000         1.250.000      Intensification
Programme
(2) Cimanuk Watersihed             1:    250.000            179.000     Rehaibilitation
(Central part)                                                      of critical
areas
(3) Bogor                           1:    50.000             66.000      Intensification
Programme
(4) Bogor-Jakarta                  1:      5.000              5.600      Systematic
mapping
(5) Central Java                   1:    250.000          1.600.000      Intensification
Programme
(6) Tegal                           1:    50.000             29.250      Intensification
Programme
(7) Pati                            1:    50.000             34.000      Intensification
Programme
(8) East Java                       1:   250.000          1.950.000           do
(9) ksembaguts                     1:     50.000             23.000           do
('10) 'Bodjonegoro                  1:     50.000             35.000           do
2. Sumatera
(1) Rawa Sragi                       1:   100.000            280.000      Agric. develop-
ment
(2) Menggala                         1:   250,.000           100.000      Rosella Estate
(3) Aj'i Pemanggilan                 1:   '50.',000           10.000      Sugarcane Estate
(4) Buluraji                         1:   100.000              8.000      Agric. develop-
ment
(5) Way Seputih                      1:    25.,000             2.000           do
(6) Way Tuba                         1:    25.'000               800      Pasture develop-
ment
3. Kalimantan
(1) Central Kalimantan              *1: 1.000.000          8.614.000      Agric. develop-
ment
4. Sulawesi
(1) Malili                           1:   '100.000            67.500      Agric. develop-
ment
(2) Bone                             1:    10.000              9.400      Sugarcane Estate
5. Nusa'Tenggara
(1) Sumbawa                          1:   500.000          1.449.'000     Agric. develop-
ment
Note: Some small areas 'in Java and'West Irian for specific purposes



Table A.6: AREAS SURVEYED AND MAPPED IN THE FOLLOWING PERIODS:
a) 1966/1967 until 1968/1969, b) 1969/1970 until 1971/1972
Period                    Location              Scale      Average          Programme                  Purpose
a)1966 to
1967 until       1966 1. Petjangaan         1:250.000   240.000 ha   Department of Agriculture    Relationalized land use
1968 to                  (Centre Java)
1969                  2. G. Purwodadi       1: 25.000     3.600 ha   Department of Agriculture    Relationalized land use
(East Java)                                  /Directorate General of
Estate Crops/Sugar Estate
1967 1. Lombok Island     1:250.000    450.000 ha   Soil Research Institute/    Rehabilitation of critical
Direcorate General of        region (famine problem)
Agriculture                  and regional development
2. South Celebes     1:500.000 5.462.000 ha    Soil Research Institute/    Agricultural/regional
Directorate General of       development
Agriculture
3. Sukamandi         1: 50.000      5.000 ha   Soild Research Institute/   Intensification programme
(West Java)                                 Directorate General of      for the development of
Agriculture                  Sukamandi area
1968 1. Lampung           1:250.000 3.000.000 ha    Soil Research Institute/    Agricultural development/
Directorate General of       regional development
Agriculture
2. K.G. Kadhipaten   1: 25.000      6.500 ha   Department of Agricul-      Rationalized land use
(West Java)                                 ture/Directorate General
of Estate crops
3. Kendari           1:100.000      7.500 ha   Department of transmigra-    Transmigration/resettle-
(South East                                 tion                        ment
Celebes)
4. Kapuas Delta I    1:200.000    100.000 ha   Provincial government        Resettlement programme
(West Kalimantan)



Table A.6 (continued)
Period                     Location           Scale       Average            Programme                  Purpose
b) 1969/1970
until          1969 1. Buru Island I      1: 25.000     2.300 ha   Attorney-General             Resettlement
1971/1972
2. Kapuas Delta      1:200.000    233.600 ha   Provincial government
II, West Kali-
mantan
3. Lubuklinggau      1: 50.000     35.000 ha   Ministry of Public Work     Irrigation
(South Sumatera)                            and Electricity
4. North Sumatera    1:250.000 2.206.000 ha    Soil Research Institute/    Agricultural/Regional
Directorate General of       development
Agriculture
5. South Sumatera I  1:250.000 1.918.000 ha    Soil Research Institute/    Agricultural/Regional
Directorate General of       development
Agriculture
6. Wonogiri          1:250.000     33.500 ha   Soil Research Institute     Regional rehabilitation
Directorate General of
Agriculture
7. PG. Olean, East   1: 25.000      3.900 ha   Department of Agriculture   Rationalized land use
Java
8. Buru Island II     1:100.000    16.400 ha   Attorney-General             Resettlement
1970 1. PG Trangkil        1: 25.000     9.000 ha   Directorate General of       Rationalized land use
Estate crops/Sugar estate
2. Siberut Island     1:250.000    35.700 ha   Ministry of Defense and      Resettlement
Security
3. South Sumatera     1:250.000 4.500.000 ha   Soil  Research Institute/    Agricultural/Regional
II                                          Directorate General of       development
Agriculture



Table A.6 (continued)
Period                    Location            Scale       Average           Programme                   Purpose
4. Demak (Djratunseluna) 1: 50.000   45.000 ha     Ministry of Public          Rehabilitation
Work and Electricity/
consultant
5. Maros                 1: 25.000     5.000 ha    Directorate General of      Tani Makmur/
Agriculture                  Intensification
programme
1971 1. Wamena (Irian Jaya)   1:250.000    15.000 ha    Directorate General of      Regional develop-
Agriculture                  ment
2. Buru island III       1:100.000    10.000 ha    Ministry of Defense         Resettlement
and Security
3. Garut                 1: 50.000     2.000 ha    Directorate General of      Tani Makmur/
Agriculture                  Intensification
programme
4. Watershed area of     1:100.000   200.000 ha    Soil Research Institute     Agricultural
/Directorate General of      development
Agriculture
5. Muara Siak and Rengat 1: 50.000    30.000 ha    Provincial government/      Agricultural
Agricultural Extension-      development
Service
6. Djelapat area, P.Petakl: 50.000    16.000 ha    P4S, Ministry of Public      Pilot project of
South Kalimantan                                Work & Electricity           P4S






Table A7: ESTIMATED AREA OF POREST/i BY GEOGRAPHICAL LOCATION AND ECOLOGICAL TYPE
(millions of hectares)
Total  Primary   Mixed       Secondary   Mangrove     Teak     Non-Teak      Total      Percent
Land   Rain      Deciduous   Forest       Coastal &   Forest   Plantations   Forested   Forested
REGION        Area   Forest    Forest                   Swamp                              Area
3/                   4/     Forest 3/         5/          6/
Kalimantan     54     25.7       -            9.2         6.1         -         -             41           76
Sumatera       47     15.5       -            5.6         6.9         -         -             28           60
Sulawesi       19      6.8       -            3.2          -          -         -             10           53
Java & Madura  13      0.3       1.5           -          0.1        0.8       0.3              3          23
Maluku          8       4.9       -           1.0         0.1         -         -               6          75
Nusa Tenggara   7      1.4       -            0.6          -          -         -               2          29
Irian Jaya     42     25.5       -            -           4.5         -         -              30          71
TOTAL      190 /2  80.1       1.5         19.6        17.7        0.8       0.3            120          63
1/  "Forest" as defined in law #5 of 1967 is any "area covered with growing trees which as a whole
forms a natural biological living community with its surrounding".
2/  In the "Statistical Pocketbook of Indonesia", April 1971, the total land area according to the
Directorate of Topography is 201.9 million hectares, but according to the Directorate General
of Forestry the figure is 190.4 million hectares.
3/ These categories will include areas which were once forests but are now open grassland, cultivated
or in some other way converted.
4/ These develop after the original forest has been destroyed by fire or shifting cultivation.
Areas indicated are very rough estimates based on data contained in "Forestry Resources in
Indonesia" Department of Forestry, May, 1966 and Dr. J. A. Von Monroy's "Forestry and Forest
Industries in the First and S-cond Five-year Plans of Indonesia", October, 1968.
5/ Comprises plantations and natural stands.
6/ Includes coniferous and hardwood plantations
Source: Several official documents and reports which due to purpose and time of publication do
not agree in all respects. Main sources are the "Forestry Masterplan Summary, D.G.F.,
December 1971, and the documents noted in footnote /4.



Table A.8:   ESTIMATES OF REGIONAL FERTILITY AND MORTALITY
DIFFERENTIALS IN INDONESIA (1961)
Gross
Crude      Crude       Rate of       Repro-        General
Birth      Death       Natural       duction       Fertility
Region                        Rate       Rate       Increase       Rate          Rate
West Java                     49.8       22.5          27.3         3.459         .2130
Central Java                  46.8       22.3          24.5         3.161         .2076
Jogjakarta                   39.9       22.3         17.6          2.508         .1681
East Java                     42.7       22.2         20.5          2.771         .1830
Java                          46.1       22.3          23.8         3.059         .2009
Sumatera                      51.6       22.6         29.0             -          .2240
Kalimantan                    48.2       22.4          25.8            -          .2089
Sulawesi                      49.5       22.5          27.0            -          .2185
Other Islandg                 49.6       22.5          27.1            -           .2213
Outer Provinces               50.2       22.6          27.6            -           .2176
Indonesia                     47.6       22.4         25.2          3.1           .2073
Source: S. Iskandar, Some Monographic Studies on the Population in
Indonesia; Jakarta: University of Indonesia, 1962.



Table A.9:   LABOR FORCE AND POPULATION-10 YEARS OLD AND OVER, 1971
(in thousands)
Labor
Employ-      Force
Labor                             ment           as
in                              Rate          Per-
Search                            (Col. 2       cent
Number        of         Total     Total      as Per-         of
of        Employ-      Labor     Popu-      cent of        Popu-
Workers      ment        Force     lation     Col. 3)       lation
DCI  Jakarta          1,273           71       1,344     3,152      94.7          42.6
West Java             6,148          201       6,348    14,440      96.8          44.0
Urban                 675           46         721     1,858      93.6          38.8
Rural               5,473          155      5,627     12,582      97.3         44.7
Central Java          8,177        1,345       8,312    15,053      98.4          55.2
Urban                 753           36         789     1,741      95.5         45.3
Rural               7,424          989      7,523     13,312      98.7         56.5
D. I. Jogjakarta      1,018           18       1,036     1,801      98.2          57.5
Urban                 124            5         129       310      95.9         41.7
Rural                 894           13         907     1,491      98.6         60.8
East Java             9,142          180      9,321     17,868      98.1          52.2
Urban               1,158           46       1,203     2,719      96.2          44.3
Rural               7,984          134       8,118    15,149      98.4          53.6
Total Java & Madura 25,757           604      26,362    52,314      97.7          50.4
Urban               3,983          204       4,187     9,780      95.1          42.8
Rural              21.775          400      22,175    42,534      98.2          52.1
Sumatera               6,694          167      6,860     13,778      97.6         49.8
Urban                 927           52         980     2,538      94.7          38.6
Rural               5,766          115       5,880    11,240      98.1          52.3
Kalimantan            1,654           26       1,680     3,455      98.5          48.6
Urban                 316            5         321       754      98.6          42.6
Rural               1,338'          21       1,359     2,701      98.4          50.3
Sulawesi              2,322           65       2,387     5,631      97.3          42.4
Urban                 352           28         380       990      92.5          38.4
Rural               1,970           37       2,007     4,642      98.2          43.2



Table A.9 (continued)
Labor
Employ-        Force
Labor                             ment           as
in                               Rate         Per-
Search                            (Col. 2       cent
Number        of         Total     Total      as Per-         of
of        Employ-      Labor     Popu-      cent of        Popu-
Workers      ment        Force     lation     col. 3)       lation
Other Islands         2,783           27      2,810      5,249       99.0         53.5
Urban                 218            5        223        556       97.8         40.1
Rural               2,565           22      2,587      4,692       99.2         55.1
Indonesia            39,210          890     40,100     80,426       97.8         49.9
Urban               5,796          295      6,091     14,617       95.2         41.7
Rural              33,414          595     34,009     65,809       98.3         51.7
Source: 1971 Population Census - Biro Pusat Statistik.



Table A.10:   REGIONAL DISTRIBUTION OF MANPOWER BY BRANCHES OF INDUSTRY
(Number      : In thousand persons)
(Distribution:  In Percent          )
Indonesia     Java & Madura    Sumatra        Kalimantan      Sulawesi      Other Islands
Distri-         Distri-         Distri-        Distri-         Distri-        Distri-
Number bution   Number bution   Number bution  Number bution   Number bution  Number bution
1.  Agriculture         24,946  62.2    15,229   57.8   4,900    71.4  .1,212   72.2   1,504   63.0    2,100    74.7
2.  Mining and
Quarrying               92   0.2        32    0.1      55     0.8       3    0.1       1   ng.         1      ng
3.  Manufacturing
Industry            2,953    7.4     2,303    8.7     183     2.7      41    2.5     237   9.9       190     6.8
4.  Electricity             38   0.1        27    0.1        5    0.1       3    0.1        1   ng.        3     0.1
5.  Construction           750   1.9       522    2.0      110    1.6      25    1.5      37    1.6       56     2.0
6.  Wholesale and
Retail Trade         4,152  10.4     3,309   12.6     460     6.7      95    5.7     159    6.7      129     4.6
7.  Transportation         932   2.3       651    2.5     133     1.9      46    2.7      81    3.4       21     0.7
8.  Finance                 99   0.2        75    0.3       14    0.2       2    0.1       50   0.2        3     0.1
9.  Social, Communal
and Individual
Services             3,980   9.9     2,859   10.8     568     8.3     132    7.9     232    9.7      190     6.8
10.  Others               1,749   4.4     1,112    4.2      343    5.0     109    6.5       83   3.5      103     3.7
11.  New Labor              408   1.0       246    0.9       89    1.3      11    0.7       47   2.0       16     0.6
Total           40,100 100.0     26,362  100.0   6,860   100.0   1X680  100.0   2,387 100.0     2,810   100.0
Source:  Appendix Table 11.






Table A.ll- EMPLOYMENT AND LABOR FORCE IN INDONESIA, 1971
(Figures in thousand)
Total Indonesia:                                       Labor Force In 1/:
Total Labor                          D.C.I.
Working Labor Force      Total Labor Force           Force        Java and Madura     Djakarta    West Java          Central Java
Male   Female   Total    Male   Female   Total   Rural  Urban    Rural  Urban   Total  Urban  Rural   Urban  Total  Rural  Urban  Total
1. Agriculture, Hunting
Forestry and Fishery       16,876   7,896   24,772   17,001  7,945   24,946  24,340    606  14,984     245  15,229     44  3,568     44   3,612  4,721     41  4,762
2. Mining and Quarrying           84       6       90      86       6       92      47     46       25      7      32      4      3     ng.      3      2      2      4
3. Manufacturing Industry      1,515   1,416    2,932    1,530  1,423    2,953   2,279    674    1,787    515   2,302    121    334      84    418    925    151  1,076
4. Electricity, Gas and
Water                          36       2       38       36      2       38      11      27       7     20      27      8       3      4      7      3      3       6
5. Construction                  727      10      737      740     10      750     452    298      307    215     522     92     134     33    167     85     31     116
b. Wholesale and Retail Trade,
Restaurants and Hotels      2,331   1,782    4,113    2,353  1,799    4,15Z   2,681  1,471    2,253  1,056   3,309    321    594     164    758    931    217   1,148
7. Transportation,
Storage and Communication     898      18      916      914     18      932     408    524      279    372     651    139     127     65    192     94     54     149
8. Finance, Insurance and
Real Estate                    79      16       95       81     18       99      10      89       6     69      75     37       1      7      8      2      11     13
9. Social, Communal and
Individual Services         2,863   1,060    3,923    2,904  1,076    3,980   2,098  1,882    1,476  1,383     461    399     399    243    641    535     234    769
10. Other                         733     820     1,593     886    863    1,749   1,452     297     931    181   1,112      78    422     44    466    191      23    213
11. New Labor Force in
Search of Employment            -       -         -     300    108      408     231     177     121    125     246      41     44     33     80      34     23     57
Total                    26 184  13,026  39,210   26,832  13,268  40,100  34.009   6,091  22,175  4,187  26,362   1,344  5,627    721  6.349   7.523    789  8,32



Table A.ll: (continued)
L A B O R   F O R C E  I N:
D.I. Jogiakarta           East Java                   Sumatera             Kalimantan               Sulawesi           Other Islands
Rural   Urban    Total   Rural   Urban   Total    Rural   Urban  Total    Rural  Urban   Total   Rural  Urban  Total   Rural  Urban  Total
1. Agriculture, Hunting
Forestry and Fishery          570        B     578   6,125     108    6,233   4,741      159  4,900   1,116     96    1,212  1,437     68   1,504  2,062     38  2,100
2. Mining and Quarrying           ng.     ng.      ng.     20        1      21      20       35     55       1      2        3      1     ng.      1      -      I 1
3. Manufacturing Industry        142       18     160     386      142     528     115       68    183      21     20       41    187     50     237    169     21     190
4. Electricity, Gas and
Water                          ng.     ng.      ng.      1        5       6       1        4      5       1       2       3      1     ng.      1      2       1      3
5. Construction                   14        4      18      74       54     129      71       40    110      16       9      25     15      23     37     43     12      56
6. Wholesale and Retail
Trade, Restaurants
and Hotels                     95       37     132     633      318     950     207      254    460      39      56      95     92     67     159     90     39     129
7. Transportation, Storage
and Communication               6        8      14      51      106     157      61       72    133      12      35      46     43      35     81     12     10      21
8. Finance, Insurance and
Real Estate                     1        1       2       4       13      16        2      12     14      ng.      2       2      -       5      5      2       1      3
9. Social, Communal and
Individual Services            54       47     101     489      399     888     315      253    568      56      76     132    139      92    232    112      78    190
10. Other                          18        3      21     299       32     332      286      57    343       88     21     109     65      17     83     82      21    103
11. New Labor Force in
Search of Employment            7        3      10       36      25      61       62      26     89       10      1      11      25     22     47      13      3     16
Total                        907      129   1,036   8.118    1,203   9,321   5.880      980  6,860   1.359     321   1.680  2,007     380  2,387  2,587     223  2,810
1/ Due to rounding,figures may not add up.
Source: 1971 Census of Population - Biro Pusat Statistik



Table A. 12: PERCENTAGE DISTRIBUTION OF TOTAL E:MPLOYMENT CHANGE
BY MAJOR ECOXOMIC SECTOR AND REGION INDONESIA,
1961-1971
Java
and                                   Other
Madura  Sumateta Kalimantan  Sulawesi  Islands  Indonesia
per cent
Agriculture, etc.         8.1      9.2      (-1.7)      (-1.1)   4.9        19.3
Mining and manufacturing 12.7      0.4      (-0.2)       2.1     1.5       16.5
Construction              1.2      0.4       0.1         0.2     0.4        2.4
Transport, communication
and utilities            2.1      0.1       0.3         0.6     0.1        3.3
Trade and finance        25.9      2.7       0.2         1,2     1.D        31.0
Services                  7.0      3.0       0.4         1.0     1.4       12.7
Other and unknown         9.1      3.3       1.1         0.5      0.8       14.7
Total               66.2     19.1       0.2         4.5    10.1       100.0
Source:  1961 Census and preliminary sample results from the 1971 Census.
Table A.L3: EMPLOYMENT GROWTH RATES JAVA AND MADURA
SELECTED SECTORS, 1961-1971
URBAN            RURAL           TOTAL
-per cent-
Agriculture, etc.                 -0.2              0.4             0.4
Manufacturing                     -l.V              7.0             4.6
Transport                          1.7              3.9             2.6
Services                           2.7              1.5             2.0
Source:  1961 Census and preliminary sample results of the 1971 Census.



Table A.14:    EMPLOYMENT IN LARGE AND MEDIUM-SCALE MANUFACTURING INDUSTRIES
1970 & 1972 BY MAJOR REGIONS
___________________________________ _ .  _1972
%    No. of Persons     %     No. of    %    No. of Persons      %
Estab. Share   Employed '000    Share  Estab.   Share   Employed '000   Share
I. Java & Madura,
of which           13879   77.5      730.34         86.0  18571     74.3    697.53          80.7
1.   Jakarta        1549    8.6       53.79          6.3   1879      7.5     63.24           7.3
2.  West Java       2504   14.0      185.52         21.9   4976     19.9    182.21          21.1
3.  Central Java    5376   30.0      220.83         26.0   5705     22.8    198.76          23.0
4.  East Java       4450   24.9      270.19         31.8   6011     24.1    253.32          29.0
II.  Sumatera              1972    11.0      80.56          9.5    3805    15.2     102.11          11.8
III. Kalimantan              461    2.6      11.83          1.4     815     3.3      20.13           2.3
IV.  Sulawesi               1283    7.2       15.12         1.8    1228     4.9      18.41           2.1
V.  Other Islands           305    1.7       11.10          1.3    573     2.3      26.51           3.1
Total               17900   100.0     848.95        100.0   24992   100.0     864.69         100.0
Source:   Survey of Manufacturing Industries, 1970-1972, Biro Pusat Statistik.



Table A.15: MANUFACTURING INDUSTRIES IN INDONESIA, 1970
Number of Establishments      Number of Power Equipments      Total Capacity (hp.)         Number of Persons Employed
Large    Medium      Total    Large     Medium     Total     Large    Medium     Total     Large    Medium      Total
1.  D. I. Aceh.,                10         85        95       75       132        207     4.565    3.836       8,400    4.317     1.063      5.380
of which:
- Palm Oil                   3          1         4       14         1          15      464      120         584    3,433        24      3,457
- Rice Milling               1         24        25        8        30         38       351    1,194       1,545      100       187        287
- Sawmills                   1         28        29       35        29         64     3,079    1,303       4,382       81       321        402
- Remilled Rubber            3          9        12       10        11         21       193      612         805      486       249        735
2.  North Sumatra,               96       601       697     1,127    1.452       2,579   27,164   22,142      49.306   30.065     7.664     37,729
of which:
- Tea                        J          4         7         2        5           7       J0       19         5r9    3,z8l        30      3,j1i
- Textile                    9          6        15      559        43        602     3,948      185       4,133    2,184       145      2,329
- Remilled rubber           37         22        59       155       36        191    10,763    1,101      11,864   15,559       434     15,993
- Dried tobacco
leaves & cigarettes       10          3        13      126        16        142     2,218      154       2,372    3,135        80      3,215
3.  West Sumatert                20       133       153       126      263         389   22.235    2,083      24.318    10,402    2.101      12.503
of which:
- Cement                     1          -         1        17        -          17    18,085        -     18,085     1,450        -      1,450
- Remilled rubber            7          1         8        29        3          32     2,201      48       2,249     2,744       12      2,756
- Tea                         1         -         1         1        -           1        31        -         31    4,872         -      4,872
- Cotton fabrics             3         32        35         5       34          39      460        15        275       531      647       1,178
4.  Riau, of which:               9       334       343        22      321         343    2,088     8.321     10.409       691     3,964      4.655
- Remilled rubber            6         61        67        12       33          45    1,547       724      2,271       507    1,231       1,738
- Tapioca flour              -         84        84         -       84          84        -     1,812      1,812         -      920         920
- Sawn wildwood               1        46        47         5       48          53      255     2,472      2,727        60      506         566



Table A.15: (Continued)
Number of Establishments       Number of Power Equipments        Total Capacity (hp.)         Number of Persons Employed
Large      Medium      Total   Large     Medium       Total   Large     Medium       Total    Large    Medium       Total
5.   Jambi, of which:              14          78         92       45      _110         155    6.735     3,851      10.586    2,852      1.071      3,923
- Remilled rubber              14          14         28      45         17          62   6,735        196       6,931   2,852        402       3,254
- Sawn teakwood                 -           3          3       -          4           4       -      1,076       1,076        -        34          34
- Coconut oil                   -           8          8       -         11          11       -        957         957        -       170         170
6.  Lampung,                       21         158        179       66       157         223   17,013     6.828      23,841    3.933      2.023      5.956
of which:
- Remilled rubber               9           -          9      66          -          66  15,828          -      15,828   2,851           -      2,851
- Grain mill products           9          22         31       -          -           -     755        697       1,452      QJA       467       1,3M3
- Tapioca flour                 2          33         35       -         39         130   1,469      1,599         112      468        580        580
7.  South Sumatira                 28         371        399      297       661         958   15,794    14,053      29,847    6,270      4J017      10,277
of which:
- Remilled rubber              15          12         27      53         26          79  11,260      1,772      13,032    3,473        299      3,772
- Sawn teakwood                 -         105        105       -        137         137        -     5,062       5,062        -        980        980
- Ceramics                      1           2          3     120          -         120   1,830          -       1,830      855         28        883
8.  Bengkulu,                        -          14        14        -         22         22        -        486         486        -       131         131
of which:
- Coffee sorting                -           6          6        -        10          10        -       288         288        -         75          75
Total SumatErz,                    198           1,774 129758            3,118        4,876   95.594     6159       157,193  58,530     22,034 8



Table A.15: (Continued)
Number of Establishments     Number of Power Equipments         Total Capacity (hp.)     Number of Persons Employed
Large      Medium    Total   Large      Medium     Total   Large    Medium       Total   Large    Medium      Total
1.  D.C.I.  Jakarta,             222       1,327    1,549   2,459       ,        5.J212  387,471   35A120    422,591  31,267     22,526     53,793
of which:
- Food, drink
and tobacco                 24         171      195     114        180        294 134,730     5,877    140,607   3,352      2,875      6,229
- Textile and
apparels                   56          468      524     741        967      1,708   5,686     7,275     12,961   5,970      7,792     13,762
- Printing office            22           85      107     410        429       838    2,116     8,122     10,238   3,651      1,503      5,154
- Varnishes, paints
and pharmaceutical          19          62       81     138        105        243   4,444     1,320      5,764    2,295     1,126      3,421
- Metal works and
metal products              26         118      144     338        289        627  4h149      2,561      6,713   3,21/'     1,976      5,10
- Machinery-electrical
and non-electrical
and repairs                 20         110      130      79        291        370 218,858     2,053    220,911   4,225      1,655      5,880
2.  West Java,                   498       2,006    2,504  17,612      6,571     24,183 174,645    38,344    212,989 152,588     32,933    185j521
of which:
- Tea processing              45          55      100   1,015         79      1,094  11,614       614     12,228   50,721     1,318     52,039
- Cotton yarn and
cotton fabrics             170         370      540  12,614      3,204     15,818 106,966     3,413     110,379  29,437     6,252     35,689
- Remilled rubber             86          96      182     411        117        528   8,577     2,794     11,371   33,553     2,081     35,634
- Rice milling                52         357      409      59        588        647   2,521    14,410      16,931  10,262     4,608     14,870
3. J    takarta ,                 29         612      641   1,854         285     2      21559      1,560      23,119   8,320     9,400     17,720
of which:
Textile and batik            6         329      335   1,283          77     1,360   4,523       1ll       4,634   3,234     5,307      8,541
Sugar                        1           -        1     339           -       339  14,772          -     14,772   1,706         -       1,706



Table A.15: (Continued)
Number of Establishments      Number of Power Equipments       Total Capacity (hp.)       Number of Persons Employed
Large      Medium     Total   Large     Medium      Total   Large    Medium       Total   Large    Medium       Total
4.  Central Java,                363       4.370     4.733   5.692       2.413       8,105  61.325   24,351       85,676 127.224     74,739  201,963
of which:
- Weaving and
spinning mills              78       1,846     1,924   3,594        346      3,940  14,567     1,137      15,704  24,007    32,368      56,375
- Cretec cigarettes           88          86       174     135         38        173     791        53         844  37,207     3,542      40,749
- Tea                          5          65        70       7           -         7     414          -        414  15,958      2,401     18,359
- Sugar                       10          15        25     401           5       406  18,664        33      18,697  10,935        472     11,407
- Batiks                       3         894       897      10           2        12   1,075         24      1,099     473     10,755     11,228
- Rice milling                12         175       187      36        286        322     393     6,706       7,599   5,637      2,367      8,004
- Remilled rubber              8           4        12      37          13        50     836        202      1,038   3,906         99      4,005
5.  East Java,                   562        3.889    4J450   8.519       6,160    14.679 308.640     60,367    369,007 200,409     69,784    270,193
of which:
- Sugar                       32           10       42   1,038          12     1,050 223,062        117    223,179  49,052         71     49,123
-Tobacco and
Products                    175         599       774     304          59       363   3,320        373      3,693  59,689     19,623     79,312
- Cotton yarn,
fabrics, batik
and products                61         489       550   3,161       1,937     5,098  16,822      1,958     18,780  14,131      9,284     23,415
- Rice Milling
and cleaning                50          710      760     106       1,020     1,126   5,493     25,104     30,597   8,626      8,177     16,803
- Coffee                      38           42       80     140          80       220   6,001        783      6,784  15,319        589     15,908
Total Java and Madura          1,674       12,203   13,877  36.136      18,182    54.318 953,640    159,742  1.113,382 519.808    209,382     729,190



Table A.16: PERCENTAGE SHARE OF EMPLOYED PERSONS BY SECTOR, 1971
Indonesia         D.K.I.     West Java      Central Java   Jogjaktarta    East Java      Sumatera      Kalimantan      Sulawesi        Other
__ _ _ Jakarta    __ _ _  _ _ _  _ _ _ _ _ _ _  _ _ _ _ _ _ _ _ _ _ _ _ _ _  _ _ _ _ _ _ _  _ _ _ _ _ _ _  _ _ _ _ _ _ _   Is  lands
Urban  Rural   Urban  Rural  Urban   Rural  Urban  Rural   Urban  Rural   Urban  Rural  Urban   Rural  Urban   Rural  Urban   Rural  Urban  Rural
Agriculture,
Hunting, Forestry
& Fishing             10.3    72.3   3.4      -      6.5   64.5   5.3     63.3    6.5    63.4    9.2    76.0   17.0   81.7    30.3   82.7    19.0   72.6    17.4   80.2
Mining &
Quarrying              0.8     0.1   0.3      -      0.0    0.0   0.2      0.0    0.1     0.0    0.1     0.3    3.7    0.3     0.7    0.3     0.1    0.0    0.3     0.0
Manufacturing         11.4     6.8   9.2      -     12.1    6.1   19.9    12.4   14.4    15.7   12.0     4.8    7.2     2.0    6.3     1.6   13.9    9.5     9.4    6.6
Electricity,
Gas, Water             0.5     0.0   0.6      -      0.5    0.1   0.4      0.0    0.2     0.0    0.5     0.0    0.5    0.0     0.5    0.1     0.2    0.0     0.4    0.1
Construction            5.0    1.3   7.0      -      4.9    2.4    4.0     1.1     2.9    1.6    4.5     0.9    4.1     1.2    2.8     1.2    6.4    0.8     5.5    1.7
Trade, Restaurants
& Hotels              25.1     8.0  24.8      -     24.0   10.8   28.5    12.4    29.1  10.6    27.2     7.8   26.9     3.5   17.4     2.9   18.9    4.7    17.6    3.5
Transport,
Storage, Communica-
tion                   8.9     1.2  10.6      -      9.4    2.3    7.1     1.3     6.3   0.7     9.0     0.6    7.6     1.0   10.9     0.9   10.0     2.2   4.3     0.5
Financing, Insurance,
Real Estate &
Business Services      1.5     0.0   2.8      -      1.1    0.0    1.3     0.0     0.9   0.1      1.1    0.0    1.3     0.0    0.5     0.0    1.4     0.0   0.5     0.0
Conmmunity, Social &
Personal Service      32.0     6.2  35.6      -     35.3    7.2   30.6     7.1    37.4   5.9     34.1    6.0   27.0     5.4   23.9     4.1   26.0     7.0  35.5      4.3
Others                 4.6     4.0   5.7      -      6.1    6.5    2.7     2.3     2.3   2.0      2.5    3.6     4.9    4.7    6.6     6.4    4.1     3.2   9.0      3.0
Total          100.0  1(l0.0 100.0     -     100.0  100.0 100.0    100.0  100.0 100.0    100.0   100.0  100.0   100.0  100.0   100.0  100.0   100.0 100.0   100.0
Source: Central Bureau of Statistics, 1971 Census of Population



Table A.17:
ILLITERACY AND UNIVERSITY ATTENDANCE RATES IN URBMN AND RURAL AREAS BY REGIONS OF
POPULATION OF 10 YEARS OF AGE AND OVER, 1971
University Attendance
Illiteracy Rate (X)           (per 1,000)
Region                Total  Urban   Rural     Total   Urbani  Rural
Indonesia                  40      21      45       1.4      6.9     0.2
D.C.I. Jakarta              21     21      -       12.3     12.3      -
West Java                   39     16      42       0.8      5.0     0.2
Central Java                44     24      47       1.0      6.8     0.2
D.I. Jogjakarta             46     22      51       2.4     12.6     0.3
East Java                   48     26      51       1.1      5.8     0.2
Sumatera                    29      15     32       0.8      3.4     0.1
Kalimantan                  45     24      50       0.2     0O.8     0.0
Sulawesi                    40     24      44       1.4      6.1     0.4
Other Islands               47      21     50       1.3      9.1     0.4
Source:  Central Bureau of Statistic.;, 1971 Population Census



Table A.18:  CROSS DOMESTIC REGIONAL PRODUCTION AT CONSTANT 1969 PRICES FOR PROVINCES IN INDONESIA, 1969-71
(Rp Million)
AGRICULTURE               MINING & QUARRYING            MANUFACTURING                 CONSTRUCTION                  THE REST
GroBS               7.      Gross                %      Gross                 %      Gross                %      Gross                7/
Value      %      Growth    Value      %      Growth    Value       %      Growth    Value      °2     Growth    Value      7.     Growth
Added    Share     Rate     Added    Share     Rate     Added     Share     Rate     Added    Share     Rate     Added    Share      Rate
1969-71
DKI Jakarta           19,673     8.5       12.7       -        -        -       18,483    8.0      1.4     11,235     4.8       7.5     182,891    78.7     10.4
West Java             190,239    51.2      12.1      193      0.1     19.8      37,238   10.0      6.4     10,039      2.7      2.1     133,637    36.0      7.5
Central Java          191,966   50.7        2.8    1,970      0.5     34.0      48,480   12.8      3.6      7,197      1.9      7.8     128,827    34:1      5.2
DI JogJakarta 1/       17,237    36.1        -     2,401      5.0       -       10,735   22.5       -         909      1.9       -       16,492    34.5       -
East Java            267,227    50.2        6.5      895      0.2     12.2      52,906    9.9      7.4      2,476     0.5       1.3     209,140    39.2      3.0
Aceh 2/               24,540     55.5       5.8       -        -        -        5,965   13.5     -4.0         222     0.5      4.1      13,524    30.5      6.3
West Swmatera          28,137   44.2        3.5      208      0.3     11.0       4,051    6.4      7.3         140     0.2     20.0      31,186    48.9      15.8
Riau                  21,198     10.7       2.1  122,262     61.6     11.2         943    0.5      7.9       1,327    0.7       3.0      52,823    26.5      '.1
Lampung 1/            37,675    59.6         -        -        -        -        1,156    1.8       -        1,043     1.7       -       23,302    36.9       -
West Kalimantan        26,491    52.0       7.1       -        -        -        5,402   10.6      8.4       1.356     2.7     -7.3      17,717    34.7      6.0
South Kalimantan       20,176    48.8      17.0    1,460      3.5     10.7       1,818    4.4     20.0         625     1.5      2.4      17,235    41.8     13.8
North Sulawesi         19,263   41.6        8.8      101      0.2     11.9       3,346    7.2      7.0       1,510     3.3     19.1      22,037    47.7      8.3
Central Sulawesi        6,610    63.5       4.6       -        -        -          113    1.1      15.8        246     2.4     50.0       3,426    33.0       6.3
Southeast Sulawesi 2/  6,315    62.8        4.0    1,975     19.6     75.8          39    0.4     43.8         226     2.2      3.2       1,505    15.0      &.5
West Nusa Tenggara     21,732    66.8       3.5       -        -        -          277    0.9       7.8        207     0.6      2.4      10,332    31.7       5.1
East Nusa Tenggara     18,300    69.7       0.6       -        -        -          528    2.0      15.5        157     0.6     19.0       7,271    27.7       7.0
Maluku 1/              17,643    75.8        -        -        -        -          489    2.1        -          48     0.2       -        5,084    21.9        -
Irian Jaya               694    59.0        1.4       27      2.3      4.6          13    1.1     -4.1          45     3.8     -9.9         397    33.8      14.8
1/ 1969 data only.
2/ The average of 1969 and 1970 data.
Source! Biro Pusat Statistik Jakarta.



.ahle A.19: SOME BASIC REGIONAL ECONOMIC DA1A
Apparent rice
Production, 1971                           consumption 1971        Regional Product 1969-71     Daily Wage Rates 1971/72
Rice    Maize     Rubber    Coffee     Timber  3   Aggregate    Per Capita    Aggregate     Per Capita   Unskilled   Semi-    Skilled
( thousand metric tons ......) (thous. m )        ('000 tons)     kg         (Million Rp)                          skilled
(.                  rupiah ..............
1KI Jakarta Raya            13.1         8      -          -         -         )2,844         )109         232 32        53093          200       350       400
West Java                2,607.3     99.2      21.0      9.9         -         )              )            371.46        17526          155       201       239
Central Java             2,138.6    632.0       -        7.0         -         )2,244           92         378440        17593           95       109       130
DI Jogjakarta              138.6     41.9       -          .0        -         )              )             47774        19611           85       142       128
East Java                2,029.6  1,122.6       -        8.0                    1,895           74         532644        21200          118      215        273
Java/Madura
DI Aceh                    425.1       1.7      8.5     11.1         -            430          214         44251         22485          168       298       368
North Sumatera             989.8     43.5      52.8      8.4         -          1,075          162         n a.           n.a.          243     n.a.       n.a.
West Sumatera              422.7       6.3     23.7      9.1         -            431          154         63722         23248          182       273       387
Riau                       183.4      5.2      69.0       .4      1,032.3         236          143         198553       124641          306       458       567
Jambi                      166.4       1.8     86.2     13.5         -             179         178         n.a.           n.a.          285       364       428
South Sumatera             383.5       6.1    125.3     46.9         -            513          149         ii.a.          n.a.          235       354       405
Bengkulu                   113.0       3.6      7.^     13.7           _          376         )114         n.a.           n.a.          250       331       381
Lampung                    250.3    111.4       6.5     30.0         -         )              )             63175        24249          187       287       337
Sumatera
West Kalimantan            212.8      4.3     110.0        .7        -            266          132          50966        25858          320       400       500
Central Kalimantan          87.2      3.2      17.0        .3     1,110.0          89          127         n.a.           n.a.          366       450       500
South Kalimantan           243.6      2.4      39.0        .0        -            253          149          41314        24650          200       275       333
East Kalimantan             67.9       1.4       .2       .6         -            100          136         n.a.           n.a.          375       600       725
Kalimantan
North Sulawesi              96.3     62.9       -        1.3         -            150           8,          46257        27682          249       332       379
Central Sulawesi            78.3     29.1       -          .0        -             93          102          10395        11693          138       238       289
South Sulawesi             841.5    153.4        .1      6.0         -            775          149         n.a.           n.a.          148       284       348
Southeast Sulawesi          48.9     39.5       -          .2        -             52           73          10060        14433           100      150       300
Sulawesi
Bali                       318.3     60.8       -        7.4         -            324          153         n.a.           n.a.          124       195       203
West Nusa Tenggara          78.3     32.4       -        1.3         -             76           35          32548        15076           113      256       308
East Nusa Tenggara          78.7    145.5       -        1.7          6.5         107           47          26256        11623           101      218       283
Bali/Nusa Tenggara
Maluku                      11.5      19.7      -          .1        -              38          35          23264        22731           n.a.    n.a.      n.a.
Irian Barat                   .6      1.4       -         .1         -             41           44           1176         1299          n.a.     n.a.      n.a,
Maluku/Irian Barat
Indonesia                                                                                               2,920,100      24,497
Source: BAPPENAS and Biro Pusat Statistik



1/
Table A.20: CENTRAL GOVERNMENT TAX RECEIPTS BY REGIONS      1969-72
(Amount in Million rupiahs)
Per Capita
1969/70                 1970/71            1971/72           1972/73          Receipts
Amount    Index         Amount    Index     Amount  Index    Amount    Index     1971/72
Northern Sumatera.2/             6,603      100          7,035      107      8,803    133    11,554      175       673
Southern Sumatera.3.             4,228      100          4,573      108      5,311    126     6,599      156       686
Jakarta DKI                     30,370       100        38,678      127     53,996    177    74,505      245    11,800
West Java                        2,682       100         3,153      118      4,540    169     6,126      228       210
Central Java                     4,287       100         5,555      130      7,067    165     8,710      203       323
North Eastern Java               5,134       100         8,132       158     9,555    186    14,244      277)
South Eastern Java4/             2,647       100         2,517       95      3,348    126     4,564      172)      372
Kalimantan                       2,223       100         2,670       120     3,357    151     4,326      195       652
Sulawesi!Maluku/Irian Jay3       1,236      100          1,557      126      2,437    197      3,460     280       231
Others                             -          -            -          -        290     -          55      -
Total                      59,410      100         73,870      124     98,704    166   134,143      226       828
1/ Excludes tax on oil companies
2/ Includes provinces of North Sumatra, Aceh, Riau, and West Sumatera
3/ Includes provinces of Jambi, South Sumatera,Lampung
4/ Includes Bali and Nusa Tenggara
Source: Ministry of Finance, GOI



Table A.21:   THE PERCENTAGE OF URBAN POPULATION OF PROVINCES GROUPED BY
THE PER CAPITA GDP IN 1969
per capita GDP
in 1969                        Province             Percentage of Urban Population
Rp 25,000               D.K.I. Jakarta                               100.0
and over               South Sumatera                                29.1
North Sulawesi                               19.5
Riau                                         13.3
West Kalimantan                              12.8
From Rp 20,000           South Kalimantan                             26.7
to Rp 25,000           West Sumatera                                 17.2
East Java                                    14.5
Maluku                                       13.3
D.I; Aceh                                     9.9
From Rp 15,000          D.I. Jogjakarta                               16.4
to Rp 20,000           West Java                                     12.4
Central Java                                 10.8
Less than                West Nusa Tenggara                            8.1
Rp 15,000               Central Sulawesi                              8.0
Southeast Sulawesi                            7.3
East Nusa Tenggara                            5.6
Source: Text Tables 6 and 1



Table A.22: INDONESIA ENROLLM4ENT RATES 1971
Primary (Gr. 1-6)                         Lower Secondary (Gr. 7-9)                     Upper Secondary (Cr. 10-12)
Population       Gross a/        Net b/      Population       Gross a/        Net b/      Population       Gross a/        Net b/
(7-12)        Enrollment    Enrollment       (13-15)       Enrollment    Enrollment       (16-18)       Enrollment     Enro:lment
Province                 (thousands)      Rate (%)       Rate (7)      (thousands)     Rate (%)       Rate (%)      (thousands)      Rate (7.)     Rate (7)
(1)            (2)           (3)             (4)            (5)            (6)             (7)           (8)            (9)
01 Jakarta                          681          83             69               314           36            23              295            21             13
02 West Java                      3,581          75             62             1,417           15             10           1,131            10              7
03 Central Java                   3,615           75            62             1,497           23             14           1,227            13              9
04 Jogjakarta                       401          89             73               182           41             25              150           37             24
05 East Java                      3,952          82             62             1,'98           19             12           1,353            10              6
Sub-Total:   Java            (12,231)         (78)          (63)           (5,007)         (21)          (13)          (4,156)          (13)            (8)
06 Aceh                             299          86             78               120           28             17              113           13              7
07 North Suratera                 1,342          85             71               501           29             19             404            19             13
08 West Sumatera                    415          99             83               216           30             19              164           19             13
09 Riau                             251           88            82               121           45             25              104           10              7
10 Jambi                            155          92             84                72           24             14              59            14              8
11 South Sumatera                   533          91-            74               250   )       22             12             213     )      10              8
12 Bengkulu                          87          95             80                39   )                                      30     )
13 Lampung                          469          73             84               180           19             11             145            10              6
Sub-Total: Sumatera           (3,569)         (87)          (76)           (1,498)         (28)           (17)         (1,232)          (15)           (10)
14 West Kalimantan                  330          66             52               143           14              7              114            6              3
15 Central Kalimantan               121          77             61                50           21             12              40             8              4
16 South Kalimantan                 295          81             69               114           22             12              95            14             10
17 East Kalimantan                  113           78            61                48           22             12              48             9              5
Sub-Total:   Kalimantan         (858)         (74)          (60)             (355)         (19)           (10)            (297)           (9)           (6)
18 North Sulawesi                   331           94            73               128           31             21              105           26             18
19 Central Sulawesi                 175           88            67                62           31             17               53            15             9
20  South Sulawesi                  810           89            72               330           22             15              276            14             9
21 Southeast Sulawesi               128           85            68                45           27             12               38            13             9
Sub-Total:   Sulawesi         (1,444)         (89)          (71)             (565)         (26)           (16)            (473:          (17'          (11)
22 Maluku                           186           98            75                80           28             16               57            16             10
23 Bali                             344           73            62               116           26             16              110            12             8
24 West Nusatengara                 359           66            54               126           14              9               97             9              6
25 East Nusatengara                 381           91            68               155           19              9              114             8              5
26 Irian Jaya                       128           85            66                66           13              5               69             4              4
Sub-Total:   Other Islands    (1,398)         (80)          (64)             (544)         (20)           (11)            (447)          (10)            (6)
INDONESIA:   TOTAL            19,500           80            68             7,969           22             14            6,605            13              9
a/ Gross enrollment rate = enrollment by level as a percent of population in the age group.
b/ Net enrollment rate    = percent of eligible students enrolled in the appropriate level.
This ratio excludes overaged students.



Table A.23: NUMBER OF HEALTH PERSONNEL, HOSPITALS, CLINICS, ETC.
BY PROVINCE PER 1,000 PERSONS
Banyak nya         B.K.I.A.
Dokter         Bidan      Perawat    Rumah       Tempat    Mothers and       Poliklinik
No.                                                                         Sakit      tidur     children well-    Policlinics
Urut     Propinsi/Province            Physicians     Midwives    Nurses     Hospital     Beds      fare board
1.    D.I. Aceh                         0,13          0,58        1,11       0,16       9,68         0,40             0,92
2.    Sumatera Utara                    0,65          0,83        2,40       0,18      17,30         0,55             1,04
3.    Sumatera Barat                    0,51          1,54        1,28       0,09       5,00         0,80             0,55
4.    Riau                               0,25         0,61        1,10       0,15       3,44         0,45             0,62
5.    Jambi                              0,31         0,61        1,64       0,08       5,10         0,46              0,68
6.    Sumatera Selatan                  0,48          0,69        2,45       0,09       9,01         0,46             0,59
7.    Bengkulu                          0,51          0,71        2,24       0,10       4,72         0,84             1,16
8.    Lampung                           0,18          0,54        1,16       0,08       2,73         0,51             0,28
9.    D.K.I. Jakarta Raya                3,54         0,94        3,28       0,27      14,34         0,3-1             1,26
10.    Jawa Barat                         0,25         0,22        0,89       0,06       4,93         0,30              0,62
11.    Jawa Tengah                        0,21         0,47        0,81       0,04       5,06         0,41              0,70
12.    D.I. Jogjakarta                    0,89         0,52        1,05       0,15      11,99         0,80              0,59
13.    Jawa Timur                         0,39         0,45        0,67       0,05       4,96         0,46              0,36
14.    Bali                               0,19         1,12        0,94       0,11       9,18         1,07              0,96
15.    Nisa Tenggara Barat                0,09         0,23        0,54       0,05       4,15         0,43              0,35
16.    Nusa Tanggara Timur                0,11         0,27        1,11       0,12        6,41        0,57              0,50
17.    Kalimantan Barat                   0,19         0,39        0,91       0,13        6,79        0,46              0,60
18.    Kalimantan Tengah                  0,16         0,68        3,28       0,16        4,64        0,42              1,75
19.    Kalimantan Selatan                 0,20         0,63        1,55       0,10        4,91        0,87              1,27
20.    "alimantan Timur                   0,62         1,07        2,16       0,22       16,27        0,76              1,37
21.    Sulawesi Utara                     0,54         0,59        2,34       0,26       23,55        1,15              0,89
22.    Sulawesi Tengah                    0,22         0,31        2,03       0,12        6,41        0,77              1,05
23.    Sulawesi Selatan                   0,20         0,38        2,12       0,25        5,67        0,65              0,31
24.    Sulawesi Tenggara                  0,16         0,19        1,14       0,21        6,68        0,34              1,14
25.    Maluku                             0,36         0,68        2,22       0,26       13,33        0,61              0,34
26.    Irian Jaya                         ....          ....       ....       0,38       24,12        1,45              1,76
Indonesia                          0,46         0,53        1,27       0,10        7,41        0,51              0,69
*) Catatan:   Berdasarkan perkiraan penduduk akhir tahun         *) Note:   Based on the estimated end year population.
Sumber:   Departemen Kesehatan dan B.P.S.                        Source: Department of health and C.B.S.



Table A.24: PERCENT DISTRIBUTION OF PER CAPITA CONSUMPTION 1969
(In Per Cent)
Income 1/                               Other      Total     Clothing
A r e a                 Group          Cereals      Cassava     Food       Food      Footwear     Housing      All Other
Java Rural            Poorest            33.6         17.3       31.1      82.0        3.7          9.3           5.0
Poor                41.3         5.8        33.3     80.4        4.8           8.5          6.3
Intermediate       32.1          3.3       42.0      77.4        5.3           8.0          9.3
Rich                20.4         2.3        48.2     70.9        5.8           7.1         16.2
Java Urban            Poorest            40.4         13.6       26.1      80.1        6.8           6.7          6.4
Poor                40.3         1.8        34.6     76.7        5.8           9.9          7.6
Intermediate       28.9          1.3       42.5      72.7        7.0           9.6         10.7
Rich                13.1         0.6        50.1     63.8        7.2           9.2         19.8
Outer Island Rural    Poorest            36.7         10.7       34.0      81.4        4.6           8.9          5.1
Poor                38.1         4.3        40.4     82.8        4.9           6.4          5.9
Intermediate       31.0          2.9       45.9      79.8        5.8           6.6          7.8
Rich                20.2         2.0        53.5     75.7        5.6           5.0         12.8
Outer Island Urban    Poorest              -           8.9       50.7      59.5        7.4          22.0         11.1
Poor                39.6         1.8        38.0     79.4        4.6           9.5          6.5
Intermediate        28.0         2.0        47.6     77.6        6.1           9.1          7.2
Rich                16.6         1.0        55.4     73.0        5.8           9.8          11.4
Indonesia             Poorest            34.6         15.7       31.3      81.6        4.1           9.1          5.2
Poor                40.5         5.1        35.0     80.6         4.9          8.2           6.3
Intermediate        31.0         2.8        43.6     77.4        5.8           7.9          8.9
Rich                18.1         1.6        51.4     71.1         6.1          7.5          15.3
1/  Poorest       = expenditure of less than 300 Rps. per month
Poor          = expenditure of 751 - 1,000 Rps. per month
Intermediate = expenditure of 1,501 - 2,000 Rps. per month
"Rich"       = expenditure of over 3,001 Rps. per month
Exchange rate in 1969: 378



Table A.25:   INTERINSULAR PASSENGER FIOWS IN 10 MAJOR PORTS
('000 passengers)
1966                         1967                     1968                       1969                    1970
Net                       Net                       Net                       Net                       Net
Inflow+                   Inflow+                   Inflow+                   Inflow+                   Inflow+
In-     Out-    Net       In-     Out-   Net        In-     Out-   Net        In-     Out-   Net        In-     Out-   Net
coming  going   Outflow-  coming  going  Outflow-   coming  going  Outflow-   coming  going  Ourflow-   coming  going  OuLflow-
Bitung (N. Sulawesi)               24      18      +6       22      16       +6       25      14      +11       22      10      +12       na      na       na
Makassar (S. Sulawesi)             na      na      na       34       30      +4       32      31       + 1      37      33       + L.     29      36       -7
-aitj A raasin  (S. Kalimantan)    17      16      +1        7        7       -        4       4         -       6       6         -       6       6        -
Belawan (N. Sumatera)              na      na      na       34      35       -1       19      24       - 5      26      36       -10      na      na       na
Padang (W. Sumatera)               46      48      -2       27       31      -4       31      33       - 2      33      37       - 4      39      39-
Palembang (S. Sumatera)             3       2      +1        1        1       -        I        I        -       -       -        -        -        -       -
a/
Pajang   (Larapung)               512     519      -7      357      332     +25      420     373       +4/     368      318      +50     430      380     +50
a/
Merak (W. Java)                   519     512      +7      332      357     -25      373      420      -47     318      368      -50     380      430     -50
Tanjang. Priok (W. Java)           na      na      na       96       81     +15       72       64      + 8      92       78      +14      84       62     +22
Semarang (C. Java)                 na      na      na       na       na      na       na       na       na      na       na       na        -       3     - 3
Surabaja (E. Java)                 na      na      na       na       na      na        20      12      + 8      10       13      - 3      25       22     + 3
a/ Sumatera-Java Ferry Service only.    Covers about 95% of all passenger traffic through these ports.
Source:   - NEDECO, Port and Dredging Projects in Indonesia, 1971, and additional information from NEDECO.
- KAMPSAX,Sumarera Java Transportation System, 1971.
- KAMPSAX, Indonesia 1968-1970 Highway Services, 1969.
- ENEX, Feasibility Study, The Ferry Link: Telukbetung-Bakauhuni - Mirak



Table A.26: MIGRATION OF JAVANESE LABOR TO AND FROM
ESTATES IN NORTH SUMATERAS SINCE 1961
(number of families) 1/
Government      Private                 Government    Private
Year            Estates      Estates      Total        Estates      Estates       Total
1961            1,454           -         1,454          n.a.         n.a.         n.a.
1962            3,437           -         3,437          n.a.         n.a.         n.a.
1963            5,948           -         5,948          n.a.         n.a.         n.a.
1964            6,237           -         6,237          n.a.         n.a.         n.a.
1965            2,802           -         2,802          n.a.         n.a.         n.a.
1966            4,177            375      4,552          n.a.         n.a.         n.a.
1967            1,468            307      1,775          n.a.         n.a.         600 2/
1968              375             33        408          n.a.         n.a.         450 3/
1969              513           378         891           850         149          999
1970              970           217       1,187        1,115          157        1,272
1971              114           -           114           872         294        1,166
1961-1971      27,495         1,310      28,805          n.a.         n.a.         n.a.
1/  There are two workers per family, at the moment of recruitment.
Returning families may, on average, have less than two workers.
2/  All originating from Central Java (Jogjakarta, Solo, Purwokerto,
Wonogiri, Purworedgo, Banjumas, i.e., the lowest income regions
of Java).
3/  Mission estimates on the basis of other data.
Source: BCU-PNP MEDAN.



Table A.27:   THE EDUCATIONAL ATTAINMENT OF MIGRANTS TO JAKARTA
FROMt 1961 TO 1971 BY PROVINCE OF ORIGIN
(percentage)
No       Grammar    Junior     Senior    Academy/
Province               School-    School      High      High    University
ing                 School     School
1. Aceh                     13.63       41.33      18.78     20.93       5.32
2. North Sumatera             7.53      33.15      22.57     29.64       6.18
3. West  Sumatera           12.25       42.68      19.12     31.77       4.19
4. Riau                     21.61       44.01      13.21     15.49       5.69
5. Jaambi                    11.88      47.53      18.69     17.18       4.68
6. Bengkulu                  15.27      43.61      18.00     18.34       4.78
7. South Sumatera           12.09       50.50      15.96     23.66       7.80
8. Lampung                   34.54      50.82       7.26      5.67       1.71
9. D.K.I. Jakarta              -          -          -         -          -
10. West Java                 32.77      49.95      13.45     10.09       2.75
11. Central Java              13.29      41.60      18.67     18.12       8.32
12. Jogjakarta                15.78      43.31      17.85     17.06       6.00
13. East Java                 10.93      36.88      19.13     27.61       4.43
14. West Kalimantan           10.25      44.04      16.48     22.19        7.04
15. Central Kalimantan        12.13      40.72      16.85     24.24        8.07
16. South Kalimantan          14.78      44.07      20.97     14.89        5.30
17. East Kalimantan            4.89      36.33      27.65     24.49        6.64
18. North Sulawesi            24.90      42.53      11.75     17.21        5.59
19. Central Sulawesi          15.76      43.38      18.34     16.56        5.96
20. South Sulawesi             4.99      47.03      21.99     20.62        5.38
21. Southeast Sulawesi         8.18      42.85      20.22     21.53        7.21
22. Bali                      12.91      35.60      15.74     24.83      10.92
23. West Nusa Tenggara         8.97      46.54      18.06     17.87        8.55
24. East Nusa Tenggara        16.58      53.79      16.25     10.57       2.81
25. Maluku                    12.82      42.34      20.16     16.90        7.77
26. Irian Jaya               100.00        -          -         -          -
Total                     25,00      47.95      12.50     11.07        3.48
Note:     Figures of Grammar School includes Grammar School dropouts.
Source:   Suharso, "Cityward Migration and Educational Attainment in Jakarta-
Indonesia", UNIESCO/PDEP/7-1, September 1973.



1/
Table A.28: JAVA FREIGHT CHARGES FOR SELECTED COASTAL SHIPPING ROUTES
Distance            Rupiahs per Ton/Kilometer
Route                              (Km)       Lowest 2/      Base Rate 3/     Highest 4/
Semarang-Cirebon                   204         4.4              5.5            24.8
Tanjung  Priok- Cirebon            278         3.8              4.7            21.2
Surabaya-Semarang                  350         3.4              4.2            18.9
Tanjung  Priok-Semarang            437          3.0             3.8            16.9
Surabaya- Cirebon                  514         2.8              3.5            15.6
Tanjung Priok-Surabaya             725          2.3             2.9            13.1
1/ These rates were still in effect in August 1972.
2/  Includes rice, bulgur, sugar, kapok, cement, fertilizer, tea; "essential commods"
coefficient of 0.8 to base rate.
3/ Includes fish, paper, peanuts, salt.
4/ Includes cosmetic items, imported carpets, photographic equipment, luxury items;
coefficient of 4.5 to base rate.
Source: Tariff Rates, BOPERPAN, November 1969



Table A.29: PROPORTION OF TOTAL FREIGHT TRAFFIC ON DIFFERENT
MODES OF TRANSPORT, JAPAN, 1963
(Percentage)
Distance               Rail                Truck               Coastal Water
(kilometres)
I - 50                 2.1                 97.1                    0.8
51 - 100               18.2                 73.9                    7.9
101 - 200               39.7                 43.4                   16.9
201 - 400               49.5                 16.6                   33.8
401 - 600               45.6                 12.2                   42.2
601 or over             37.0                  3.1                   59.9
Source:  Japan, Ministry of Transport, Transport White Paper
(Tokyo, 1965), p.7.
Reproduced from Kobe, Susumu, Transport Modes and Technologies for Development,
United Nations, New York, 1970, p. 25.



Table A.30: TOTAL HIGHWAY TONS, 1969
('000 tons)
Total Tons,            Total Tons,
Total Tons,                  Inter-Provincial       Inter-Provincial
Province        Intra-Provincial             (Originating)           (Destination)
West Java           6,894.7                       404.6                  556.2
Central Java         2,732.3                      753.5                  971.0
East Java           5,403.2                       914.0                  591.5
South Sumatera         152.2                       32.9                   51.5
Lampung                410.1                        -                        .7
Bengkulu                34.6                       50.4                   29.6
Jambi                   14.6                       15.3                   16.1
Riau                    65.6                       38.3                   99.6
Aceh                    97.5                       61.7                   75.9
West Sumatera          279.6                      125.9                   76.7
North Sumatera         831.5                      137.2                  112.8
Bali                   296.6                       95.2                   48.3
West Kalimantan         80.7                        -                       -
East Kalimantan          2.6                        -                       -
South Kalimantan      171.2                         -                        .7
South Sulawesi        830.1                         -                       -
North Sulawesi         67.5                         -                       -
TOTAL           18,364.6                     2,629.0                2,630.6
From TCAS estimates based on 1969 Origin and Destination Survey.



Table A.31: PERCENT OF HIGHWAY TRAFFIC, INTRA- AND
INTER-PROVINCIAL BY PROVINCE,
1969
Intra-                      Inter
Province             Provincial                  Provincial             Total
(Percent)
West Java                94.5                       5.5                  100
Central Java             78.4                      21.6                  100
East Java                85.5                      14.5                  100
South Sumatera          82.2                       17.8                  100
Lampung                 100.0                       -                    100
Bengkulu                40.7                       59.3                  100
Jambi                    48.8                      51.2                  100
Riau                     63.2                      36.8                  100
Aceh                     61.2                      38.8                  100
West Sumatera            69.0                      31.0                  100
North Sumatera           85.8                      14.2                  100
Bali                     75.7                      24.2                  100
West Kalimantan         100.0                       -                     100
East Kalimantan         100.0                       -                     100
South Kalimantan       100.0                        -                    100
South Sulawesi         100.0                        -                    100
North Sulawesi          100.0                       -                     100
TOTAL              87.5                       12.5                  100
From TCAS estimates based on 1969 Origin and Destination Survey.



Table A.32: DISTRIBUTION LO PROVINCES OF DEVELOPMENT PROJECTS DIRECTLY FINANCED BY THE CENTRAL GOVERNMENT
Rp million                                Per-Capita
Actuals              Budget    Annual Average     Annual Average
1969/70   1970/71    1971/72   1972/73   1969/70-1971/72    1969/70-1971/72
1. D.I. Aceh                1,770     1,666      2,372     2,208         1,936              964
2. North Sumatera           2,322     2,987     3,120      4,314         2,810              424
3. West  Sumatera             976     1,573     2,027      6,534         1,525              546
4. Jambi                      537       644        815     1,254           665              661
5. Riau                       767       791      1,059     1,622           872              531
6. South Sumatera           2,567     2,456      2,794     4,982         2,606              757
7. Bengkulu                   430       282       506        944           406              782
8. Lampung                  1,491     1,467     1,386      2,536         1,448              521
9. D.K.I. Jaya 1/           3,968     3,826     5,773      6,337         4,522              988
10. West Java               12,599    10,752    10,841     21,151        11,397              527
11. Central Java             6,687     5,645     6,247     11,570         6,193              283
12. D.I. Jogjakarta          1,596       947     2,600      2,763         1,714              688
13. East Java                6,925     6,761    11,633     14,173         8,440              331
14. Bali                       901       876     1,684      2,915         1,154              544
15. West Kalimantan            410       774        702     1,517           629              311
16. East Kalimantan            617       557        717     1,903           630              858
17. Central Kalimantan         111       173        405       691           230              329
18. South Kalimantan         2,287     2,589     2,739      2,830         2,538            1,494
19. North Sulawesi           1,230     1,521     1,242      2,209         1,331              775
20. Central Sulawesi           432       427        692      n.a.           517              566
21. Southeast Sulawesi         201       272        423       667           299              419
22. South Sulawesi           2,127     2,637      3,789     4,746         2,851              549
23. West Nusa Tenggara         382       560        249       681           457              208
24. East Nusa Teuggara         491       866        894     1,165            750             327
25. Maluku                     481       677        757       905           638              586
26. Irian Jaya                n.a.      n.a.      n.a.       n.a.          n.a.             n.a.
Total 2/             52,305    51,726    65,646    100,657        56,558              478
1/ Budget, excluding National Government related development expenditure
2/ Excluding West Irian
Source:  Department of Home Affairs



Table A.33: INTERCITY ROAD TRAFFIC, JAVA, 1971
Road Section and                   Vehicles per day                 Length of Road
Region                    Total    Cars    Buses    Trucks        Section (kms.)
Jakarta-Merak                 1,000     700      100       200           120
Jakarta-Labuan                  500     400       -        100           150
Jakarta-Bogor                 9,000   7,200      600     1,200            50
Bogor-Sukabumi                2,000   1,400      200       400            70
Bogor-Bandung                 2,500   1,900      200       400           130
Sukabumi-Bandung              1,000     700      100       200           90
Jakarta-Cikampek              3,000   1,400      300     1,300           100
Cikampek-Bandung              1,500     900      200       400            70
Cikampek-Sindang              1,000     200      200       600           100
Bandung-Pamanukan             1,000     600      100       300           100
Bandung-Cirebon               1,500     900      200       400           130
Bandung-Ciamis                1,000     600      100       300           120
WEST JAVA
Cirebon-Semarang              1,500     700      200       600           490
Ciamis-Semarang                 500     300      100       100           330
Semarang-Jogjakarta           1,500     900      200       400           120
Semarang-Rembang                500     300      100       100           110
Semarang-Surakarta            1,500     800      200       500           100
Jogjakarta-Surakarta          2,000   1,000      400       600            60
CENTRAL JAVA
Surakarta-Surabaya            1,000     500      100       400           280
Surabaya-Malang               3,300   1,500      500     1,300            90
Surabaya-Probolinggo          2,500   1,300      200     1,000           100
Prcbolinggo-Jember            1,000     500      100       400            90
Jember-Banyuwangi               500     300       -        200           120
Probolinggo-Banyuwangi          500     300       -        200           190
EAST JAVA
Source: IJnpublished IBRD mission estimates.



Table A.34: COEFFICIENTS USED TO CONVERT TRAFFIC TO TRANSPORT
UNITS ON THE ASIAN HIGHWAY*
Transport Units
Cars and motorcycles                                                  1
Light commercial motor vehicles                                       1
(axle load up to 5 tons)
Medium and heavy commercial motor vehicles                           3
(axle load of 5 tons or more)
Buses and coaches                                                    3
Horse-drawn vehicles                                                  6
Bullock carts                                                         8
Bicycles                                                           0.5
*United Nations Economic Commission for Asia and the Far East, Asian Highway
Transport Technical Bureau, Highway Classification and Design Standards for the
Asian Highway (1968), pg. 3.
Reproduced in Susumu Kobe, Transport Modes and Technologies for Development,
United Nations, New York, 1970, pg. 33.



Table A.35: AGRICULTURAL SECTOR MISSION EXPECTATIONS
1980/1971
Annual % of
1970         1971        1975         1980          Increase
(Reported)
Population:
Total (millions)                                   119.2        130.0       145.0
Annual % increase                     2.08                                    2.4
GDP - Annual 1% increase                             -----6%-------------
Range                                              ------------5 to 7%…----------
GDP per capita (% increase)                          -------------3.9-------------
Range                                              ----------2.9 to 4.9---------
Rice Production:
High (million tons milled)           12.0           12.7         15.5        18.1           4.0
Low (million tons milled)            12.0           12.7         14.5        16.6           3.0
Rice Area:
High (million hectares)               8.2            8.5                      9.7           1.5
Low (million hectares)               .8.2            8.5                      9.3             .9
Rice Yield:
High (quintals/hectare)              14.7           15.0                      18.6          2.4
,Low (quintals/hectare)               14.7           15.0                     17.8           1.9
Per Capita Rice Production:
(net: minus 6% for seed and
losses)
High (kgs. per capita)              102.1          102.1        110.1        120.0           1.8
Low (kgs. per capita)               102.1          102.1        105.7        110.1          0.8
Rice Imports:
High (thousand tons)                950            600         300-400        0              -
Low (thousand tons)                 950            600         300-400      300-400           -
Corn and Sorghum:
Area (1,000 ha)                   3,018          2,687        3,500       4,000              4.5
Production (1,000 tons)           2,888          2,138        4,000       5,000            10.6
Yield (quintals/ha)                   9.6            7.9         11.5         12.5          5.2
Exports (1,000 tons)                               250          500       1,000              _
Cassava:
Area (1,000 ha)                   1,434          1,518        1,500       1,500               .1
Production (1,000 tons)          10,451          9,839       11,000      11,500             1.7
Yield (quintals/ha)                  73.0           64.8         73.0         75.0           1.7
Exports (1,000 tons)                                            200 1/      400 1/
Sweet potatoes:
Area (1,000 ha)                     355.8          366.7        370.0        380.0          0.4
Production (1,000 tons)           3,030          2,579        3,145       3,500             3.4
Yield (quintals/ha)                  85.0           70.3         85.0        91.0           2.9
Peanuts:
Area (1,000 ha)                     402            413          450         500             2.1
Production (1,000 tons)             293            299          360         500             5.9
Yield (quintals/ha)                   7.3            7.2          8.0        10.0           3.7
Exports (1,000 tons)                                             50 1/       75 1/           -
1/ Product equivalent



A.35: Continued
1980/1971
Annual % of
1970        1971        1975         1980       Increase
7Reported)
Soybeans:
Area (1,000 ha)                    684           630         700       1,000            5.2
Production (1,000 tons)           488            422         560       1,000           10.6
Yield (quintals/ha)                  7.1           6.7         8.0        10.0          4.6
Exports (1,000 tons)                                          50 1/    200-400 1/        -
Rubber:
Area (1,000 ha)                  1,969         1,972       2,000       2,200            1.2
Production (1,000 tons)            778           810         850       1,000            2.4
Yield (quintals/ha)                  4.0           4.1         4.3         4.5          1.0
Exports (1,000 tons)                                         800         900              -
Sugar:
Area (1,000 ha)                    135           135         150         200             4.5
Production (1,000 tons)            715           833       1,100       1,500            6.7
Yield (quintals/ha)                 53.0          62.0        73.0        75.0          2.1
Exports
Imports (1,000 tons)              118            150          50
Coffee:
Area (1,000 ha)                    354            -          368         375            0.6
Production (1,000 tons)            182           192         232         272            3.9
Yield (quintals/ha)                  5.1                       6.3         7.2           3.5
Exports (1,000 tons)                97          (100)        120        150-160          -
Cloves:
Area (1,000 ha)                     83            -          100         128            5.2
Production (1,000 tons)             12.5          -           20.0        30.0           7.9
Yield (quintals/ha)                  1.5          _            2.0         2.3          4.3
Exports (1,000 tons)                 0            -            0          0-5
Imports (1,000 tons)                 8.8          -            3-5
Tobacco:
Area (1,000 ha)                    171            -          175         190            1.1
Production (1,000 tons)             71            77         100         120            4.5
Yield (quintals/ha)                  4.2          -            5.7         6.3          4.1
Exports (1,000 tons)                14.2          -           20          30             -
Imports (1,000 tons)                1.9           -            3.0         5.0           -
Pepper:                                    2/          2/
Area (1,000 ha)                      46.4      (1967)         50.0        55.0           1.8
Production (1,000 tons)              15.7         49.0        40.0       30-60           -
Yield (quintals/ha)                   3.4                      8.0      5.5-10.9         _
Exports (1,000 tons)                  2.3         37.2       25-30       25-50           -
Tea:
Area (1,000 ha)                   (120)            -         110         100             1.8
Production (1,000 tons)           ( 85)            -          90          95            1.1
Yield (quintals/ha)                   7.1          -           8.0         9.5           3.0
Exports (1,000 tons)                35             -          35          35             -
Coconuts:
Area (1,000 ha)                  1,684             -       1,750       2,000            1.7
Production'(1,000 tons)         1,280          1,300       1,500       1,800            3.3
Yield (quintals/ha)                 (7.5)                      8.6         9.0           -
Exports (1,000 tons)              168.6 1/                 200-250 1/ 300-350 1/         -
1/ Product equivalent.
2/ 1970 crop was abnormally low.
( ) Estimated.



A,35: Continued
1980/1971
Annual % of
1970         1971        1975         1980        Increase
Palm Oil and Kernels:
Area (1,000 ha)                     123           126          150         200             5.3
Production (1,000 tons) - oil       207           210          400         600            11.0
- kernels   43.3          45.0         80.0       120.0           9.8
Yield (quintals/ha)      - oil      (16.8)         16.7         27.0         30.0          6.8
- kernels ( 3.5)
Exports (1,000 tons)     - oil     (150)                       200         300              _
- kernels (35)                         45          S5              -
Cotton:
Area (1,000 ha)                       2             2         10-30       100-150           -
Production (1,000 tons lint)          -             -          3-9         40-60            -
Yield (quintals/ha)                   -             -            3.0         4.0            -
Imports (1,000 tons lint)           40             60         91-97        90-110           -



1/
Table A.36:  ESTIMATED AREA OF FOREST    BY GEOGRAPHICAL LOCATION AND ECOLOGICAL TYPE
(millions of hectares)
Mangrove
Tctal   Primary    Mixed      Secondary    Coastal &                               Total
Land     Rain     Decidous     Forest        Swamp        Teak      Non-Teak      Forested    Percent
REGION          Area    Forest 3/   Forest            4/    Forest 3/    Forest 5/ Plantations 6/  Area        Forested
Kalimantan       54      25.7        -            9.2         6.1          -           -              41         76
Sumatera         47       15.5        -           5.6         6.9          -           -              28         60
Sulawesi         19       6.8        -            3.2          -           -           -              10         53
Java & Madura    13       0.3        1.5           -          0.1         0.8         0.3              3         23
Maluku             8       4.9        -           1.0         0.1          -           -               6         75
Nusa Tenggara     7        1.4        -           0.6          -           -           -               2         29
Irian Jaya       42      25.5        -            -           4.5          -           -              30         71
TOTAL       190 2/   80.1        1.5         19.6        17.7         0.8         0.3            120         63
1/  "Forest" as defined in law #5 of 1967 is any "area covered with growing trees which as a whole forms a natural
biological living community with its surrounding".
2/  In the "Statistical Pocketbook of Indonesia", April 1971, the total land area according to the Directorate of
Topography is 201.9 million hectares, but according to the Directorate General of Forestry the figure is 190.4
million hectares.
3/ These categories will include areas which were once forests but are now open grassland, cultivated or in some
other way converted.
4/ These develop after the original forest has been destroyed by fire or shifting cultivation. Areas indicated are
very rough estimates based on data contained in "Forestry Resources in Indonesia" Department of Forestry, May 1966
and Dr. J. A. von Monroy's "Forestry and Forest Industries in the First and Second Five-year Plans of Indonesia",
October 1968.
5/ Comprises plantations and natural stands.
6/ Includes coniferous and hardwood plantations
Source: Several official documents and reports which due to purpose and time of publication do not agree in all
respects. Main sources are the "Forestry Masterplan Summary, D.G.F., Dec. 1971 and the documents noted
in footnote 4/.



Table A.37: MARINE FISHERJES PRODUCTION, BY PROVINCE, 1971
Fishing                                      Production:
Production         . Boats            Fishermen           Per Boat      Per Man
(1000 MT) (%)     (1000)    ()      (1000)     (M)            (MT)         (MT)
Aceh               27.5    3.4     11.3     3.9     22.6        2.5          2.44          1.22
North Sunmatera    90.4   11.2     10.7     3.7     48.5        5.4          8.48          1.86
Riau              178.8   22.1      7.4     2.6     19.6        2.2         24.25          9.11
West Sumatera      14.0    1.7      4.2     1.5     13.7        1.5          3.30          1.02
Jambi               8.5    1.1      2.4      .8      4.7         .5          3.52          1.80
South Sumatera     22.9    2.8      7.5     2.6     17.8        2.0          3.03          1.28
Bengkulu            1.4     .2      1.0      .3      2.5         .3          1.45           .57
Lampung            26.6    3.3      1.5      .5      5.9         .7         18.17          4.50
Jakarta             6.3     .8      1.5      .5      5.6         .6          4.22          1.14
West Java          53.6    6.6      8.4     2.9     45.6        5.1          6.35          1.18
Central Java       30.3    3.7     10.0     3.5     40.4        4.5          3.04           .75
East Java          45.2    5.6     22.8     7.9    129.8       14.5          1.98           .35
West Kalimantan    33.6    4.2      8.9     3.1     14.6        1.6          3.76          2.31
Central Kalimantan25.4     3.1      3.4     1.2      6.3         .7          7.44          4.05
East Kalimantan    17.0    2.1      4.3     1.5     13.3        1.5          3.94          1.28
South Kalimantan   17.1    2.1      2.5      .9      6.7         .8          6.82          2.56
North Sulawesi     16.5    2.0     30.2    10.5     45.5        5.1           .55           .36
Central Sulawesi    5.7     .7     15.1     5.3     18.8        2.1           .38           .30
South Sulawesi     97.7   12.1     39.2    13.6    171.9       19.2          2.49           .57
Southeast Sulawesi16.0     2.0     19.6     6.8     23.4        2.6           .82           .68
Bali                2.6     .3     10.8     3.7     16.1        1.8           .24           .16
Nusa Tenggara
Barat        12.5   1.5       5.5    1.9      19.8        2.2          2.25           .63
Nusa Tenggara
Timor        14.1   1.7      10.2    3.5      26.1        2.9          1.39           .54
Maluku             39.1    4.8     32.9    11.4     69.0        7.7          1.19           .57
Irian Jaya          7.2     .9     16.0     5.6    105.4       11.8           .44           .07
Indonesia         810.1 100.0     287.6   100.0    893.8      100.0          2.82           .91
Source:   Statistical Pocketbook of Indonesia, 1970-71, pp. 140-143.



Table A.38 PRODUCTION OF SEA AND INLAND FISHERY, 1971
Weight of Fresh Fish
Sea              Inland                        Per Capita
Fishery           Fishery         Total          Production
(MT)              (MT)            (MT)            (kg)
Java and Madura           135,544           128,187          263,731           3.4
Sumatera                  370,123            82,198         452,321          21.7
Kalimantan                 93,198           160,507          253,705         49.2
Sulawesi                  135,826            37,663          173,489         20.3
Bali and Nusatenggara      29,162             4,311           33,473          5.0
Maluku and Irian Jaya      46,329             3,830           50,069          24.9
Indonesia                 810,092           416,696        1,226,788         10.3
Source: Statistical Pocketbook of IndonesLa, 1970-71.






APPENDIX C - REVIEW OF MINERAL PRODUCTION
1.        TIN.  The State tin enterprise P.N. Timah, formed in 1968 and
currently Indonesia's sole tin producer, is pursuing a vigorous program
of rehabilitation and expansion. Production of tin concentrates increased
from 12,769 MT in 1966 to 21,765 in 1972. The company is reported to be
operating 36 dredgers and studying the possible acquisition of two additional
ones. Three private companies involving foreign investors are cooperating
with P.N. Timah in exploration: P.T. Koba, Billiton and Broken Hill. A
UNDP technical assistance program launched irh 1968 is involved in t.ze search
for offshore reserves, and has identified substantial additional reserves,
some in waters over 135 ft. in depth, near Bangka Island, Indonesia's azin
tin production center. The discovery means a new lease of life for Bangka,
whose reserves were rapidly becoming depleted. Under UNDP guidance P.N.
Timah has also introduced new ore-dressing methods that have improved cassi-
terite and trace minerals recovery, leading to an estimated $6 million annual
improvement in earnings. Tin mining operations are centered in Bangka Island,
and immediately offshore which continues as the largest source of tin (11
connected bucket line dredgers and 72 other mines), in operation in 1971,
producing about 60% of the world's total. Significant production is also
derived from Belitung and Singkep Islands and lesser amounts of tin were
mined on Kariman, Kundun and Bangkinang. P.N. Timah, whose predecessor
company began producing mettalic tin only in 1967, smelts about half the
national output of concentrates at Mentok, Bangka Island, having increased
output from 5,190 MT in 1970 to 12,009 MT in 1972. Mentok output is Grade A
tin, with a typical analysis reported as: Sn 99.935%, As 0.014%, Pb 0.033%,
Fe 0.007%, Cu 0.006%, Sb 0.005%, Bi 0.001%. In accordance with national
policy of maximizing the domestic processing of materials, the company plans
to increase its smelting capacity so that Indonesian mine output may be
exported entirely as tin metal. It is reported that three new furnaces are
to be added in the near future. Indonesia is one of seven producing members
of the International Tin Council (ITC). The ITC decision effective in
January to impose export controls limiting sales to the 1972 level was not
to Indonesia's liking, since the national development program calls for con-
tinuing the expansion of the tin industry. 1/
2.        NICKEL.  Reported ore output leveled off in 1972 after increasing
by about 50% in 1971.  Ore exports (to Japan) earned $11.6 million, as
compared with $10 million the year before. The state-owned enterprise P.T.
Aneka Tambang is now Indonesia's sole nickel producer, from its Pomalaa
mine near Kendari in South Sulawesi. With the prospective depletion of
exportable grade ores from this source (2.2% Ni), the Indonesians agreed
with the Japanese Government in February, 1973, on the utilization of Y10
billion (approximately $32.4 million) in Japanese assistance loans for a
smelter to process low-grade ore into ferro-nickel. This plant is now
under construction by Aneka Tambang, and is to be completed i.a early 1975.
1/ Tin output for 1973 is estimated at 22.700 Tons (see "The Indonesiarn
Economy", IBRD Report No. 286 Ind.



The projected capacity of the plant is 20,000 MT of ferro-nickel (4,000 tons
of nickel content) annually, committed under a long-term sales contract
to SUNIDECO, representing a group of Japanese smelters. Low-grade ore
reserves are estimated to be sufficient for about 100 years' exploitation
at the planned level of output. The major new spur to future growth of
Indonesian output is expected to come from foreign investment projects.
Two foreign companies are advancing with plans for production, one from
Gag Island just west of Irian Jaya, and another from near Malili in south-
central Sulawesi. A third continues exploration in the Northern Malukus.
Realization of already announced foreign investment projects, if the full
130 million lbs. (metal content) of annual production projected is achieved,
would increase Indonesia's present output of nickel more than sevenfold
after 1977.
3.        COPPER.  Indonesia became a copper exporter in December 1972 with
the initial shipment of concentrates from the Freeport Indonesia mine in
Irian Jaya. Annual exports should increase to about 225,000 tons with a
gross value of about $60-$80 million. 1/
4.        BAUXITE.  Indonesian bauxite production has grown steadily over
the last twenty years with production reaching 1.3 million MT in 1972.
The high-grade ore at Bintan Island just southeast of Singapore, the prin-
cipal bauxite-producing district of Indonesia, is becoming depleted, although
ample reserves of low-grade bauxite remain at that site. Reportedly, a
survey has concluded that these deposits would justify a 250,000 ton-per-
year alumina plant there. A joint venture involving Japanese interests is
under consideration for the $100 million project. Plans for a $1 billion
electrolytic aluminum reduction plant and hydropower facility at Asahan
in North Sumatera to produce 220,000 tons yearly of primary aluminum was
once proposed. To date the foreign partnership of five Japanese companies
(under Sumitomo leadership) along with Kaiser and Alcoa from the U.S., has
not produced a financing package acceptable to the Indonesian Government.
The Swiss firm Electrowatt has been chosen as GOI consultant on the project.
5.        IRON.  In the first two years of production the Aneka Tambang's
iron sands project at Cilacap has not achieved its targeted output of
300,000 tons annually, falling short by 30,000 in 1971 and 34,000 in 1972.
The shortfall has been attributed to the uneven quality of the sands,
necessitating unanticipated processing before shipment to achieve the
mineral content specified in the ten-year sales contract with Nippon Kokau
Kabushiki Kaisha. It is reported that the project will be further developed
to exploit the iron reserves of the Jogjakarta area, estimated at 15 million
tons, of which about 12 million are recoverable with current technology.
Since iron sand exports (estimated average of 39% FE content) earn only
I/ This industry is subject to full tax holidays and other incentives
which indicate that government receipts from this operation will be
minimal for the next 10 years.



- 3 -
$5.00 per ton, investigations are being carried out as to the economic
feasibility and technical options for processing this ore into pellets to
improve earnings. It is reported further that West.German technical experts
of the Salzgiter Group are to investigate the possibility of exploiting
iron sand and titanium deposits on the southern coast of West Java. Iron
and steel production in Indonesia is undergoing considerable expansion.
It is reported that of Indonesia's 600,000-ton annual consumption of iron
and steel, only 70,000 tons were produced domestically in 1972. Steel
production is projected at 100,000 tons in 1973, and at 3.6 millio.n tons
in 1985.  A number of new iron and steel ventures, notably the Gover. -nt-
owned, PERTAMINA-financed integrated mill P.T. Krakatau Steel, are in various
stages of development, but as yet it has not been determined whether the
processing of domestic ores will become practical as the Indonesian industry
undergoes integration and expansion.
6.        MANGANESE.  Preliminary 1972 data show a relatively large drop
in Indonesia's manganese production -- from 11,958 MT in 1971 to 7,538.
According to Mining Ministry officials, these figures are "incomplete" --
and indeed it is difficult to reconcile them with other reports about
activity in the small Javanese mines that are the source of this output, to
say nothing of the reported 107.6Z increase in 1972 export receipts from
this resource. The West Java provincial administration, through its mining
corporation P.D. Pertambangan Jabar, controls about 34 small mines south of
Tasikmalaya in the Karnanunggal district. Shipment from Cilacap reportedly
takes place three times a year (which might explain considerable year-to-
year variations in export figures). Reports suggest that production is
expanding and state that new methods are being introduced into these mines
in a technical assistance effort of the ITB (Bandung Technical Institute)
in cooperation with LIPI (the Indonesian Academy of Sciences) and aided by
the Japanese. Mines run jointly by the Jogjakarta administration and
P.T. Wono at Kiripan and Punggang are being modernized, and will operate
from early next year with daily production of 200 tons on reserves estimated
at 600,000 tons of manganese. The revival of manganese mining on Doi Island
in the North Maluku regency is reported under consideration by the local
administration despite unfavorable conclusions reached previously as a
result of a survey by Aneka Tambang. The new evaluation identified reserves
of about 700,000 tons of manganese in areas of varying quality, permitting
exploitation at a rate of 30,000 tons a year (possibly by labor-intensive
methods that would be impractical for Aneka Tambang).
7.        GOLD AND SILVER.  Recorded gold production increased slightly in
1972 (339 kg., as against 329 in 1971), while silver production fell back.
The two metals occur together at Cikotok, southern Banten (West Java), in
a mine operated by Aneka Tambang. These deposits are becoming depleted
and the Company has embarked on a vigorous survey program in areas north
of Cirotan, west of the existing mine, with a view to reviving production.
In June 1971, the Company closed its mine in Bangkinang, near Pekanbaru,
Central Sumatera. Gold production, on an artisanal basis takes place in
several districts in East Kalimantan, and in several in East Sumatera, but
this production is not recorded. The west coast of Aceh, in northern



- 4 -
Sumatera is also considered to have promise for commercial exploitation.
The Indonesian demand for gold considerably exceeds domestic production.
Indonesian prices generally lag behind world market trends but remain above
them. Aneka Tambang gold sold at auction for Rps. 589 (approximately $1.41)
per gram in January 1972; Rps. 857 ($2.07) per gram in December 1972,
Rps. 1,077 ($2.60) in March 1973, and Rps. 1,800 ($4.34) per gram at the
end of July 1973. It seems reasonable to expect price developments to have
a stimulating effect on production, especially from small mine operators.
8.        URANIUM.  Contrac&s of Work permitting general minerals work in
the territory of Indonesia typically do not grant rights for uranium explora-
tion and exploitation. The only entity exercising such rights at present is
BATAN, the national atomic energy authority. BATAN has been surveying
250,000 hectares in Central and East Kalimantan for the past three years in
cooperation with the French atomic energy authority. In January 1972, BATAN
was assigned an additional 91,000 sq. km. in Kalimantan for investigation,
but as yet has not found anything of commercial value.
9.        KAOLIN.  Indonesian production of kaolin in 1972 was reported
to be 6,013 MT. P.T. Keramika Indonesia Asosiasi, the principal domestic
consumer, obtains supplies from Bangka and Beliting islands. Clay mined at
Togaret in Sulawesi, by P.T. Usis in partnership with Kanematsu Cosho, Ltd.,
is exported to Japan from the port of Bitung.
10.       ASPHALT.  Rock asphalt production fell back in 1972 from its 1971
peak--from 143,000 MT to 115,000. According to reports, asphalt production
must increase to 360,000 tons annually to meet its share of national demand.
There is a projected demand of 600,000 tons annually for the national road
construction program. Existing demand is met by the State Asphalt Company
(P.N. Aspal), a small refinery at Wonokromo, East Java, and an asphalt
plant near PERTAMINA's Plaju refinery in South Sumatera.
11.       COAL.  It was reported late in 1972 that P.N. Batubara, the state
coal mining concern, was nearing collapse with three of its mining units --
Qmbilin, Bukit Asam and Mahakam -- virtually idle. Against uncertain market
prospects, the Indonesian Government now faces the question whether to keep
is mines open -- at a heavy cost in Government subsidies and considerable
investment in modernization - to close them. Last October, the Minister
of Mining established a steering committee to conduct feasibility studies
on the rehabilitation of the Asam mine with financial assistance from the
Asian Development Bank, and similar measures are to be undertaken at Qmbilin.
It has been reported that the three foreign companies, Shell, Marubeni and
Mobil, have expressed an interest in participating in the revival of these
mines. Indonesian coal mining continues to be plagued by stagnant demand
(domestic consumption in 1971 and 1972 was recorded as 195,606 MT and
190,742, respectively). In step with the rapid growth of the domestic
petroleum industry domestic users have turned to plentiful and convenient
petroleum products for their energy needs. But petroleum prices are on an
increasing curve because of the prices that Indonesian petroleum commands
on the international market. Currently, the Indonesian power authority



- 5 -
burns diesel fuel at $0.46-1.03 per million BTU while Indonesian coal at
$0.27-53 per million BTU finds few takers. 1/ An energy policy statement
by IR. Wijarso, Director of the Office of Oil and Gas, April 30, 1973, called
for a revival in the use of coal to conserve Indonesian petroleum for export,
and for consideration of a transport subsidy to render the use of coal more
attractive. While such a new policy direction cannot be expected to revive
the demand for coal overnight, together with the changing energy cost
picture, it does point the way toward an improvement of coal industry pros-
pects.
12.       DIAMONDS. The principal known deposits of diamonds in Indonesia
are in Kalimantan, at Samarinda in the east, Martapura in the south, Landak
in the west and Barito-Purutjao, Central Kalimantan. There are recent re-
ports that previously unknown deposits of commercial promise have been iden-
tified in Matapura. Diamonds are produced by panners in the traditional
sector of the industry; P.N. Aneka Tambang also has a diamond-mining opera-
tion in Kalimantan along with two other domestic companies, Firma Antang and
C.V. Niut. The Indonesia-Bruneian joint venture P.T. Asia Togor has a con-
tract to explore for diamonds in the south of the island, but is apparently
not pursuing its program actively.
1/   The recent large increase in the world price of oil is likely to
alter this position.






APPENDIX D - HIGHWAY NEEDS ON JAVA
1. *The benefit-cost calculations done by. Bina Marga are rather
detailed, but they are almost entirely based on user cost savings of
existing traffic (and "normal" growth) on the various links and slight
the more elusive and problematical calculations of development benefits
and generated traffic. Generally, however, it is not difficult to estab-
lish at least a prima facie case for a major highway program on Java.
Table A.33, taken from an unpublished IBRD mission report, gives estimates
of intercity traffic over a large number of links for 1971. This table
greatly understates the traffic density near the major towns, since
"urban and suburban traffic was excluded by taking the lowest density
section as a measure of the total traffic between the specified cities".
2.        The next step in estimating capacity requirements is to convert
the total vehicles per day to "transport units" per day. The Asian Highway
Transport Technical Bureau used the coefficients given in Appendix A,
Table 34 in its analysis of links of the Asian Highway. One does not have
to perform detailed calculations with these coefficients and the data in
Appendix, Table A.33 to realize that even on the least travelled sections
of most of the links listed in Appendix Table A.33, daily traffic in 1971
amounted to more than 1,500 transport units per day. For traffic of this
density another ECAPE technical bureau recommends 1/, as a minimum standard
a four-lane cement or asphalt concrete road. Most of these links, includ-
ing many on the outskirts of Jakarta and the other major cities with average
daily traffic amounting to several thousand transport units, at present are
only two-lane bituminous roads. This class of highway, according to the
same Summary, is suitable for volumes of only 75 to 300 transport units per
day, and the result is frequent congestion, very slow speeds, high vehicle
operating costs, and, in all probability, uneconomically high maintenance
costs.
3.        This problem is, of course, recognized by Bina Marga. When
queried as to the first and second priorities for highway investment in
the entire country, the Chief Engineer of Bina Marga pointed immediately
to the Jakarta-Cikampek and Surabaya-Malang links, which aside from the
Jakarta-Bogor highway project currently in progress, carry the greatest
total traffic and the greatest truck traffic on Java (See Appendix Table
A.33). The Chief Engineer's plan for these links is to build shorter
limited-access links, starting from the two major cities and connecting
the major towns enroute, retaining the present alignments for short haul
feeder traffic. This phased construction plan is partly a response to the
decision of USAID not to finance a highway program on Java, despite previous
financing of a detailed feasibility study for a Trans-Java Highway. The
1/ See SummAry of Suggested Minimum Geometrical Standards for Asian
Highways, with the exact reference, in Kobe, op. cit., p. 145.



AID decision not to finance the Trans-Java Highway, according to discuss-
lions with the Director and most of the AID staff in Jakarta, was not based
on any misgivings about the economic justification of highways on Java,
but rather on the congressionally-mandated reordering of its agricultural,
rural development and social welfare activities. The IBRD has yet to fi-
nance the construction of highways on Java.