Inter-Island Economic Linkages and Connections in Indonesia

Budy Resosudarmo, Djoni Hartono and Ditya A. Nurdianto
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Ditya A. Nurdianto: The Arndt-Corden Division of Economics Research School of Pacific and Asian Studies The Australian National University

Economics and Finance in Indonesia, 2008, vol. 56, 297-327

Abstract: Economic performances across regions in Indonesia vary a lot. For example, in the early 2000s, gross regional domestic product in East Kalimantan and Riau was respectively 23 and 20 times higher than that in Maluku. This raises the question on how well economic linkages and connections among regions operate in Indonesia. This paper develops an inter-regional input-output table for Indonesia and utilizes it to understand the economic structures and linkages among regions in Indonesia. This paper confirms that Java-Bali is the centre of the Indonesian economy. The other regions, namely Sumatra, Kalimantan, Sulawesi, and Eastern Indonesia, are more connected to Java-Bali than to each other. Economic connections between Java-Bali and Sumatra are the strongest among any inter-regional economic connections in the country. The four key traded products connecting Java-Bali with the other regions are basic metals, petrochemical products, processed food and beverages, and oil refinery products.

Keywords: Development Economics; Regional Economics; Input-output (search for similar items in EconPapers)
JEL-codes: O18 O21 R13 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:200815

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