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Industry Cities Can Be A Solution To Boost Equitable Regional Development

Interesting notes elaborated by the media this week regarding industry cities development that can help boost equitable regional development in Indonesia by involving and partnering with local talents and businesse s. Following President Joko Widodo keynote speech during inauguration event in GIIC industrial estate, Cikarang, Bekasi, Tuesday (25/04). “Do not hesitate to involve local talents to work on new innovations,” said the President.

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Hence, Indonesia's central government through the Investment Coordinating Body (BKPM) has been working to ensures support for investors who are committed to build and develop infrastructures and integrated industry cities in Indonesia. BKPM's Deputy of Investment Supervision and Control, Azhar Lubis, previously said that BKPM will continue to support and increase investment realization which has become Indonesia's mainstay of economic development for the current year.

Similar note also conveyed by Spatial and Urban Planning Observer, Yayat Supriatna. He explained that Industry city is an integrated area that comprises industrial area, residential area, and commercial area with a high concentration of citizens' activities. These activities can create multiplier effect and intensified local polarization toward the region/city. Industry cities development can be a solution to boost equitable regional development in Indonesia if large-scaled industries can synergize with local industries.

Central Statistical Bureu of Indonesia (BPS) recorded Indonesia's 2016 Gross Regional Income (PDB) based on Constant Price Index was Rp9,433 trillion, 5.02 percent higher than 2015 PDB of Rp8,982.5 trillion. However, if broken down by spatial region, Indonesia's economic structure is highly dominated by Java that contributed 58.49 percent, followed by Sumatera at 22.03 percent, Kalimantan 7.85 percent, Sulawesi 6.04 percent, and other islands at 5.59 percent.

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In Java, economic development is also yet to be equitable between regions. Hence, income per capita between provinces are not in par. Take three closely located provinces: Jakarta, Banten, and West Java as an example. in 2015, the average income per capita in Jakarta reached Rp240.5 million per year, far leading compared with Banten Rp40.02 million and West Java Rp32.65 million. Therefore, according to Yayat, synergy must be forged between the development of industry cities, industry players, and investors with local products, workforce and entrepreneurs to help improve and boost local GDP and help accelerate equitable economic development in Indonesia.