EFFECTIVENESS OF INDUSTRIAL ESTATES AS DESIGNATED AGGLOMERATIONS IN INDONESIA: CASE STUDY OF WEDA BAY INDUSTRIAL PARK IN HALMAHERA TENGAH REGENCY

• Main Author: Pratama, Ardi
• Format: Theses
• Language: Indonesia
• Subjects: Produksi
• Online Access: https://digilib.itb.ac.id/gdl/view/69526
• Institution: Institut Teknologi Bandung

The achievement of economic development in question is how government, as a development mobilizer, creates an economic anchor that can form a basic economic system that provides sustainable property for a region. In Indonesia, the manufacturing industry is the biggest contribution to the economic structure, approximately 17.3%. Java Island dominates Indonesia's GDP at 58.75%, whereas Java Island is only 7% of the total area of Indonesia. Thus, the government encourages economic equality through industrial zoning policies by constructing Industrial Estates (IEs) in potential and undeveloped areas to form the main driver of the new economic center to generate positive agglomeration externalities. Weda Bay Industrial Park (IWIP) in Halmahera Tengah Regency, Maluku Utara Province is part of the government program. The externalities generated by IWIP are limited to sectors directly connected with the manufacturing sector: construction, mining, and quarrying. Others are not affected by the IE; however, considering that IWIP has just started operating around 2020, it is possible for other economic sectors to gain the impact. Based on the spatial concentration analysis, the IWIP has proven to play a role as an economic anchor or a center for agglomeration, impacting agglomeration externalities in the surrounding area. Furthermore, this IE has had a positive impact on other sectors in the Regency, supported by natural advantages and knowledge spillover. In other words, it can be said that IWIP has effectively fulfilled the purpose of industrial estate development in a short time.