The	Impact	of	State	Restructuring	on	Indonesia's	Regional	Economic	Convergence

The Impact of State Restructuring on Indonesia's Regional Economic Convergence

by Adiwan Fahlan Aritenang

The creation of ASEAN Free Trade Area (AFTA) in 1992 and decentralization in 1999 mark the state restructuring in Indonesia. This book analyses the impact of state restructuring on regional economic development in Indonesia between 1993 and 2010. Regional economic analysis shows persistent and severe regional disparities throughout the period. Particularly, econometrics study found that decentralization has accelerated regional disparities whilst the AFTA effect is insignificant on regional economic growth.

Furthermore, historical institutionalism analysis on two cities — the manufacturing industry in Batam and the creative economy in Bandung — shows that past and embedded local institutions provide the capacity to adapt and create new development paths. The book suggests the importance of local-specific policies that embrace local knowledge and institutions to develop regional specialization and competitive advantage. This book fills the gap in Indonesian literature that lacks studies on the integrated impact of decentralization and trade liberalization, both economically and politically. 

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Preliminary pages
1. Introduction
2. State Restructuring and Regional Convergence: A Review of Theories and Debates
3. Indonesia and Its Regional Development Since the 1980s: An Inheritance from the New Order Regime
4. Dynamics of Regional Economic Convergence
5. Decentralization and the ASEAN FTA Impact on Regional Economic Convergence
6. The Institutional Effects on Regional Policies and Development: A Historical Institutionalist Perspective
7. State Restructuring in Indonesia: Towards a Balanced Regional Economic Development
About the Author

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Product Details

  • Number of Pages : 218
  • Publisher : Institute of Southeast Asian Studies
  • Weight : 320g
  • Product Code : 9789814620376
  • Dimension : 152 x 229 mm

About Author

Adiwan Fahlan Aritenang

Adiwan Fahlan Aritenang is Assistant Professor at Regional and City Planning Program at the School of Architecture, Planning and Policy Development, Bandung Institute of Technology (ITB), Indonesia. He was a Postdoctoral Fellow at ISEAS–Yusof Ishak Institute in 2013.