Industrialization in East Java Province

Abstract

The manufacturing industry’s contribution to East Java’s economy is high. Still, the trend continues to decline, while the contribution of the trade, hotel, and restaurant sectors is increasing. This indicates that there has been a shift in the economic structure from industry to trade. This research uses a quantitative approach based on the classification carried out by UNIDO (United Nations Industrial Development Organization) and the World Bank. The results of secondary data from Central BPS and East Java Province BPS show that East Java Province is categorized as a semi-industrial area. East Java’s industrial development is experiencing a decline from the “semi- industrialization” stage to the “towards industrialization” stage. This is an early indication of a decline in industrialization or deindustrialization in East Java. If the stages of industrialization in East Java have decreased, but not for commodity industrialization (the ratio of the manufacturing industry’s contribution to the commodity sector). The value of commodity industrialization continues to increase. The commodity sector includes agriculture, mining, industry, construction, electricity, gas & drinking water.

Keywords

• manufacturing industry
• industrialization
• commodity industrialization
• east java