Description: East Java Growth Diagnostic : Identifying the Constraints to Inclusive Growth in Indonesia's Second-Largest Province

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East Java Growth Diagnostic : Identifying the Constraints to Inclusive Growth in Indonesia's Second-Largest Province

East Java is the second largest contributor to Indonesia's economy with a growth rate similar to national level and other major provinces in Java. Nevertheless, for a province that is expected to be a major economic center in the country, ther...

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Bibliographic Details
Main Author:	World Bank
Language:	English en_US
Published:	World Bank, Jakarta 2017
Subjects:	ABSOLUTE TERMS ACCESS TO CREDIT ACCESS TO EDUCATION ACCESS TO FINANCE ACCESS TO MARKETS ADB AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURE ANNUAL GROWTH AUTONOMY AVERAGE GROWTH AVERAGE GROWTH RATE BANK INDONESIA BANK OF INDONESIA BANK OFFICE BANK OFFICIALS BENCHMARK BUSINESS ACTIVITY BUSINESS ASSOCIATION BUSINESS ENTERPRISES BUSINESS OWNERS CAPITAL FORMATION CAPITAL INVESTMENT CENTRAL BANK COMMERCIAL BANKS COMPETITIVENESS COOPERATIVES CORRUPTION COST OF CREDIT CPI CREDIT ALLOCATION CREDIT BANK CREDIT GUARANTEE CREDITS DATA ISSUES DEBT DEPOSIT DEVELOPMENT BANK DEVELOPMENT INDICATORS DISTRICT GOVERNMENTS DIVERSIFICATION ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC ADMINISTRATION ECONOMIC ANALYSIS ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC PERFORMANCE ECONOMIC SECTORS ECONOMIC SIZE ECONOMIC STRUCTURE ECONOMICS EDUCATED WORKERS EDUCATION LEVEL EDUCATIONAL ATTAINMENT EDUCATIONAL OPPORTUNITIES ELASTICITY ELEMENTARY SCHOOL EMPLOYEE EMPLOYERS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT STATUS EMPOWERMENT ENROLLMENT ENROLMENT RATE ENROLMENT RATES ENTREPRENEURSHIP EQUALITY EQUALITY OF OPPORTUNITY EXPENDITURE EXPORT GROWTH EXPORTS EXTERNALITIES FACILITATION FARMER FARMERS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL RESOURCES FINANCIAL SUPPORT FINANCIAL SYSTEM FIXED CAPITAL FOREIGN EXCHANGE FOREIGN INVESTMENT GDP GDP PER CAPITA GREATER ACCESS GROSS DOMESTIC PRODUCT GROWTH PATTERN GROWTH PERFORMANCE GROWTH POLICY GROWTH PROCESS GROWTH RATE GROWTH RATES GUARANTEE SCHEME HEALTH CARE HEALTH SERVICES HIGH CONCENTRATION HIGH GROWTH HIGH GROWTH RATE HOUSEHOLDS HUMAN CAPITAL INCOME INCOME DISTRIBUTION INDUSTRIAL DEVELOPMENT INDUSTRIALIZATION INEFFICIENCY INFLATION INFORMATION ON INVESTMENT INSURANCE INTEREST RATE INTERMEDIATE GOODS INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT OPPORTUNITIES INVESTMENT RATE JOB CREATION LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LAND ISSUES LAND REGISTRATION LAND SUPPLY LIMITED ACCESS LOAN LOCAL GOVERNMENTS LOW ENTRY BARRIERS MACROECONOMIC ENVIRONMENT MARKET CONSTRAINTS MARKET FAILURES MFI MFIS MICRO CREDIT MICRO ENTERPRISES MICRO FINANCING MICRO FINANCING INSTITUTION MICRO FINANCING INSTITUTIONS MINIMUM WAGE MINIMUM WAGES MUNICIPALITIES NET EXPORTS OIL OPTIMIZATION PAWNSHOPS PER CAPITA GROWTH PER CAPITA INCOME PHYSICAL CAPITAL POLICY OPTIONS POOR HOUSEHOLDS POOR POPULATION POPULATION GROWTH POVERTY LEVELS POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCTION PRIMARY EDUCATION PRIVATE CONSUMPTION PRIVATE INVESTMENT PRIVATE INVESTMENTS PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC WORKS RAPID GROWTH REGIONAL ACCOUNTS REGISTRATION PROCESS REGISTRATION PROCESSES RURAL AREAS RURAL POOR RURAL POVERTY SAFETY NET SAVINGS SELF EMPLOYMENT SKILLED WORKERS SOCIAL DEVELOPMENT STRUCTURAL CHANGE SUSTAINABLE GROWTH TECHNICAL ASSISTANCE TECHNOLOGICAL CHANGE TERMS OF TRADE TRAINING CENTER TRAINING CENTERS TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE UNEQUAL ACCESS UNEQUAL DISTRIBUTION UNIVERSAL ACCESS UNSKILLED LABOR URBAN AREA URBAN AREAS URBAN POOR URBAN POVERTY URBANIZATION USER CHARGES VENTURE CAPITAL VILLAGE VILLAGES WAGES WOMAN WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/520191468259733381/East-Java-growth-diagnostic-identifying-the-constraints-to-inclusive-growth-in-Indonesias-second-largest-province http://hdl.handle.net/10986/27420

Description
Summary:	East Java is the second largest contributor to Indonesia's economy with a growth rate similar to national level and other major provinces in Java. Nevertheless, for a province that is expected to be a major economic center in the country, there has been very little change in the region's economic structure in the past 10 years. Since 1995, the share of industry and agriculture in the economy is almost unchanged. Furthermore, the growth in both of these two sectors has been low, despite the fact that industry was once the main driver of the East Java economy. This report analyzing the economic conditions of East Java shows that the province offer many economic advantages for investors, such as its geographical location, adequate credit facilities, an abundant and competitively priced workforce, conducive security conditions, and an overall robust macroeconomic condition. The report also finds a number of constraints that, if prioritized and effectively addressed, could boost East java's growth rate to higher level. The main binding constraints to growth in East Java are infrastructure, particularly related to business operations, and the business climate.