PROOF OF DEINDUSTRIALIZATION ON MANUFACTURING SECTOR IN CENTRAL JAVA PROVINCE

Abstract

In Indonesia, beside of the dangerous potencies of deindustrialization phenomenon, industrial sector policies were not in proper placed if it were compared to fiscal and monetary sectors. The manufacturing sector is placed to be complement side of the two sectors. Whereas in reality world, the real sector has contribute obviously more to public wealth. Related to the dangerous of
deindustrialization and anticipated policy to alleviate it, the deep research to explore manufacturing deindustrialization is needful. The data will be organizedto be panel data, which it includes to 35 regencies and cities in Central Java Province and covers to 2001 to 201I time periods. This research will use somo analytical tools to analysis, include to structural change and manufacturing economic base. From the analyses, this research identifies that deindustrialization process occur in Central Java Province. But it is just on several regions only. Other regions tend to keep in industrialization process. The fastest deindustrialization process can be detected in Regencies of Pekalongan, Batang, Sukoharjo, and also Semarang City, and Surakarta City, Although manufacturing sector being economic base, but the trends in theses region come to downward. Beside, the negative growth of manufacturing share in these regions area is following. Regencies of Tegal, Karanganyar, Semarang, Kendal, Kudus, and Pekalongan City are different. These regions are economic base in manufacturing that shows upward trend and the manufacfuring share is growth positively. In these regions deindustrialization process tend to be undetected