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UBC Theses and Dissertations

Planning for industrialization in central Java, Indonesia : the process, the impacts and the alternatives Hadi, Sudharto P.


This study identifies the Indonesian policies that established large scale, export oriented and externally controlled (LEE)industrialization from the perspective of local people in the industrializing area, the planning that implemented these policies in Central Java and the ways in which the local people's lives are being affected. It identifies the links between the policy and the planning, and between the planning and the impacts. This study is based on data gathered from provincial, municipal and local planners, affected people, factory owners, and workers. LEE industrial development has often been successful in terms of its contribution to Regional Gross Domestic Product (GDP) and to the creation of low wage employment opportunities. However, this success has been accompanied by significant economic, social and environmental impacts on local people. The economic impacts include loss of livelihood and jobs, and decrease of family income. The social impacts comprise the weakening of community cohesion and the disruption of the people's daily lives. The environmental impacts include floods, lack of clean water, water pollution, and air pollution. The impacts of LEE industrialization have been documented by various studies including this one. What has not been adequately analyzed and documented is the process that produces the impacts. This study helps to fill the gap. It concludes that the impacts stem from the following factors. The national development emphasizes large scale and export oriented industrialization. The top-down development planning ensures that this policy is supported at the provincial level regardless of local conditions, needs and priorities. The arbitrary nature of provincial decision-making provides for no popular input. Impact assessment studies fail to provide the information necessary for planners, decision-makers and ideally the local leaders about the likely impacts of industrialization. The way the responsible government agencies solve environmental problems tends to protect factory interests. The impacts are exacerbated by a lack of adequate monitoring and enforcement of environmental regulations. The thesis concludes that substantive policy reform and process restructuring are required to achieve sound planning for industrial development. If quality of life is to be protected and enhanced, industrial policies should be reoriented to strengthening existing local economic activities; and planning restructured to enable local planners and affected people to be fully involved at all stages including impact management.

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