West Science Journal Economic and Entrepreneurship
Vol. 3 No. 02 (2025): West Science Economic and Entrepreneurship

Spatial Disparities in Economic Development: The Role of Industrial Agglomeration, Public Investment, and Transportation Networks in Indonesia

Haryono, Haryono (Unknown)



Article Info

Publish Date
28 May 2025

Abstract

This study explores the spatial disparities in economic development across Indonesia, with a focus on the role of industrial agglomeration, public investment, and transportation networks. Despite the country’s overall economic growth, significant regional inequalities persist, particularly between Java and Bali, and the outer islands such as Papua and Maluku. Using a normative qualitative approach, this research examines the factors that contribute to these disparities. Industrial agglomeration is found to be a key driver of regional growth, with clustering of industries fostering innovation, job creation, and higher productivity. Public investment in infrastructure, education, and healthcare plays a critical role in mitigating these disparities, but its uneven distribution across regions exacerbates inequality. Transportation networks are essential for reducing transaction costs and facilitating economic integration, yet many remote areas still suffer from poor infrastructure, hindering their economic potential. The study concludes with policy recommendations to promote industrial development in underdeveloped regions, increase public investment, and enhance transportation networks to foster more balanced economic growth across Indonesia.

Copyrights © 2025






Journal Info

Abbrev

wsee

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Economics and Entrepreneurship published since 2023 by Westscience Press. Editors receive scientific articles from research results, surveys, and literature reviews closely related to the Economics and Entrepreneurship sectors. WSJEE is a peer-reviewed and open-access scientific magazine. ...