Indonesia’s changing economic geography 413
TABLE 1 Provincial GRP, Non-mining GRP and Consumption Expenditure: Shares of National Totals
of current price estimates
GRP
a
Non-mining GRP
a
CE
b
1975 1990
2004 1975
1990 2004
1983 1990
2004 Aceh
1.6 3.8
2.2 1.7
2.8 1.7
2.1 2.1
0.9 North Sumatra
5.7 5.7
5.4 6.6
6.3 5.8
6.4 6.0
5.4 West Sumatra
1.8 1.8
1.7 2.3
2.0 1.8
2.2 2.2
1.8 Riau
15.1 6.5
6.8 2.1
1.9 5.0
1.9 2.0
5.5 Jambi
0.8 0.7
0.8 0.9
0.8 0.8
0.6 0.8
0.9 South Sumatra
4.8 4.2
3.3 4.5
3.8 2.8
4.7 4.2
3.6 Bengkulu
0.3 0.4
0.4 0.4
0.5 0.4
0.5 0.5
0.4 Lampung
1.9 1.7
1.6 2.4
1.9 1.7
2.2 2.4
1.6
Sumatra 32.2
24.9 22.2
21.0 20.1
20.0 20.6
20.1 20.2
Jakarta 8.7
12.1 17.1
11.0 13.8
18.8 10.4
9.9 16.5
West Java 14.5
16.8 17.2
16.3 17.1
18.0 17.2
19.4 19.0
Central Java 9.9
11.5 8.8
12.5 13.1
9.6 14.5
12.2 10.4
Yogyakarta 1.2
1.0 1.0
1.5 1.1
1.1 1.6
1.3 0.9
East Java 15.8
15.5 15.5
19.9 17.5
16.8 18.7
20.8 19.3
Bali 1.3
1.6 1.3
1.6 1.8
1.4 2.0
2.2 1.3
Java–Bali 51.5
58.6 61.0
62.8 64.5
65.7 64.4
65.8 67.4
Java–Bali excluding Jakarta
42.8 46.4
43.8 51.8
50.7 46.9
54.0 55.9
51.0
West Kalimantan 1.4
1.5 1.3
1.8 1.7
1.5 1.7
2.0 1.3
Central Kalimantan 0.5
0.7 0.8
0.7 0.8
0.9 0.9
1.0 0.9
South Kalimantan 1.0
1.2 1.2
1.3 1.4
1.1 1.5
1.3 0.9
East Kalimantan 4.1
5.7 6.0
2.3 4.0
4.0 1.2
1.1 1.6
Kalimantan 7.1
9.1 9.3
6.1 7.9
7.5 5.4
5.4 4.6
North Sulawesi 1.3
0.8 0.8
1.6 0.9
0.8 1.3
1.0 0.7
Central Sulawesi 0.4
0.5 0.7
0.6 0.6
0.7 0.8
0.8 0.8
South Sulawesi 3.0
2.4 2.2
3.8 2.6
2.2 3.5
2.9 2.4
Southeast Sulawesi 0.3
0.4 0.5
0.3 0.5
0.5 0.6
0.6 0.5
Sulawesi 5.0
4.1 4.2
6.3 4.5
4.3 6.2
5.3 4.4
West Nusa Tenggara 0.8
0.7 1.0
1.0 0.8
0.7 1.0
1.0 0.7
East Nusa Tenggara 0.8
0.6 0.6
1.0 0.7
0.6 1.0
1.0 0.7
Maluku 0.9
0.8 0.3
1.1 0.9
0.3 0.9
0.9 0.4
Papua 1.8
1.2 1.4
0.9 0.7
0.8 0.7
0.5 1.5
Eastern Indonesia 4.3
3.3 3.3
4.0 3.0
2.5 3.5
3.3 3.3
INDONESIA 100.0 100.0 100.0 100.0 100.0 100.0
100.0 100.0 100.0
Rp trillion 11.9 188.3 2,202.9
9.5 165.1 1,996.0 34.0
82.5 1,182.1
a
GRP = gross regional product.
b
CE = household consumption expenditure. Source:
BPS, Regional Income of Provinces in Indonesia by Industrial Origin, various years; Regional Income of Provinces in Indonesia by Expenditure
, various years.
Downloaded by [Universitas Maritim Raja Ali Haji] at 19:59 18 January 2016
414 Hal Hill, Budy P. Resosudarmo and Yogi Vidyattama
higher in Papua. In the fi rst and last of these provinces, non-mining GRP had fallen below the national average.
We therefore develop our main story around the non-mining GRP series, which excludes the enclave mining effects. We identify what may be termed ‘consistently
wealthy’ and ‘consistently non-poor’ regions those close to the national average, ‘very poor’ provinces and those that have experienced a signifi cant change in
relative incomes.
‘Consistently wealthy’ provinces There are two really wealthy provinces, Jakarta and East Kalimantan. By 2004,
Jakarta was by far the richest province as measured by non-mining GRP per capita, at about four times the national average and with more than double the
wealth of the third richest province Riau. Jakarta has been becoming relatively richer, especially since 1990. This is notwithstanding fi rst, the 1980s liberalisa-
tions, which reduced the regulatory powers of the capital; second, the decentrali- sation of 2001, which transferred resources and funds to the regions; and third, the
1997–98 crisis, which affected Jakarta more severely than any other province apart from West Java Akita and Alisjah bana 2002.
East Kalimantan’s per capita non-mining GRP is always at least three times the national average, indicating that its economic wealth extends well beyond the
mining enclaves. However, its household expenditure suggests that community living standards are much closer to the national average than the GRP data sug-
gest. About 60 of East Kalimantan’s non-mining GRP comes from oil and gas processing industries. These are relatively capital-intensive activities, and much
of the return on these investments accrues to entities outside the province.
Riau, the third wealthiest province, is generally well above the national aver- ages for both GRP series. Its fortunes declined sharply during the 1980s as the
oil boom subsided, resulting in its income and expenditure being close to the national average. However, strong growth in the islands close to Singapore, com-
bined with export-oriented cash crops on the mainland, resulted in its being the third richest province in 2004 according to both series.
‘Consistently non-poor’ provinces A second group of provinces may be termed ‘consistently non-poor’, with non-
mining GRP per capita at least 85 of the national average. This includes the tra- ditionally strongest agricultural exporter, North Sumatra, the frontier province of
Central Kalimantan, the country’s two major industrial provinces, West and East Java, the major tourist region of Bali, and West Sumatra, where both agriculture
and a range of services are important. Aceh would have belonged in this group until recently, but the protracted confl ict until 2005, combined with the devasta-
tion of the 2004 tsunami, has sharply lowered living standards: its 2004 household expenditure was just under half the national average.
‘Very poor’ provinces At the other extreme are the poor provinces, with a non-mining GRP ratio of about
half the national average or less. They are all located in the east. The two Nusa Tenggara provinces are consistently poor, and evidently slipping further behind,
from just over half the national average in the non-mining GRP series in 1975 to Downloaded by [Universitas Maritim Raja Ali Haji] at 19:59 18 January 2016
Indonesia’s changing economic geography 415
TABLE 2 Provincial GRP, Non-mining GRP and Consumption Expenditure per Capita Indonesia = 100
GRP
a
per Capita GRP p.c.
Adjusted Non-mining GRP
a
per Capita CE
b
per Capita 1975 1990
2004 2004
1975 1990 2004 1983 1990
2004 Aceh
93.3 200.7 114.5 117.7
97.9 147.4 92.0 114.4 108.9
49.5 North Sumatra
101.9 99.6
92.2 92.3
116.7 110.1 100.5 111.0 104.9 92.3
West Sumatra 79.1
78.3 81.6
85.9 99.2
88.0 86.8
96.8 96.1
87.6 Riau
1,061.5 352.0 245.2 248.5 150.2 103.9 178.6 128.8 106.0 198.0
Jambi 87.1
65.5 67.0
75.3 101.5
72.0 62.2
62.0 72.5
75.9 South Sumatra
160.6 118.5 92.8
93.3 150.1 107.5
77.2 144.8 119.2 100.5 Bengkulu
61.9 64.6
49.0 52.1
77.6 70.0
52.4 90.5
75.7 56.3
Lampung 72.9
50.8 48.4
52.5 91.6
57.8 50.9
62.2 70.2
48.4
Sumatra 177.0 121.7 103.1
115.3 98.1
92.9 104.8 98.4
