The 10th IRSA International Conference

201028-29 July 2010, Surabaya – East Java
The 10th IRSA International Conference
“Reintegrating Indonesian Regional Economy in the Global Era”
Chair: Bambang Eko Afiatno
Host: IRSA, UNAIR (Airlangga University) and BAPPENAS


The Indonesian had suffered relatively mild impact from the global financial crisis. This limited impact could be observed from both macro and micro indicators. Exports had recovered by around 20 percent in the third quarter in 2009, following a drop by more than 30 percent. Similarly, stock index rose by than more 60 percent and rupiah exchange rate appreciated by 18 percent throughout 2009. The banking sector also recovered strongly from a dip in 2008, by recording around 10 percent credit growth and 17 percent increases in savings in 2009. At the same time, households’ consumption increased by around 5 percent. Furthermore, some micro indicators showed encouraging signs. Electricity consumption is on the rise, likewise orders for new cars and industrial activities. As a result, the Indonesian economy is It still grew at expected rate of 4.5 percent in 2009, while most other economies experienced negative growth.

This limited of effect of the global crisis could be attributed to several factors. The initial condition of the economy was one of these factors. Domestic consumptions contribute more than 60 percent of the total GDP, which rendered the economy least susceptible to external trade fluctuations. In addition, the economy was helped by the regional diversities, where production down-turned in some regions could be compensated by increased in other regions. Furthermore, fiscal stimulus measures, deft monetary policy and cash transfer soften the impact of the crisis. The global crisis is also somehow a blessing in disguise for policy makers. Indonesia’s real economy has returned to solid growth but longer-term reform is needed to maintain the momentum. The crisis gave valuable lessons of how important it is to have strong yet flexible economic foundations to face external challenges. The crisis also opened up opportunities to rearrange and enhance the Indonesian economy’s fundamentals.

One of the main challenges in the global era is how to reintegrate Indonesian regional economy. As for now, there are some indications that Indonesian regional economies are not operating as one entity, particularly when faced with increasing global trades. This for example could be observed by the fact that many regional manufacturer clusters are limited and not interrelated. Medium and Large manufacturer are mostly concentrated in Jabotabek (Jakarta, Bogor, Tangerang and Bekasi) and West Java areas. BPS’s Large and Medium Industrial Statistics in 2005, for example, shows that 50 percent of employment, firms and capital of the manufacturing sector are located in these areas. According the same data, the share of East Java is about 25 percent, while the rests scatter around other regions in Indonesia. This is in spite of the fact that many incentives have been offered for regions to develop their own industrial centers. The reasons behind this concentration are the existences of suppliers, supporting industries, and relatively huge and increasing market and big population. In addition, Jabotabek and West Java have better both physical infrastructure and skilled workers. There are also tendencies to have multiple same cluster in different regions which could be seen as inefficient. Added to these are the facts that Indonesia still faces serious problems in infrastructure and high logistical costs, which reduce the potential maximum benefit from inter-regional economic relations.


The organizer of this conference attempts to provide a forum where the participants, scholars as well as practitioners, exchange knowledge, experience, and opinion in healthy debates and discussions. The scope is not limited to scientific issues such as theories and methodologies in Regional Science, but it covers also applied and practical subjects such as public policy formulations and evaluations. Prior to the sessions of plenary discussions, lectures, and paper presentations. In addition, a book of proceedings containing selected papers presented will be published.

Theme and Topics

In accordance with the aforementioned background, the theme of this event has been chosen as “Reintegrating Indonesian Economy in the Global Era”. The topics include but are not limited to: Regional Development and Globalization, How to Creating Industrial Centre, City Management, Infrastructure Development and Financing, Regional Competitiveness and Investment Climate, Fiscal Decentralization and Regional Economic Growth, Poverty and Interregional Disparities, Inter-regional Trade, Central and Local Governments Relationship, Agriculture and Rural Development Policy, Political Economics of General Election and Regional Development, and Public Governance and Regional Development.

Expected Participants

Considering the number of participants in the past nine IRSA international meetings (in Jakarta, Yogyakarta, Malang, Bali, Bandung, Palembang), it can be expected that approximately 300 persons will attend the planned event in Surabaya. Most of them are members of IRSA or regular attendants of IRSA international conferences including graduate students, university lecturers and professors, researchers, and practitioners in the fields of regional science, from domestic cities as well as from abroad. Practitioners of regional science include government officials from various agencies such as the National Development Planning Agency (BAPPENAS), Department of Public Works, Department of Transportation, Department of Communication and Information, Department of Agriculture, and others.

Officials from provincial as well as municipality/district governments also attended IRSA conferences. Participants from business sectors, both private and public companies are also expected to join this meeting since this occasion is very suitable for gaining new information from the fields as well as for networking. In addition, general audience including international agencies such as the United Nations (UNDP, FAO, etc.), the USAID, the JICA, the AusAID, DFID, GTZ, and others may also be interested in attending this international event.

Cenference Venue

The conference held in the city of Surabaya, East Java – Indonesia,  at the campus of the Faculty of Economics – Airlangga University, which situated in the city center of Gubeng.
Faculty of Economics – Kampus B
Airlangga University
Jalan Airlangga No. 4
Surabaya – 60286
East Java – Indonesia