International Development Planning Review

The Indonesian technology region of Bandung: High potential, low profile

International Development Planning Review (2002), 24, (1), 41–57.

Abstract

Almost unremarked by the outside world, and overshadowed by the country's current troubles, Indonesia offers remarkable regional clusters of indigenous knowledge-intensive firms. One of the most important areas is Bandung, West Java, which can be characterised as a technology region; many companies have been operating there for decades, and a self-sustaining specialisation in sophisticated activities has developed. Bandung is a missed regional development opportunity in the South-east Asian context. This article offers a deeper insight into the structural and institutional properties of the Bandung technology cluster, based on recent empirical investigations. Factors that specifically favour knowledge-based industrial development— from local infrastructure to dense networks of information-rich relationships based on trust—are discussed. However, despite this potential, local firms have not enjoyed major success for a long time. Explanations for this, covering economic, political and cultural aspects, are offered, and these lead to recommendations for a regional development policy.

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Author details

Fromhold-Eisebith, Martina

Eisebith, Guenter