Concentration in Indonesian Manufacturing∗

Abstract

This paper reports new data on patterns and trends in concentration in Indonesian manufacturing from 1975 to 1983. Seller concentration is found to be remarkably high, exceeding that of most other sizeable developing countries for which data are available. Manufacturing activity is heavily concentrated around Jakarta and neighbouring areas and in East Java; moreover, the six most industrialised provinces account for well over 80% of industrial output. In terms of ownership, private (domestic) firms are by far the most important group, and their share has been expanding. For various reasons, the significance of these firms is overstated in the statistics.