Kacung Marijan, - and FAHRUL MUZAQQI, - and Amelia Arista, - and Widya Norma, - and MS Sayekti Prasetyo, - (2009) Cluster Industry Policy in a Decentralised Government: A Case Study of the Leather Goods Cluster of Tanggulangin, Sidoarjo, Indonesia. Laporan Penelitian. UNIVERSITAS AIRLANGGA, SURABAYA.

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Abstract

The Indonesian government has been concerned with supporting cluster industries for more than four decades. However, as the nature of central-local relations was centralised, most policies were formulated and implemented by central government. This paper aims to explore the role of local government in supporting clusters through the case of the ways the District of Sidoarjo government has supported the leather goods cluster industry of Tanggulangin. Based on a comparative perspectives, that is under centralisation era and decentralisation era, this paper argues that despite the remain low of budget allocated for the industrial affairs under the decentralisation era, the initiatives of local government in supporting cluster is bigger compared to under centralisation era. However, the extent to which the policies are useful for the cluster there is no particular different between before and after implementing the decentralisation policy.

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