World Bank2017-06-272017-06-272011-02https://hdl.handle.net/10986/27420East Java is the second largest contributor to Indonesia's economy with a growth rate similar to national level and other major provinces in Java. Nevertheless, for a province that is expected to be a major economic center in the country, there has been very little change in the region's economic structure in the past 10 years. Since 1995, the share of industry and agriculture in the economy is almost unchanged. Furthermore, the growth in both of these two sectors has been low, despite the fact that industry was once the main driver of the East Java economy. This report analyzing the economic conditions of East Java shows that the province offer many economic advantages for investors, such as its geographical location, adequate credit facilities, an abundant and competitively priced workforce, conducive security conditions, and an overall robust macroeconomic condition. The report also finds a number of constraints that, if prioritized and effectively addressed, could boost East java's growth rate to higher level. The main binding constraints to growth in East Java are infrastructure, particularly related to business operations, and the business climate.en-USCC BY 3.0 IGOABSOLUTE TERMSACCESS TO CREDITACCESS TO EDUCATIONACCESS TO FINANCEACCESS TO MARKETSADBAGRICULTURAL PRODUCTIVITYAGRICULTURAL SECTORAGRICULTUREANNUAL GROWTHAUTONOMYAVERAGE GROWTHAVERAGE GROWTH RATEBANK INDONESIABANK OF INDONESIABANK OFFICEBANK OFFICIALSBENCHMARKBUSINESS ACTIVITYBUSINESS ASSOCIATIONBUSINESS ENTERPRISESBUSINESS OWNERSCAPITAL FORMATIONCAPITAL INVESTMENTCENTRAL BANKCOMMERCIAL BANKSCOMPETITIVENESSCOOPERATIVESCORRUPTIONCOST OF CREDITCPICREDIT ALLOCATIONCREDIT BANKCREDIT GUARANTEECREDITSDATA ISSUESDEBTDEPOSITDEVELOPMENT BANKDEVELOPMENT INDICATORSDISTRICT GOVERNMENTSDIVERSIFICATIONECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC ADMINISTRATIONECONOMIC ANALYSISECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC OPPORTUNITIESECONOMIC PERFORMANCEECONOMIC SECTORSECONOMIC SIZEECONOMIC STRUCTUREECONOMICSEDUCATED WORKERSEDUCATION LEVELEDUCATIONAL ATTAINMENTEDUCATIONAL OPPORTUNITIESELASTICITYELEMENTARY SCHOOLEMPLOYEEEMPLOYERSEMPLOYMENT GROWTHEMPLOYMENT OPPORTUNITIESEMPLOYMENT STATUSEMPOWERMENTENROLLMENTENROLMENT RATEENROLMENT RATESENTREPRENEURSHIPEQUALITYEQUALITY OF OPPORTUNITYEXPENDITUREEXPORT GROWTHEXPORTSEXTERNALITIESFACILITATIONFARMERFARMERSFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL RESOURCESFINANCIAL SUPPORTFINANCIAL SYSTEMFIXED CAPITALFOREIGN EXCHANGEFOREIGN INVESTMENTGDPGDP PER CAPITAGREATER ACCESSGROSS DOMESTIC PRODUCTGROWTH PATTERNGROWTH PERFORMANCEGROWTH POLICYGROWTH PROCESSGROWTH RATEGROWTH RATESGUARANTEE SCHEMEHEALTH CAREHEALTH SERVICESHIGH CONCENTRATIONHIGH GROWTHHIGH GROWTH RATEHOUSEHOLDSHUMAN CAPITALINCOMEINCOME DISTRIBUTIONINDUSTRIAL DEVELOPMENTINDUSTRIALIZATIONINEFFICIENCYINFLATIONINFORMATION ON INVESTMENTINSURANCEINTEREST RATEINTERMEDIATE GOODSINTERNATIONAL FINANCEINVESTMENT CLIMATEINVESTMENT OPPORTUNITIESINVESTMENT RATEJOB CREATIONLABOR FORCELABOR MARKETLABOR MARKETSLABOR MOBILITYLABOR PRODUCTIVITYLAND ISSUESLAND REGISTRATIONLAND SUPPLYLIMITED ACCESSLOANLOCAL GOVERNMENTSLOW ENTRY BARRIERSMACROECONOMIC ENVIRONMENTMARKET CONSTRAINTSMARKET FAILURESMFIMFISMICRO CREDITMICRO ENTERPRISESMICRO FINANCINGMICRO FINANCING INSTITUTIONMICRO FINANCING INSTITUTIONSMINIMUM WAGEMINIMUM WAGESMUNICIPALITIESNET EXPORTSOILOPTIMIZATIONPAWNSHOPSPER CAPITA GROWTHPER CAPITA INCOMEPHYSICAL CAPITALPOLICY OPTIONSPOOR HOUSEHOLDSPOOR POPULATIONPOPULATION GROWTHPOVERTY LEVELSPOVERTY LINEPOVERTY RATEPOVERTY RATESPOVERTY REDUCTIONPRIMARY EDUCATIONPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRIVATE INVESTMENTSPRODUCTIVITY GROWTHPROPERTY RIGHTSPUBLIC WORKSRAPID GROWTHREGIONAL ACCOUNTSREGISTRATION PROCESSREGISTRATION PROCESSESRURAL AREASRURAL POORRURAL POVERTYSAFETY NETSAVINGSSELF EMPLOYMENTSKILLED WORKERSSOCIAL DEVELOPMENTSTRUCTURAL CHANGESUSTAINABLE GROWTHTECHNICAL ASSISTANCETECHNOLOGICAL CHANGETERMS OF TRADETRAINING CENTERTRAINING CENTERSTRANSPORTUNEMPLOYMENTUNEMPLOYMENT RATEUNEQUAL ACCESSUNEQUAL DISTRIBUTIONUNIVERSAL ACCESSUNSKILLED LABORURBAN AREAURBAN AREASURBAN POORURBAN POVERTYURBANIZATIONUSER CHARGESVENTURE CAPITALVILLAGEVILLAGESWAGESWOMANWORKING CAPITALReportWorld Bank10.1596/27420