THE DEVELOPMENT AND USE OF INTERREGIONAL INPUT‐OUTPUT MODELS FOR INDONESIA UNDER CONDITIONS OF LIMITED INFORMATION

Spatial development planning in developing economies has created the need for analytical frameworks that are capable of providing assessment of alternative strategies. This paper reports on the methods used to construct a set of interregional input‐output tables for a five‐region division of Indonesia under conditions of limited information for 1980 and 1985. The tables were constructed as a prelude to the development of a comparable set of interregional social accounts and the eventual construction of an interregional computable general equilibrium model. The structure of the Indonesian economy is explored and described; the fine structure is revealed through an examination of the fields of influence of some of the analytically important coefficients. Finally, a brief examination of the use of the model in an export promotion strategy is reported. The dominant positions of Sumatera and Java are revealed as is the concomitant difficulties attendant upon development strategies that attempt to encourage growth in other regions.