ABSTRACT

Per capita Gross Regional Domestic Product (GRDP) in the Yogyakarta Special Region (DIY) was in 1990 slightly less than a fourth of the per capita non-oil GRDP in D. K. I. Jakarta. It was among the lowest in the country, being higher only than per capita non-oil GRDP of the provinces of Central Sulawesi, Lampung in Sumatra, the Nusa Tenggara Islands and Timor. An examination of the sectoral distribution of activities reveals that in 1986, agriculture ranked first, contributing to 29.15 per cent of the DIY's total non-oil GRDP. The chapter overviews regional economy by the sectors. Economic growth in the DIY has occurred relatively slowly in terms of increase of GRDP over the past decade, but on the other hand, the Special Region showed surprisingly good socioeconomic achievements in the early 1990s. Whatever macroeconomic development processes for the DIY are going to be experienced, the issue of rural employment expansion must be carefully considered.