ABSTRACT

This chapter investigates how small and micro industries (SMIs) and large and medium industries (LMIs) have shifted in intensity from Southeast Asia's metropolitan cores to their respective suburbs, thus reshaping entire metropolitan spatial and economic structures. It argues that at the metropolitan level the 'gated' and 'enclave' qualities have implications for suburban spatial reorganization. The chapter focuses upon shifting trends in the manufacturing sector in Indonesia. It revisits the urban and industrial deconcentration literature emphasizing the decline of employment in the city core and corresponding growth in the suburbs. While foreign-induced and large-scale industries have increasingly created gated suburban structures, locally based and small-scale industries are seen to be a more interlinked and resilient sector in the face of turbulent economies. The major effects of the economic crisis on the fluctuating performance of SMIs in the core were the higher price of imported raw materials coupled with reduced purchasing power in domestic markets.