digilib@itb.ac.id +62 812 2508 8800

PUBLIC Irwan Sofiyan

In the last 15 years, manufacturing sector has grown relatively fast in the city of Jakarta. Its contribution to Jakarta’s Gross Regional Domestic Product increased from 18.36% in 1980 to 20.99% in 1994. Also, the number of employment in manufacturing sector increased from 8.82% of total Jakarta’s workers in 1984 to 13.68% in 1994. Believing that the development of manufacturing sector will push the development of other economic sectors, the government of Jakarta plans to develop policies accelerating the development of manufacturing sector. This paper, using an Input Output method, aims to analyze the roles of manufacturing sector in the economy of Jakarta. Particulary, this paper will observe whether or not the manufacturing industry is the key industry in Jakarta. This paper will also determine the impact of the development of manufacturing sector on household incomes in Jakarta.