INTERPRETING SPATIAL ECONOMIC-STRUCTURE - FEEDBACK LOOPS IN THE INDONESIAN INTERREGIONAL ECONOMY, 1980, 1985

In this paper, an alternative methodology is proposed to try to uncove r the nature of the interregional economic structure that has tended t o reinforce the hegemonic role that Java and Sumatera play in the Indo nesian economy. The interpretation is made through the application of feedback loop analysis to a set of interregional input-output tables f or 1980 and 1985. Feedback loop analysis offers an alternative perspec tive that is situated between the often too aggregated linkages view d erived from usual applications of input-output analysis and the very d isaggregated approach of structural path analysis in which the myriad paths of interaction present a daunting problem of classification and interpretation. The Indonesian economy is divided into five regions (S umatera, Java, Kalimantan, Sulawesi and the Eastern Islands) and three sectors (primary activities, manufacturing and services). Even over a period of five years, important changes in the circulation of flows w ere observed; in particular, intraregional flows grew more rapidly tha t interregional flows especially in Java and Sumatera, while there wer e some changes in the circulation patterns of the interregional flows.