Development Of The Rural Non-Farm Economy On Java : A Search For Roots And Determinative Factors

ABSTRACT Ever since a number of centuries non-agricultural activities play an important role in the rural economy of Java. The last decades, their significance has increased further. Presently, close to half of both primary employment and income in rural Java originate from outside the agricultural sector. In this contribution, the history of rural industry on Java is outlined and the recent developments in its rural economy are subsequently summarized Ensuing this, result from both enterprise and household surveys as recently carried out in the Special Province of Yogyakarta are e presented and analysed. This with a view to assess whether the behaviour of the various components of the rural non-farm economy in the area is in line with developments in South East Asia as a whole as sketched by Saith 1992 in his well-known publication on the rural non-farm economy in developing countries. A number of conclusions are arrived at pertaining to the relevance and applicability of his model to the Javanese context. Finally, as assessment of the prospects of rural industry in this part of Indonesia is presented and contrasted with his findings. Kata Kunci.: rural - non farrm economy - determinative