Prasetyo Soepono(1*)

(1) Universitas Gadjah Mada
(*) Corresponding Author


Location theory shows how firms at first choose their respective optimal location and finally decide to locate in the same area (with the lowest isodapane) so that it forms a city, which is something that has to happen when firms want to operate efficiently and profitably. Further, von Thunen's concentric zone model shows that the determinants of land rent (level of development) are the size of an urban area and accessibility to the urban area. The size of an urban area has a positive effect on the level of development, whereas the accessibility has negative effect on the level of development. The application of that model to the U.S. economy has supported the expectation that urban areas and accessibility influence the level of development. The results of applying the Thunen model to the Indonesian economy will indicate whether the number of-cities and the sizes of cities and the number and types of roads/highways in Indonesia are already optimal or not so that the national urban development strategy in Indonesia needs to be revised or not.

Full Text:



Amos, Jr., Orley M. 1987. "The Influence of Urban Areas On Regional Development." The Review of Regional Studies. Volume 17 No. 13. 37-46.

Boediono. 1979. "Sebuah Model Makro Triwulan Untuk Indonesia." Seri Makalah Fakultas Ekonomi Universitas Gadjah Mada. Yogyakarta: Badan Penerbit Fakultas Ekonomi. Vol.1 No.3.

Blair, John P. 1991. Urban and Regional Economics. Homewood, III.: Richard D. Irwin, Inc.

Conroy, M.E. 1973. "Rejection of Growth Center Strategy in Latin America Regional Development Planning." Land Economics. Volume 49 No.4. 371-380.

Darkoh, M.B.K. 1977. "Growth Poles and Growth Centers with Special Reference to Developing Countries: A Critique." Journal of Tropical Geography. Volume 44. 12-22.

Faden, A.M. 1977. Economics of Space and Time. Ames: Iowa State University Press.

Hoover, Edgar M. and Frank Giarratani. 1984. An Introduction to Regional Economics. New York: Alfred A. Knopf, Inc.

O'Sullivan, Arthur. 1996. Urban Economics. Third Edition. Homewood, 111.: Richard D. Irwin, Inc.

Pendapatan Regional Propinsi-Propinsi di Indonesia Menurut Lapangan Usaha: 1983-1990. Jakarta: BPS, 1992.

Prasetyo Soepono. 1990. Pengantar Ekonomi Regional: Teori Lokasi dan Pembangunan Regional. Yogyakarta: Pusat Antar Universitas - Studi Ekonomi, Universitas Gadjah Mada.

Richardson, H.W. 1982. "Towards a National Urban Development Strategy for Thailand." Regional Development: Essays in Honor of Masahiko Honjo. Edited by R.P. Misra. Singapore: Maruzen Asia.

Statistik Indonesia - 1992. Jakarta: BPS. Von Thunen, Johann H. 1961.

Von Thunen's Isolated State. Peter Hall ed. London: Pergamon Press. Page 27 of 27

Article Metrics

Abstract views : 3515 | views : 22756


  • There are currently no refbacks.

Copyright (c) 2018 Journal of Indonesian Economy and Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Journal of Indonesian Economy and Business


Editorial Team
Focus and Scope
Peer Review Process
Publication Ethics
Screening for Plagiarism


Author Guidelines
Submission Guidelines
Online Submissions
Copyright Notice
Privacy Statement
Author Fees


Author Pack
Submission Form & Manuscript Template



Reviewer Guidelines
Reviewer Acknowledgement



General Search
Author index
Title index



The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

© 2019 Journal of Indonesian Economy and Business 
 Visitor Statistics