Industrialization Strategy in the Macro Economy Existing in Regencies and Cities

Abstract

Industrialization is an important strategy for boosting regional economic growth by transforming the economic structure from the primary sector to the industry sector, which has a higher added value. This study aims to analyze industrialization strategies for increasing economic growth and community welfare at the regency and city levels. The research uses a qualitative descriptive method with a literature study approach. Secondary data is obtained from books, scientific journals, publications from the Central Bureau of Statistics (BPS), government documents, and reports from relevant institutions. Data analysis is conducted qualitatively in a descriptive manner through the process of breaking down, comparing, and interpreting various literature sources. Research results show that developing industries based on local potential, building infrastructure, improving human resource quality, creating a conducive investment climate, strengthening industrial zones, and utilizing innovation and technology are key strategies to boost regional economic growth. Industrialization increases GRDP added value through downstreaming, creates a multiplier effect on trade, services, transportation, and SMEs, and expands job opportunities. However, its implementation still faces obstacles such as limited infrastructure, low-quality human resources, limited investment, inefficient bureaucracy, and social and environmental challenges. Integrated, inclusive, and sustainable industrialization policies are needed to improve competitiveness and community welfare