Rural Industry Clustering Towards Transitional Rural-Urban Interface

Abstract

Rural industrialization seems to be attractive for policymakers looking for counter-urbanization efforts – and nowadays peri-urbanization forces – in line with growing decentralized autonomy of local Indonesian authorities. To promote better rural development, an extended growth pole strategy has been introduced as well as an agropolitan approach and its derivatives. In fact, there is little evidence for their success; rural autonomy remains elusive instead. However, institutional capacity of rural authorities and organizations still fails to deliver rural development initiatives properly. This research was aimed at examining this issue by looking at rural industry clustering in the Greater Solo Region, Indonesia as a response against extended urbanization in peripheral regions. The study focused on batik industry clustering in the rural periphery of Solo City, which provides a transitional rural-urban interface necessary to drive rural independence. Having inherited the batik tradition underpinned by an agriculture-led peasant society, the rural batik industrialization has reinforced the socio-economic transition from a purely agrarian society to a mixed rural-urban society. This study employed an explanatory sequential mixed-method approach, where a quantitative spatial analysis was used to identify the expansion of urbanized areas in villages, and a qualitative case study analysis to figure out the socio-economic shift in rural livelihoods. The results showed that physical spatial changes in these villages do not conform to the socio-economic change into an urban industrial society in a substantial way. Rather, the local villagers preserve an informal economy to support the existence of a mixed rural-urban livelihood.