Industrialization and Land Conversion in Indonesia

Along with increasing development activities and population growth, the need for land is increasing, such as settlements, industry facilities infrastructure. On other hand, availability of relatively constant, causing scarcity or excess demand. The existence demand causes use competition, which will lead to conversion. study aims empirically examine antecedents change that occurred in Indonesia 1981-2018 period. This determine whether growth influence conversion 1981-2018. uses secondary data published by World Bank analyzes effect industrial medium high technology on Indonesia. In this study, ECM method used was Engle Granger two-stage procedure method, namely running Engle-Granger procedure. applies Error Correction Model (ECM) dynamic model. models important economic analysis because specifications are concerned formation an system related changes time. estimation, all variables must be stationary. These conditions met so estimation results not biased do show spurious regression results. prove variable has a significant short term Growth medium-high including construction (INDUSTRY) 1.64E-05 means increase 1 percent term. novelty ratio agricultural area, reversed mathematically measure