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Paper short abstract:

By examining the community and economic conditions of three 'creative kampungs' in Solo, Indonesia, this paper explores the relationship between public policy, the inventiveness of informal enterprise, and sustainability.

Paper long abstract:

This paper examines the relationship between public policy and the inventiveness of informal enterprise, and asks to what degree informal innovations contribute to economic, social, and environmental sustainability. Using a mixed methodology of direct observation, interviews, regulatory impact analysis, and a survey, it analyzes three informal industry clusters in Solo, Central Java, a city that has in recent years earned a reputation as an Indonesian model city. Furthermore, it explores the economic geography of informal industry in Solo, seeking to better understand how Indonesian urban industrial geographic concepts, such as 'creative kampung' and 'sentra,' interact with government interventions. Forthcoming research will build on this paper to recommend economic development strategies in Solo in order to strengthen and support local sustainability.