A center for culture and manufacturing excellence
YOGYAKARTA IS RULED DEMOCRATICALLY BY A HEREDITARY SULTAN WHO BELIEVES THAT HIS PEOPLE'S SKILLS AND EDUCATION ARE THE CHIEF ASSETS OF HIS BEAUTIFUL PROVINCE

HAMNEGKU BUWONO Governor of Yogyakarta Province

The cultural capital of Java, Yogyakarta, is the second-smallest province in Indonesia after the city of Jakarta. It is a popular destination for foreign tourists, largely because of its heritage and beautiful countryside.
Located in the middle of the island, Yogyakarta is surrounded by Central Java, with an 80-mile strip of coastline along the Indian Ocean to the south. The province, which features one of the most active volcanoes in the world at Mount Merapi, is one of the most densely populated, with some 3.5 million people.

It is unique in many other ways. Yogyakarta is the only independent sultanate in Indonesia – it is controlled by sultan, Hamnegku Buwono X, who is also the Governor and leading voice of the region. Mr. Buwono believes that this political structure helps provide balance and continuity in the area.
Yogyakarta is famous in Indonesia for education, with almost 80 higher education centers, universities and academies. Students from all over the country and abroad study in the province, which is home to the largest and oldest university in Indonesia.

Mr. Buwono is working on a strategy to enhance the province’s position as a leader in the education sector. He aims to increase collaboration between both local and overseas institutions in fields such as research. He also wants to contribute to the central government’s decision making process in order to alter policy and allow foreign partners to invest in education. “There should be a change because globalization is on the way and these partnerships would be very useful for us,” he says.
Although investment in any industrial activity is possible, Mr. Buwono says that there is an agenda in place to enhance the development of mainly small- and medium-scale businesses rather than heavy industries.
“This is because domestic industry is also our strength,” he says. “The most important thing is that I don’t want to change Yogyakarta into a heavy industrial city. Yogyakarta is a cultural and educational city.”

SULTAN OF YOGYAKARTA Hamnegku Buwono X and his wife.

In recent years, the local economy has moved gradually from agriculture towards light industry, although Yogyakarta still accounts for about 14 percent of the entire country’s food stocks.
Popular small-scale industries include the production of furniture, handicrafts and garments – local designs are among the best-known in Indonesia – plus traditional Javanese leather manufacturing. Some 45 percent of the province’s exports are destined for the US market.
“Provinces outside Java mostly have their own natural resources,” adds Mr. Buwono. “On the island of Java, the East and West provinces are growing faster because they are industrial areas. Yogyakarta itself is relatively small and has few natural resources. Our main strength is our laborforce. So I prefer industries that fit with our characteristics, and do not cause any pollution to the environment.”

He welcomes investment in agricultural-based industries such as food processing and in the development of handicrafts. But there is also room for more advanced, high-tech industry, such as electronic components facilities, making use of the region’s extensive skills base. A few years ago, the sultan was able to attract a General Electric light-bulb factory to the region, which is now a profitable operation.
In the long-term, Yogyakarta is hoping to establish itself among international companies as a center of excellence for manufacturing, design and light industry. It is already raising its profile overseas, and looking to set up a twinning arrangement with Sacramento, California, as well as various other cities around the world.
Another of the province’s critical advantages, says Mr. Buwono, is its transport links. “Because Yogyakarta is in the middle of Java, transportation from east to west will always pass through the province.”
But he adds that the government is prepared to help in building additional roads if transport becomes a cost burden to the would-be investor.

The tourism sector is buoyant and the province boasts hotels owned by many of the world’s leading chains. A large number of international visitors include a stop off in Yogyakarta on their itineraries, along with Jakarta and Bali. There are several direct flights daily from Jakarta, Bandung, Surabaya and Bali to Yogyakarta and there is also an excellent train service.
Mr. Buwono believes that in the future it will be necessary to upgrade the status of the local airport. “I think that when Yogyakarta’s airport is an international gateway, tourism will grow substantially,” he says.
With a still-functioning royal palace in the center of town, the surrounding hillsides and plains scattered with awe-inspiring stone temples, and a thriving artistic community, Yogyakarta is the undisputed cultural capital of Java.
Mr. Buwono hopes that one day foreign embassies in Indonesia will attach their cultural missions to Yogyakarta.