In contrast, the more outward looking, export oriented growth and industrialization strategy 

relies more on market forces to determine the flow of resources into and out of economic 

activities and sectors.  While distortions of resource incentives do occur under an export 

oriented development and industrialization approach, the reliance on exports implies 

competition with foreign producers in world markets, and hence a stronger incentive for 

producers to be economically efficient.  Because the limits of the world market, in contrast to the 

domestic market, are not so restricted, a slowdown in expansion of export oriented industries 

due to saturation of markets is highly unlikely.   

Two conditions determine the extent to which protection represents a problem for sustainable 

resources management.  First is the level of protection for natural resource sectors.  Second is 

the relative or disproportionate protection among natural resource sectors, semi finished goods 

sectors, and finished goods sectors incorporating higher value added levels.  Ideally, an 

economy supportive of sustainable resources management would provide value added 

incentives, which would encourage further industrialization of the economy for the export and 

domestic markets. 

Urban societies appropriate capital from other regions to support current consumption levels 

especially within urban settings.  As population levels increase, predominantly in urban settings, 

and consumption per capita increases with economic development, can current trends in 

resources appropriation continue and still provide sufficient services for future generations?  

Who in society appropriates what resources, and what are the social equity issues of consuming 

resources at a non sustainable rate?  These are the real regional development and resources 

management challenges that remain outstanding for sustainable development and resources 

management.  The appropriation of capital between regions occurs within Indonesia, with the 

natural resources rich provinces outside Java, i.e. the  Outer Islands , supplying increasing 

amounts of raw materials to the more industrialized economy on Java.  

One regional development challenge facing Indonesia is its ability to promote and create greater 

industrialization in the Outer Islands.  These regions have continued to provide the natural 

resources to fuel Java s industrialization and ability to earn much needed export income.  The 

level of capital appropriation is an inadequately addressed planning issue within regional 

development planning and policy formulation. 

1.2.4  Multi stakeholder Participation  

Involvement of the public, local communities, or  stakeholders  in decision making is called 

participation.  Since the 1960 s, methods for involving the public in decision making, especially 

in environmental and natural resource fields, have continued to evolve.  Unfortunately, the 

concept of public participation is frequently misused and underlying processes are poorly 

understood.  As a result, anything that involves consultation with the public has come to be 

referred to as public participation.  

However, effective participation is rare. The following sections describe what effective 

participation requires and how this may be developed.  A first attempt to understand public 

participation in decision making was summarized by Arnstein (1969) who raised the question, 

"What is citizen participation and what is its relationship to the social imperatives of our time?"  

These two questions remain relevant to the challenges of public involvement facing Indonesia s 

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