The main purpose of this thesis was to analyze industrial location factors and their influence on the industrial development of a particular area. The first half of the thesis contained a review of the literature on the location of industry followed by an analysis of some of the basic industrial location factors which have been instrumental in the location and development of American industries. In the second half of the thesis an attempt was made to relate these findings to the situation in Indonesia, and to evaluate any correlation or disparity which may exist. It was found that in general the same industrial location factors would apply in both cases, but that their relative importance would vary. This could be explained partly by the difference in the form of government of both countries, and partly by the difference in the stage of industrialization. Other factors such as the nature of the people was also important. Indonesia's industrial location factors were then considered with respect to their potentialities to aid in the industrial development. It was found that Indonesia's natural resources could provide a basis for this development, but that much would still be required to transform them into usable resources. Indonesia lacks many basic facilities. It has little technical and managerial skill and meagre capital, all of which limit industrial growth. This situation is aggravated by the presence of some of the more fundamental economic problems, such as the problem of population, the problem of low income, and also the problem of low productivity. A solution to these problems must be found before Indonesia can begin to develop industrially. / Business, Sauder School of / Graduate