The implementation of the regional autonomy as an effort to increase a welfare society, for the last 12 years had not achieved its expected results. Some regions interpreted decentralization more at administrative level with viscous political issues and tended to override the economic decentralization aspect as an effort to improve public welfare. The weakening of the regional coordination and the emergence of egocentrism of each region drew the attention of the Local governments more away from the regional and local development issues.
The purpose of this study is: 1. To identify the factors that infl uece the regions to initiate inter-regional trade cooperations. 2. To analyze the quality of these practices on their contributions to the achievement of increased agglomeration economies.