In This research already tried to grouped the results and the policies recommendation, between infrastructures developments and the space arrangements. Maybe there were a correlation with the background, maybe it won’t. The use of land can be approached from the use of forest for agriculture and mining, while the rest of land which are non forest land become industries and small and medium enterprises areas. Based on Econometrics Analysis, there were some result as that are : valleys and slopes had negative but significant relations at alfa 1 % to productivity of Textiles and Appareal Industries. While nominal wages also showed the same result. There are several variables one of which isthe minimum wages which is a control variable that is affected by the foreign direct investment (FDI) inflows. On the other hand, the electricity variable, CPI, and dummy of island or islands spatial planningare variables affectsignificantly to the flow of FDI by industry in Sumatra, Java, and Sulawesi. At the same time, other variables, namely road and labor, do not significantly affect the flow of FDI byindustry in those three islands. In therm of arrangement policies related to permit and funding, the Central and Local Government have to make priorities based on significancies variables impacted productivity of Textiles and Appareal Industries. Which are: increasing nominal wages, reducing the industries locations on the valleys and slopes to control the fluctuation. In formulating licensing and funding policies, the central government and local governments need to scale up priorities according to the significance of the variables affecting FDI flows and should also prioritize increasing the amount of electricity distribution to industry and CPI to encourage FDI by industry inflows in Sumatra, Java, and Sulawesi. In addition, government should increase the minimum wages and limit the area of industrial area to control the flow of FDI by industrial sector in Java, Sumatra, and Sulawesi.

Keywords : Regional Economic Activity : Growth Development, Environmental issues, and Changes, State and Local Government : Intergovernmental Relations, Wages, Compensation, and Labor Costs, Labor – Management Relations, Trade Union, and Collective Bargaining, and Development Planning and Policy.