In general, economic development in some regions in Indonesia has been increased, we can observe that from several things: The rate of population and product growth per capita, increased productivity, a high rate of structural change, urbanization, and the occurrence of a growing flow of capital goods. However, not all of the numbers of economic increases occur evenly in each region, there are still many regions in Indonesia that have not met the criteria as areas with good economic development, one of the causes is about the concentration of economic activity only in one area, these activities invent a phenomenon that called agglomeration industry. This study aims to identify the phenomenon of Industrial Agglomeration and its implementation and its effects on the economy that occurs in several regions in Indonesia, besides this research will also look at the advantages and disadvantages of Industrial Agglomeration it self, where this can be used as a sign of economic development in Indonesia. an area or not. The objectives of this research are: (1). The creation of industrial downstreaming, (2). Facilitating technology transfer from the Upstream Industry, and (3). Carry out periodic Industrial Agglomeration assessments.