Since West Pasaman was established as a separate administrative district from Pasaman, West Pasaman has experienced rapid economic growth and industrialization. Location Quotient and Shift-Share analysis indicate the comparative advantages of Pasaman are in the sectors of (i) farming forestry and fishing and (ii) ago-industries and that its economic growth is primarily determined by external factors. The main agricultural production in the area is oil palm fruit that is processed to produce crude palm oil (CPO) and is driven by large companies who own the plantations and processing factories. Future development strategies for West Pasaman must prioritize development of this sector and CPO production, but both sectors need the support of a growth in infrastructure particularly transportation and industrial areas. Local government also has an important role in development, so must continue to improve performance in this supportive role. Keywords: Agro-industry, infrastructure, industrial parks, local government performance.

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