The research objectives is to analyze agglomeration over the company’s productivity of 2 important factors of agglomeration: interindustry (localization) and cross industry spillover (urbanization) and review its effect if those agglomeration derives from upstream or downstream industry. In addition to it, this research is determining on how geographic distance and economic distance against spillover strength. By means of the company‘s level panel data of heavy and medium industrial survey result by the National Statistical Bureau in local regency/municipality level ranging from 2008 to 2015 and 2010 output input table to see the vertical industry relation, the outcomes may show that both company accepting positive and significant impact on productivity spillover of the same industrial sector, and other industrial sector in the same region. Nevertheless, the more far the area geographically, the less its impact. Productivity spillover is also determined from upstream dan downstream industries concentrating in the same region. However, the economic distance effect is not identified on the upstream level. Hence, the policy implication of the research result is to encourage and shaping the downstream industries, facilitate technology transfer from upstream companies, and periodically evaluate industrial estates.