Heading to the IDF 2018: Good Practice Breakthroughs at Growth Center Development

One of the vessels is unloading and loading containers at Luwuk port, Banggai, Central Sulawesi, Tuesday (15/11). Statistic Central Agency Banggai records increasing growth from a year before thanks to significant rise in mining and excavation sectors. Economic growth of Banggai regency in 2015 reaches 33.95 percent, lower than the growth rate in 2014. ANTARA FOTO/Fiqman Sunandar/pd/16.

Opening growth centers in regions, especially outside Java, is one the essential strategies to solve Regional Disparity. Indonesia has developed various kinds of growth centers, including Kawasan Pengembangan Ekonomi Terpadu (KAPET) or Integrated Economy Development Zone, Kawasan Ekonomi Khusus (KEK) or Special Economy Zone, Kawasan Perdagangan Bebas dan Pelabuhan Bebas (KPBPB) or  Free Trade and Free Port Zone, Kawasan Industri (KI) or Industry Zone, Kawasan Strategis Pariwisata Nasional (KSPN) or National Tourism Strategic Zone. Those centers in fact don’t always yield desired outcomes in spite of initial high hopes they will spur economic growth in their surroundings. As a description, from 12 decided KEK, only four of them; KEK Sei Mangkei, KEK Tanjung Lesung, KEK Mandalika and KEK Palu, that have been operational. On the other hand, two already operating KPBPB, Batam and Sabang, have yet to produce optimum results.

There are several challenges that must be faced in evolving growth centers out of Java, such as low investment attraction and private participation; weak coordination among institutions; limited finance and market information; less utilization of natural resources as industry raw material input; low competency level from local workforce; inadequate intra and inter-growth center connectivity.

In response of the challenges, hundreds of ideas and thoughts submitted to the Indonesia Development Forum 2018. A number of finalists give solutions to evolve new economy development centers to overcome gap in Indonesia.

One of them is Amalia E. Maulana, lecturer of Bina Nusantara University. Her paper titled “Contextual Micro, Small and Medium Scale Enterprises Development Program via Ethnography Study and Crowd Understanding” contains ideas using ethnography study to expand micro, small and medium scale businesses in Indonesia. Amalia is certain the method will help the enterprises entering international market because this method studies consumer behaviors.

Sara Lawrence, Senior Manager at RTI Internasional, has an old idea on a new innovation on juxtaposing academicians from Indonesia’s universities to support regional economy development through “New Metrics Field Guide”. In her paper titled “How Engaged Are Indonesian Universities? Redirecting Academia Based on Regional Innovation Systems”, Alexander explains New Metrics is able to assist campuses collecting data and showing their innovations when contributing in promoting regional economy.

Meanwhile, program executive at NOG of Wallacea Palopo city, Afrianto, has an idea about PRO-SUER-based public economy that may create new economy growth. He uses PRO-SUER to call Program Penyedia Sarana Ekonomi Rakyat or Program of the Public Economy Facility Provider. PRO-SUER is carried out by applying participative and collaborative approaches that see every activity execution within the program originates from public initiatives and aspirations.

PRO SUER, according to Afrianto, becomes main program that provides active service for each individual and group when doing business activity. PRO SUER is technically developed by forming joint business house in community spots, the end results are top products and new business activity disbursement in various places.

While the previous titles are relatively general or macro for Indonesia, Arwi Yudhi Koswara, lecturer of Regional and City Planning of Sepuluh November Technology Institute, has different point of view. In his paper, “Developing Economy from Local Red Durian in Banyuwangi”, Arwi sees thousands harvested red durians in Banyuwangi regency can make it as new economy growth center. Arwi applies Delphi analysis to examine four ways to develop the local durian-based economy. The four methods are support from resources, cluster forming, the increase of economy benefits and marketing.

For the supports from resources method, Arwi suggests providing red durian-based special trainings on cultivation and post harvest ventures. The forming of red durian mop clusters in Banyuwangi regency can be kicked off by making Songgon district as durian horticulture center, creating partnership, until creating cooperatives among red durian farmers.

Weaving partnerships with traders and tourism tour agents is a way to make public campaigns on the additional benefits of red durian. Marketing red durian mop can be done by making use of integrated event all over Banyuwangi at Songgon village, Songgon district, as the marketing center of red durian, as well as utilizing banyuwangi-mall.com as a way to improve the promotion and marketing of the regency’s red durian.

Besides those ideas, a number of interesting thoughts from finalists are worthy of noting. For instance, the paper from Muhammad Ilham Ilham Maulana titled “PPP as a Financing Scheme for Supporting Infrastructure in Special Economic Zones” that suggests cooperative project between government and private sector to support new economy growth centers.

A paper titled “Economic Zones: Pathways to Develop National Technological Capability” from Karina Miaprajna Utari conveys thoughts to push industrialization in Indonesia by stressing on learning and technology innovation.

Those papers will be presented at the Indonesia Development Forum 2018 that culminates in 10-11 July 2018. IDF 2018 is a forum initiated by the National Development and Planning Agency and is supported by the Australian Government through Knowledge Sector Initiative. The result of the forum will be used as inputs to formulate Medium Term Development Plan 2020-2024.

Other papers that will be presented are written by Goldy Fariz Dharmawan, researcher of the SMERU RESEARCH Institute, titled “Synchronizing the Job Market: The Analysis of the Vocational Schools Rule amidst Developing Labor Market in Indonesia”; Eko Budi Kurniawan, Head of the Infrastructure Development of Metropolitan Zone Division of the Public Works and Housing Ministry, titled “Understanding The Roots Of Indonesia’s Regional Disparities: Towards Better Growth Center Based Development Strategies”.

There are also other speakers, who discuss topics on Growth Development Center, Challenges and Good Practices. For instance, Master candidate of Public Policy from Harvard Kennedy School of Government, Dimas Muhamad, who writes “When Made in Indonesia No Longer Solely Means Made in Java: Invigorating Manufacturing Beyond Java as the New Engine of Growth in Bridging Indonesia’s Development Gap“. Then, Wini Widiastuti, an employee of the Statistic Center Agency of the West Nusa Tenggara, who delivers her thoughts in “Are Wealthy Regions Also Entrepreneurial? The Case of Indonesia”; and also a teacher from state-owned senior vocational school SMKN 1 Cikarang Barat Sri Sarjana who writes “Industrial Estate Development: Challenges And Opportunities In Strengthening Competitiveness Of Manufacturing Industries”.