Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Synergy Model of Local Development Planning in Regency
and City with the Development of Java Economic Corridor for
Supporting Master Plan for the Acceleration and Expansion
of Indonesia’s Economic Development (MP3EI)
Oman Rusmana, Eko Suyono, Warsidi and Abdul Aziz Akhmad
Indonesian government has announced the Master Plan for the
Acceleration and Expansion of Indonesia’s Economic Development
(MP3EI) in May 2011. The MP3EI is a very ambitious plan. It aims
to propel Indonesia into the top ten economies and raise per
capita from US$3000 to US$15,000 by 2025. The policy rests
on three main pillars: establishing six economic corridors based
on the comparative advantage of the different regions of Indonesia;
promoting connectivity within Indonesia and the ASEAN region, as
well as improving human resources and science and technology.
These MP3EI has been followed by discussion surrounding the
implementation and feasibility challenges likely to be faced by the
MP3EI. The fact that such an overwhelming amount of interest has
been generated about the MP3EI shows the willingness of
stakeholders to take part in realising the success of the policy. It
also demonstrates that not enough attention has been paid to
implementation mechanisms and frameworks during the design
phase of the MP3EI itself. Implementation of the MP3EI document
itself dedicates a relatively short space to map out the
implementation and monitoring of the policy. This ambitious policy
needs a strong implementation strategy to ensure its success.
At the local level, there are barriers to the implementation of the
MP3EI: a lack of socialisation and awareness; unclear synergy
with the RPJMD (Indonesia’s local long term development plan);
needs for both regulatory and institutional reform. We have
proposed two alternative model that will ensure the implementation
will be success and more participation from local government. The
first model was initial model of MP3EI that focused planning
process in Central Government. The second model will be
integration of planning process into provincial, and city or regency
planning process. The third model, the central government role will
support Cooperation Initiative between Regional Province,
Regency and City. The idea of the model come from a lack of
socialisation and awareness, synergy model in the development of
Jawa Barat and Jawa Tengah, and synergy model of bilateral and
multilateral local government.
Keywords: development, planning, synergy, MP3EI, local government.
Background
The Master Plan for the Acceleration and Expansion of Indonesia’s
Economic Development (MP3EI) is the government’s most prominent economic
__________
Oman Rusmana, Eko Suyono, Warsidi and Abdul Aziz Akhmad, Jenderal Sudirman University
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
development policy in the last decade. This ambitious policy aims to leapfrog
Indonesia into the ten biggest economies by 2025, by increasing GDP to US $4.5
trillion as well as by increasing GDP per capita income from US $3000 now to US
$15,000.
The total investment required for the six corridors is Rp. 4,012 trillion. From this
total, it is expected that the Sumatra Corridor will receive Rp. 714 trillion (18% of total
investment), the Kalimantan Corridor will receive Rp. 945 (24% of total investment), the
Java Corridor will receive Rp. 1,290 trillion (32% of total investment), the Sulawesi
Corridor will receive Rp. 309 trillion (8% of total investment), the Bali-Nusa Tenggara
Corridor will receive Rp. 133 trillion (3% of total investment) and lastly the PapuaKepulauan Maluku Corridor will receive Rp. 622 trillion (15% of total investment).
Under Presidential Regulation No. 32/2011, President Yudhoyono launched the
MP3EI policy in May 2011 and the policy was supported by sectoral ministries, local
governments and state- owned enterprises. The MP3EI has huge potential to develop
economic growth through the promotion of six economic corridors: the Sumatra
Economic Corridor, the Java Economic Corridor, the Kalimantan Economic Corridor,
the Sulawesi Economic Corridor, the Bali- Nusa Tenggara Economic Corridor and the
Papua- Kepulauan Maluku Economic Corridor.
The MP3EI policy centres around three main strategies: to develop the six
national economic corridors, to speed up the development of human resource capacity
and national science and technology which will feed into the long term support
of such accelerated economic development.
Fundamental to the MP3EI policy is the importance of promoting a new way of
thinking- “Not Business as Usual”. This new ideology is to come from increased
collaboration and inputs from national government, local governments, state-owned
enterprises, private sector companies and local communities.
The Master Plan identifies eight primary programs and 22 primary activities as
the focus of national development. The eight primary programs are: agriculture, mining,
energy, industrial, marine, tourism, telecommunications and the development of
strategic areas. The strategic initiative of the Master Plan is to encourage large-scale
investment in 22 primary activities: shipping, textiles, food and beverages, steel,
defence equipment, palm oil, rubber, cocoa, animal husbandry, timber, oil and gas,
nickel, copper, bauxite, fisheries, tourism, food and agriculture, the Jabodetabek area,
the Sunda Straits strategic area, transportation equipment, and information and
communication technology.
The Indonesian Government has limited funds to finance development through
its State Budget (APBN). According to the MP3EI, 44% of the total investment needed
is expected to come from the private sector and state-owned enterprises. Under the
MP3EI, all existing regulatory frameworks must be evaluated, and strategic steps
must be taken to revise and change regulations in order to attract such support
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
from investors. Incentives will be implemented on tariffs, taxes, import duties, labor
regulations, licensing and permits and land procurements. In order to achieve these
goals, the central and local governments must build a stronger link within and beyond
the centers of economic growth.
The Committee on Economic Development Acceleration and Expansion of
Indonesia 2011-2025 (KP3EI) is an institution established by the President of the
Republic of Indonesia on May 20,2011 to coordinate the implementation of MP3EI.
The Master Plan recognises that Indonesia must overcome a number of challenges: a
failure to achieve value-added input in the agricultural and extractive industries; a
developmental gap between western and eastern Indonesia; the lack of infrastructure
support generally; a lack of connectivity between regions; inadequate quality of human
resources and rapid urbanisation.
Although the policy lays out a promising plan to advance Indonesia’s economy,
it has often been noted that its Achilles heel is in the implementation stage. Others
have noted that the Government’s previous large scale development acceleration
programmes in Indonesia have not fulfilled their promises, such as the 2007
Presidential Instruction on real sector development acceleration and the 2010
Presidential Decree on acceleration of poverty reduction.
The steps to realise the Master Plan include: bureaucratic reform, including the
legislature and judiciary, tax reform and incentives, the creation of special economic
zones in each of the corridors, improved shipping and airline capability (ports and
airports) to promote connectivity, and increased high school and vocational training to
improve human resources. Many elements in the plan are unique points of departure
for Indonesia. For example, the Master Plan states that the Government bureaucracy
will support the needs of business and provide equal treatment and fair opportunities
for all businesses, Government loans will be used to finance investment instead of
routine expenditures, such as subsidies and subsidies will be targeted at the
disadvantaged rather than for goods, taxes will be on Indonesian sourced income and
not worldwide income, taxes will be based on consumption rather than value added
taxes, and employment regulations will be supportive of employers as well as
employees.
Research Method
A. Research Approacah Method
Method used in this research were suryey to the Local Government Planning
Body in Banyumas Regency, Ciamis Regency, Banjar City and Salatiga City, with the
qualititative paradigm approach.
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
B. Research Design
The study was designed in the form of research and development (research and
development) that are multi-years, the plan will be carried out in two stages (two years)
to produce the targeted product. This study will take a series of cycles of activity ranging
from the need assessment (mapping)-action-reflection-evaluation and innovation: in a
series of systematic research. Broadly speaking, the research stages include a needs
assessment to identify the problems faced by both local government district and city
planning to synergize with other areas in the economic corridors of Java, to create a
model policy planning with planning synergy between central and local government,
implementation of planning policy model the synergy between development planning
and local government.
C. Research Location
Location of research is in the district of Banyumas, Salatiga on Central Java Provincial
and District Ciamis and Banjar for the region of West Java Province. All of the area as a
representation of counties and cities in the economic corridor of Java.
D. Data Collection Method
Data collection methods or instruments used in this study are:
1. Observation
2. Questionnaires and interviews
3. Conducting interviews with local government officials and urban districts in the
corridor of Java.
4. Focus Group Discussion (FGD) with the government officials of the district / city in
the corridor of Java.
5. Analysis and design of policy tools to arrangement of synergy model of intra-regional
development planning in the corridor of Java.
F. Method of Processing and Data Analysis.
The method of research has focused on the potential ability of each region in the
economic corridor of Java. This will be done by exploring the information from a variety
of data sources consist of informants in the field, places and events as well as
documentation / related records that exist in local government district / municipality in
the economic corridor of Java. What this study is the local government district of
Banyumas
regency
Ciamis,
Banjar
and
Salatiga.
In addition it will also be conducted in-depth interviews (depth interview). Interviews will
be conducted openly and freely, and focused on the issues under study. Data collection
through interviews would use voice notes recorder (tape recorder) to assist researchers
in reducing errors and merekem information intact. To help field observations will be
used field notes (field notes) and the photographer's tool, while to avoid distrust the data
will be used triangulation techniques to check that the data source data from several
different sources about the same problems. To get the truth of the information, will be
rechecked to recent data reflecting the reliability of the interview data. Other data
collection techniques to be used as Focus Group Discussion (FGD) or focus group
discussions conducted by the informants as a group, while the role of the researcher
only as a facilitator during the discussion.
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
The data will be analyzed with an interactive model analysis techniques (Miles and
Huberman, 1992), which includes: (1) data collection, (2) data reduction, (3)
presentation of data, and (4) drawing conclusions (verification). In this technique, the
analysis will be carried out continuously (continuous) of the initial data collection until
the verification process which lasts from the beginning of the study until the study is
completed. Thus the process of analysis and test interactive occur between
components in an ongoing cycle in a long time. By using this analysis technique has
been tested conclusions selectively and accurately (Sutopo, 2002).
The Synergy between Planning Documents
As a document, MP3EI contains various guidelines for the development of more specific
major economic activities which are equipped with infrastructure needs and
severalrecommendations for changes/revisions of legislations. Nevertheless, synergy
between the planning documents is required to guarantee successful development.
Picture 1 Intial Model of The Connection between MP3EI and Indonesian System of
Planning
Based on these results, the conditions in the area socialization MP3EI Ciamis,
Banyumas, Banjar, and Salatiga inadequate and implementers on the ground indicate
the direction of misleading MP3EI development and planning documents in relation to
the Local Government District / City. This condition is in accordance with earlier models
that only take into account MP3EI and considering the budget document at the central
level. National development planning at the district level and the city has not put MP3EI
as a reference in planning documents either the government or the Work Plan (RKPD)
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
in 2012 and the Medium Term Development Plan (RPJMD). This condition shows lack
of support from the local government in supporting the success of the work plan MP3EI
central government programs. Therefore MP3EI planning model that only a part of
central government planning, the planning needs to be improved by involving the local
government level, specifically to accommodate the needs of provincial and district / city.
For that, it is in order to incorporate the role of regional development planning can be
formed through the formation MP3EI KP3EI extension (Committee for the Acceleration
and Expansion of Indonesia's Economic Development) by forming a working team at the
Provincial, District or City. This alternative can be described in Model 1 MP3EI
Integration into the System Planning and National Development. But the weakness of
this team is the formation of a massive organization in these areas, and of course a
great avenue, while KP3EI team effectiveness in this area is not necessarily reliable.
Renstra KL
Pedoman
Renja KL
Pedoman
RKA – KL
Rincian APBN
Diacu
Diacu
Diacu
Pemerintah Pusat
Masterplan Percepatan
dan Perluasan
Pembangunan Ekonomi
Indonesia
Rencana Aksi MP3EI
Diacu
Diacu
Diacu
Diacu
RPJP Nasional
Pedoman
RPJM Nasional
Dijabarkan
RKP
Pedoman
Diacu
APBN
Diacu
Diselaraskan
Melalui Musrenbang
Diperhatikan
RPJP Daerah
RAPBN
Pedoman
RPJM Daerah
Dijabarkan
RKP Daerah
Pedoman
RAPBD
APBD
Pemerintah Daerah
Diacu
Diacu
Dokumen Implementasi
MP3EI Daerah Kabupaten/
Kota
Diacu
Diacu
Diacu Diacu
Pedoman
Rencana Aksi MP3EI
Daerah
Diacu
Diacu
Renstra SKPD
Pedoman
Renja SKPD
Pedoman
RKA – SKPD
UU SPPN
UU KN
Picture 2 Integration of MP3EI into Indonesian Planning System
Rincian APBD
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
There are some cases synergy development between regions, with regional marketing
patterns that are not guided by SPPN and patterns of development that integrates the
development of synergies between the regions on SPPN. Regional marketing patterns
encountered dala pattern of cooperation between regions Barlingmascakeb,
Subosukawonosraten, and Kartamantul. Regional marketing patterns with no result in
the integration of development planning documents. The pattern of development that
integrates the development of synergies between the regions on SPPN can be found on
the Kuningan Summit cases in West Java. The pattern of development synergy is a
pattern that matches serve as a model of synergy between the regions within the
framework of Development MP3EI. Kuningan Summit pattern involves cooperation
between the border of Central Java - West Java, with the support of provincial, district
and city on the border. When referring to the model of synergy, then we can develop a
model 2 Regional Cooperation Initiative provinces, districts and cities. The advantages
of this model are derived from regional cooperation initiatives, supported by the
provincial and later considered by MP3EI.
Renstra KL
Pedoman
Renja KL
Pedoman
RKA – KL
Rincian APBN
Diacu
Diacu
Diacu
Rencana Aksi MP3EI
Diacu
Diacu
Diacu
Pemerintah Pusat
Masterplan Percepatan
dan Perluasan
Pembangunan Ekonomi
Indonesia
Diacu
Tugas Perbantuan
Diusulkan
RPJP Nasional
Pedoman
RPJM Nasional
Dijabarkan
RKP
Pedoman
RAPBN
APBN
Proyek Infrastruktur
Lintas Daerah
(Regional)
Usulan Proyek MP3EI
Lintas Daerah (Regional)
Tim Kerja Koridor
Ekonomi
(Fasilitator)
Koordinasi
Pemerintah
Kabupaten/Kota I
Pemerintah
Kabupaten/Kota II
Pemerintah
Kabupaten/Kota III
UU SPPN
UU KN
Picture 3 Cooperation Initiative between Regional Province, Regency and City
Pemerintah Daerah
Badan/Forum Kerjasama
Antar-Daerah
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Conclusion and Recommendation
A. Conclusion
Based on the previous explanation especially from the empirical data validation as
described in the discussion, the study concluded the following facts:
1. The spirit and the idea that underlies MP3EI not fully understood by the unit of local
government, especially in the districts / cities of the region are not included in the
scheme MP3EI project. For areas whose territory included in the project scheme,
MP3EI more understood as a commitment of funding from the central government
towards infrastructure projects currently being implemented. In fact, the success of
MP3EI requires the support of all stakeholders, including local governments that are not
included in the scheme MP3EI project, State-Owned Enterprises (SOEs), RegionalOwned Enterprises (enterprises), and private parties. MP3EI also not solely the
development of basic infrastructure. The development of the economic potential,
national connectivity, and national science and technology is a key strategy MP3EI
certainly more than just the fulfillment of basic infrastructure.
2. As a consequence of the lack of understanding of the area of the strategy and action
plan MP3EI, this study also found a lack of harmony between MP3EI action plans with
development programs and activities in the area. RPJMD and RKPD formulated in the
districts / cities do not take into account the action plan set out in MP3EI. Even for areas
of the region in the scheme of the project, the integration plan was yet to be seen. No
action plan MP3EI integration with development programs and activities in the area due
to the lack of total understanding or partial understanding of the MP3EI area.
3. Apart from the lack of integration and lack of understanding, the reality independently
of local government has developed an inter-regional cooperation initiatives that reflect
the regional vision, not merely regional, in the planning and implementation process.
B. Recommendation
Based on the findings of empirical facts above, the study recommends the following:
1. The most urgent highlighted from the results of this study are not integrated between
MP3EI with the existing planning system. Departing from these facts, this study
proposes strengthening the legal umbrella MP3EI a government regulation, so the
position must be aligned with the National RPJP.
2. MP3EI as planning documents should also be derived in the form of documents and
implementation in each region, aligned with the focus and action plans in their
respective economic corridors. Given MP3EI national scale was developed in a bottomup, implementation documents can be developed by each local government to focus
attention and action plan for economic corridors in which local related local
governments.
3. In addition to the implementation of the document, this study also proposes and
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
create a prototype system of regional development planning as a tool to communicate
and coordinate the planning and implementation of inter-regional development.
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