Developing Region to Reduce Economic Gap and to Support Large Environment Activities

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 540-545

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal web link: http://www.jett.dormaj.com

Developing Region to Reduce Economic Gap and

to Support Large Environment Activities

Nanik Wahyuni *, Andrey Alekseevich Kulik , E. Laxmi Lydia , K. Shankar , Miftachul

Huda⁵

Department of Accounting, UIN Maulana Malik Ibrahim Malang, Malang, Indonesia

Kuban State Agrarian University named after I.T. Trubilin, Krasnodar, The Russian Federation

Professor, Vignan’s Institute of Information Technology(A), Department of Computer Science and Engineering, Visakhapatnam, Andhra Pradesh,

India

Department of Computer Applications, Alagappa University, India

Universiti Pendidikan Sultan Idris, Malaysia

Received: 05/12/2019

Accepted: 10/02/2020

Published: 20/02/2020

Abstract

The Long Term Development Plan (RPJP) 2005-2025 emphasizes the establishment of a strong environment structure based on

competitive advantage in various regions supported by quality and competitive human resources. To create high competitiveness in

various regions, regional development approaches and strategies are not only about environment improvement, however, the equitable

development in all regions and communities must be watched over. In 2020-2024, regional development is carried out through two

main strategies, namely the growth strategy and the equalization strategy as reflected in the growth corridor approach and the island-

based equal distribution corridor. The growth strategy is the transformation and acceleration of island and island development. The

development focus is the important corridors on each island and archipelago that can drive significant growth in the next five years.

The identification of growth corridors on each island and archipelago is carried out by considering the potential of its main economic

bases outside Java. The environment bases that have been identified are natural resource processing centers, strategic tourism areas,

service centers including metropolitan areas and new metropolitan supporting cities. In this main environment base, it is necessary to

strengthen the facilities and infrastructure supply to support large environment activities, including transportation, electricity,

communication tool, and infrastructure.

Keywords: Region, Economic activities, Growth strategy, Development approaches

Introduction¹

resource producers, upstream industries, downstream

industries and local, regional and global trade centers are also

needed. Both strategies were developed to achieve the goal of

improving the quality of human resources in the two corridors,

increasing productivity and added value, reducing poverty in

all regions, and equitable distribution of development between

regions. Strengthening of governance, innovation in public

services, including village government is needed to accelerate

development in both corridors (6-9).

The equalization strategy is adjusted to the goal of

sustainable development, which does not ignore any single

community group (leave no one behind). The development

focus is the area near the center of growth that can be given

input to pursue growth in the nearest growth corridor.

Identification of equal distribution corridors is focused on

administrative areas which can be rapidly driven, by providing

basic infrastructure. The equal distribution bases that have

been identified are mainly disadvantaged areas, transmigration

areas, rural areas that function as Regency Strategic Areas and

border areas (1-5). The growth and equity strategy requires

evenly distributed primary, secondary and higher education

facilities, highly specific local research and innovation centers

to encourage regional growth improvement. In addition, the

linkages between regions and strengthened chains between

2 Regional-based development achievements

Regional-based development achievements in 2015-2019

were prepared by referring to the goals and targets set out in

the 2015-2019 RPJMN. For regional equity and inter-island

contributions, the contributions of Java Island are still

dominant and do not indicate a shift. Only the islands of

Corresponding author: Nanik Wahyuni, Department of

Accounting, UIN Maulana Malik Ibrahim Malang, Malang,

Indonesia nanik@akuntansi.uin-malang.ac.id.

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Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 540-545

Sulawesi, Bali, and Nusa Tenggara which in the end of 2018

still follow the targets in the 2015-2019 RPJMN. In the future,

the serious attention should be given to Kalimantan, Sumatra,

and Papua-Maluku which show symptoms of slowing down

Environment and Strategic Issues

Opportunities that must be optimally utilized in

developing regions to reduce inequalities and ensure equity

are:

(10-15).

The highest inequality between provinces within the island

.1 Globalization

region is Java-Bali and Kalimantan. Inequality between

villages in the island region is highest in Java-Bali, Nusa

Tenggara and Sulawesi. It is important to note that the low

level of inequality between regions does not necessarily reflect

the success of development distribution policies. However, the

low level of inequality may reflect a low and equitable level of

development throughout the region, apparently as in the

Maluku Island region.

For the indicators of poverty levels, the end of 2018 only

Kalimantan was low, the other islands were still relatively

high, especially Papua and the Nusa Tenggara Islands. In terms

of numbers, Java-Bali is home of the most poor people. The

strategy that can be taken to overcome inequality between

provinces and within the island is to encourage development

and growth centers outside Java, especially in the Nusa

Tenggara Islands, Sumatra, Kalimantan and Papua. To deal

with relatively high poverty on the islands of Papua and the

Nusa Tenggara islands, a strategy is needed to reduce it to

levels below 20 percent and 10 percent, one of which is by

expanding employment opportunities on both islands and

islands (16, 17, 19).

For regional-based sector development, strengthening

coordination between sectors and between levels of

government is needed. Urban land management must still be

implemented, including the enforcement of spatial planning,

capacity building for regional governments; and efforts to

prevent the emergence of new slums, especially in the fast-

growing peri-urban areas. The handling of slums and the

supply and increase of decent housing still need to be

accelerated.

Meanwhile, the efforts to reduce 80 underdeveloped

regencies are still constrained by the limited availability of

basic services and infrastructure facilities and economic

support in disadvantaged areas, as a result human resource

capacity and income of people in disadvantaged areas,

especially those in Papua and Nusa Tenggara optimally

improved. Poverty rates and HDI in rural and disadvantaged

areas have shown improvement (18).

Globalization offers economic opportunities that can be

utilized for economic development, namely: (1) A very open

market for export products; (2) Ease of accessing capital and

technology / knowledge originating from abroad; (3) Ease of

getting goods that are needed by the community and cannot be

produced in Indonesia; and (4) Increasing tourism activities as

well as opening up employment opportunities and also being a

place to promote Indonesian products. One of the real forms of

economic globalization is a very competitive free market.

Increasing regional competitiveness is a must to anticipate and

participate in global competition (21-25).

.2 Demographic bonus

Demographic bonus has positive and negative impacts.

Positive, the abundance of productive age population can spur

economic growth to a higher level. The negative, if this

demographic bonus is not prepared as well as possible, has the

potential to cause more labor compared to the employment

provided. The lack of employment causes unemployment

which can result poverty increase. Demographic bonus must

also be spatially viewed, given the demographic bonus for each

province with a different beginning, end, and final. The

resource distribution needs to be ensured on time, to anticipate

the final demographic bonus in each province (26-28).

.3 Urbanization

Urbanization is not only a matter of displacement, but also

a change in work patterns from being agriculture-based to

being industry-based and services-based. The agglomeration

or concentration of population in urban areas can provide

various benefits such as the ease of finding production inputs

and can facilitate people to exchange information and learn

from one another, which could stimulate new ideas and

innovations. Between 2010 and 2018, Indonesia's urban

population increased by 27 million with a growth rate of 2.5

percent. This increase in urban population can certainly put

pressure on urban areas and must be anticipated by the

adequate basic infrastructure support/supply. On the contrary,

the pressure of the urban population will reduce welfare and

cause urban areas to be non-inclusive and uninhabitable. The

benefits of urbanization can only be enjoyed by a handful of

urban community members (29, 30).

The development of growth centers in 2015-2019 began

with the planning stage for 10 metropolitan areas (WM), 11

new cities and 11 KEK. Furthermore, in the end of 2018, three

WMs have been in the stage of legalization (Surabaya, Jakarta,

Bandung), two WMs are in the drafting phase of the

Presidential Decree (Manado and Banjar), and one WM is in

the stage of preparing technical material (Palembang). The

investment in urban infrastructure is directed to the 10 WM.

For KEK, as of the end of 2018, nine KEK have been

operational and equipped with supporting infrastructure inside

and outside the KEK. What is still needed is anchor industries

that can ensure the industry downstream operations and to

ensure increased investment in the region (20).

.4 Global Commitment

Indonesia's commitment to global agreements needs

special attention. This global commitment can actualize

Indonesia to unite steps towards a common goal and can also

open up opportunities for development funding sources.

.5 Sustainable Development Goals

The 2030 global agreement, the Sustainable Development

Goals (TPB), has been established through Perpres 59/2017

which consists of four pillars, 17 national goals and indicators.

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Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 540-545

These predetermined indicators receive special attention and

integrated in RPJMN 2020-2024. Special efforts need to be

made to ensure regional development targets which are in line

with TPB and use the same indicators. The similarity of these

indicators will make it easier for Indonesia in the process of

reporting TPB achievements to the global arena (31).

The establishment of Law No. 23 of 2014 concerning

Regional Government raises new challenges in managing

decentralization in Indonesia. The Good implementation of

decentralization and regional autonomy will make local

governments develop more responsive and more appropriate

goals based on the needs in each region. However, on the other

hand, the implementation of decentralization and regional

autonomy policies is currently still very dependent on the

central government, especially in funding transfer, regulation,

and policy arrangements. In addition, in terms of funding, the

central government also has limitations, while local

governments are not yet fully able to access other sources of

funding except the government budget. In terms of regulatory

and policy settings, there are still many laws and regulations

derived from Law No. 23 of 2014 which has not been

determined. Some regulations also indicate that they are not

yet harmonious with each other causing regional and village

governments to hesitate or have difficulty in implementing a

national policy. The implementation of national policies in the

regions has not been optimally implemented, for example the

implementation of SPM, increased regional cooperation, and

increased ease of investment licensing, which is also partly

caused by the low capacity of local government on various

sides, including institutional, financial, apparatus capacity, and

obstacles from political dynamics local, including the sub-

optimal concern of regional and village government (38-40).

.6 Reducing greenhouse gas emissions

The global commitment to reduce greenhouse gas

emissions has shaped an awareness on a global scale that the

earth must be cared for and protected for its environment for

the sustainability of life. This awareness demands regional

development policies and strategies to adopt the principle of

low emissions development. The efforts to realize sustainable

regional development policies and strategies are carried out by

screening regional development programs with development

constraints so that they can consistently reduce GHG

emissions from the BAU level and do not exceed the carrying

capacity of the environment (32).

.7 Regional Institutions and Governance

Decentralization and regional autonomy policies are the

main instruments in the governance of national development

implementation. The policy provides opportunities for

regional governments (provincial, district and city) and the

village governments could develop their regions or villages

and provide better services for the public, because of the closer

distance between the government and the community. The

policy is also complemented by financial transfers from the

central government to the regions and villages with the amount

of funds increasing from year to year. This provides

opportunities for regions and villages to develop and grow

better and faster. The available opportunities are expected to

be utilized by regional and village governments to increase

regional independence and competitiveness, including

reducing poverty, increasing community welfare, and reducing

inequaties between regions (33-36).

Strategic Issues

1. The gap between regions which is marked by: (a)

Poverty in Eastern Indonesia (18.01 percent), KBI (10.33

percent), rural (13.47 percent), and urban areas (7.20 percent)

which are high (BPS,2017); (b) Inequality of Rural Revenues

(

GR = 0.324) and Cities (GR = 0.4); (c) there was a

concentration of economic activities in KBI especially in Java;

d) the limited infrastructure and accessibility in disadvantaged

(

areas, villages and rural areas, transmigration areas, border

areas; and (e) the low optimal local economic development in

disadvantaged areas, villages and rural areas, border areas and

transmigration areas;

.8 The Challenge of Regional-Based Development

The challenge of regional-based development in the period

020-2024 is reducing the socio-economic inequality of Java

. Strengthening the growth of regional centers that are

still low, which is characterized by: (a) The success rate of

Regional Growth Centers is still low (10 operational from12

KEK, three operational of 14 KI, two of four KPBPB, and ten

Tourism Destinations); (b) Connectivity to and from weak

Centers of Growth; and (c) undeveloped District Strategic

Areas (41).

and outside Java, increasing inter-provincial integration within

one island and between islands in the economic, socio-cultural

and infrastructure sectors. The next challenge is to increase

regional competitiveness through re-industrialization,

especially those based on regional potential, finding and

developing new sources of growth, increasing human

resources and the level of community creativity, increasing the

quality and availability or access for basic services, increasing

the commercialization of research institute innovations and

tertiary institutions, utilizing digital technology in all aspects

to anticipate the Industrial Revolution 4.0, optimizing

innovative financing schemes such as PPP and PINA, and

meeting minimum service standards (SPM). In addition, other

challenges are to harmonize national and regional and inter-

sectoral laws and regulations in accordance with the policy of

decentralization and regional autonomy, and to increase the

capacity of regional governments, including regional

cooperation, collaboration and regional innovation (37).

. The management of urbanization that is not optimal is

characterized by 1 percent increase in the number of urban

population which can only increase 1.4 percent of GDP.

. The space utilization is not suitable yet and synchronous

with the spatial plan, which is marked by: (a) Limited

availability of quality Spatial Detail Planning (RDTR) as a

reference for licensing and controlling spatial use, mainly

because of the unavailability of a 1: 5,000 scale base map ; (b)

The poor spatial control used because of the unavailability of

spatial use control instruments; (c) Villages within forest areas

and large plantations cannot exercise their authority especially

for infrastructure development (around 25,000 villages); and

(d) Disasters which are caused by spatial use that are not in

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2020, Volume 8, Issue 1, Pages: 540-545

accordance with spatial planning which increased (around

8. Enforcing the spatial planning based on disaster

mitigation by increasing the effectiveness of spatial use control

instruments, especially the completeness of RDTR and

accelerating the large-scale base maps supply (1: 5,000)

nationally;

9. Increasing the legal certainty of land rights through the

certification of land rights especially in areas that are directed

as corridors of economic growth and equity including the

surrounding area; publication of forest and non-forest area

boundaries on a cadastral scale; and delineation of customary

territorial boundaries.

,000 cases of floods, landslides, forest fires, etc.).

. The low fulfillment of basic services and improvement

in regional competitiveness, which is characterized by: (a)

Access and quality of basic services are limited, such as, the

number of livable houses only reaches 36.3 percent, clean

water for drinking 61.29 percent, sanitation (wastewater)

4.58 percent (including safe sanitation 7.42 percent) (BPS

018, processed by Bappenas based on the definition of SDGs

030);

The highest inequality refers to Java-Bali and Kalimantan.

Meanwhile, the highest gaps between villages and cities

within the island refers to Java-Bali, Nusa Tenggara and

Sulawesi. It is important to note that low levels of

interregional inequality do not necessarily reflect the success

of development distribution policies. However, the low level

of inequality may reflect a low and equitable level of

development throughout the region as in the Maluku Island

region.

10. Supplying the building for the public interest through

the establishment of land banks (42-44).

Conclusion

To reduce inequality, the rate of economic growth outside

Java must be driven, especially the Nusa Tenggara Islands,

Sumatra, Kalimantan, and Papua. From the poverty level, only

Kalimantan island is low, while the other islands are still

relatively high, especially Papua and Nusa Tenggara. In the

future, it is expected that the poverty at the two islands can be

reduced below 20 percent and 10 percent. In addition, the Java-

Bali Island is home to the poorest people. Meanwhile, the

average of unemployment is equal in all islands, which is around

A. The general regional-based development goals are:

. The increasing of equality between regions (between

KBI - KTI and Java and non-Java);

. The increasing of competitive advantage of regional

growth centers;

. The increasing of quality and access for basic services,

4-5 percent, except Maluku which has the highest

competitiveness, and regional independence; and

unemployment rate. The regional-based development strategy

for the period 2020-2024 is as follows:

. The increasing of synergy in the use of space and

territory.

B. Policies and Strategies in General:

The strategy of economic growth through: (a)

operationalization and increasing the investment in growth

centers of strategic areas / regions that have been

determined including: KEK, KI, KSPN / DPP and so on;

and (b) development of leading sectors: agriculture,

manufacturing, tourism, and other services.

In general, the main policy direction of regional-based

development for the period 2020-2024 are as follows:

. Rural development and rural improvement areas,

transmigration areas, border areas, disadvantaged areas which

are focused on fulfilling basic services, increasing

accessibility, and economic development that supports

regional growth centers;

. Equitable strategies through: (a) regional / local economic

development by supplying the economic infrastructure,

including the use of digital communication technology,

and enhancing the capacity of human resources, both in

disadvantaged areas, villages and Rural Areas as Regency

Strategic Areas, transmigration areas, and border areas in

an integrated manner with centers of economic growth /

strategic areas in the vicinity; and (b) fulfillment of basic

services in all regions, especially in disadvantaged areas,

villages and rural areas, regions transmigration and border

areas.

. Optimizing the development of regional growth centers

(KEK, KI, KPBPB, Tourism Destinations, and other

designated areas) that are supported by high inter-regional

connectivity to increase the added value of natural resources

and regional competitiveness;

. Enhancing governance and capacity of regional and

village governments (institutional, financial, and human

resources) to increase licensing facilities and to meet minimum

service standards;

. Structuring patterns of central-regional relations,

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