Wednesday, September 21, 2011

Reflections on Economic Development Strategy Against Weak Kaltim

"The industrial sector is one variable determining the economic development of a region, without a massive industry support, independent, modern and democratic, then we will only loyal audiences in their own country".

The people of eastern Borneo, must agree with the statement, "East Kalimantan is one of the richest provinces in Indonesia, but why is poverty still so big?". Although the government has always argued that pendatanglah causing greater levels of poverty, but of course it will not happen if the level of absorption of labor (employment effect) run in a linear fashion with the existing workforce. Many variables that cause, one of which is the growth of local industry area that runs slow.

Independence of the local industry to be alienated by the stigma of oil and gas wealth and coal mine which is becoming a comparative economic advantage for East Kalimantan. The pattern of foreign investment is expected to be able to build the economy of East Kalimantan, was not significantly make the process of technology transfer in the region. Foreign corporate domination-is still very dominant in East Kalimantan managing natural resources. Contributions made by foreign companies to the region's major areas of cash income, but would not it be much greater if the assets and wealth of our region, capable of independently dekelola own?. This is the problem of development of East Kalimantan, especially its economic field we must respond together, both government and society.

East Kalimantan's natural wealth can indeed be said to be abundant, especially oil and gas mining sector, but it all does not mean anything today. East Kalimantan today is still identical with poverty, backwardness and underdevelopment in almost all areas compared to other regions in Indonesia. The poverty rate in East Kalimantan, based on a survey of the processed data of the National Socioeconomic Survey (SUSENAS), until March of 2007, the population of East Kalimantan that were below the poverty line amounted to 324.8 thousand, or approximately 11.04 percent of the total population of East Kalimantan as many as 2,957,465 people. Compared with the poor population in July 2006 which amounted to 299.1 thousand (10.57 per cent), mean number of poor people increased by 25.7 thousand. If we use the standard international calculations of the categories of the poor (those with incomes below two dollars), then of course the figures mentioned above will be ten times as much more apprehensive.

Kaltim Industrial Portrait

Local industrial sector in East Kalimantan to this day has not contributed so significantly to local economic development. That's because our industry sector is very weak both in terms of technology, production capacity and its ability to compete with foreign industries. In addition, the local industrial sector also does not have Kaltim populist platform, ie as the main support for the welfare of the people, but profit-taking platform kapitalism or without consideration of all aspects of sustainable development (suistanable development).

East Kalimantan's natural wealth, especially the mining sector of oil, coal and gas, are not able to be optimally utilized by local industry. In fact asinglah companies who use it through the TNC-MNC, a lot of exploitation of natural wealth Kaltim which of course results and benefits are not entirely for the benefit of the people of East Kalimantan alone, but developed countries Vendor-owner of the company.

Since the New Order era, the economic development strategy used did not conform to the formulation of the basic needs of the community. Developed a long line of industries, ranging from automotive, aircraft armament up, shows just how obsessed we follow the developed countries are much more developed. The average industry developed dizaman New Order, not at all correspond to the basic needs of society at large. Why did not breaking pecan industry, or an increase in agricultural technology produksifitas more we focus on, which incidentally has become a major problem of our society?.

If drawn on the economic context of East Kalimantan, it is certain that the results of oil and gas production and coal is also not completely be consumed by the public. Coal, natural gas, oil, etc., in the end a major export commodity for the region / Other countries. In general, Kaltim only going to get capital support from the marketing of the oil and gas production. Kaltim in general, have not been able mengembangankan modern industry based on the interests of the people, Hence, the dominance of foreign companies who are exploiting the oil sector, gas and coal in East Kalimantan, continues to lead and take over the wheel of industry development in East Kalimantan.


Kaltim not be denied is one of Indonesia's largest oil and gas pengahasil. Main source of income as a pillar of economic development relies heavily Kaltim this oil and gas sector. Comparative advantage (comparative advantage) has become its own value to the direction of future development of East Kalimantan. But excellence in oil and gas sector, it is not accompanied by the growth of manufacturing industry as one step towards a modern industrial, with the aim to provide people's basic needs (basic needs approach), particularly food and clothing. This certainly will cause traffic imbalance of commodity consumption. One form is, the level of commodity prices of basic needs in East Kalimantan is well above the average in other areas. This is because the consumer goods imported more people from outside the region, particularly food products abroad. Just look at food products made in Malaysia who are circulating in East Kalimantan! A view that raises questions of fruit; "why Kaltim until now not able to develop outside the oil and gas industry independently?". A very easy question to answer, because East Kalimantan is still experiencing a very unusual dependence on oil and gas industry, compared the effort to build its own manufacturing industry in the region. As a result, stakeholders in the area of ​​East Kalimantan, was busy with traffic arrangement of oil and gas industry, rather than preparing agendas industirialisasi particularly in manufacturing.

Kaltim indeed be proud of the natural wealth that is owned, especially the oil sector, gas and coal, but without the support of the people's basic industrial development, then the effect will be even greater dependence. Though East Kalimantan alone has enough potential natural assets in the agricultural sector and food crops. In the strategic plan (Strategic Plan) issued by the Provincial Department of Agriculture crop kaltim, it seems clear that the natural potential of this sector is quite promising. Just how the efforts in improving productivity alone. For all this, it received less attention from the government. Lack of modernization of agricultural technology, lack of efforts to increase quality of agricultural products and food, basic materials and facilities inadequate farmer, became the main obstacle at this time. As a result, Transfer of technology to the agro-farming industry was just alone among the public discourse.

If if we want a little condescending to learn from China's economic development strategy, the formulation of the construction industry we should be able to do well in East Kalimantan. The practice of empowering small-medium industries (Home Industry) of China conducted with patience, can reap unexpected results have been fantastic few years later with the economics of growth rate on average 9-11 percent annually. This is often termed the economists with the program "Leap Ahead" conducted by China since the days of Mao Tze Tung came to power. Similarly, Cubans who initially is a country with subsistence agriculture as the mainstay, is now progressing well due to industrial development digenjotnya State. Of course, with technology and science and technology capabilities of people, Cuba has managed to ensure the industry people can eat three times a day. Wealth of natural resources and alternative energy and the amount of productive labor (humans) will be sufficient capital to develop local industrial sector. Still many of the labor force were unemployed due to the limited ability of regional economy to absorb labor would be missed if the industrial areas to be strengthened.

Blueprints (blue print), construction of industrial zones was a little relief with the realization of three-point area of ​​industrial zones, namely; Bontang (Bontang Industrial Estate), Banjarmasin (KAPET KAKAB DAS), and Balikpapan (Industrial Area Kariangau-KIK). But the third region is still dominated by non-manufacturing industries. Bontang Industrial Estate for instance, still focused on the chemical industry as seen from the companies that exist in the region. Assuming want to empower the potential of natural resources in East Kalimantan, especially oil and gas sector, it does not mean Kaltim not afford to build a massive outside the oil and gas industry, especially the manufacturing sector. Domain effects will spread dharapkan-rural areas, feel sluggish and not targeted in the absence of more concrete efforts to spark a massive industrialization pogram.

In the concept of industrial development, there are several steps that must be passed, myakni; (1). Development of basic industries, among others, metal industry (steel), electrical industry, energy, basic chemicals, etc. to ensure the availability of raw materials and fuel industries. (2). Development of agricultural industrialization in order to ensure the availability of food for the people. (3). development of capital goods industries, namely machinery industry, transportation industry, etc.. And (4). development of consumer goods industries. The first stage has led to the maturation process, with the proliferation of the energy industry is owned by Kaltim. But looks stagnant immobile at all with mandegnya memabangun efforts outside the mine industry abtu gas and coal. Agricultural industry, capital goods and consumption, is still a mere concept of head without ever realized with good field.

Strengthening Strategy

It is still relatively underdeveloped industrial sector in East Kalimantan, was caused by several factors, among others, low quality of human resources, low technology and is still very lack of capital, especially capital for rural small industrial sector (Home Industry). In addition, the limitations of technology and human resources are also due to the limited funds that are owned by local entrepreneurs. In general, very few local companies that has its own research and development (development research). One indicator that can be used to measure the magnitude of the impact of technological and human resource limitations on the performance of industrial sector is the level of productivity, either partially from each of the factors used (such as labor and capital goods), as well as a whole is referred to as Total Factor Productivity (TFP). TFP owned by Kaltim, still far lower than other large areas, thus resulting in low growth industries. Here are some of the problems that exist in the local industrial sector of East Kalimantan:

Globalization of law in the last decade has undergone a fundamental change in the pattern of world competition in production and international trade, where "the capacity of technology", became a very important factor in determining competitive manufacturing sector of a country. The ability of these technologies consist of several elements that its control depends on the stage of industrialization of a country. There are six categories of technological capabilities: (1). Knowledge and skills necessary to identify, design, develop, and organize a new industrial project or a project to modernize and expand existing industry. (2). production capabilities which include all the knowledge and skills necessary to operate a plant. (3). ability to make small changes include the engineering of adaptive and organizational adjustments to make minor adjustments or continuous incremental improvement in both design and product performance as well as in production process technology. (4). marketing capability which refers to the knowledge and skills to gather information on demand patterns, market trends, and creating distribution channels efficiently and effectively. (5). ability in terms of knowledge, skills, and organizational abilities in streamlining the flow of information and technology, and (6). ability to conduct discovery of new technologies both process technology and technology products.

It's time for memabngun Kaltim industry seeks an independent, modern and popular. Independent in meaning, are able to walk in his own abilities without having to depend on outsiders. Modern in a sense, developing industry that is able to take advantage of technological developments in the 21st century (with the appropriate technology category of course), primarily to the goal of improving the quality of regional products. And democracy as the embodiment of industry supported by basic industries and capital goods industries of the productive forces that we have truly capable of is directed to sustain the life and general welfare of the People's Kaltim.


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