archipelago mineral pathway, the archipelago tourism pathway, and the distribution of activity centers such as the National Activity Centers (PKN) and Regional Activity Centers (PKW).
The growth corridor approach prioritizes the development of growth centers--on the basis of regional excellence--that can encourage value-added, increase, and/or save foreign exchange earnings, expand employment opportunities and real economic growth in the next five years.
Regional growth centers include agriculture, fishery, plantations, and mining as production centers; priority strategic areas such as industrial estates (KI) and special economic zones (KEK) as centers for natural resource manufacturing; the free trade areas and ports (KPBPB) as centers of port trade
and industry; national tourism strategic areas (KSPN) and priority tourism destinations (DPP) as centers for developing tourism services; and urban areas including metropolitan areas, new cities, medium and small cities as centers of services and trade.
The equity corridor approach prioritizes the development of buffer zones (hinterland) around centers of growth, as well as disadvantaged areas and regions to ensure equality and justice in the fulfillment of people's basic rights in accordance with the principles of sustainable development goals, i.e. not leaving any group behind. Buffer zones include villages; rural areas;
transmigration areas; border areas including small, frontier, and outermost islands; and disadvantaged areas.
Figure 3.3
Flow Chart of Approaches to Regional Growth and Equity
The regional development policies and strategies for 2020-2024 are as follows:
1. Increasing equity—between the eastern and western regions of Indonesia, and between Java and other islands—through development strategies, namely:
a. Developing policies and implementing affirmative development to accelerate the growth of disadvantaged areas, priority border locations, frontier and outermost islands, and transmigration areas, through: (i) expanding access to basic education and health services; (ii) providing basic infrastructure and facilities for housing, clean water, sanitation, and electricity; (iii) improving land, river, sea, and air transportation connectivity; (iv) developing telecommunications and information networks as a basis for digital economy; (v) expanding cooperation and partnerships in investment, promotion, marketing, and trade; (vi) increasing supervision and safeguarding Exclusive Economic Zones (ZEE); and (vii) protecting and fulfilling the rights of transmigrants in accordance with applicable regulatory mandates.
b. Accelerating integrated village development to encourage social, cultural and economic transformation of villages, which is supported by: (i) good governance through increasing the capacity of village apparatuses,
assistance, roles, and inclusive village participation; (ii) determining village borders, (iii) developing tourist villages, digital villages, leading products of villages and rural areas, and developing BUMDesa/BUMDes Bersama; (iv) improving basic services in villages; (v) optimizing the use of village funds to encourage productive activities, empowering village communities including funding local village assistants; and (vi) strengthening the role of sub- districts as centers of change and growth, as well as village development and supervision.
c. Strengthening rural-urban linkages that support centers of excellence based on village territories, National Priority Rural Areas (KPPN), transmigration areas, and National Border Strategic Activity Centers (PKSN) through: (i) improving accessibility and connectivity including logistics networks from villages to trade centers, both local, regional and international markets;
and (ii) developing cooperation and partnerships in investment, promotion, marketing and trade with multiple stakeholders.
2. Increasing the competitive advantage of regional growth centers through development strategies, namely:
a. Optimizing the development of priority strategic areas as centers of regional growth, namely Special Economic Zones (KEK), Industrial Estates (KI), Free Trade Areas and Ports (KPBPB), Priority Tourism Destinations, and other zones that
have been assigned to encourage downstreaming and create value- added leading commodities, expand employment opportunities, increase and save foreign exchange earnings from import substitution, particularly, among others, estate crops, mining
and fishery products, by: (i) strengthening the production base and processing of regional leading commodities that are spread throughout centers of downstream agriculture and fishery in the National Priority Rural Areas (KPPN), transmigration areas, National Strategic Activity Centers (PKSN), and Integrated Marine Fishery
Centers (SKPT)/Fishery
Management Areas (WPP); (ii) constructing smelters in potential areas to support the downstreaming of natural resources; (iii) providing integrated infrastructure networks that include transportation networks (roads, ports, airports, and others), energy systems (electricity, gas, solar, coal, and others), raw water and clean water facilities, and sewage treatment systems; (iv) fast licensing and investment services; (v) strengthening connectivity with raw material production centers in rural areas, transmigration areas, small and medium cities in the procurement of raw and supporting materials; (vi) developing cooperation and partnerships in financing government and business entities; (vii) strengthening cooperation between regional governments, management bodies, communities, universities. and the
media in the promotion and development of strategic areas; and (viii) expanding cooperation and partnerships in global production chain cooperation.
b. Optimizing Metropolitan Areas (WM) and big cities outside Java, including spatial planning, urban infrastructure development, investment planning, and development financing while maintaining growth and increasing environmental carrying capacity for WM and major cities in Java;
c. Developing new cities as an example for the planned development of inclusive public cities; and
d. Developing the National Capital outside Java in a more spatially and economically balanced position; (i) as a stimulus for economic growth through increased aggregate demand; (ii) encourages the diversification of the economy of Kalimantan; (iii) as a new source of long-term economic growth especially for Kalimantan and Eastern Indonesia, and (iv) reduce inequality between regions, supported by the management of the state civil apparatus (ASN) based on smart governance.
3. Improving the quality of governance of basic services, competitiveness, and regional independence, through the following development strategies:
a. Implementing decentralization and special autonomy (Aceh, Papua, and West Papua) through increasing the capacity of autonomous regions and special regions to fulfill minimum service standards, managing regional
finances, and fulfilling more effective and efficient public services:
i. Implementing decentralization and regional autonomy by increasing the capacity of local governments, among others through: (a) applying Minimum
Service Standards (SPM) in the regions in a full and consistent manner, including improving complaints mechanisms that are integrated with performance management; (b) arranging institutions and organizations of regional governments that are more efficient and effective; (c) optimizing the use of Electronic- Based Government Systems (SPBE) to create faster, cheaper and efficient services; (d) increasing regional research and innovation to improve the quality of public services and accelerate development; (e) increasing the capacity of the regional apparatus in the management of
regional government
administration and the capacity of other special expertise in accordance with regional needs, including regional development planning and budgeting; (f) optimizing regional funds that are more productive and affirmative for regional progress; (g) increasing regional revenues from both taxes and levies, as well as other sources of revenue through structuring and developing data and information;
(h) effective and efficient regional financial management, (i) improving the quality of regional spending that has an impact on accelerating the achievements of SPM, improving people's welfare, and regional progress.
ii. Implementing special autonomy in Aceh as directed by the implementation of Law No.
11/2006 concerning the
Government of Aceh in a serious, consistent, real, and responsible manner, among others through:
(a) strengthening and empowering the Acehnese people based on Islamic culture and sharia, which prioritize human values; (b) strengthening participatory, transparent, accountable, and fair governance by prioritizing excellent services; (c) optimizing the management of the Aceh Special Autonomy Fund for public services and economic development to improve people's welfare; and (d) increasing the capacity of the apparatus and developing performance-based
management;
iii. Implementing special autonomy in Papua and West Papua as directed by the implementation of Law No. 21/2001 concerning the Special Autonomy for the provinces of Papua and West Papua in a serious, consistent, real, and responsible manner, among others through: (a) strengthening and empowering Papuans based on culture and customs that prioritize human values; (b) developing indigenous territories of Tabi, Saereri, La Pago, Me Pago, Anim Ha, Bomberai and Domberai in supporting the regional economy; (c) strengthening participatory, transparent, accountable, and fair governance by prioritizing excellent services; (d) optimizing the management of the Papua Special Autonomy Fund for
public services and economic development to improve people's welfare and regional progress; (e) increasing the capacity of the apparatus and developing performance-based management; and (f) strengthening districts as centers of change and growth, as well as village development and supervision; and
iv. The implementation of special regions as directed by the implementation of Law No.
13/2012 concerning the Special Region of Yogyakarta (DIY) in a serious, consistent, real, and responsible manner, among others through: (a) empowering the people of the Special Region of Yogyakarta based on culture, customs, and privileges of the Special Region of Yogyakarta;
(b) strengthening participatory, transparent, accountable, and fair governance by prioritizing excellent services; (c) optimizing the management of the Privileged Funds to strengthen social and cultural resilience, and develop the people's economy to improve people's welfare and regional progress; and (d) increasing the capacity of the apparatus and developing performance-based
management.
b. Developing cooperation between autonomous regions in increasing regional competitiveness and building new economic centers, through;
i. Strengthening the role of One- Stop Integrated Services (PTSP)
to accelerate services and licensing to the people and the business world;
ii. Structuring regional regulations to support ease of doing business;
iii. Developing government and business entity cooperation schemes; and
iv. Expanding cooperation, partnerships, and collaboration between local governments and development partners in public services, natural resource and environmental management, financing and investment development, problem-solving pertaining to public issues, and
developing regional
competitiveness and innovation.
c. A more synergistic arrangement of central and regional relations, through:
i. Strengthening the role of the governor as a representative of the central government in the coordination and control of regional development;
ii. Harmonizing and synchronizing regulations regarding planning, budgeting, procurement of goods and services, control and evaluation, and audits between the central government and other regions; and
iii. Strengthening the relationship between the central and regional finances through the acceleration of the completion of the revision of Law No. 33/2004 concerning the Relationship of Central and Regional Finances, and other laws and regulations
concerning regional financial management.
4. Increasing the synergy of regional spatial use, through the following development strategies:
a. Enforcing spatial plans based on climate change mitigation and disaster risk reduction to ensure the protection of spatial functions and prevention of negative impacts on the environment due to spatial use, among others through: (i) increasing the effectiveness of spatial planning instruments, especially the comprehensiveness of Detailed Spatial Plans (RDTR); (ii) providing large-scale basic maps (1:
5,000) nationally; and (iii) applying incentives and disincentives, and also sanctions for violations of spatial use;
b. Improving the legal certainty of land rights through: (i) certification of land rights especially in areas directed as corridors of economic growth and equity, and also in the surrounding areas including transmigration areas; (ii) arrangement and publication of forest and non-forest area boundaries on a cadastral scale;
and (iii) delineation of customary territorial boundaries;
c. Providing land for development in the public interest through the establishment of a land bank, and improvement of land services through modern, digital-based services and recruitment of civil servants as land measurement officers; and
d. Strengthening climate change mitigation and disaster management to reduce the risks of climate change and disasters; and increasing resilience, especially in regional growth centers, urban areas and metropolitan cities, among others through: (i) mainstreaming disaster management and climate change adaptation; (ii) regulating and controlling regional spatial use; (iii) building a culture of disaster awareness and of preparedness from local governments and the people; (iv) fulfilling basic service standards in the event of a disaster through enhancing the capacity of
regional governments,
communities, and disaster logistics, especially in national strategic areas that have high disaster risks; (v) developing multi-hazard early warning system; (vi) adapting communities to climate change in disaster-prone areas; (vii) increasing capacity of disaster management in pre-disaster, emergency response, and post- disaster phases; (viii) increasing investment to mitigate and reduce disaster risks; (ix) expanding and strengthening multi-sector partnerships in climate change mitigation and disaster risk reduction; (x) increasing efforts to stymie coastal abrasion that can threaten borders.
In addition, the regional development policies for 2020-2024 are focused on seven (7) development areas, namely the regions of Papua, Maluku, Nusa Tenggara, Sulawesi, Kalimantan, Java- Bali, and Sumatra, in accordance with the Island Region Spatial Planning (RTRW) to guarantee policies, programs, and
activities that are consistent, integrated, and cross-sectoral in nature by taking into account the geographical characteristics;
regional potential; social, cultural and traditional values; carrying capacity of the environment; and disaster risks in each region.
Figure 3.4 Distribution of Agricultural Downstream Centers
Figure 3.5 Distribution of Aquaculture and Salt Production Centers
Figure 3.6 Distribution of Food Production Centers
Figure 3.7 Distribution of Fishery Management Areas (WPP)
Figure 3.8 Distribution of Natural Gas and Coal Resources for Industrial and Electricity Needs
Figure 3.9 Downstreaming of Natural Resources Through Development of Smelters
Figure 3.10 Downstreaming of Natural Resources Through Development of Industrial Estates (KI)
Figure 3.11 Distribution of Special Economic Zones (KEK) and Free Trade Areas and Ports (KPBPB)
Figure 3.12 Distribution of Tourism Destinations