Model For The Development of Plantation-Based Growth Poles Village

Junaidi; Amri Amir; Hardiani

Faculty of Economy and Business Jambi University

(This paper was presented at the Malaysia Indonesia International Conference on Economics, Management and Accounting (MIICEMA); Jambi-Indonesia, 24 – 25 October 2016)

Abstract. The purpose of this research is to create a model (based on the experiences of transmigration settlement development) to set up local villages into plantation-based growth pole village in Jambi Province. The research has found that there are five groups of potential industry in the plantation-commodity-based development center villages. These industries are a) the production of flour from grains/seeds/nuts/tubers, crude oil from vegetable and animal; b) the production of tempe and tofu, the production of soy and beans products apart from soy sauce, tempe and tofu, the production of crackers and others alike from cassava and bananas, bread and pastry; c) clay industry; d) furniture industry; e) products from wood, rattan, bamboo, and others alike. Clay industry has the highest competence, followed by other industries. Furthermore, five criteria of village core competence which are the strongest one to support the development of potential industry in rural areas are outside-area/village market, market opportunity to continue developing, local market, availability of infrastructure, and the composition of the local input. For structuring, the elements of the system for growth pole village’s development are: 1)Key objectives: a) Increasing the number of new business and diversification of products; b) Expanding domestic and outside- area market; c) Increasing investor’s interest in investing; 2)Main problems: a) institutional weakness; b) Coordination between related parties is weak; c) Government policies are inconsistent and less supportive; 3) Main actors: a) Local government; b) Financial Institutions; c) Education and Training Institutions; d) Testing, Standardization, and Certification Institutions; 4)Main roles of government: a) Coordinating the related institutions; b) Establishing communication and cooperation for potential industries’ and supporting industries’ actors; c) Collecting and disseminating data and information; d) Improving the system of transportation, communications, and other infrastructures; 5) Main roles of business activity: a) Establishing formal and informal network; b) Communicating with government to publish and revise regulation.

Keywords: Potential Industry, Growth Pole, Core Competence

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