Creating Economic Convergence in Archipelagic Islands Provinces by

leveraging Cluster Initiative development approach

A Collaboration Proposition Document

Versi 1.0

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Document Control

Pemilik: Elya G Muskitta

Tanggal: 06/11/2007

Copy Dikeluarkan Kepada Format Catatan

001 JICA Power Point Version 1.0

002 USAID Power Point Version 1.0

003 Universitas Trisakti Power Point Version 1.0

004 IKV Pax Christi Power Point Version 1.0

005 Gubernur Maluku Power Point Version 1.0

006 Wakil Presiden RI Power Point Version 1.0

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Foreword

United Nation Convention on the Law of the Sea (UNCLOS, 1982) has recognized Indonesia as the largest Islands State in the world.

With over 17,800 islands that lies on 3,1 million square kilometers of waters terrritory with an approximate coastal length of 81,000 km, Indonesia holds immense potential sea resources that may be leveraged for the benefits of the people.

Being the largest Islands Province in Indonesia (with a vicinity of ~1,3 million square kilometer, out of which ~ 92% are waters), Maluku holds abundant natural resources, both inland as well as in sea that no other provinces across Indonesia has. From Fishery, Agriculture to Mining and Oil & Gas, Maluku have it all. Unfortunately, similar to other Islands Provinces, the people of Maluku have not been able to gain the significant & sustainable advantages out of their natural wealth. Most of the islands people are still lingering in poverty.

Various poverty reduction & marginal communities empowerment programs have been implemented across Indonesia. To this date, hardly any of these programs delivered outcomes that resulted in sustainable economic development.

Various analysis on the potential cause of this phenomenon has led to the conclusion that lack of appropriate development models, lack of program and porftolio management as well as the absence of collaborative management have been the main caused of the inability of Islands Province to properly exploit their natural resources for the benefit of the key development stakeholders.

For these very reasons, our team has developed an initial framework of Economic Development Model for Islands Province such as Maluku.

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The Economic Development Framework

Having examined various approaches commonly used in developing numerous economic development models, our team have identified two (2) most suitable approaches that may be fully leveraged to create sustainable competitive advantages for Maluku, i.e The Cluster Initiative Model and The Value Chain Analysis Model.

Cluster Initiative Model (CIM) is favored because it has been well regarded as one of the most effective approach for regional economic development. Furthermore, CIM implementation has accomplished successes in many regions that have certain similarities to Maluku.

Cluster Initiative is an agglomeration of clusters that are either inter-related and/or supporting/ complementing to the main industry sector. Geographically, Our CIM model is not bounded by geographical/ physical location. Instead, given the very nature of Maluku’s geographical condition, our CIM is very much determined by linkages & critical mass factors that drive competitive advantages.

Value Chain Analysis Model (VCAM) is selected because first of all, VCAM provides a broad and comprehensive analysis of the overall business development domains. It is also both a heuristic as well as an analytical tool. Subsequently, Value Chains are repositories for economic rents, and these rents are dynamic.

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The Economic Development Framework

In the process of implementing Economic Development & Social Transformation, collaborative efforts among key stakeholders of the development need to be established to achieve significant & appropriate results. This include Government institutions, NGOs, Private Sectors as well as Education Institutions.

In establishing a collaborative platform, Our Team has initiated a number of discussion with various organizations that shared similar objectives and wished to institute proper & measureable economic development programs that have direct and significant impacts to the key stakeholders.

We strongly believed that both approaches are suitable to developing a proper economic development model for Islands Provinces such as Maluku. However, given the lack of global experiences that Our Team has, we realized that it is only through open collaboration that we may refine the concepts and model to achieve the most suitable development framework.

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Projected Growth Curve – Achieving Global Leadership Position

Creating Economic Convergence is our key milestone.To achieve it, we need to establish competitive advantages that are sustainable in nature and may create significant critical masses.All these may be achieved through the use of Cluster Initiative Approach in building the Economic Development Model.In implementing this development approach, a Value Chain Analysis method will be utilize to guide every single aspects of the process areas involved within the chosen industries.

Islands Province such as Maluku has all the potentials needed to create Economic Convergence for Indonesia.What these provinces need right now is your collaboration.

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Types of Collaboration

Collaboration is Key! Only through collaborative efforts we can establish proper and accurate Economic Development Model.

Our Cluster Initiative Model requires the participation of seven (7) type of actors/ roles, i.e:

– Institution for Collaboration

– Education and R&D Institutions

– Local, Regional, National & International Governments (International Cooperation is managed either through Provincial or Central Government bodies)

– Financial & Banking Institutions

– Target Communities & Micro Enterprises

– NGOs, Social Organizations, National & International Independent Organizations

– Private Sectors

In order to gain significant results, we encourage interested/ target organizations to participate in any of the above roles by means of:

– Technical Assistance

– Financials Assistance

– Joint Research & Development

– Business Development Cooperation

– Joint Market Development

– Direct Investments

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The Roadmap

The Framework of Economic Development Model for Islands Provinces is still at its infancy. It requires your contribution to complete it and make it work.

To do so, we need to establish a plan that is suitable for everyone to be a part of. To start with, Our Team has established a general timeline that guides the processes we need to take to get to the points where the collaboration efforts may provide & present the expected results.

DATES ACTIVITIES OBJECTIVES LOCATION

November 5 – 16, 2007 Awareness & Network Building To build awareness of the program to the target organizations while at the same time building the collaborative network

JAKARTA

November 17, 2007 –

January 31, 2008

Economic Development Model Discussion & Development

Leveraging the collaborative network to establish the most suitable economic development model for Islands Provinces

VIRTUAL,

NATIONAL VISITS,

INTERNATIONAL VISITS

February 1 – 10, 2008 Model Finalization & Production To finalize the model and produce it in a well structured & well-presented document

AMBON, MALUKU

February 19 – 21, 2008 Economic Development Model Symposium

To Promote the model to the key stakeholders

AMBON, MALUKU

March – May, 2008 PILOT PROJECT To start a Prove-of-Concept initiative on the Economic Development Model, targeting a particular region within Maluku

MALUKU

June 2008 KICK OFF To start implementing the Model in one or two Islands provinces as part of the 1st phase

MALUKU, NTT