Development of industrial estates in the context of supporting border economic development (Case study at Entikong National Strategic Areas)

Abstract

The Entikong National Strategic Area Center is one of the areas that is directed to be the center of strategic activities, but infrastructure and production factors have not made it possible to produce competitive and profitable products and commodities in the market. Transport costs are very expensive because distance and road conditions that limit market reach for the economy. In this situation, there is no other choice unless the community is directed and assisted to be able to produce products (semi-finished or finished) that the high value exceeds the cost of production and transportation costs. This research aimed to draw up the design of the Border Industrial Zone with two regional leading commodities, consists of pepper and rice. This area was built to accommodate industrial activities that utilize the potential of resources in the border region in an effort to increase the added value, quality and quantity of natural resources. This study used a qualitative and quantitative descriptive approach with an analytical method consisting of business feasibility analysis, supply chain analysis, and scalogram analysis. The studywas located in the Central Entikong National Strategic Area and the surrounding area, Sanggau Regency, West Kalimantan Province. The results showed that the development of the pepper and milling processing industry was feasible if the raw materials used were not only sourced from the Entikong sub-district but had to involve other sub-districts located in Sanggau District. This Special Border Industry Zone is centered on Entikong Village, Entikong Subdistrict as a location adjacent to neighboring countries and adjacent to the Entikong State Cross Border Post.In the development of industrial estates need a cooperation among sub-industries in the region to achieve economies of scale and sustainable.