Effect of Policy Analysis on Indonesia’s Maritime Cluster Development Using System Dynamics Modeling

Abstract

As an archipelago with two third of its territory consist of water, Indonesia should address more attention to its maritime industry development. One of the catalyst to fasten the maritime industry growth is by developing a maritime cluster. The purpose of this research is to gain understanding of the effect if Indonesia implement maritime cluster policy to the growth of maritime economic and its role to enhance the maritime cluster performance, hence enhancing Indonesia’s maritime industry as well. The result of the constructed system dynamic model simulation shows that with the effect of maritime cluster, the growth of employment rate and maritime economic is much bigger that the business as usual case exponentially. The result implies that the government should act fast to form a legitimate cluster maritime organizer institution so that there will be a synergize, sustainable, and positive maritime cluster environment that will benefit the performance of Indonesia’s maritime industry.