Synergy Model of Local Development Planning in Regency and City with the Development of Java Economic Corridor for Supporting Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI)

Abstract

The President of the Government of Indonesia, Susilo Bambang Yudhoyono, announced the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) in May 2011. The MP3EI is a very ambitious plan. It aims to propel Indonesia into the top ten economies and raise per capita from US$3000 to US$15,000 by 2025. The policy rests on three main pillars: establishing six economic corridors based on the comparative advantage of the different regions of Indonesia; promoting connectivity within Indonesia and the ASEAN region, as well as improving human resources and science and technology. This has been followed by discussion surrounding the implementation and feasibility challenges likely to be faced by the MP3EI. The fact that such an overwhelming amount of interest has been generated about the MP3EI shows the willingness of stakeholders to take part in realising the success of the policy. It also demonstrates that not enough attention has been paid to implementation mechanisms and frameworks during the design phase of the MP3EI itself. Implementation of the MP3EI document itself dedicates a relatively short space to map out the implementation and monitoring of the policy. This ambitious policy needs a strong implementation strategy to ensure its success. At the local level, there are barriers to the implementation of the MP3EI: a lack of socialisation and awareness; unclear synergy with the RPJMD (Indonesia’s local long term development plan); needs for both regulatory and institutional reform. We have proposed 3 model that will ensure the implementation will be success and more participation from local government. The idea of the model come from a lack of socialisation and awareness, synergy model in the development of Jawa Barat and Jawa Tengah, and synergy model of bilateral and multilateral local government.