MAPPING DOMESTIC COMPARATIVE ADVANTAGE IN INDONESIA CASE STUDY: TEGAL REGENCY, JAVA ISLAND
Setyo Atdiwaluyo, Prof. Inaba Kazuo
2013 | Tesis | S2 Magister Ek.Pembangunan-
In Indonesia, regions have important roles to develop the nation. The development discourse in Indonesia is mainly based on decentralization. This means that local governments have responsibilities to develop their regions. Thus, they have to know their local potency, to make the development process sustainable. One way to do it is by exploring the comparative advantage. Understanding the comparative advantage will be a good foundation to develop the region. It will guide the local government to direct the progress so that it is suitable with the potentials of the region. We use three types of analyses: analysis of existing condition, input-output analysis, and modified product mapping. The existing condition is needed as the foundation of our main analysis to make clear that the policy recommendation will be applicable. The input-output analysis is used to discover the economic structure of Tegal Regency. We need this step to understand the real condition in the regency fully (Pressman, 2006). The modified product mapping is used to understand the industries’ possession of comparative advantage. The analysis is conducted based on GRDP industries classification. The result shows that Tegal Regency government will be better off to concentrate in developing (1) food processing industry, (2) transport equipment and machinery industry, (3) other manufacturing (metal refinery) industry, (4) textile and footwear industry, and (5) trade. By expanding those industries, it is expected that other industries will also develop. The final goal is to achieve smooth and sustainable economic growth of Tegal Regency.
Kata Kunci : comparative advantage, domestic, input-output, modified product mapping.
