Proceeding The 3rd Journal of Government and Politics International Conference

Maritime Economic Development Policy through Natuna-Anambas-Ling-

ga (NAL) Maritime Connectivity in Kepulauan Riau Province

Dhani Akbar
Universitas Maritim Raja Ali Haji, Indonesia
Email: rittersarmy@gmail.com

Eki Darmawan
Universitas Maritim Raja Ali Haji, Indonesia
Email: Ekidarmawan75@gmail.com

Okparizan
Universitas Maritim Raja Ali Haji, Indonesia
Email: okparizan11083@gmail.com

ABSTRACT

This study considers the public policy and government aspects of the development on maritime
economy to build an integrated and sustainable maritime development according to Indonesian
Global Maritime Fulcrum program. This study focuses on the development of trade and traditional
economic sector, and the consistency of domestic government’s policy on realizing the integrated
and connected economic development, by strengthening government commitment since 2015,
such as enhance inter-island connectivity, strengthen the port infrastructure, reduce price dispar-
ity, and boost commerce within the country. The development in Kepulauan Riau Province does
have the geographically potential because of the neighborhood with Singapore, and has been one
of the targets of central government program. That is in T6 in Natuna-Tarempa-Pontianak, which
distribution hub is located in Pontianak, West Kalimantan and has the capacity of TEUs of 3.000
Ton (General Cargo). The potential is also to gain larger financial resources of national plan and
also try to leverage on the regional financing schemes to realize the connectivity plan of maritime
sector. Kepulauan Riau Province has been focusing on the policy of the development of Natuna,
Anambas, and Lingga (NAL) as the maritime development fulcrum in Kepulauan Riau Province.
It can be reflected on the sea toll policy.In fact, NAL have been faced by several problems, such as
economy situation, much depend on how Kepulauan Riaudeals with its domestic challenges and
offer itself as an attractive infrastructure investment destination.This study is divided intoThree
sections. First section is the concept and method of the study. Second section is about the impor-
tance of having the integrated and connecteddevelopment in order to increase maritime economy.
Third section is about the current situation of development policies in Kepulauan Riau Province.

KEYWORDS: maritime connectivity, maritime economy, domestic policies, development, archi-

pelago

INTRODUCTION

The direction of achieving the connectivity is to provide safe, comfortable, and

friendly environment, and also sound, of shipping for the community. This also provides
a higher fleet for national or international purposes. With freedom measures, among oth-
ers: optimization of the strength of the national shipping fleet; and develop an efficient
and integrated marine transportation management system, with land and air transpor-

Trends in Politics and Public Policy Dealing with Sustainable Development Goals 273
 Proceeding The 3rd Journal of Government and Politics International Conference

tation systems. The sea transportation sector is a very important economic activity for
islands (archipelagic countries), such as Indonesia. Ocean transportation services develop
to serve the delivery of goods and others. The application of the blue economy concept14
to sea transportation can be used in determining hubs / strategic points as the main port
or feeder port, a system capable of building integrated sea transportation by using effi-
cient and effective resources.

The maritime connectivity policy is carried out to improve the competitiveness of

domestic products and reduce the cost of distributing goods from producing regions to
user areas. Therefore, the theory used for maritime connectivity is viewed from the as-
pect of competitiveness. Indonesia’s good economic outlook is not accompanied by strong
competitiveness. LPI is measured based on customs procedures, infrastructure, logistics
services, and corruption. While ETI is a more index from a business perspective, because
of market access, business environment and border administration. Both indices contain
the importance of transportation and communication infrastructure. Likewise with the
factors of human resources, technology and innovation capabilities, funding, raw materi-
als, supporting industries, energy, and information. Therefore, these eight factors must be
jointly and continuously improved. These eight factors will also affect the availability and
expensiveness of products that are not produced in one area; meanwhile they are very
important for the development or welfare of one area.

The main purpose of this research is to find out the importance of having the in-
tegrated and connected development in order to increase maritime economy, explain the
current situation of development policies in Kepulauan Riau Province.This research con-
tributes to extant literature of governance and international relations by examining the
connectivity of maritime in Indonesia in general and maritime economic in particular.The
research question for this study is to determine the connectivity between regions in Kepu-
lauan Riau Province, which is considered, will accelerate the growth of regional economic.
The research discussed on how maritime policy of connectivity can improve local eco-
nomic potentials, people prosperity, and reducing the gaps.

The method of this research is qualitative, which means values ​​that cannot be stat-
ed in numbers (statistics). So, qualitative data is data in the form of words or sentences,
pictures, schemes that have not been predicted. Research that uses data that is not in the
ratio scale, but in the form of more scales, namely nominal, ordinal or interval scale, all
of which can be categorized, so that it is clear what will be equated and differentiated to
answer the problems that have been formulated in the study. (Pasolong, 2013: 70)

This research used descriptive analysis technique, which is a study that describes
what happened when conducting research. In this study there are efforts to record, de-
scribe, analyze and interpret the conditions that currently occur or exist. This study does
not test hypotheses, but only describes what information is objectively. Therefore, de-
scriptive research generally uses the word question “how” in formulating the sentence
of the research question. (Sugiono in Pasolong, 2013: 75). The location of this research is
in the Riau Islands Province and will be carried out in the Government Office of the Riau
Islands Province, Tanjungpinang City, especially in Institutions and Service Offices related
to the issues to be studied.

274 Trends in Politics and Public Policy Dealing with Sustainable Development Goals
 Proceeding The 3rd Journal of Government and Politics International Conference

LITERATURE REVIEW

Maritime Connectivity Policy

The connectivity system provides broader access to trade commodities in econo-

my. Such access have a very important role to reduce price differences between regions.
As stated by Rodrigue et al. (2006) that an area with low accessibility tends to have higher
levels of commodity prices (especially basic commodities such as food) due to the high
cost of distribution to the region. With the availability of good and efficient transportation
infrastructure, access to the region will be easier and have an impact on the low distri-
bution costs. Thus, the price level at the consumer level can be more competitive, and it
will help maintain the power of people’s purchasing. This argument is supported by em-
pirical studies conducted by Affandi (2011). He conducted a study of the determinants of
inflation in Indonesia both on the demand-demand and cost-push sides. The results of his
research show that inflation in Indonesia is not only determined by the demand side but
also by supply. Structural factors such as wage rates, food prices, prices of imported goods,
and transportation costs play a significant role in determining the inflation rate in the long
run. However, the research has not explicitly included infrastructure factors in the model
and implicitly shows that infrastructure scarcity will have an impact on inflation.

There are three factors that are influencing the decreasing of competitiveness in-
dex of Indonesia, the most important is the poor availability of infrastructure and among
the components of infrastructure, and there are the quality of ports and roads. Important
indicators supporting competitiveness are the Enabling Trade Index (ETI) and the Logis-
tics Performance Index (LPI). Both indicators have parts that must be improved so that
they can become a starting point for changes and reforms in various sectors of the econo-
my. (A. Prasetyantoko, 2010; 165-170).

Regional Autonomy

Regional autonomy was first implemented in Indonesia as of January 1, 2001. The

demand for regional autonomy arose because the development process in Indonesia had
previously resulted in a development gap between the regions on Java and outside Java
and between West Indonesia and Eastern Indonesia. This gap occurs because of the in-
equality in the allocation of investment between regions that influence in triggering and
spurring imbalances in growth between regions (Waluyo, in Badrudin, 2012: 3).

Etymologically, the word autonomy comes from Latin: auto means self and nomein
means rules, or laws. Then autonomy means self-regulating, or governing itself, or in the
broadest sense is the right to regulate and manage the regional household itself. Whereas
according to Law No. 23 of 2014, Regional Autonomy is the right, authority and obligation
of autonomous regions to regulate and manage their own government affairs and the in-
terests of local communities in accordance with the laws and regulations.

The Autonomous Region is a legal community unit that has regional boundaries
authorized to regulate and manage government affairs and the interests of local commu-
nities according to their own initiative based on the aspirations of the people in the sys-
tem of the Republic of Indonesia. It was also explained that the Republic of Indonesia
adhered to the principle of decentralization, the principle of de-concentration, and the
task of assisting in the administration of the government by giving the opportunity and
freedom to the regions to organize autonomy in the regions. Therefore, it can be conclud-

Trends in Politics and Public Policy Dealing with Sustainable Development Goals 275
 Proceeding The 3rd Journal of Government and Politics International Conference

ed that autonomy is a realization of the idea of decentralization.

​​

The autonomous region is a tangible manifestation that adopts the principle of

de-concentration as the meaning of decentralization itself. According to Sidik (Badrudin,
2012: 19), the concept of decentralization consists of political decentralization, fiscal de-
centralization, and administrative decentralization. Through regional autonomy and fiscal
decentralization, the local government has the authority to explore revenues and carry
out the allocation role independently and set priorities for its development. The existence
of regional autonomy and fiscal decentralization will further equate development in ac-
cordance with the wishes of the regions in developing the region according to their re-
spective potential.

According to Mardiasmo (2002: 1 and 7) regional autonomy and fiscal decentral-

ization will provide optimal benefits if followed by adequate financial capability by au-
tonomous regions. With the existence of regional fiscal decentralization, it is demanded
to improve the regional economic capacity so that it is able to compete with other regions
through the collection of regional government capital for investment needs and or the
ability to interact with other regions.In order to achieve the objective of fiscal decentral-
ization, there are four main elements that must be considered (Mardiasmo, 2005: 12-14),
namely 1) the fund balance system, 2) the regional tax and balance system, 3) the admin-
istrative system and the government budget central and regional, and 4) public service
provision.

According to Abdul Halim (Andriyanto et all 2007: 2) so that the implementation

of regional autonomy can work well there are at least five strategies that must be consid-
ered, namely: (i) Self Regular Power, in the sense of the ability to regulate and implement
regional autonomy for the benefit of the community in its area; (ii) Self Modifying Power,
in the form of the ability to adjust to regulations that have been established nationally in
accordance with regional conditions including innovation breakthrough towards prog-
ress in addressing regional potential; (iii) Creating Local Political Support, in the sense of
holding a Regional Government that has strong legitimacy from its people, both in the po-
sition of regional heads as executives and Provincial Council as holders of legislative pow-
er; (iv) Managing Financial Resources, in the sense of being able to develop competencies
in optimally managing financial income sources to finance government, development and
community service activities; and (v) Developing Brain Power, in the sense of building
reliable human resources and always rely on problem solving capabilities.

According to Said (Badrudin, 2012: 17), there are four perspectives that underlie the pos-
itive aspects and four perspectives that underlie the negative aspects of regional autono-
my. Four perspectives that underlie the positive aspects of regional autonomy, namely the
means for 1) democratization, 2) help improve the quality and efficiency of government,
3) promote national stability and unity, and 4) promote regional development. While the
four negative perspectives that underlie regional autonomy namely 1) create unexpected
fragmentation and division, 2) weaken the quality of government, 3) create greater re-
gional disparities, and 4) allow for greater deviations in the direction of democracy.

Public Policy

The term policy is often exchanged with other terms such as goals, programs, de-
cisions, laws, provisions, proposals and big plans. For policy makers these terms will not

276 Trends in Politics and Public Policy Dealing with Sustainable Development Goals
 Proceeding The 3rd Journal of Government and Politics International Conference

cause any problems because they use the same references. But for people who are outside
the structure of policy making these terms may be confused.

According to Syafiie (2006: 104), explained that the policy should be distinguished
from wisdom, because wisdom is the embodiment of rules that have been established ac-
cording to local conditions and conditions by authorized officials. For this reason, Syafiie
defines public policy as a kind of answer to a problem, because it will be an effort to solve,
reduce, and prevent an evil and instead become an advocate, innovator, and leader of
goodness in the best way and directed action.In addition, Keban (2008: 55) provides an
understanding of the side of public policy, which he cited from Graycar’s opinion, where
according to him that: Public Policy can be seen from philosophical concepts, as a product,
as a process, and as a framework.

As a philosophical concept, policy is a set of principles, or desired conditions, as a

product, policy is seen as a series of conclusions or recommendations, and as a process,
policy is seen as a way through which an organization can know what is expected from it,
namely programs and mechanisms in achieving their products, and as a framework, pol-
icy is a process of bargaining and negotiation to formulate issues and methods of imple-
mentation.In the Indonesian Thesaurus, the policy is explained as a series of concepts and
principles that form the basis of the plan in the execution of work, leadership, and how to
act (about orders, organizations and so on).Mustopadidjaja (1992: 30) explained that the
policy term is commonly used in relation to government activities or activities, and the
behavior of the state in general and the policy is expressed in various forms of regulation.

This is similar to David Easton in Toha (2010: 107), to the following statement: “The
authoritative allocation of value of the whole society but it turns out that only government
can be relatively negative on the whole society, and everything the government chooses
to do or not to do results in the allocation of values”, which means that Government policy
as an authoritative allocation for the whole community. Therefore, all chosen to be done
or not done is the result of the allocation of these values.Meanwhile, Koontz and O‘Donnel
(1972: 113), define policy as a general statement of understanding that guides the mind
in decision making.Whereas according to Anderson (1984: 113), said that policy is an ac-
tion that has a purpose that is done by a person or a number of actors to solve a problem.
Furthermore Anderson classifies the policy into two: substantive and procedural.

Substantive policy is what must be done by the Government, while procedural policy is
who and how the policy is carried out. This means that public policy is policies devel-
oped by Governments and Government Officials.Furthermore, he said that there were
five things related to public policy. Among other things, first, goals or goal-oriented
activities must be the main concern of random behavior or events that suddenly occur.
Second, the policy is a model pattern of government officials’ actions regarding their
discretionary decisions separately. Third, policies must include what the Government is
doing, or what they say will be done.Fourth, the form of public policy in its positive form
is based on legal provisions and authority. The purpose of public policy is to achieve pub-
lic welfare through policy products made by the Government.Fifth, every policy product
must pay attention to the substance of the target situation, giving birth to a recommen-
dation that takes into account various programs that can be elaborated and implemented
as intended by the policy.

Trends in Politics and Public Policy Dealing with Sustainable Development Goals 277
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Development Policy

According to the current government, the key to the growth of the Indonesian na-
tion is located in the region. An important factor of economic growth is not only the ex-
istence of international cooperation, but also the ongoing cooperation between regions.
Along with the issuance of Law No. 22 of 1999 concerning regional autonomy which was
later amended to Act No. 32 of 2004, the bureaucratic paradigm in Indonesia changed
from a centralized to a decentralized governance paradigm. This change has consequenc-
es for the mechanism for the implementation of public participation in the implementa-
tion of governance and development.

Decentralization and regional autonomy,which is the part of the authority, have

been hold over to the regions either the provincial or district and city government. In
determining development policies, the community needs to be involved, especially if it
concerns the public interest which also concerns their survival, even though in a sense it
is impossible. However, in this condition, if the community is not involved, there will be
social unrest. So, it is necessary to empower civil society which is a powerful tool for de-
termining the direction and policy of development in the future. Of course this will have a
positive effect on policies designed and will be implemented because it will create synergy
between the government and the community. In running the government, each country
is always guided by the political policies adopted by the country, so that the bureaucratic
procedures adopted are also based on the political system paradigm it adheres to.

1. Parsons (2006: 15), provides the ideas about policy is a set of actions or plans that
contain political objectives. According to him, the word policy contains the mean-
ing of policy as rationale, a manifestation of the assessment of the consideration.
This means that a policy is an attempt to define and form a rational basis for doing
or not doing an action. Furthermore, Nurcholis (2007: 263), also provides a defi-
nition of policy as a decision of an organization that is intended to achieve certain
goals, containing provisions that can be used as a code of conduct in terms of:

2. Further decision making, which must be done either by the target group or (orga-
nizational unit of policy implementation.

Application or implementation of a policy that has been established both in rela-

tion to the (unit) implementing organization and the intended target group.

The meaning of policy as quoted by Jones (1996: 47) in the views of Prof. Heinz Eu-
lau and Kenneth Prewitt, which states that the policy is: A standing decision characterized
by behavior consistency and receptiveness on the part of both who makes it and those
who abide by it “. According to Jones, policy is a permanent decision characterized by con-
sistency and repetiveness of those who make and from those who obey the decision. Even
if the definition rises a number of questions or problems to assess how long a decision
can last or what constitutes the consistency and repetition of the intended behavior and
who actually does the number of policy makers and adheres to the policy; however this
definition has introduced several components public policy.

Then Dye (2008: 1), also stated that: “Public policy is what governments ever
choose to do or not to do”, meaning that public policy is anything that is chosen by the
Government to do or not do. Based on Dye’s opinion that if the Government chooses to
do something then there must be a goal and the country’s policy must cover all actions of

278 Trends in Politics and Public Policy Dealing with Sustainable Development Goals
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the Government, not merely a statement of the Government’s wishes or officials. Besides
that something that is not implemented by the Government includes state policy. This is
because something that is not done by the Government will have the same effect as some-
thing done by the Government.

RESULTS

The Development of Maritime Economic in Kepulauan Riau

Economic development in the maritime sector is one of the priorities of the de-
velopment program. Kepulauan Riau has 5 border areas with Singapore, namely Karim-
un Regency, Batam City, Natuna Regency, Anambas Islands Regency, and Bintan Regency.
The maritime potential of the Kepulauan Riau Province includes marine biotechnology
industry, deep water, marine tourism, marine energy, marine minerals, shipping, maritime
defense and maritime industry. The maritime boundary provides legal certainty for all
maritime activities, the enforcement of sovereignty and the law of the sea, especially the
management and utilization of fisheries resources.

The factor of the economic downturn in the Kepulauan Riau (Kepulauan Riau) is
the land-based development paradigm, while the sea is only treated as a place of exploita-
tion of natural resources, waste disposal, and illegal activities. For this reason, maritime
Policy is needed to restore the economy in Kepulauan Riau as an archipelagic province.
Kepulauan Riau has great resource of potential in the coastal and marine areas. This is
supported by extensive territorial waters, as well as having the potential with various
types of marine biota with high economic value. Kepulauan Riau Province is an archipel-
ago with a large sea area, with a land area of ​​only around 5 percent. This makes the fish-
eries sector the main source of livelihood for the population of Kepulauan Riau Province.

Kepulauan Riau has a city named Batam, an economic area that has developed rap-
idly in decades, has absorbed trillions of national development funds. Batam city has priv-
ileges as a trading area and free port or Free Trade Zone (FTZ). Batam has an adequate
maritime economic infrastructure, and also has been considered and designed as the Sin-
gapore or Hong Kong of Indonesia. A free port developed has sufficient seaports and a
large maritime industry in Indonesia and is a fairly good offshore industry.

The ability of Kepulauan Riau development funds is limited and maritime policies
that have not been consistent and still partial, making Kepulauan Riau needs policies that
really lead to maritime development in order to be able to create centers of maritime-based
economic growth. There are at least seven economic growth areas that must be mari-
time-based, namely, first ,Tanjungpinang as the capital city of Kepulauan Riau Province;
second, Batam, the center of the economy with heavy sea crossing due to the growth of
its industry; third,Bintan with its Marine Tourism Focus, fourth, Lingga with agricultural
potential but still lack of accessibility; and then the last three are Karimun, Anambas and
Natuna is the frontier directly adjacent to neighboring countries.

The development in Kepulauan Riau Province does have the geographically potential
because of the neighborhood with Singapore, and has been one of the targets of central
government program. That is in T6 in Natuna-Tarempa-Pontianak, which distribution
hub is located in Pontianak, West Kalimantan and has the capacity of TEUs of 3.000 Ton
(General Cargo). The potential is also to gain larger financial resources of national plan
and also try to leverage on the regional financing schemes to realize the connectivity

Trends in Politics and Public Policy Dealing with Sustainable Development Goals 279
 Proceeding The 3rd Journal of Government and Politics International Conference

plan of maritime sector

Figure 1. The Map of Kepulauan Riau Province

Source: Bappeda Anambas 2012

The Policy of Maritime Connectivity

The Policy of Maritime Connectivity is a potential and the most comprehensive

policy for Indonesia to develop. This policy is based on the state’s assumption that the
maritime region is a national power other than the land area aspect. Ratzel emphasizes
the state of life -organism determinist, living space- approach where the state is identified
as human beings who need space to live and manage the space as part of the state’s surviv-
al. According to Indonesia strategic position as an archipelago, Indonesia may become a
heartland with a maritime geopolitical orientation. On the other hand, another thing that
is also important is the development of the maritime sector, among others, can contribute:
island economic integration, with the movement of traded commodities and barrier-free
labor between the islands; and social and political integration of the nation with barri-
er-free citizen movements between islands for various purposes.

The role of the sea port as a driver of the marine economy is undoubted, with the
acquisition of economic benefits that can be gleaned from the existence of a sea port.
However, in reality there are still a number of obstacles that arise, among others: the ef-
ficiency and productivity of goods through the sea port are still very low due to the lack
of ready supporting infrastructure, such as shelters, both permanent and temporary; un-
loading-loading time; and convoluted bureaucracy. In addition, maritime connectivity
has a number of problems in its development. A number of major obstacles that must
be solved in the implementation of the concept of sea tolls are: 1) imbalance of the load
current, where the load flow from eastern Indonesia to the western region is less than in
the opposite direction; 2) the use of 3 thousand TEUs of vessels is considered not owned

280 Trends in Politics and Public Policy Dealing with Sustainable Development Goals
 Proceeding The 3rd Journal of Government and Politics International Conference

by national shipping companies; and 3) funding needs for infrastructure development,

especially a very large port.

Today, the development policy of Indonesia marine has not been carried out partially. Each
ministry runs independently. As an example of Law No. 17/2008, concerning Shipping,
the main motor, Ministry of Transportation; Law No. 27/2007, concerning Management
of Coastal Areas and Small Islands and Law No. 31/2004, concerning Fisheries, under the
command of the Ministry of Maritime Affairs and Fisheries (KKP). This makes the region
must have the right strategy in the maritime sector development policy.

CONCLUSION

Public policy is identical with regulation or rule or can be interpreted as a legal

product issued by the Government that must be understood in full and correctly. Public
policy begins with the existence of issues relating to common interests which are deemed
necessary to be regulated through policy formulations and agreed upon by the legislature
and the executive to be determined to be a public policy, whether it is a Law, whether it is a
Government Regulation, or a Presidential Regulation including Regional Regulations, then
the public policy changes to a law that must be obeyed.

The maritime potential of the Kepulauan Riau Province includes marine biotechnology
industry, deep water, marine tourism, marine energy, marine minerals, shipping, mari-
time defense and maritime industry. The maritime boundary provides legal certainty for
all maritime activities, the enforcement of sovereignty and the law of the sea, especially
the management and utilization of fisheries resources. Kepulauan Riau Province has
been focusing on the policy of the development of Natuna, Anambas, and Lingga (NAL)
as the maritime development fulcrum in Kepulauan Riau Province. It can be reflected on
the sea toll policy. In fact, NAL have been faced by several problems, such as economy
situation, much depend on how Kepulauan Riau deals with its domestic challenges and
offer itself as an attractive infrastructure investment destination.

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