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Creating Economic Convergence in

Archipelagic Islands Provinces by
leveraging Cluster Initiative
development approach

A Collaboration Proposition Document

Versi 1.0
Document Control

Document Control
Pemilik: Elya G Muskitta
Tanggal: 06/11/2007
Copy Dikeluarkan Kepada Format Catatan
001 JICA Power Point Version 1.0
002 USAID Power Point Version 1.0
003 Universitas Trisakti Power Point Version 1.0
004 IKV Pax Christi Power Point Version 1.0
005 Gubernur Maluku Power Point Version 1.0
006 Wakil Presiden RI Power Point Version 1.0

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Foreword

United Nation Convention on the Law of the Sea (UNCLOS, 1982) has
recognized Indonesia as the largest Islands State in the world.
With over 17,800 islands that lies on 3,1 million square kilometers of waters
terrritory with an approximate coastal length of 81,000 km, Indonesia holds
immense potential sea resources that may be leveraged for the benefits of the
people.
Being the largest Islands Province in Indonesia (with a vicinity of ~1,3 million
square kilometer, out of which ~ 92% are waters), Maluku holds abundant
natural resources, both inland as well as in sea that no other provinces across
Indonesia has. From Fishery, Agriculture to Mining and Oil & Gas, Maluku have
it all. Unfortunately, similar to other Islands Provinces, the people of Maluku
have not been able to gain the significant & sustainable advantages out of their
natural wealth. Most of the islands people are still lingering in poverty.
Various poverty reduction & marginal communities empowerment programs
have been implemented across Indonesia. To this date, hardly any of these
programs delivered outcomes that resulted in sustainable economic development.
Various analysis on the potential cause of this phenomenon has led to the
conclusion that lack of appropriate development models, lack of program and
porftolio management as well as the absence of collaborative management have
been the main caused of the inability of Islands Province to properly exploit their
natural resources for the benefit of the key development stakeholders.
For these very reasons, our team has developed an initial framework of
Economic Development Model for Islands Province such as Maluku.

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The Economic Development Framework

Having examined various approaches commonly used in developing numerous economic development models, our team
have identified two (2) most suitable approaches that may be fully leveraged to create sustainable competitive advantages
for Maluku, i.e The Cluster Initiative Model and The Value Chain Analysis Model.
Cluster Initiative Model (CIM) is favored because it has been well regarded as one of the most effective approach for
regional economic development. Furthermore, CIM implementation has accomplished successes in many regions that have
certain similarities to Maluku.
Cluster Initiative is an agglomeration of clusters that are either inter-related and/or supporting/ complementing to the main
industry sector. Geographically, Our CIM model is not bounded by geographical/ physical location. Instead, given the very
nature of Maluku’s geographical condition, our CIM is very much determined by linkages & critical mass factors that
drive competitive advantages.

Value Chain Analysis Model
(VCAM) is selected because first
of all, VCAM provides a broad
and comprehensive analysis of the
overall business development
domains. It is also both a heuristic
as well as an analytical tool.
Subsequently, Value Chains are
repositories for economic rents,
and these rents are dynamic.

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The Economic Development Framework

In the process of implementing Economic Development & Social Transformation, collaborative efforts among key stakeholders of the development need
to be established to achieve significant & appropriate results. This include Government institutions, NGOs, Private Sectors as well as Education
Institutions.
In establishing a collaborative platform, Our Team has initiated a number of discussion with various organizations that shared similar objectives and
wished to institute proper & measureable economic development programs that have direct and significant impacts to the key stakeholders.
We strongly believed that both approaches are suitable to developing a proper economic development model for Islands Provinces such as Maluku.
However, given the lack of global experiences that Our Team has, we realized that it is only through open collaboration that we may refine the concepts
and model to achieve the most suitable development framework.

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Projected Growth Curve – Achieving Global Leadership Position

Creating Economic Convergence is our
key milestone.
To achieve it, we need to establish
competitive advantages that are
sustainable in nature and may create
significant critical masses.
All these may be achieved through the
use of Cluster Initiative Approach in
building the Economic Development
Model.
In implementing this development
approach, a Value Chain Analysis
method will be utilize to guide every
single aspects of the process areas
involved within the chosen industries.

Islands Province such as Maluku has all
the potentials needed to create Economic
Convergence for Indonesia.
What these provinces need right now is
your collaboration.

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Types of Collaboration

Collaboration is Key! Only through collaborative efforts we can establish proper and accurate
Economic Development Model.
Our Cluster Initiative Model requires the participation of seven (7) type of actors/ roles, i.e:
– Institution for Collaboration
– Education and R&D Institutions
– Local, Regional, National & International Governments (International Cooperation is
managed either through Provincial or Central Government bodies)
– Financial & Banking Institutions
– Target Communities & Micro Enterprises
– NGOs, Social Organizations, National & International Independent Organizations
– Private Sectors
In order to gain significant results, we encourage interested/ target organizations to participate
in any of the above roles by means of:
– Technical Assistance
– Financials Assistance
– Joint Research & Development
– Business Development Cooperation
– Joint Market Development
– Direct Investments

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The Roadmap

The Framework of Economic Development Model for Islands Provinces is still at its infancy. It requires your contribution to
complete it and make it work.
To do so, we need to establish a plan that is suitable for everyone to be a part of. To start with, Our Team has established a general
timeline that guides the processes we need to take to get to the points where the collaboration efforts may provide & present the
expected results.

DATES ACTIVITIES OBJECTIVES LOCATION

November 5 – 16, 2007 Awareness & Network Building To build awareness of the program to the JAKARTA
target organizations while at the same time
building the collaborative network
November 17, 2007 – Economic Development Model Leveraging the collaborative network to VIRTUAL,
January 31, 2008 Discussion & Development establish the most suitable economic NATIONAL VISITS,
development model for Islands Provinces INTERNATIONAL VISITS

February 1 – 10, 2008 Model Finalization & Production To finalize the model and produce it in a AMBON, MALUKU
well structured & well-presented document
February 19 – 21, 2008 Economic Development Model To Promote the model to the key AMBON, MALUKU
Symposium stakeholders
March – May, 2008 PILOT PROJECT To start a Prove-of-Concept initiative on the MALUKU
Economic Development Model, targeting a
particular region within Maluku
June 2008 KICK OFF To start implementing the Model in one or MALUKU, NTT
two Islands provinces as part of the 1st
phase

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