Investment Opportunities at Palm Oil Industrial Cluster (POIC) Lahad Datu with Special Reference to Biofuels

Indonesia is the largest producer and the exporter of palm oil in the world which has three palm oil industrial cluster (POIC) areas that are Sei Mangkei (North Sumatera), Dumai (Riau), and Maloy (East Kalimantan). To carry out the delivery of palm oil products to the destination countries, the Palm oil from the three POICs must be transshipment in Malaysia and Singapore. In line with this issues, a strategy to develop the POIC based international connectivity need to be done. This study aims to identify the actual conditions of POIC Indonesia, to determine the factors (internal and external) that influence the development of POIC, and to formulate priority strategy for developing POIC Indonesia. These are needed so that Indonesia can become a hub port of international trade especially in Asia. This research uses "Diamonds" Porter’s Model, gap analysis, and the Analytical Hierarchy Process (AHP). Based on the analysis connectivity, the main strategy that can be formulated in order to develop Indonesian palm oil industry cluster is infrastructure improvements. This strategy can be done if the government (the Ministry of economy, Ministry of industry and trade, Ministry of sea, PT PELINDO, and local government), private sector, academic, and the public is able to work together and integrated.

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STRATEGI PENGELOLAAN KAWASAN EKONOMI KHUSUS (KEK) SEI MANGKEI, KLASTER INDUSTRI HILIR KELAPA SAWIT TERINTEGRASI DAN BERKELANJUTAN

JURNAL AGRICA ◽

10.31289/agrica.v10i1.587 ◽

2017 ◽

Vol 10 (1) ◽

pp. 22

Author(s):

Muhammad Riza Febriano ◽

Hariyadi Hariyadi ◽

A Roby Falatehan

Keyword(s):

Palm Oil ◽

Multicriteria Decision Making ◽

Industrial Cluster ◽

Decision Makers ◽

Economic Dimension ◽

Cluster Development ◽

Priority Index ◽

Institutional Strengthening ◽

Ecological Dimension ◽

Integration Analysis

Sei Mangkei Special Economic Zone (SEZ) have been designed by Government of Indonesia as industrial cluster for palm oil derivative product industries. In many cases, selected areas for industrial cluster developed into an industrial aglomeration than industrial clustering. To ensure industrial cluster accomplishment, sustainability and integration analysis should be done. The aim of paper was to conduct management strategic, sustainability and integration analysis of Sei Mangkei SEZ cluster development. Multicriteria Decision Making (MDM) analithycal hierarchy processs (AHP) was used to determine the value of strategic priority index. There considered for measuring the index categorized in 5 dimensions : economic, social, enviromental/ecological, laws regulations and institutional, industrial and technology. The index score of sustainability priority index of Sei Mangkei SEZ that showing that the industrial cluster development categorized as sufficient category. The lowest index was found for industrial and technology (0.195) and the highest was environment/ecological dimension and economic dimension (0.236). From the leverage analysis, some critical attributes in each dimensions were found and need improvement to increase the management strategic of Sei Mangkei SEZ into sustainability and integration. Institutional strengthening and accelerated development of infrastructure are the crucial factor should be prioritized for the development of palm oil based industrial cluster at Sei Mangkei SEZ. This could be a significant reference for the decision makers, in this case is Government (PTPN III State-Owned Enterprises and Administrator) in cooperation with private sectors (tenant) to develop Sei Mangkei SEZ

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Development Strategy of Indonesian Palm Oil Industrial Cluster Based International Trade Connectivity

International Journal of Oil Palm ◽

10.35876/ijop.v4i2.59 ◽

2021 ◽

Vol 4 (2) ◽

pp. 31-38

Author(s):

Sapta Raharja ◽

Setiadi Djohar ◽

Dwi Aryanthi

Keyword(s):

International Trade ◽

Development Strategy ◽

Palm Oil ◽

Gap Analysis ◽

Industrial Cluster ◽

Industry Cluster ◽

The Public ◽

East Kalimantan ◽

The Government ◽

Hierarchy Process

Indonesia is the largest producer and the exporter of palm oil in the world which has three palm oil industrial cluster (POIC) areas that are Sei Mangkei (North Sumatera), Dumai (Riau), and Maloy (East Kalimantan). To carry out the delivery of palm oil products to the destination countries, the Palm oil from the three POICs must be transshipment in Malaysia and Singapore. In line with this issues, a strategy to develop the POIC based international connectivity need to be done. This study aims to identify the actual conditions of POIC Indonesia, to determine the factors (internal and external) that influence the development of POIC, and to formulate priority strategy for developing POIC Indonesia. These are needed so that Indonesia can become a hub port of international trade especially in Asia. This research uses "Diamonds" Porter’s Model, gap analysis, and the Analytical Hierarchy Process (AHP). Based on the analysis connectivity, the main strategy that can be formulated in order to develop Indonesian palm oil industry cluster is infrastructure improvements. This strategy can be done if the government (the Ministry of economy, Ministry of industry and trade, Ministry of sea, PT PELINDO, and local government), private sector, academic, and the public is able to work together and integrated.

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