Improving Regional Economic Potenial through The Development of Six Economic Corridors

Indonesia’s Frontline Global Connecivity In order to strengthen national connectivity that considers regional and global geo-strategic position, global connectivity must utilize SLoC and ALKI to support the implementation of MP3EI. This concept will form the backbone of national connectivity strategy and also it is expected to facilitate more equitable economic development across Indonesia and create a solid economic independence and economic competitiveness. ALKI-I ALKI-II SLoC MALACA ALKI-III ALKI-III B ALKI-III C Strategic Framework and the Policy of Connecivity Strengthening The aims and objecives of the Naional Connecivity Strengthening are: 1. Connecing the centers of major economic growth based on the principles of integraion and not similarity, through “inter-modal supply chain systems”. 2. Expanding economic growth through accessibility improvement from the centers of growth to the hinterland. Figure 2.2 Concepts of Gate Port and Internaional Airport in The Future Internaional Airports Alternaive Internaional Sea Ports Hub Main Internaional Sea Ports Sea Lane of Communicaion SLoC and ALKI Primary Naional Sea Lane Secondary Naional Sea Lane Primary Land Lane Roads andor Railways Primary Sea Ports Masterplan P3EI Basic Principles, Prerequisites for Success and Main Strategies of MP3EI 34 Kuala Tanjung Bitung Makassar 3. Distribute the beneits of economic development by improving the quality of connecivity to the less developed areas, isolated areas, and border areas in order to achieve equitable economic development. To achieve these objecives, some inter-related connecivity components need to be harmonized into a single integrated planning framework. Figure 2.3 includes the components for naional connecivity: a Naional Logisics System SISLOGNAS, b Naional Transportaion Systems SISTRANAS, c Regional Development RPJMN and RTRWN; d Informaion and Communicaion Technology ICT. The planning document of each components have been completed, however it was executed separately. Therefore, the strengthening of Naional Connecivity seeks to integrate the four components. Figure 2.3 Connecivity Components SISLOGNAS SISTRANAS REGIONAL DEVELOPMENT RPJMN and RTRWN ICT 1. Migraion Toward Convergence 2. Equitable Access and Services

3. Broadband Network Development

4. Improving Network Security and Informaion System 5. Integraion of Infrastructure Applicaion, and Naional Data 6. Increasing e-literacy, independent domesic ICT industry, ICT HR availability 7. Synergy of Naional ICT Aciviies and Investments 1. Decide Key Commodiies 2. Strengthen Logisic Services

3. Infrastructure Netwok

4. Human Resources Capacity Building 5. ICT Improvement 6. Regulaion Harmonizaion 7. Naional Logisic Board is Needed 1. Local Economy Improvement 2. Human Resource Capacity Building

3. Infrastructure Development

4. Insituional Capacity Building 5. Improvement of Access to Working Capital 6. Improving Basic Social Faciliies 1. Transportaion Safety 2. Transporaion Procurement

3. Transportaion Netwok

4. Human Resource and Science and Technology 5. Maintenance of Environtment Quality 6. Provision of Development Fund 7. Improvement of State Administraion Posture Forming Components of the Naional Connecivity Strengthening Naional Connecivity Carried Out by Integraing and Synergizing Sislognas, Sistranas, Regional Development, and ICT Plans Masterplan P3EI Basic Principles, Prerequisites for Success and Main Strategies of MP3EI 35 The integraion of the four components of naional connecivity will be formulated into a naional connecivity vision, which is: ‘LOCALLY INTEGRATED, GLOBALLY CONNECTED’. Locally Integrated is a connecivity system to support an efecive and eicient movement of goods, services, and informaion, within the country. Therefore, the integraion of transportaion nodes, inter- modal connecivity and communicaion networks are important elements to strengthen local and naional connecivity. Transportaion hubs seaports, airports, terminals, staions, and center of distribuion, etc. should be integrated eiciently and efecively with the transport network and inter-modal transportaion faciliies. Communicaion and informaion networks also need to be integrated to support informaion low, paricularly informaion related to trading, inancial, and other electronic-based aciviies. The governance of low of goods, informaion, and inancial informaion must be executed eiciently and efecively, on ime, and can be monitored through virtual informaion and communicaion network. This system covers procurement, storagewarehousing, transportaion, distribuion, and delivery of goods in accordance with the type, quality, quanity, ime and place demanded by producers and consumers, staring from the point of origin to its desinaion point. The above menioned strategy to strengthen naional connecivity is aimed at unifying the country economically and encourage more equitable economic growth across the regions. Globally Connected is a connecivity system aimed at connecing the country with the rest of the world via a system of global connecivity through a network of internaional gatewayexchange located at the major seaport and airport supported by custom and trade faciliies. Figure 2.4 Naional Connecivity Vision NATIONAL CONNECTIVITY FRAMEWORK Regional Development RPJMN RTRWN Naional Transportaion System ICT Naional Connecivity VISION Locally Integrated, Globally Connected Naional Logisic System Masterplan P3EI Basic Principles, Prerequisites for Success and Main Strategies of MP3EI 36