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Badri Munir Sukoco,
Professor, Faculty of Economics and Business,
Universitas Airlangga
Last month (May 4, 2020), President Joko Widodo officially postponed the implementation of the simultaneous Regional Head Elections (Pilkada) from September to December 2020. Although Perppu 7/2020 has been signed, it is possible that the implementation of the 2020 Pilkada will change again depending on the Covid-19 pandemic situation.
These simultaneous regional elections are certainly very strategic for Indonesia in the next 5 years, especially in supporting the achievement of the vision of the Advanced Indonesia Cabinet to escape from ???????????????????????? ???????????????????????? ??????????????????. One of the focuses of its work program is to transform the Indonesian economy. Changing from dependence on natural resources to modern manufacturing and services that are competitive and have high added value.
So far, most of the issues raised by regional head candidates have focused on the figures they nominate and their supporting parties. Their visions and work programs have not differed significantly from the populist issues previously promoted. If the 2020 simultaneous regional elections have relatively similar visions and work programs, the Onward Indonesia Cabinet's task in achieving its vision will certainly be even more difficult. This is because the simultaneous regional elections will be participated in by 270 regions (49.27% of the total 548 regions), with a breakdown of 9 provinces (26.47%), 37 cities (37.76%), and 224 regencies (53.85%).
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One city that is currently a reference for economic transformation is Pittsburgh in the United States. Since the late 1800s, this city has been known as a steel city (+300 steel mills). Many great entrepreneurs of the early 20th century were born, one of whom was Andrew Carnegie, one of the philanthropists who founded ???????????????????????????????? ??? ...
However, since the late 1990s, the city has begun an economic transformation by relying on the education sector with the motor of CMU and ?????????????????????????????????????????? ????????????????????????????????????ℎ (Pitt) which has ????????????????????? and ??????????????????????????????????????????ℎ. Other sectors that are relied upon are the healthcare and high-tech sectors. Currently, there are 6 ??????????????????????????? 500 companies in Pittsburgh, more than 1,600 high-tech companies (including Google and GlaxoSmithKline) most of which were incubated by CMU. Currently, Pittsburgh has about 80,000 STEM-related jobs, far higher than other cities that ??????ℎ???????????????????????????. ?????????????????????????????????????????? ???????? ????????????????????????????????????ℎ ?????????????????????????????? ???????????????????????? absorbs the largest workforce, namely 55,000 people with an income of +Rp. 150 trillion; while Pitt itself has 10,700 employees with an operational budget of +Rp. 30 trillion in 2020. This is what makes Pittsburgh's per capita income since 2010 higher than the US national average.
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In the case of Pittsburgh, the presence of two world-class universities plays a central role in transforming the steel city into a city focused on high-value-added industries. The high reputation of CMU (???????????????????? ??????????????????????????? ???????????????????????? ??????????????????????????? ?????????????????????????????????????????? – THE WUR #27) and Pitt (#113) are major draws for top talent to work in Pittsburgh. In addition, the technology and tolerance offered by world-class universities facilitate the growth and development of ?????????????????????????????????????? ??????????????????????????? and fulfill the 3T elements (??????????????????????????????, ????????????ℎ?????????????????????, ???????????? ????????????????????????????????? –Florida, 2012) to transform the city of Pittsburgh.
It's important to recognize that local governments don't have all the resources needed to transform their economies. Not only is having world-class universities essential, but the involvement of diverse actors in the regional economic ecosystem is crucial for economic transformation. This underpins the importance of a transformation ecosystem, comprised of diverse actors collaborating, competing, and complementing each other to achieve dynamic growth over time.
In the journal ??????????????? ????????????????????? ?????????????????????????????????, Talmar et al. (2020) proposed the ecosystem pie model (EPM). This model consists of 4 dimensions: ??????????????????????????????????????? (???), ??????????????????????????????????????? (???), ?????????????????????-????????????????????? (??????), ????????? ?????????????????????????????? ?????????????????????????????? (??????). For example, the ecosystem ??????????????????????????? ????????????????????????????????? built by the city of Penang, one of the cities that has successfully transformed its economy since the early 2000s. Data from ???????????????????????????????????? ????????????????????????ℎ?????????????????????????????????????????? ?????????????????????????????? shows that more than 50% of international patients (a total of 1.2 million people in 2018) come from Indonesia. The total value of these health services in 2017 was + Rp. 4.14 trillion. Of all Indonesian patients, 60% of patients choose Penang as a place to seek treatment considering quality yet affordable health services. The health services relied on are cardiology (the main target of Indonesian patients) and fertility (the main target of Chinese patients).
In building this health service ecosystem, the involvement of universities (PT) that provide ??????????????????????????? ???????????????????????????????????????????????? (both doctors and nurses), hospital managers, hotel managers, tourist attraction managers, airlines, Penang city government, and financing institutions (banks). The R owned by the university is the latest knowledge and technology in the health sector, and this is facilitated by the presence of the University of Sains Malaysia – USM (QS WUR #165) in Penang. A carried out is conducting research and men- ???????????????????????????????????? world-class specialist doctors and nurses. USM and other universities in Penang also offer VA by providing research and ??????????????????????????????????????????????????? on the diseases being cured. The income from research licenses and the technology used is the VC obtained.
What is the role of the city government? The R owned is in the form of public service licensing rights and providing subsidy funds derived from regional taxes. A that can be done includes synergizing all actors who play a role in the development of ?????????????????????????????? ????????????????????????????????? in Penang. As for VA by establishing regional regulations by providing incentives in the form of tax exemptions for 3 years. VC obtained in the form of increased regional economic growth, per capita income, and the city's resident satisfaction index will increase.
The same analysis was also conducted for other actors in this ecosystem. Of course, at the activity level, each actor can help each other to accelerate existing implementation. For example, managers of hospitals, hotels, tourist attractions, or airlines can request tax deductions if they are involved in this ecosystem, or universities can request facilitation from healthcare providers so that their students can do internships or their applied research is funded, and so on.
One of the regions that has successfully transformed its regional economy is Banyuwangi Regency. By making tourism a strategic sector, Regent Abdullah Azwar Anas was able to increase per capita income from Rp. 20.8 million in 2010 to Rp. 48.7 million in 2018. This was followed by a decline in the poverty rate from double digits to 7 percent in the same period. The successful economic transformation occurred due to the involvement of stakeholders (???????????????????????ℎ?????????????????????) accompanied by a well-planned tourism ecosystem design, as developed by Penang for medical tourism and Pittsburgh for education, health and high technology.
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At the national level, the President has set one of his cabinet's focuses on economic transformation so that Indonesia can escape from ???????????????????????? ???????????????????????? ??????????????????. Of course, this national policy needs to be followed by regional heads. The 2020 simultaneous regional elections are crucial, because almost 50% of regional heads will change or continue their positions according to the people's choice. It's time for the people to not only be given choices that only highlight the figures of the regional head candidates or their supporting parties, but also what economic transformations will be brought to improve the welfare of the population.
Regional head candidates can use the EPM framework in planning their regional economic transformation and orchestrating it when elected. Regional head candidates in the upcoming Pilkada campaign can start introducing what strategic industries will be built if elected based on ?????????????????????????????? ????????????????????????, ?????????????????????????????? ???????????????????????????????????????. Next, of course, develop the ecosystem design based on the EPM framework. The hope is, ??? ...
Source: https://republika.co.id/berita/qc78cb2825000/pilkada-dan-transformasi-ekonomi