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REMBANG REGENCY AS THE CENTRAL DEVELOPMENT

ON EASTERN CENTRAL JAVA

I. Introduction

1.1 Overview of Rembang Regency

Rembang Regency, located on northeast of Central Java Province, has been

legitimate to become part of this province according to Act number 13 year 1950 which

concerns about regencies established under Central Java Province region. The area of

Rembang Regency has special characteristics. Thus, it has differences in physical

condition between northern and southern parts. On the whole, the northern part is coastal

areas while limestone mountains stretching on the southern part. Meanwhile, this regency

has total area 101,408 ha (1,014.10 km²), in which it consists of 14 sub-districts, 287

villages and 7 kelurahan. In 2010, its total population reached 611,886 people with density

of population 587.730/km2. The border regions of Rembang Regency are:

Northern : The Java Sea

Eastern : Tuban (East Java Province)

Southern : Blora Regency

Western : Pati Regency

Furthermore, Rembang Regency has 65.11 km coastline along the northern part of

the regency from Kaliori sub-district in the west to Salang sub-district in the east. Owing

to the fact, this regency livelihoods rely on its location, thus dwellers living in the northern

part make a living on fisheries and marine resources, whereas settlers on the southern part

depend on mining and agriculture sectors. The number of fisherman amounted to 19,703

people, which is nearly 3% from the total population of Rembang Regency.

Another strategic advantage is that along the northern part of the region is passed by

North Java Main Road which is generally called Pantura. This busy road gives economic

benefit. As a result, it would trigger the development of business in the area and other

potential activities for future growth.

Since last decade, Rembang government tried to boost development on this regency

by planning several programs in order to empower the local source. It also has purpose to

reduce dependency on Tuban Regency East Java Province, because Rembang Regency

does not have sufficient facilities. In this case, the local government wants to build many

construction projects such as Sea Front City, steam power plant, national port, cement

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industry, an integrated maritime area or known as “Kawasan Bahari Terpadu” (KBT) as

well as central of fishery industries. Particularly, KBT is a mega project which the

infrastructure and facilities and have been constructed since 2006 and this has purpose to

integrate all facilities in one area such as harbor, jetty, auction facilities, gasoline pump

and administration office. All those projects will support Rembang as the central

development on eastern of Central Java, In addition, it also reduce dependency of

Rembang Regency to Tuban Regency facilities, and it will reduce the cost and increase

revenue for Rembang Regency.

Rembang has long history related to its establishment and growth. Thus, Rembang

was known as the marine region in the past. The history of Rembang Regency can be

divided into five periods, which are:

a. Majapahit Period (1293 M – 1478 M), Rembang was under Lasem authority.

b. Islamic Empire Period (1478 M – 1619 M), Rembang was under Tuban authority,

part of East Java Province.

c. Colonial Period (1619 M – 1942 M), Rembang became Regency and Lasem was

under Rembang Regency.

d. Japanese Occupation Period (1942 M – 1945 M)

e. Present era

When central government applied decentralization in 1999, the local government

managed to promote economic development of Rembang by harnessing local resources as

well to attract local or international investors to make business in the region.

Rembang has strong potential economic in fisheries, mining, agriculture, trade and

service. This can be evidenced on Gross Regional Domestic Product of Rembang Regency

by Industrial Origin at Current Price between 2005 and 2009. It is noticeable that total

GRDP in 2005 was only IDR 2.77 trillion and it increased significantly to IDR 4.45 trillion

in 2009, which is 62,20% higher than that in 2005. Agriculture was the dominant both in

2005 and 2009 and followed by Trade, Hotel and Restaurant as the second contributor in

economics of Rembang. Meanwhile Electricity, Gas, and Water Supply were the least both

in 2005 and 2009. Nevertheless, Trade, hotel and Restaurant have shown a steady

increase during the same period. Moreover, GRDP per capita increased considerably from

IDR 4.70 trillion in 2005 became IDR 7.30 trillion in four years later (Rembang in Figures,

2010). This paper aims to review and explore about concepts and theories of local and

regional development of Rembang Regency.

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Figure 1. GRDP of Rembang 2005-2009

Source : Bappeda and BPS Kab. Rembang, 2010

1.2 Economic Profile

Regarding to Local Regulation number 10 year 2010 about Medium Term Planning

Development (RPJMD) of Rembang Regency 2010-2015 in which it has vision to make

Rembang more prosperous, autonomous, advance and dynamic. Besides that, this regency

also encourages investment, supports small scale industry, increases local revenue,

provides infrastructure and increases social facilities such as health and education

facilities.

Accompanying its vision, Rembang regency set up several strategies namely

attracting investor to come, giving fund for small scale industries, increasing efficiency

and effectiveness in local revenue, providing means for education and health services. It

will generate quality human resources, strong local economy, and competitive, democratic

and good governance as well as sustainable natural resources.

Since central government conducted autonomy in 1999 with Act No. 22/1999 about

Local Governance and it revised with Act No. 32/2004, the authority of Rembang

attempts to encourage their development which is clearly stated in RPJMD 2010-2015.

Fortunately, the local government has opportunity from central and province government

to participate in huge project that will be implemented in Rembang Regency such as steam

power plant, national port, integrated maritime area and cement industry

(Rembangkab.go.id 2011). Rembang also has excellent program to become central growth

on eastern of Java.

The project applied in Rembang Regency has potency to support development, in

which this sector has relatively large contribution in GRDP and the value of production.

Based on Rembang in figures 2010, productivity tends to increase during the last 5-year

period, it is evidenced that this sector has strength in providing employment as well as

increasing local

resident’s income

especially in rural

areas.

From the

figure, it is obvious

that the increasing

of three sectors

was significant

between 2005 and

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2008 namely Agriculture, Animal Husbandry, Forestry and Fishery (54.13%), Trade

Hotel and Restaurant (58.43%), and Services (79.40%). (Bappeda and BPS Kab. Rembang,

2010). The achievement of Rembang regency is higher than Pati Regency, its adjacent

regency. Thus, three sectors in Pati regency during the same period are 49.77%, 49.31%

and 42.03% respectively (BPS Kab. Pati, 2011). Moreover, total GRDP of Rembang

Regency between 2008 and 2009 increased considerably to 9.60% larger than that in

Central Java province which is only 8.27% from IDR 362.94 trillion rupiah to IDR 392.98

trillion (BPS Prop. Jateng, 2010).

Related to the location Rembang Regency has potency to became central growth on

Central Java, because Rembang has natural resources of limestone, in which the area is

10,735 ha and it can produce volume of approximately 2.2 billion m3 limestone

(www.kppt.rembangkab.go.id). Besides that, Rembang which has area about 1,014 km2

and coastline 63 km, 35% from all area is coast line and it has coast area 355.95 km2. From

14 sub-districts, 6 of them are close to the sea. Meanwhile, people involving in fishery

sectors almost 3 % of total population which is only 19,703 people. It will boost Rembang

regency as marine city and encourage local economic growth, if this regency can capture

that opportunity.

Similar to other regions, Rembang has weakness to improve its region. This is

related with budget provided by the authority of Rembang, human resources and

inadequate infrastructure. Generally, building infrastructure in Rembang depends on the

central government through public allocation fund (DAU), and the level of employee in

Rembang Regency is quite low.

Threat of economic growth is that Rembang regency should compete with other

region, especially Tuban in East Java province. Thus, Tuban has national harbor and

cement factory. Therefore, it triggers local government of Rembang to construct national

port and cement industry as well which would offer revenue to the authority of Rembang

rather than spend revenue to other region.

II. Government Role and Intervention

2. 1 Central Government

Since the Act 32/2004 about Local Government is legitimated, local government or

municipalities have rights to run the administration by themselves. They have

authorization to make some policies, rules, programs and activities as long they are not

contradictive to the law and other higher level policies. They have rights and obligations to

manage and their sources (capital, natural and human) in order to gain revenue from

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which can be used to finance their expenditure such as building infrastructure, public

facilities and other government expenditures. Generally, the municipalities have bigger

opportunities to determine their own destiny.

Municipalities also have chances to achieve higher direct income compared to

income from central government through bureaucracy. Thus, they have more budgets in

developing their region. Through autonomy, the municipalities could make suitable

policies for the citizens because they understand their condition and situation they have

and the potential sources for improving the region.

However, there are several drawbacks of the autonomy. Firstly, sometimes the

municipalities make some policies which against with central government or province

government policies because they often misinterpret the law and policies. Secondly, there

are more chances in corruption, collusion and nepotism activities in running the

administration which are not good in formatting good governance. Third, it can impact to

competition with other local government which can lead to conflict. Nevertheless, the

competition can be useful to push themselves in term of innovation and technology.

Finally, in some cases, the municipalities have spatial conflicts among each others in term

of the administrative boundaries. Obviously, every municipality wants to have bigger

territory and have more resources. Thus, they could exploit the resources for increasing

their community welfare. In fact, the wider the territory a municipal has, the more

inefficiency of the services to the community (Harmantyo, 2007). Due to these facts,

intervention for central government is still needed to overcome the problems.

The main purpose of decentralization is to increase the prosperity and to give

contribution economically in national level. Economy growth and reducing unemployment

are the major issue in the early decentralization. Nevertheless, the facts show that around

80% the municipalities become burden for national government, particularly in budgeting

(Harmantyo, 2007).

However, in the early formation of municipalities, they do not have sufficient budget

to run the governance because they needs huge amount of finance, particularly in paying

the wage of their officer. Consequently, the municipalities have not fully released from

central government role. They still need central or province government intervention,

especially in budgeting. For instance, Rembang Regency received around IDR 552.1 billion

from central and province government in 2009. Meanwhile, the local income was about

IDR 56.8 billion at the same period. It means that Rembang Regency needs budget

approximately half of the total from central and province.

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Since Rembang Regency desire to develop its coastal area, it needs support from

other institutions such as central government, province government and public-private

sectors. Integrated Maritim Area Program (Program Kawasan Bahari Terpadu) is a

program which the main purpose is to develop coastal area in increasing community

welfare. Obviously, Rembang which is located on northern part of Java Island has massive

potential on fisheries and other sea products.

One of the most important parts of this program is the port. It is expected that the

port could give significant contribution in developing the region. Rembang Regency is able

to develop its sea products through processing industry which can give value added to the

products. The port also can contribute in transportation which gives local income through

custom of commodities export-import.

2. 2 Province Government

Decentralization make the province government delivers some of the authorities.

Indirectly, municipalities are still connected with province government. According to Act

32/2004 article 13, Province government has authority in municipal aspects: social aspect,

labor and human resources, small and middle level of business, and land services sectors.

Province government has right to be involved on those aspects, from planning to

monitoring and evaluating.

On the other hand, the government province also has obligation toward the

municipalities such as infrastructure provision and budgeting. There are also some

authority delegations from province to municipalities, especially for the services sector in

order to service the community simpler such as land administration, healthy and other

public facilities services.

In planning, the province government makes a master plan that is integrated with

several sectors by involving all the sectors and municipalities. Spatial planning or land use,

for example, will be implemented on the municipality level. Meanwhile, the province

government will control and monitor the progress of the program. Any obstacles in the

progress should be consulted to the province government and discussed together with all

stakeholders in order to find some solutions of the problem. In brief, all the problems that

could not be solved in municipal level will be brought to province or national level.

2. 3 Local Government

Rembang Regency as one of municipalities in Central Java Province tries to develop

its region by empowering all the resources in order to improve the welfare of the

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community. It also wants to give a significant contribution to economy growth to the

national level by utilizing its characteristic and all the resources.

According to Badan Pusat Statistik (2009), agriculture sector contributed

around 47% on employment. However, this sector has not yet given a significant

contribution on community prosperity which was only IDR 3.4 million per capita. It

means that the personal income on Rembang people is still under poverty line based on

World Bank version (Salim, 2010). Consequently, this sector must be optimized. The

government should make some programs in order to achieve higher income of the people

through agriculture diversity and intensity.

Based on its position, Rembang Regency is located close to coastal line on the

northern side of Java Island. It has several potential sectors to be developed such as

fishery products, sea transportation, and tourism. However, it needs an integrated

planning to exploit those potential to something that can contribute to regional economy

growth, particularly in increasing community prosperity and reducing unemployment.

There are some alternative ways to develop those potential sectors by building

and improving several infrastructures. Building a larger harbor, perhaps, can affect to the

growing number of fisheries because bigger ships are able to dock there. Consequently,

fisheries processing industry also will be developed which they can give value added to the

fish products (Sosiawan, 2008). They also can absorb employment from around the region.

So, they could give contribution the welfare of community and reduce the unemployment.

The harbor also can be utilized to transport local commodities (freight) from

Rembang to other places. Directly, it has positive externalities in regional economy growth.

The economy activities in the region become more active. Thus, it can attract investors to

invest their fund to Rembang.

To achieve the goals, local government should make a good planning to

accommodate all sectors. Fisheries and sea transportation as the leading sector should be

provided with a bigger harbor in which is integrated with the industry. For this reason, the

government built Integrated Maritime Area in 2001.

The local government set up policies and instruments for this program, such as

establishing Fisheries and Maritime Agency and rearranging the fish bidding system by

reducing the tax and bureaucracy. Hopefully, it can attract people to do trading in this

region.

In fact, the result of this policy is satisfying. It can be seen from the target that has

been determined by the government and the production result that has been achieved. The

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2008 target was IDR 1.45 billion, while the result was IDR 1.77 billion (Dinas Perikanan

dan Kelautan, 2009). Although this sector only contributed around 4% of GDP, with all

the achievements and the efforts, it is predicted that this sector will overtake the

agriculture sector as the leading sector in the next few years for Rembang Regency.

In addition, infrastructures are also the key of the regional development. Roads,

markets, housing, health, education and other public facilities should be concerned as well

by the local authority in order to give good services to the societies. These provisions, of

course, are essential for the communities for their daily lives. Some revenues gained from

retribution and tax should be used for community welfare improvement.

III. Planning Development

3. 1 Plan-Making Process

Implementation of development in Rembang regency has been adjusted with

existing spatial arrangements so that in compiling RPJMD of Rembang regency 2010-

2015 – local regulation No. 10/2010, local government takes notice on Spatial Plan

(RTRW) of Rembang regency.

This plan-making process started from lower administrative level to accommodate

citizens’ aspirations in regard to RTRW of Rembang regency. Their aspirations are then

brought to head of Kelurahan to collect main points of planning in local communities.

After assembling all information, head of Kelurahan gives draft of local development

planning to Sub-District. In this stage, head of Sub-district then invites local council to

make hearings to local people for further detail about the draft submitted.

Next thing to do is delivering each draft from Sub-Districts which has been adjusted

to Local Development Planning Agency (BAPPEDA) in order to make shortlists and

concept of local development planning. BAPPEDA as representative of local government

proposes the concept to local council to be discussed. During the dialogue, local council

also invites community leaders and Non-Government Organizations to craft deeper

adjustment. The final draft produced in the meeting then approved by local council after

several adjustment through debate and argument from all stakeholders.

3. 2 Regional Cooperation

Actually, Rembang regency does not have specific cooperation with other regions.

The recent regional cooperation pioneered by Blora regency in the form of collaboration

among four regions in Central Java and East Java province namely Rembang regency,

Blora regency, Tuban regency, and Bojonegoro regency.

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This cross-province cooperation inaugurated on 21 September 2010 in government

office of Bojonegoro regency tends to endorse regional development of Ratubangnegoro

(stands for Blora, Tuban, Rembang, and Bojonegoro) in infrastructure, economy,

education, health and other fields. The purposes of this cooperation are to overcome

economic and live problems, to reduce regional inequalities, and to enhance economic

growth (Government of Blora 2010).

However, regional cooperation among regions is not very promising thus some areas

are still expecting more success evidences in implementing inter-regional cooperation.

This perception has to be changed with other optimistic approach. Communities should

understand inter-regional cooperation in different way. It is appointed to cover limited

ability of the region to develop its policies through the concept of inter-regional

cooperation. Due to the fact that capabilities of each region are so diverse that the

shortcomings and limitations of other regions can be complemented in mutual

cooperation among regions (Biro Administrasi Kerjasama Provinsi Jawa Timur 2010).

3. 3 Approaches to Development

In RJPMD, it is noticeable that local government has programs to encourage local

development and it applies many theories which related to Local and Regional

Development. Therefore, Rembang local government realizes that they have to apply

several approaches or theories in order to reach a goal.

3.3. 1 Neo-Classical Growth Perspective

Making a steady economic growth rate can be achieved by increasing capital stock,

labor force and technical progress. Strategic issues in RPJMD 2010-2015 try to

accommodate the importance of building infrastructure in the region to increase those

facets. Research found that infrastructure plays a central role to promote economic growth,

to share the benefits of growth with poorer groups and communities, and to connect

countries within the region and with the rest of the world (ADB, Japan Bank, World Bank

2005).

Incorporating its strategic purposes, local government plans to build several

infrastructure projects such as integrated maritime area so called “Kawasan Bahari

Terpadu” or KBT, steam power plant, Sea Front City, and Cement Industry. These

projects show that investment in Rembang grows rapidly in the last decade thus this

regency has gained confidence from investors as well as central government to this mega

projects (Suara Merdeka 2004, 2011). Consequently, this circumstance would attract other

stakeholders to invest their capital to this regency.

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Next facet to be considered is availability of human resources as potential workforce

to support this development. Although the value of Human Development Index (HDI) in

Rembang is below than that achieved by Central Java province, Rembang’s HDI is still

higher than other regency in the region such as Blora and Pati (Bappeda Rembang 2010).

Moreover, Central Bureau of Statistics of Rembang noted that rate of population

growth in this regency during 2000-2010 amounted to 0.49% which is above the rate of

population growth on average in Central Java province which is only 0.37% (ANTARA

Jateng 2010). However, population density in Rembang is still low at the same range with

Blora which only 570.19 per km2 and 467.10 per km2 respectively compared with other

adjacent regencies such as Pati (788.11 per km2) and Jepara (1,103.38 per km2).

Another significant aspect is progress in technology. In fisheries and marine area,

the authority of Rembang encourages local fishermen to utilize new technology in

increasing production of fish and pioneers to establish Polytechnic of Marine and

Fisheries. There are three decent courses would be opened in the Polytechnic namely Seed

and Feed Technology, Technology of Fisheries, and Technology of Aquaculture (Suara

Merdeka 2011).

3.3. 2 Sustainable Development

Generally, there are aspects of sustainable development which can be categorized

into three main principles namely economic, environmental, and social (Harris 2000).

Vision and mission of RPJMD 2010-2015 reveal a considerable policy direction and

strategy in order to adopt sustainable development. The local government wants to

endorse management of sustainable natural resources by implementing several policies

(Bappeda Rembang 2010).

Table 1. Sustainable Development Policies of Local Government

Policies Economic Environmental Social

1 The rehabilitation and restoration of environmental

carrying capacity

2 Preservation of environmental support and have a

social responsibility towards the welfare of local

communities

3 Various mitigation and conservation of land and water

4 Diversification of primary energy and renewable energy

for energy distribution and fulfillment distribution

5 Increase in added value and benefits of mining

6 Increase community participation in forest

conservation

7 Marine resource management and preservation of

ecosystem-based environmental carrying capacity

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Figure 2. Total Export of Rembang Regency 2005-2008

Source: RPJMD Rembang 2010-2015

8 Optimization of land use

Source: RPJMD Rembang 2010-2015

3.3. 3 Export Base Implementation

Rembang regency has several advantages from its strategic location and knowledge-

based products such as fisheries, furniture, and textiles which is demanded by many

enthusiasts from both local and international communities. The authority of Rembang

conducts some policies to gain maximum benefit such as providing facilities to increase

export of fishery and marine areas, facilitating the provision of land mines especially C

class (material for

cement industries), and

supporting local

products to find

opportunities in local or

regional market.

By doing so,

Rembang regency has

achieved significant

progress in exporting

goods other regions or

countries. During period

of 2005-2008, on the whole, total export of this regency tends to grow albeit there is a

slight drop in 2006 due to declining demand from several countries.

3.3. 4 Institution and Socio-economics

The growth and development of localities and regions promoted by institutional

organization and regional cooperation are to develop indigenous assets and resources.

These purposes are then formed into four policies:

Developing coordination and communication among local governments

(Ratubangnegoro) and coordination with province and central government

Encourage and facilitate export-oriented products.

Improve institution and infrastructure for business, health and education

Applying good governance.

There are some achievements in response of these policies:

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Economic growth increases steadily due to development of infrastructures which is

mostly implemented in real sectors such as integrated maritime area (KBT) and

Steam power plant.

Several mega projects executed in Rembang regency offer direct job opportunities and

indirectly foster the welfare of society.

Coordination among local, province, and central government tends to be harmonious

Easy of access and transportation of goods and services

IV. Conclusion

1. Authority of Rembang regency conducts several theories to boost its local development.

2. Massive scale projects have significant impact to encourage local development and it

increases employment and GRDP .

3. Fisheries and marine sector influence development of Rembang regency, and it becomes

excellent sector.

4. Improvement and innovation are needed to diminish the dependency to Province or

Central government

5. Good governance and accountability are required to support local development.

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Routledge, 2006.

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http://www.antarajateng.com/detail/index.php?id=33814 (accessed December 2011).

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Essay outline:

I. Introduction

a. Overview

b. Brief History

c. Economic Profile

II. Government Role and Intervention

a. Central Government

b. Province Government

c. Local Government

III. Planning Development

a. Plan-Making Process

b. Cooperation Rembang with other regions

c. Development Planning According Theories

IV. Conclusion