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EMPLOYMENT DIAGNOSTIC ANALYSIS WORKSHOP AT MAROS

Maros, 22-23 December 2012

Prepared by:

PUSAT STUDI PDPM-LPPM ITS

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1. Background

Unemployment and poverty are common social problems.

Productive employment creation program which is defined as

employment that is capable of making the most of existing

resources potency and on sustainable basis will be ultimately

needed to cope with these problems. The government has made

efforts to create programs and facilitated employment program

implementation. However, employment programs are very complex.

The government has limited knowledge and capacity to design,

carry out, monitor and evaluate the programs. Therefore

contributions from stakeholders such as private entities and

the community are imperative in employment activities. The

major critical milestone will be the understanding and

performing analysis of the existing employment issues and

designing programs and priorities to address the same.

The Employment Diagnostic Analysis Workshop is aimed at

delivering assistance for better development planning process

based on the principle of knowledge sharing among the

stakeholders that have interests in employment issues at local

level and encourage them to participate in the employment

programs planning and implementation.

The Workshop adopted the methodology that was introduced by

ILO (International Labor Organization) which is continued to

be developed through a collaboration between Pusat Potensi

Daerah dan Pemberdayaan Masyarakat – Center for Local Potency

and Community Empowerment (PDPM) of Institut Teknologi Sepuluh

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Nopember (ITS) Surabaya Indonesia and the Stockholm School of

Economics (SSE) of Sweden under the coordination of the

National Development Planning Board (Bappenas) financed by the

Swedish Government through the Swedish International

Development Agency (SIDA).

2. Purpose and Outcomes

This Workshop is especially aimed to relevant stakeholders

(government, private enterprises, and public) who have

concerns in employment issues in order to:

a. Have better understanding of the issues, challenges and

opportunities in developing inclusive and sustainable

economic growth and job creation.

b. Conduct collective employment analysis to ensure reliable

employment program planning process.

c. Facilitate dialogue to create discussion forum among

stakeholders to further assess the problems and challenges

in creating productive jobs and give recommendations to

local government in drafting relevant policies.

d. Build strong foundation for local governments in the making

of strategic policies for economic development and job

creation in the area.

e. Share collective commitment to promote social dialogue

between government and stakeholders in the area.

Whereas the benefits/outcomes of this Workshop are as follows:

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a. Better understanding of development direction and plans in

the area, including related problems and challenges.

b. Better understanding of the concept of joint employment

program planning as effort to create inclusive and

sustainable jobs.

c. Understanding of contemporary condition (problems,

challenges and opportunities) of productive resources

development (human and natural resources) and equal

opportunity for the people to get jobs in the area.

d. Understanding of contemporary economic conditions, including

identification of problems, challenges and opportunities to

develop conducive economic growth in the area and fair and

sustainable opportunities.

e. Understanding of contemporary condition (problems,

challenges and opportunities) of equality and sustainable

socio-economic development in the area.

f. Identification of potential leading sectors in the areas

which can generate inclusive and sustainable productive

jobs.

g. Give recommendations of policy that is required to follow

up opportunities and address the problems and challenges of

job creation in the area through leading sectors.

h. Recommendation for further studies to support the foregoing.

In the framework of supporting the realization of the Vision

of Maros Regency in the year 2010-2015: “To make the people of

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Maros prosperous based on faith and ruled by clean and

professional government”.

3. Definition

As described earlier, this Workshop is aimed at developing

alternative policy direction and programs to create inclusive

and sustainable and productive jobs. The terminology above is

defined as follows:

Productive Job means employment that is capable of offering

job opportunities so that one can earn decent income and able

to support him/her and his/her family and move out from

poverty line. Hence, productive job is closely related to the

reduction of unemployment and working poor rates.

Inclusive means all people regardless of gender who live in

cities or rural areas have equal opportunity to get productive

jobs. This term is closely related to equality.

Sustainable means productive employment that concerns

environmental protection not only for today’s present

generation but also for future generations.

4. Methodology

To achieve the purposes mentioned above, the Workshop consists

of two phases:

- Pre Workshop activity, also called the preparatory phase,

identify WHAT are the characteristics of jobs and relevant

challenges faced by the area. This activity is carried out

by ITS and SSE Team members by examining statistical data.

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HUMAN RESOURCES

NATURAL RESOURCES

SUSTAINABLE

PRODUCTIVE ECONOMY

EQUALITY

EQUAL AND SUSTAINABLE

DEVELOPMENT

ADDRESS EMPLOYMENT

DEFICIT

ALLEVIATE POVERTY

Private

Gov.

Public

- Workshop, aims to present employment data and relevant

challenges, confirm initial findings, and figure out WHAT

causes employment and poverty problems and collect inputs

HOW to address these challenges. This activity is carried

out collectively facilitated by local Regional Development

Planning Board (Bappeda) supported by speakers and

facilitators from ITS.

The thinking framework of diagnostic analysis phase referred

to the employment diagram (see Figure 4.1). Figure 4.1

Employment Diagnosis Framework features that inclusive and

sustainable and productive job is fundamentally dependent on

four factors, as follows:

- The availability of productive resources (Human Resources

and Natural Resources).

- Support of economic driving factor.

- The implementation focuses on the aspect of equality.

- The implementation considers the aspect of sustainability.

PROCESS

PRODUCTIVE RESOURCES

Figure 4.1 Employment Diagram

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Employment Diagnosis Framework features that job creation is

based on two productive resources, namely human resources and

natural resources. Both need to be empowered in the framework

of productive economy while consider equality and

sustainability and involve three development elements, namely

government, private enterprises and the public. If it works,

the sustainable development base on equality will be able to

address the deficit of productive jobs employment and poverty.

Hence, the planning stage comes as early critical stage and

this Workshop is aimed at facilitating a joint planning and

discussion with reference to the concept mentioned above.

5. Agenda and Participants

The Workshop was held on 22-22 November 2012. Discussion

results from one session were used as input materials for the

next session, as follows:

Day 1: (a) Presentation of the Vision and Mission of Maros

Regency; (b) Explanation of methodology; (c)

Employment dynamics in Maros Regency, and (d)

Analysis of economy and sustainability.

Day 2: (e) Analysis of human resources and other productive

resources followed by discussion on the topics of

(f) equality (inequality) and summary of

recommendations for the local government.

Workshop Framework is featured in Figure 5.1.

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Session 1. Methodology of Joint Manpower Program Planning

Session 2. Development

Strategy

Session 3. Facts about economic

development in the areas

Session 4. Facts about manpower in the area

Session 5. Facts about equality and sustainability

Question & answer: Understanding of Manpower Dynamics

Session 6. Presentation and

Discussion A Productive Human

and Natural Resources

Session 7. Presentation and

Discussion B Achieve Development

Goals based on equality

Session 8. Presentation and

Discussion C Achieve Sustainable Development Goals

Session 9. Presentation and Discussion

D Selection of Leading Sectors for inclusive and sustainable

employment

Session 11. Discussion F

Recommendations and Further Studies

Session 10. Discussion E

Policy Recommendations Review of results of discussion A-D & prepare

policy recommendation & RKA.

Figure 5.1 Workshop Framework

Complete workshop schedule is presented in Appendix A.

The Workshop was attended by 46 participants including 28

government officers, 8 private persons and 10 participants

from the community, 73.91% (34 persons) male and 26.09% (12

persons) female. Participants’ comments and expectations of

the Workshop are presented in Appendix C.

6. Workshop results

The workshop results are presented in 4 sub section: Demographic

Composition, Employment Dynamics including economy and

workforce.

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Sources: Maros Regency in Figures, BPS, 2010 Figure 6.1. Distribution of Rural/Urban Population

6.1 Demographic Composition

6.1.1 Population distribution

With a total area of approximately

1619.12 km2 the population of Maros

regency is about 319,002 persons with

average density is approximately 197

persons/km2. Maros regency consists of

14 kecamatan (district) and 103

kelurahan/desa (villages). The majority

of the population lives in villages that account for about

221,147 persons (66.19%), and live in the urban area which

accounts for 107,855 persons (33.81%).

6.1.2. Distribution of the population by age and sex

Men population is about 155,965 (49%) and women population is

approximately 163,037 (51%). The distribution of population by

age and sex is shown in Figure 3.2. The working age population

aged 15 years and above accounts for approximately 218,295

(68.4%) and the remaining 100,707 (31.6%) persons are

population under 15 years.

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Sources: Maros in Figures

Figure 6.2 Pyramid Chart of Maros Population

6.2 Employment Dynamics

6.2.1 Labor Force Population

The population of labor force is approximately 140,254 people

(44%) where more than 50% (approximately 75,000 person) are

elementary school graduates or below, the remaining are junior

or senior high school graduates and above. Labor forces who

graduated education above senior high school accounts for only

38%. Furthermore, the distribution of women with higher

education background is higher than men. (See Figure 4.1).

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Sources: Maros in Figures 2010

a) By education b) by Education and Sex

Sources: Maros in Figures 2010

Figure 6.3 Labor force Population by education and sex

The population of working ages who are employed is

approximately 126,653 person and unemployed is approximately

12,611 (see Table 6.1) where 51% are unemployed of elementary

graduates, while unemployed of secondary school graduate

accounts for 7.5%, and the remaining are senior high school

graduates (42.2%).

Table 6.1 Distribution of Labor Force Population by Education Level in

Maros regency

Employment Status

Education Level

Total < Elementary

Junior

Secondary

> Senior high

school

Labor force 74,948 21,233 44,083 140,264

Employed 68,515 20,291 37,847 126,653

Unemployed 6,433 942 6,236 12,611

Non labor force *) *) *) 78,031

Source. Maros In Figures, BPS 2010

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6.2.2 Labor Force Participation and Productive Workforce

Deficit

In general, employment participation rate is still low where

the ratio of labor force population to Working Population is

64.3% which means 43.7% of the population is not employed due

to unemployed or not working actively (housewives, students,

etc.). While the ratio of Working Population to working age

population (employment rate) is about 58% (see Table 6.2)

Table 6.2 Projection of Participation Rate of Employed and Unemployed

Population

Distribution of Working Age Population by sex - 2010

Men Women Total

1 Population 155 965 163 037 319 002

2 Working Population Aged 15+ 104 165 114 130 218 295

3 Labor force 88 147 52 117 140 264

4 Employed 82 847 43 806 126 653

5 Unemployed 5,300 8,311 13,611

6 Inactive (persons) 16 018 62 013 78 031

7 Actual Dependency Ratio (%) 0.88 2.72 1.52

8 Dependency ratio by age (%) 0.50 0.43 0.46

9 Activity rate (%) = [3] / [2] * 100 84.6% 45.7% 64.3%

10 Employment rate (%) = [4] / [2] * 100 79.5% 38.4% 58.0%

11 Unemployment rate (%) = [5] / [3] * 100 6.0% 15.9% 9.7%

Source. Maros in the Figures, 2011

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Figure 6.4. Projections of Deficits of Productive Employment

The number of working age population is 140,264 people (64%)

where 58% of them are employed. Therefore there are still

about 9.7% unemployed (36110 people). From the total Working

Population, about 18,517 persons are unproductive workers. The

predicted Employment Deficit in Maros regency is derived from

the number of unemployed population plus unproductive workers

in a total of approximately 31,128 persons (See Figure 6.4).

In terms of education level, the quality of labor force

population is relatively low where 9% of elementary school

graduates are unemployed, 942 persons of secondary school

graduates are employed and 6,236 persons of senior high school

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graduates are employed (See Table 6.1). This figure suggests

that Maros regency is having a serious unemployment problem

involving less educated unemployment.

6.2.3 Employment absorption in various economy sectors

Agriculture, forestry, hunting and fishery sectors absorb most

employment in a total of 55,695 persons followed by trade

sector 22,402 people, and the third sector is services for

approximately 22 persons (see Figure 6.2).

Sources: http://pusdatinaker.balitfo.depnakertrans.go.id

Figure 6.5 Distribution of Working Population by Sectors in Maros regency

in 2010

Agriculture, mining and quarrying, construction and wholesale/

retail and restaurants are dominated by less educated

population (elementary or below). While financial, electricity

and services sectors employ more educated population. (See

Figure 6.5)

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Sources: http://pusdatinaker.balitfo.depnakertrans.go.id

Figure 6.6 Distribution of Workers’ Education by Sectors.

The average wages made by elementary school graduates working

in agriculture, trade and construction are relatively low as

compared to other sectors (mining, transport, electricity and

gas, warehousing and financial services). It appears that

education background affects the amount of earnings in each

sector. Further, sectors that pay better wages in Maros

regency are services, finance, electricity and gas.

Table 6.3 Average Wage/Salary Per Sector by Workers’ Education Level.

Workers / Employees’ Average Net Monthly Wage / Salary in Maros Regency year 2010

Agriculture,

forestry

hunting and

fishery

Mining

and

excavation

Manufacturing Electricity,

Gas and Water Construction

<= elementary 415,951 978 151 862 736 1089076 635 667

junior high school 646 893 8,000,000 756 559 - 853 458

Senior high school - - 967 184 1,000,000 923 130

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Vocational high school 1,250,000 -

Diploma I, II, III / Academy - - - -

University 372 894 2200392 801 977 1058564 814 905

Wholesale,

retail,

restaurant &

hotel

Transportation,

warehouse and

communication

Finance,

Insurance,

building and

land lease, and

company

services

Services

<= elementary 506 391 706 960 776 773 1173178

junior high school 670 894 1177709 1361681 1127967

Senior high school 524 874 2473750 150,000 1054392

Vocational high school 1,500,000 1981547 - 1156766

Diploma I, II, III / Academy -

-

-

-

2209244 2887827

University 622 082 1256769 1221239 1561672

Sources: http://pusdatinaker.balitfo.depnakertrans.go.id

6.2.4 Employment challenges in Maros Regency

From earlier description, it is clear that Maros regency faces

productive labor force deficit for approximately 32,128

persons, consisting of 13,611 unemployed and 18, 517

unproductive labors. Employment problem in Maros regency

involves less educated workforce especially villagers. In more

detail, based on secondary data analysis, the following

employment issues are found in Maros regency:

In terms of education, the quality of workers is low because

the majorities are elementary school graduate or lower.

Due to poor quality of human resources, agriculture hunting

forestry and fishery are the two sectors which create the

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highest employment rate (agriculture 55.695, trade 22.402

and social service 22.000 labors)

The average income per sector is varied with the lowest

earning is in agriculture and construction especially for

less educated workers (elementary graduate or dropouts).

The distribution of men and women workforce equals to the

number of elementary school graduates or dropouts, however,

the percentage of male workers of junior and senior high

school graduates seems higher than women’s. As for higher

educated workforces, the distribution of women is higher

than men.

Discussion about important issues related to employment issues

are found the following matters:

Less educated workers are caused by people assumption that

elementary or junior high school is enough for them.

The weaknesses of this kind of workforce are poor work

ethics, poor punctuality, act little and ask too much

(demand high pay), lack of confidence, lack of discipline,

always ask for backup, like wasting times, prone to

corruption, collusion and nepotism practice, doubter, lack

of seriousness in work.

Less skilled with poor entrepreneurship knowledge.

Lack of creativity to manage existing resources, lack of

management skills and not ready for competition.

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The number of employment in Maros regency is very

little/limited in addition to unavailability of information

or access to human resources training/skills and employment.

6.3 Gap Issues

6.3.1 Income Gap and Poverty

Maros regency is facing poverty problem although the poverty

levels in the area continues to decline to 36,331 people

(11%), in fact below national poverty rate nationwide which

reached 13.5% in 2010 and 11.96% in 2012 (BPS, 2012). This

poverty rate is closely related to income gap in various

sectors or types of work and various levels of education.

Agriculture and construction sectors have lower incomes than

other sectors. Whereas elementary graduates working in various

sectors make the lowest income or below the poverty line.

Therefore the improvement of people’s welfare and poverty

alleviation will be achieved if the government of Maros

regency is able to offer opportunities to increase income in

sectors paying low income especially for less educated

workers.

6.3.2 Gender Equality

The distribution of men and women in low educated workforce

(elementary school or dropouts) seems almost the same,

however, for junior and senior high school-based workforce,

the percentage of men is higher than women. For higher

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educated worker force the distribution of women is higher than

men. (See Figure 6.7)

Sources: Maros in Figures, BPS, 2010

Figure 6.7 Working Population educational background by sex

Even though women’s participation in Maros regency is still

low, namely: 1) women’s activity rate is 45.7% while men’s

activity rate reaches 87%; 2) employment rate (the ratio of

Working Population and working age population) men is 79.5%

and women is 38.4%. (see Table 6.2). The question is higher

educated women workforce population is classified as unemployed?

6.3.3 Rural and Urban Gap

The number of workforce living in rural areas nearly double

the number of workforce living in urban areas, which is about

66% live in rural areas. Urban workforce population generally

has higher education where male workers of senior high school

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graduates account for 57% while female workers account for

about 54%. In rural areas, senior high school male graduate or

above account for only 31% and female accounts for

approximately 26% and the remaining are junior high school

graduate or below (see Figure 5.2). This suggests that

educational opportunities for rural and urban areas are highly

imbalanced. In other word, in Maros regency the chance to take

higher education for the villagers is smaller than urban

population.

(A) distribution of workforce (b) education background of workforce population

Sources: http://pusdatinaker.balitfo.depnakertrans.go.id

Figure 6.8 Distribution of Workers by Rural and Urban Areas

Challenge to fulfill manpower deficit for approximately 32,128

persons which should be addressed by the government of Maros

regency generally live in rural areas and are less educated.

It will require brilliant innovation to provide productive

employment for them. The question is what sector able to

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provide productive employment in Maros regency that pay above

the poverty line?

6.4 Economic sector and determination of key sector

Maros’ economic growth rate has been continuing to increase in

recent years. In 2010, its economic growth rate was 7.1%. As

the buffer zone of the capital city of South Sulawesi

province, Maros is situated at key point to determine the

priority sectors to be developed due to various advantages the

area has. Maros regency plays an important role in supporting

trading sector in Makassar; its agricultural sector constitutes

one of national rice production and also national tourism

destination. The important thing to note is unemployment and

poverty rates are higher than the average rate of South

Sulawesi province.

Sources: Maros in Figures 2011, Pusdatinaker 2010

Figure 6.9 the Ratio of GRDB to Employment Distribution by Sector

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Figure 6.9 features the Ratio of Sectors’ contribution to GRDB

and Job Creation. It is seen that in terms of economy 38.5% of

GRDB IS contributed by agriculture, followed by manufacturing

(23.3%), trade (8.45%), and other services OF 14%. However,

the contribution of each sector in job creation is uneven.

Agricultural provides employment up to 44% while manufacturing

industry provides accounts for only 6.13%, trade and tourism

account for 17.7% and other services account for up to 17.42%.

These reflect gap in productivity among sectors. Manufacturing

sector is the most productive sector due to its significant

contribution to the economy despite little number of

workforces. However it turns out that the data mentioned

mineral processing industry.

Therefore the determination of sector that is able to provide

decent jobs needs to be considered. The determination of

sectors should consider the following matters:

a. Have demand/market

b. In accordance with the characteristics of existing

workforces (open unemployed in accordance with existing

education level/skills)

c. High labor intensive

d. Pay decent wages

e. Sustainable

Based on the above criteria there are 4 potential sectors,

namely Agriculture, Trade, Food Processing, and Tourism.

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Figure 6.10 Market System Framework

presented in Donut Chart

The following Market System

Framework presented in Donut

Chart is used to direct

subjects need to be corrected

for each sector by

assessing:

1) Problems to maintain the

chain of value in the

sector;

2) Regulatory support to establish conducive sound business

climate

3) The availability of supportive functions to grow the

sector.

7. Discussion concerning Efforts to Reach Productive

Employment Target in various sectors

The government of Maros regency is aware that employment

issues are crucial and it is the tasks and responsibilities of

the government to manage this problem. The problem is how to

design and manage employment restructuring (labor force and

non labor force) by involving all stakeholders including

private, state-own enterprises and local enterprises. The high

unemployment rate will be difficult to overcome; however, at

least there are 4 things that can be done by the government of

Maros, as follows:

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1. Give priority to low-educated children to get certain

skills/expertise trainings.

2. Improve the quality of internship program

3. Provide competency-based trainings at each work place

4. Provide entrepreneurship trainings to youths.

As discussed earlier, the four selected sectors determined as

key sectors are agriculture, trade, industry and tourism.

Hence, the following section describes current condition of

each sector, policy recommendation, and success indicators.

Selection criteria and program recommendations:

Absorb labors

Offer high added value

Has connection with other sectors (multiplier effect)

Provide equal Job Opportunities

Guaranteed sustainability (market)

Effortless application

Affordable Cost

7.1 Agriculture sector

7.1.1 Current conditions: Weaknesses and Opportunities

The agricultural sector still adopts traditional technology.

Based on discussion result, the weaknesses and challenges of

agricultural sector are:

The absence of extensive agribusiness systems from upstream

to downstream so if this sector is developed there is an

opportunity to develop agribusiness system extensively from

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upstream to downstream because agribusiness is labor

intensive. Besides, agricultural sector should be developed

into an integrated farming system (entrepreneurial farmer).

Another opportunity is open organic agriculture to meet

current high market demand for these products in addition to

sell the product at supermarkets

In terms of human resources/employment, agricultural sector

employs less educated workers. Currently, urbanization rate

is high which has made the number of people working in

agricultural very little for many youths are no longer

interested working in agricultural sector. Actually,

employment in agricultural sector is widely opened and

requires high skills in the field of agro business.

The condition of infrastructure is viewed to be under

standard, road access to the farms is damaged so the

government should take a measure to renovate the access

roads to agricultural areas. Besides, wider and more

adequate irrigation system is need as well.

Environmental issues being faced is the frequent use of

chemical fertilizers that affect soil fertility. Therefore

environmentally friendly technologies are needed such as

utilizing agricultural waste or manure as organic fertilizer.

In terms of products, until now there is no quality standard

of agricultural products so that farmers do not know what

kind of qualities desired by the market. Market information

is unavailable either and agricultural partnership has not

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been established. Therefore it is necessary to establish

partnership and agribusiness business meeting. For the

purpose of promotion, agriculture exhibition is required to

procure more market demand.

7.1.2 Policy and Program Recommendations

To further develop the agricultural sector and able to provide

productive employment, the following integrated policy and

program are required:

1. Improve human resources capacity by giving training on

agribusiness development and integrated farming.

2. Improve basic agricultural facilities/infrastructure

3. Carry out organic farming programs

4. Develop market information network program

5. Develop primary product zone.

In developing the programs the government’s role is the

regulator, private sector is the partner while farming

community is the actor.

7.1.3 Success Indicators

Aspect SUCCESS INDICATORS FOR AGRICULTURAL SECTOR

Human resources

quality

The availability of skilled labor in the

village

Products and

Productivity

Increasing production and agricultural

productivity

Development of environmentally friendly

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agricultural production quality

Development of organic farming tradition

Employment

Absorption

Reduction in unemployment in the village

Facilities and

infrastructure

Fulfillment of basic facilities that

support farming business

Promotion Effortless access to markets and

production facilities and information on

any media

Establishment of partnerships among

farmers, entrepreneurs and financiers

Business

development

Improvement of primary products in

each area continuously and the

establishment of agribusiness system

7.2 Trade Sector

7.2.1 Current conditions: weaknesses and opportunities

Discussion of trade sector covered small and medium scale

business which remains unable to provide sufficient employment

due to:

Still adopt traditional system so the proceeds are

relatively small. Residents/sellers do not utilize of

contemporary technology (internet, etc.). On the other hand,

lack of access to financial institutions (poor network).

Market shares should be high due to continuous flow of

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people crossing the area and the existence of PTB. In

addition, Maros is the satellite area of the provincial

capital (Makassar) and urban population tends to be

consumptive.

Human resources Quality

The quality of human resources is inferior and tends to be

feudal who consider education is not important. The level of

knowledge to develop trade business is minor that made them

unable to create employment

Infrastructure

Trade business in Maros regency is supported by 21

traditional markets spread across 14 districts with 2

markets are first class and 19 markets are second class.

Over the last two years, budget allocated for market

renovation is large nearly 10 billion so the quality is

good. For next year the budget to be allocated is

amounting to 17 billion.

However, the management of these markets is not good and

needs further development (typically dirty and not

managed properly)

Besides markets, other means of trade business is shop

house which are quite expensive while there is no modern

market is available (clean and attractive market)

The role of private companies in the development of

market does not exist for example through CSR funds

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Environment

Market management is not performed properly (high

accumulated wastes without property management)

Promotion

The lack of promotion due to the absence of knowledge while

promotional media are not available especially for people

living in the village. In addition, access to information

about trading commodities cannot be accessed immediately by

businessmen.

Products sold

Generally the products not well packed with inferior

product quality; many products are not durable, short

expiration date

There are many Indomaret stores in Maros regency but none

of local product is sold in the store due to inferior

quality because agricultural products still use

pesticides.

7.2.2 Policy and Programs

Policies that support the development of trade in Maros

regency are:

Integrate trade development program with tourism development

programs

Provide flexibility to merchants to gain access to capital

through cooperation with financial institutions.

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To improve the quality of human resources in trade business,

the government must adopt policy for students by providing

special funding to continue to higher education level.

The drafting of regional regulations governing merchant

association

Based on the discussions results, program required to

develop trade sector, among others:

o Improve the quality of human resources:

Training on use/manufacturing of promotional facility,

product development, use of technology, access to information

for merchants

Training on procedures for handicraft packaging to make them

interesting and have selling value

Regular guidance for merchants/entrepreneurs/private companies

in the village

o Trade business development programs:

The establishment of merchant associations to facilitate

farmers to market their products and avoid selling their

products to middlemen

o Improvement of market environmental:

Procurement of waste recycling machine whether plastic

or organic

Appoint waste manager to facilitate waste collection

from markets

7.2.3 Success Indicators

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Aspect SUCCESS INDICATOR OF TRADE BUSINESS SECTOR

human

resources

quality

Increased trade capacity amid market access

and capital

Many marketing outlets established by the

community

Number of trading businesses that have

internet sites for transaction

Products and

Productivity

Increase in the number of existing

businesses

Increase in productions

Labor

Absorption

The number of people working in trade

sector

The number of business representative

established in rural areas

Facility and

infrastructure

The availability of reliable

telecommunication access in Maros

The Availability of access roads from

production centers to trade business center

The availability of reliable means of

transportation and accessible from

production center to trade center

Promotion The frequency of trade exhibitions held in

various areas (local, provincial, national)

Number of promotion counter that can be

accessed by employers in Maros

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Number of business websites promoted in

various media

Business

development

Business formulation

The availability of credit access for

business development.

7.3 Food Processing Industry

7.3.1 Current conditions: weaknesses and opportunities

The number of products is less varied; processing is conducted

at household level. Manufacturers have little knowledge of

quality while production facility is also very limited.

On the other side, feedstock is much available that allow

various products to be made, for example:

- Food product: rice

- Fishery product: fish, crabs

- Farm product: corn (nasi koboi), popcorn, animal feed

- Forest product: bamboo crafts

Human resources Its number is relatively insufficient

while the number of labor force is high

despite non trained.

Environment Wastes generated from production process

have not been handled properly. An

environmentally friendly production

processes should be developed.

Promotion Printed media (newspapers) have been

circulated widely even to rural areas and

33

many people who read them frequently even

get online. However, promotion of

processed product cannot be made due to

high advertising cost on printed and

electronic media. Many manufacturers do

not know how to promote their product on

electronic media. In addition, certain

knowledge is needed to make product brands

more interesting to people.

7.3.2 Policy and program

To support the development of processing industry the

government of Maros regency needs to take the following

measures:

Conduct certification of processing industry to allow them

maintaining standard quality

Recommend the development of key food/commodity products,

chili, tomatoes, corn, shrimp, etc.

Establish an integrated industrial zone in each district

based on relevant key products using current technological

advances

Maintain specific policy to ensure equality in terms of

employment absorption at district level

The following programs are recommended for the development of

processing industry:

Development of micro, small and medium enterprises (SMEs)

34

Promote other market-oriented agricultural businesses.

Foster a focused home industry development continuously

7.3.3 Key Success Indicators

The success of manufacturing sector development can be

assessed based on the following indicators:

Aspects SUCCESS INDICATORS OF FOOD PROCESSING SECTOR

Human

resources

quality

Improved women participation in food

processing activities

Improved human resource capacity to produce

quality products and meet food standards

Products and

Productivity

Increased number of businesses holding PIRT

licenses

Increased production volume

Reasonable wages earned in food processing

business

Labor

Absorption

Increased number of people working in food

processing sector

Increased number of food processing

business in villages

Facility and

infrastructure

The availability of reliable telecommunication

access in Maros

The Availability of road access from the

central of production to trade center.

The availability of reliable and affordable

means of transportation from the central of

35

production to trade center.

Promotion The existence of souvenir shop in Maros

The Promotion of food production centers

and local culinary

Business

Development

Business formalization

Increased credit application for business

development

7.4 Tourism

The famous tourist destination in Maros is Batimurung

waterfall. This object has been the destination of local

tourists but not foreign tourists. Actually Maros has unique

cultural potentials that could be developed as tourist

attraction, such as traditional wedding and local ceremony.

7.4.1 Current condition: weaknesses and opportunities

The development of tourism in Maros regency should be

conducted openly, however, so far no investor is interested

to make investment there. There is no regulation existed to

govern tourism in Maros, for example the determination of

tourist destination area any matters supporting tourism

development.

inadequate facilities and infrastructure of tourism such as

hotel, restaurant and transportation to the tourist

destinations. The development of facilities and infrastructure

36

will increase tourist visits as they will eager to spend

more times in Maros regency.

The environment around tourist destinations has not been

managed adequately especially concerning domestic waste

management. People living surrounding tourist destination

should be given knowledge of tourist business and

environmental management to support tourism sector

development in Maros regency.

The quality of human resources in tourism business needs to

be upgraded. Improvement of human resources quality

especially the youths will support faster tourism

development.

Other tourist objects other than natural objects in Maros

have not been explored entirely given that Maros has pretty

unique culture and commercial value as tourist destination.

Tourism promotion in Maros regency is hardly developed for

both local and foreign tourists due to promotional budget.

Here is a commentary by a foreign tourist:

Do not waste your time. “*)

Reviewed July 3, 2012

We had one day to kill in Makassar, and decided to check

out the waterfalls and butterfly park at Bantimurung.

What a waste of a day. We spent two hours on at least 3

different bemos in the penetrating heat to get there.

Getting off the minibus we walked past numerous stalls

37

selling food, drink, and most disappointingly, Welcome to

Thunderbird framed butterflies. Do not encourage this

despicable practice - its no wonder there are very few

butterflies left in what must have once been an

incredible sight. We were expecting a 20 000 admissions

each based on Lonely Planets (Often incorrect) advice,

and arrived to face 50 000 rupiah each - more than we

were willing to pay but considering the effort we took to

get there Decided to bite the bullet. Basically this is a

dirty public pool fed by a large waterfall. The waterfall

itself is impressive, but is ruined by its surroundings -

litter, concrete, dilapidated facilities, and hawkers. We

walked to the top of the river only to find a walkway

that was accessible with a flashlight, roommates guides

willingly offer - at this point we were done, and chose

to make the walk straight back out the gates, only to

find no bemos returning to Rantepao. We waited 45

minutes, punctuated with swathes of locals wanting to

take pictures with us (which is normally fun, but less so

when you’re in a bad mood, and after 40 or 50

occurrences), until we waved down a minibus, for a 2 hour

ride back to the city. Waste of money, not to mention a

whole day. Stay away.

Visited May 2012

Was this review helpful? Yes

Problem with this review?

38

Ask Patrick W about Bantimurung

7.4.2 Policy and Program Recommendation

Tourism development in Maros regency should be initiated with

regulation in the form of affirmative action, including:

A master plan to develop Bantimurung as the city’s tourist

icon

A master Plan to develop rural tourism

Regulation as to increase pure local income for village

tourist destination.

Regulation that provides protection of women’s workers

especially at tourism destination.

Further integrated programs are needed among the community

especially the locals and the government (local cultural

preservation program), namely:

Capacity building programs for tourism workers especially

women (skills and perspectives)

Village-based tourism development program

Community capacity building program on environmental management

subject and activities supporting tourist business.

Special protection program for women working in tourism

business.

7.4.3 Success indicators

Aspect INDICATORS

Development of

Tourism

The existence of new tourism destinations

and tourist villages

39

Destinations Well managed, friendly and comfortable

tourist area

Employment

Absorption

Employment absorption in tourist business.

Increased number of female workers in

tourism business

Cooperation The development of rural tourist funded by

CSR

The existence of cooperation with private

sector and the community on the subject of

tourism management (capital/investment/

village partnership etc)

Promotion Developing promotional program of complete

tourism package in Maros

Increased number of foreign and domestic

tourists

40

Appendix A. Agenda Workshop

TIME SESSION

Day 1,

Goal of day 1: Understand strategic direction, the condition

of economic development in the area, identify key sectors and

value-added strategy for sustainable economic growth

8:00 to 08:30 Registration

8:30 to 9:00 Opening

Welcome Speech

Workshop Committee Chairman

Opening Speech

Regional Secretary of Maros Regency

Photo Session

09:00 to 09:15 Coffee Break 1

09:15 to 09:45 Introduction

Major Facilitator - ITS Team (Lantip

Trisunarno, MT)

09:45 to 10:00 Session 1. Introduction of the Methodology

of Joint Manpower Program Planning

Keynote Speaker: Dr. Janti G

10:00 to 11:00 Session 2. Development Strategy of Maros

regency

Keynote Speaker: Bappeda Chairman of Maros

Regency. Moderator: ………

11:00 to 12:00 Session 3. Enhance Job Opportunities - Focus

41

On the Level and Quality of Economic

Development - understanding the facts on

economic development in Maros regency

Keynote Speaker: Dr. Janti Gunawan

12:00 to 13:00 Lunch Break

13:00 to 13:15 Energizer

Session 4. Enhance Job Opportunities - Focus

On The Level and Quality of Economic

Development (continued) – understanding of

key sectors

Group facilitator

2:30 p.m. to

15:00

Coffee Break

15:00 to 16:30 Session 5. Enhancing Job Opportunities -

Focus On The Level and Quality Economic

Development (continued) - the value chain

and value-added

Facilitator

42

Day 2,

Goal of day 2: Understand the condition of productive

resources and challenges to resources-basis (human and

natural resources) development and its implications.

Review of existing policy and measures, how to achieve fairer

and sustainable development – preparing policy recommendation

and action plans

08:30 to 08:45 Opening of Day 2

Summary of Day 1, Introduction Day 2 and Ice

Breaking

Major facilitator

8:45 to 9:45 Session 7. Analysis of Employment Conditions

in Maros regency

Presentation and questions and answer about

the conditions, dynamics and unique

characteristics of employment, economy and

labor in the area.

Keynote speaker: Dr. Agnes Tuti

09:45 to 10:00 Coffee Break

10:00 to 12:00 Session 8. Discussion on challenge to the

aspects of productive resources in Maros

Objective: Collect major challenges to the

development of productive resources in Maros

Group Discussion

12:00 to 13:00 Lunch Break

43

13:00 to 13:15 Energizer

13:15 to 15:15 Session 9. Achieve Development Goals based

on Equality

Keynote speaker: Dr.. Eddy Soedjono

15:15 to 15:45 Coffee Break

15:45 to 16:45 Session 10: Summary and Conclusions and

Policy Implications and Further Study

Group discussion and presentations to

propose policy recommendations and further

studies - if necessary - to follow up the

results of discussions on Day 1, 2 and 3 by

reviewing the identified problems,

challenges and opportunities.

Facilitator: Dr. Janti Gunawan

16:45 to 16:55 Evaluation

16:55 to 17:00 Closing

44

9. Appendix B. List of workshop participants

Government Officers

No Name Agency Position Phone

1 H. M Natsir BPSK Head 81242998050

2 Makmur BAPPEDA Kasubag Pros 4115618278

3 Hj. Syamsiah Tourism Secretary 81355057769

4 Hj. Djohar Daud Legal. Dept. 82348737177

5 Nurwati Ishak BKKBN Secretary 82348605561

6 H. Nurdin Kopermdag 85255153330

7 Abd. Rauf Public figure 85298344252

8 Nurul Ashar Dinsosnaker Trans Personnel manager 81355409130

9 Drs. H. Muh. Nawir, Msi Dinsosna Kertrans Kadis

10 A. Mappelawa Kec. Cambi Camat

11 Abdul Gaffal Social Service Kasi Pembina 82189908848

12 Ir. Jammaludi Ali Kec. Maros Kades 81334517785

13 khairil anwar monev Bappeda Staff 8194118237

14 H. Sattu Talib Kantor Camat M.Loe Kasi Pembangunan 81342248251

15 Muh. Yani Kec. Maruut

16 SULTAN TOMAS

17 Jammaludin Agri. Service Ka. Sabag program 81342177085

18 Wahyu Kiswatiningsih BPS Kab. Maros Social div. Staff 85255704981

19 Fatmawati DPKP Sekdie 821989830337

20 H. B. Burhan Kec. Tauralil Camat 81342435293

21 Diagustra Branda BAPPEDA Staff 89694987444

22 Erlan Trisla Bappeda Staff 89694987444

23 Asis. Se. Kec. Camba 85299002488

24 Nur Alam Bappeda Staff

25 H. Abdul Haris Kec. M. Loe District Head 8114209771

26 A.s Chaidir DPRD Maros WAKA 812455297

45

27 Lovy Hendrajaya DPRD Maros Head Com III 85398823022

28 Ade Permana 85256304301

Public

1 Muliati Kec. M. Loe Women Activist 81289844924

2 Hj. Dhaniar Anggota Koperasi Member

3 Hajerah Wanita usaha Member

4 Rosniah Kec. Camba Women Activist

5 Syahril HPPMI Sekum 85241757574

6 Opik HPPMI Bidang 82347271501

7 Muh. Syadiq T. HPPMI Head of education div. 85242355546

8 Muh. Asri HMB Head 85255060562

9 M. Irdan AB LAPS Head 81342185091

10 Rusman Anno JARI CSR PM 81356559874

Private Companies

1 Gunawan Gani PT. SBM 82187119477

2 Akbar PT.SBM 8234665387

3 Abd. Raup Private 8234798589

4 Nurasia Private 81342236869

5 Mustamin Private 85242412855

6 Nurkhaes M. Bank Sulsel 85341247777

7 A. Amin Private 81242907080

8 A. Singke Private 85242881823

46

10. Appendix C. Expectations, Concerns & Effect of the Workshop

Before the Workshop began, participants were asked to share

their expectations, concerns, and contributions to be

provided. This activity was to ensure the same understanding

for an effective workshop and improve any deficiencies from

workshops (if any). During this session participants were

asked to play an active role since development planning stage.

The following tables summarize participants’ expectations:

Expectation Concerns Contribution

During Workshop (output)

Manpower planning is

performed

systematically and synergy

among relevant stakeholders

There is concern about

minimum wage framework.

Provide information and

inspiration for the community

facilitate meeting between

labor and company to

acquired legal protection

Post workshop (outcome)

Absorbed labor force with

available job opportunities ->

reduced

unemployment

Build small scale businesses

and new entrepreneurs

The workshop works merely as

concept, ceremonial and

formality without follow-up

Current activities not related to

the programs and labor needs

Increased unemployment,

poverty and crime rates due to

inadequate jobs.

Many companies still employ

school-aged children and pay

no attention to education

SMEs do not absorb many

labors.

Participate actively in

designing plans to create jobs

Provide training / internship in

accordance with company

requirements

Facilitate activities in the area,

contribute in creating jobs

Provide sufficient data for the

government and community to

make policy

Provide job information to job

seekers

Propose the revocation of labor

contract system, decent wages

to labors

Improve labor monitoring to

give maximum protection to

build sound relationship

between labors, employers and

government.

47

Appendix D. Workshop Evaluation

48

Appendix E. Workshop Documentation

49

For further information please contact:

Pusat Studi PDPM LPPM-ITS

Kampus ITS Sukolilo-Surabaya

Telp. 031-5962271