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DOI https://doi.org/10.18551/rjoas.2018-04.01
REGIONAL ECONOMIC PERFORMANCE ANALYSIS RELATED TO REGIONAL
EXPANSION OF BULUNGAN AREA
Hidayat Taufik Al*, Suman Agus, Khusaini Moh
Master's Program of Economics and Business, Faculty of Economics and Business,
University of Brawijaya, Indonesia *E-mail: t.alhidayat@yahoo.com
ABSTRACT
This research concentrates on analyzing the structure and economic patterns are formed from the division of Bulungan and compare the performance of regional development of the division. The analytical tool used is the analysis of the typology of the area, the relative potency region, shift-share, and analysis of the performance of construction index. The data used is secondary data holding area and the area of the division in the period 2012-2016. The results based on the analysis of existing conclude that no one region is classifiable in a rapidly advancing area and quickly grew. District parent (Bulungan) classified in relatively remote areas while hasi area division (City of Tarakan, Nunukan, Mainau district, Tana Tidung) belong to the fast developing areas and developed areas depressed. Tarakan city has the highest economic potential with LQ> 1 in 14 sectors of the base. Parent regional economic growth is lower when compared with the area of the division and the parent local development performance is lower when compared to the area of the division.
KEY WORDS
Economic performance, structure, growth, development, regency.
Reconstruction of government policies conducted since 1998, where there is a change of government administration system which initially from centralized system to decentralization. The amendment was based on Law Number 22 Year 1999 on Regional Autonomy which was then amended by Law Number 32 Year 2004 regarding Regional Government and Government Regulation Number 78 Year 2007 concerning Procedure for Formation, Elimination and Regional Merger.
Before the enactment of the Autonomy Law, Bulungan District has a total area of approximately 75,467 Km2, but after four times the expansion then the total area changed to 29,371 km2. In its development, one of the sub-districts originally located in the region of Bulungan Regency, based on RI Law No. 29 of 1997 experienced the status of the middle town. This is in line with the increasing status of the city of Tarakan from the administrative city to the City of Madya. With the enactment of Law no. 22 of 1999 on Regional Autonomy, the territory of Bulungan is redefined into two autonomous regions at once. Based on Law no. 47 of 1999 then two areas in the region of Bulungan ie Malinau District and Nunukan Sub-district changed the status to Malinau and Nunukan District. The expansion of Bulungan area did not stop in 1999. Subsequent developments indicated that the Bulungan area was once again divided by the establishment of a new autonomous region, Tana Tidung Regency, based on RI Law no. 34 of 2007.
With the expansion in the area of Bulungan then bring the impact of various changes in the parent regions and regions of the division. One is the growth of centers of economic activity with emphasis on the mining, agriculture, trade, industry and banking sectors as well as the emergence of various institutions both government and private as a consequence of the establishment of new government institutions. Below is the data of economic growth rate of the Parent and Regency / City districts resulting from the expansion in 2012 - 2016:
14,00 12,00 10,00 8,00 6,00 4,00 2,00
2012 2013 2014 2015 2016
Pertumbuhan Ekonomi Malinau Bulungan Nunukan Tana Tidung Tarakan Source: BPS Kalimantan Utara (processed data).
Figure 1 - Economic Growth Regency / City in North Borneo, 2012-2016
The highest economic growth of the five districts / cities above is the City of Tarakan with a cumulative growth rate of 7.12 percent over the past 5 years. Meanwhile, cumulative own monthly economic growth grew by 4.41 percent in the last 5 years. The economic structure of the parent regions and regions resulting from the division by 2016 is still dominated by the Mining and Excavation business field which is 24.65 percent and the Agriculture, Forestry and Fisheries business field is 18.09 percent.
The autonomy is expected to give people the freedom to manage their own resources for their own welfare, in some previous studies show that the expansion of the region impacts the economic condition of regions that are not better than the parent regions, negatively impacting public services and the welfare of the people in the regions resulting from the division, and no areas of the division are categorized as capable.
From the description above, further research is needed to determine the changes in the structure and pattern of the economy after the expansion and simultaneously compare the performance of development between regions parent with the area of the division.
LITERATURE REVIEW
Basic Concept of Regional Economics. Basic economics is a science that studies about how a person can meet the needs of his own life while the ability is limited. From the concept, the economics have derivatives of which one of them is the regional economics or economics of the region. Regional economics (region) is a branch of economics which in its discussion incorporates elements of the potential difference one region with other regions. Regional economics does not discuss individual economic activities but analyzes a region as a whole or looks at the diverse potentials of the region and how to regulate a policy that can accelerate the region's economic growth (Tarigan, 2005).
What is to be achieved in regional economics is actually not much different from that of economics in general. Theoretically Ferguson (1965) in Tarigan (2005) says that the main objectives of economic policy are (1) full employment, (2) economic growth, and (3) price stability.
Regional Economy In Perspective of Regional Expansion. The theory that speaks of regional economic growth starts from the theory cited from the micro / macro development by changing the boundaries of the region and adapted to the operational environment. The growth theory quoted from macroeconomics is applicable to a national economy which in itself also applies to the region concerned. However, in its application it must be related to the scope of its operational area, for example the region has no authority to make fiscal and
monetary policy, the area is more open in the movement of people and goods (Tarigan, 2012).
Economic Growth and Regional Potential. According to Mankiw (1999), GDP can be viewed in two ways: first, the total income received by everyone in the economy and second, is the toal of spending on goods and services in the economy. From these two views, GDP can reflect the performance of a country's economic growth (Khusaini, 2006).
With the expansion of the region is expected to create a policy framework that is able to create a conducive economic climate. The result of the formation of newly created regions is required to find sources of development finance without reducing the expectation of assistance and sharing of the central government and using public funds in accordance with the priorities and aspirations of the people. Under these circumstances, the role of private investment and local-owned enterprises is desirable as a major driver of growth and economic development of the region (enginee of growth). The region is also expected to attract investors to encourage regional economic growth as well as generate a large multiplier effect (Khusaini, 2006).
Regional Economic Base Theory. The basic theory of economics states that the economic growth rate of a region is determined by the magnitude of the increase in exports from the region (Tarigan, 2005). The theory of this base is classified into two sectors namely the base sector and non-base sector.
METHODS OF RESEARCH
Regional Tipology Analysis. In the analysis of local typology used to know the description of the pattern and structure of economic growth of each region. According to regional typology, the area is divided into four classifications, ie fast-forward and fast-growing areas, advanced but depressed regions, fast-growing areas and relatively disadvantaged areas (Mudrajad, 2004).
Figure 2 - Regional Tipology
-BQRBPer Kapita (y) Growth (r) ____ (yi > y) (yi < y)
(ri > r) High income and high growth Low income and high growth
(ri < r) High income and low growth Low income and low growth
Note:
r = Average district / city economic growth; y = Average PDRB per capita district /city; ri = districts / cities economic growth observed (i); yi = per capita PDRB per district / city observed (i).
Analysis of Regional Relative Economic Potential. This analysis is used to determine the economic potential in Bulungan District and 4 (four) Districts / Cities resulting from the expansion. This should be done so that the determination of real sectors that can be developed to sustain regional economic growth. Knowledge of the comparative advantage of a region can be used by policy makers to encourage changes in regional economic structures towards sectors that contain comparative advantage (Tarigan, 2005).
Xj
PNB
Where:
Xi = Value added sector i in a region;
PDRB = Gross regional domestic product of the area;
Xi = Value added sector i nationally;
PNB = Gross national product or GNP.
If LQ> 1 means that the sector's role in the area is more prominent than the sector's role nationally. Conversely, if LQ <1, the role of the sector in the area is smaller than the sector's role nationally. LQ> 1 indicates that sector I roles are quite prominent in the area and often indicate that the area is a surplus of sector I products and exports it to other regions.
Shift-Share Analysis. This analysis is used to find out the comparison of economic growth rate between parent region and region of expansion in more depth. So that various factors that cause changes in the economic structure of an area and its growth from one time to another can be clearly known. With this analysis is also expected to explain the competitiveness ability of a particular commodity between regions.
To connect between the components can be used notation as follows:
• A = Year-end increment (t) is reduced by the initial number of years (t-n)
• N = National or national territory / higher level
• r = Region or region of analysis
• E = Employment or number of employment
• I = Dirty industry
• t = Year
• t-n = Year beginning
• t + m = Year of projection
• Ns = National share
• P = Propotional shift
• D = Differential shift
The relationship between the components can be stated as follows:
A E r = E r, t - E r, t - n
This means the increase of regional employment in the final year (t) minus the number of employment at the beginning of the year (t-n).
The role of National share (Nsi) in which the increase of regional employment sector is am with the national average then use the equation as follows:
N si, t = E r, i, t-n (E N, t / E N, t-n) - E r, i, t-n
Proportional shift (Pr, i) is to see the effect of sector i on the national growth of employment in the region analyzed using the following equation:
P r, i, t = [(E N, i, t/E N.i.t-n) - (E N, t /E N, t-n)] x E r, i, t-n
Differential shift (Dr, i) illustrates the deviations between sector growth i in the area of analysis on the national level using the following equation:
D r, i, t = [E r, i, t - (E N, i, t / E N, i, t-n) E r, i, t-n]
Development Performance Index Analysis. This analysis aims to see the comparison of development performance between the parent regions and the newly created regions. In this case more see whether there is a significant change or progress in an area when the division or have other impacts. This analysis is also used by Bappenas in collaboration with the United National Development Program (UNDP) in 2007 to evaluate the results of the division in all parts of Indonesia. The explanation of indicators and calculations are as follows:
(1) Regional Economic Performance. This indicator is made with the aim of measuring whether the newly created regions can show economic development or not. The component used to measure economic performance is to make Regional Economic Performance Index (IKE). For kabupen i in year t, can be formulated as follows:
(ECGIi t + WELFIi t + ESERIj j + (100 - POVEIi,t))
Where:
ECGI = GDP growth of non-oil and gas in percent;
WELFI = GRDP per capita;
ESERI = Ratio of Regional Revenue PDRB to Provincial GRDP;
POVEI = Poverty rate.
(2) Financial Performance of Regional Government. This indicator is used to measure the extent to which regional capability of the division can perform its duties, functions, authority and responsibilities in the context of fiscal policy of financial management for growth and development in general. To know the performance of financial performance ability of local government, then made Local Government Financial Performance Index (IKKPD) for district i in year t with formula as follows:
ft^Dn _ ((100 - FIDIi,t) + FGIIit + FCAPEXIj j + FCEIi,t)) IKKFUi t - ---
Where:
FIDI = Fiscal Dependency; FGII = Income generation capacity; FCAPEXI = Proportion of capital expenditure; FCEI = Government sector contribution.
(3) Performance of Public Services. This indicator is used to evaluate government performance in terms of public services in education, health and infrastructure. For this purpose, the Public Service Index (PPI) was established in district i in year t, with the following formula:
_ (BEFIi t + (100 - BETIi t) + AEFIi t + (100 - AETIit) + PHFIi t + PHOIi t + PRQIi t PP'i,t _ 7
Where: BEFI BETI AEFI AETI PHFI PHOI PRQI concerned.
= Number of students per primary school and junior high school; = Number of students per elementary and junior high school teachers; = Number of students per high school; = Number of students per high school teacher; = Availability of health facilities per 10,000 population; = Availability of health personnel per 10,000 population;
= Percentage of road length with good quality of all roads in the district
RESULTS AND DISCUSSION
Based on the observation period starting from 2012 to 2016 it is known that no region in the northern part of Borneo island has fast growing and fast growing economic growth. Bulungan as the Mother District which is supposed to be more economically stable belongs to the classification dareh relatively lagging behind. This means that, when compared with the region of the division, Bulungan Regency has experienced a very slow growth area.
Various factors that cause it can happen, including external factors and internal factors. One of the potentials of Bulungan Regency is the area that should be managed and utilized to add economic value such as the provision of plantation land. However, it is less attractive for investors to invest in the Bulungan region due to geographical conditions such as higher mountain ranges, steeper slopes and steeper slopes when compared to other areas. So investors choose to invest in other areas that have more potential land and lower investment costs. In addition, another ekeseternal factor is Bulungan District also has a high dependence with the outside to meet all its needs, ranging from the needs of basic materials, materials development, equipment and equipment, electricity, transportation and others.
Figure 2 - Typology of Regional Parent and Regional Expansion Area
Internal factors that cause the delay is from the quality performance of government apparatus, the policy direction is not right on target, the participation of the community and relevant stakeholders. With the policy of regional autonomy, the impact on the division of government apparatus. For newly-expanded regions, the new civil servants are not immediately available, so to fill the vacancy and fulfillment of public services filled by the apparatus from the parent region. Thus, it causes a decrease in the number of staff in the parent area and the changing employee regulation causes the quality of the apparatus to decrease. For example, civil servants, including technical teams, teachers, medical workers and others who have been enrolled in certain education and training so that special skills should be placed and assigned to assist in newly created regions of the division. In fact, the withdrawal of civil servants from the new local government to the old government is very difficult to do. Many factors and considerations to withdraw civil servants to the parent region are if this is done then there will be an accumulation of employees in the old local government while the territory, area and the population is reduced due to the division.
Prior to the expansion, the parent government should prepare a draft preparation for the fulfillment of all the needs of the new territory with the aim that the area deserves to be expanded. For that the policy taken is a focus on the provision of facilities and infrastructure such as communication, transportation, clean water, irrigation, education, health and other services in the area to be expanded. Development priorities are more directed at improving inter-regional liaison infrastructures so that budgets that should be allocated to the interests of parent regions should be shared with newly created regions.
Tana Tidung regency, which is the last area of the division of Bulungan region, belongs to the category of developed regions is depressed, it means that the income per capita of Tana Tidung is higher than the regional average but the economic growth is lower. This is because most residents of Tana Tidung reside in Sesayap subdistrict (district capitals) and trade centers are located in the region so that practically the center of economic growth is concentrated there. This has led to the impact that previously most of the people, as farmers and fishermen, have other businesses ie trading. Community in other sub-districts have side business as laborers in palm oil companies or timber companies. Thus, the average income per capita of the community has increased. Based on statistical data of 2017, it is known that from 9,432 work force there are 9,181 work while unemployment is only 243 people, meaning 97,33% of worker population of Tana Tidung Regency have job. When compared with other areas in the northern part of the island of Borneo, most of the GRDP is dominated by the mining sector, then the Tana Tidung Regency experienced a different thing. The agricultural sector has the greatest contribution to the increase of Gross Regional Domestic Product of Tana Tidung Regency. Based on statistical data of 2017, the agricultural sector
has a GRDP distribution of 36.34%, followed by mining and quarrying sector by 25.14% and construction sector by 16.55%.
Nunukan and Malinau districts are among the fastest growing regions. For Kabupaten Nunukan and Malinau, they have more productive plantation commodities compared to Bulungan Regency. Nunukan Regency has 270 Ha of rubber, 410 Ha of Coconut, 92 Ha of coffee, 32 Ha of pepper, 5,456 Ha of cocoa and 22,404 Ha of oil palm, and Malinau Regency has 1,626 Ha of rubber plantation, 1,772 Ha of coffee, 3 Ha of pepper, 3,855 Ha cocoa, and 1,050 ha of palm oil. With the area of plantation commodity crops, it will have an impact on increasing the regional GDP. Besides having productive plantation land, Nunukan Regency has superior commodity in the form of the biggest dried seaweed producer in Indonesia. This has a significant impact on the increase in income Nunukan people mainly coastal communities. The potential of 20,000 ha of marine waters that can be utilized for seaweed cultivation is capable of producing more than 146,674 tons per year and consuming 84.29% of the production share and involving more than 3,000 fisheries households.
The city of Tarakan is also included in the fast growing region. This is because Tarakan is a center for export and import trade in the northern part of the island of Borneo with a container port facility or a port of goods and a large-capacity passenger port. Strategic geographic location closer to neighboring countries such as Malaysia, Singapore, Brunei and others make this area experiencing higher trade sector development when compared with other blood so it can give big contribution to APBD and APBN. Tarakan also has a much better and more adequate transportation facilities and infrastructure, namely the international airport of Juwata. With the airport, then the entrance to Bulungan District, Nunukan District, Malinau District and Tana Tidung Regency is through the City of Tarakan. Tarakan is also known as a transit city which directly impacts the growth of economic centers such as the development of services sector, transportation, hotels, processing industry, warehousing, information and communication.
Identification of Economic Base Area Analysis Location Quotient (LQ). From the calculation result using Location Quotient (LQ) analysis, it can be known which sectors have potential in each region.
It is known that from 17 base sectors throughout the northern part of Kalimantan, Bulungan District as the parent region has only 8 basic sectors this is very different from Tarakan City which has 14 base sectors. The base sector of Bulungan District is also owned by other areas such as mining and recycling sectors, water supply, waste management, waste and recycling, communications information, real estate, government administration, defense and social security, educational services, other services.
In the field of economic potential development in the parent region and the division is still dominated by the primary sector, namely the agricultural sector including plantation sub-sector, fishery, livestock, forestry and mining mining sector in the form of oil and gas and coal. The more dominant sectors and the highest economic activity contributed to mining and quarrying, however, the results obtained have not been supported by the processing industry. The results obtained are only limited to exploration of raw materials and without further processing.
With a land area dominated by forests and hilly and mountainous contours of land, community dwellings cluster in lowland and close to the river. So the center of infrastructure development more focused on the paths that have easier access such as river flow. Limitations of infrastructure or roads that have not been connected between settlement centers cause transportation using water and air routes. This causes a high cost of transportation so that the results of processing industries and commodity products tend to be expensive. Especially for people who live in border areas prefer goods derived from Malaysia on the grounds that raw materials are more affordable and easily obtainable.
A more complex problem is the unbalanced energy supply, where there are differences in supply and demand for energy. Regions only get tax on coal mining business, oil and gas but processing of the commodity is processed outside the region so that the benefits received from it is less than the maximum. For example, because not all areas are connected by road or due to inadequate infrastructure, not to mention the higher oil prices in the world
market, it causes uneven fuel supply throughout the region. The demand for high fuel while limited supply causes some areas experiencing fuel shortages and higher prices.
The route connecting trade, shipping, and air transportation centered on Tarakan City. This former sub district has grown more advanced because it has access to the airport and national ports and container ports. The central government in Tanjung Selor sub-district, Bulungan District, has more role as the center of government and in its development can be a city supporting the expansion of settlement area, relocation and expansion of industrial area previously centered in Tarakan. For that, from now on, prepared facilities and infrastructure supporting the formation of Tanjung Selor District became the capital of Tanjung Selor as well as other cities.
The value generated from each of the basic sectors in general is still below the area of expansion, meaning that the parent region has a lower potential. In the field of agriculture and food crops such as Bulungan, Nunukan and Tana Tidung are potential areas for the development of rice, corn and cassava commodities. Land area of 115,721.57 Ha is a huge potential that can be utilized, but until now the use of land for rice fields only about 14,265.05 hectares, which means that the remaining area of 101,456.51 Ha has not been utilized. Of the total crops, Tana Tidung has the largest yield of 21,774 hectares or 54% of the total harvest of the entire northern part of the island of Borneo.
In the field of horticulture that can be developed are fruits such as oranges, durian / lai and bananas. Of the three potential fruits, bananas have the highest commodity and Nunukan area is the largest contributor, which is 54.62% of the total production, and then followed by Bulungan region capable of producing 51.28% oranges from the total production.
In the field of plantation there are types of garden plants that can be developed include palm oil, rubber, pepper, coffee, sugar palm and cocoa. The nunukan area has 6,514 hectares or 52% of the total cocoa plantation area, 1,085 ha or 48% of the total coconut plantation area. But for coffee income continues to decline where previously coffee plantation area of 5,628 Ha decreased to 2,818 Ha. This causes coffee crops to continue to decline and the last is the potential for oil palm plantations that continue to burn.
Generally, from the table above, it is known that almost all sectors in the parent regions and regions of the division have positive values. There are only a few negative sector sectors such as mining and quarrying in Bulungan District, agriculture, forestry and fishery sector, information and communications sector, government administration sector, health services sector and social activities in Malinau District.
Of the 17 sectors that are owned by the parent regions, only the administrative sector of government, defense and social security that have the highest positive value when compared with the region of the division. For the construction sector even though Bulungan Regency has positive value but still lose higher with Tarakan City, as well as processing industry sector where the parent region has value of 222,98 billion still higher Tarakan City which has value 500,18 milayar. However, from these three sectors Bulungan District is still superior to other regions and this can still be used as a specialization sector.
Based on the projection of the overall result analysis that can be a specialization of each region is for Bulungan Regency as many as 4 sectors, 3 units of Nunukan District, Tarakan City 6 sectors and Tana Tidung 1 district, while for Malinau District is not clearly illustrated because the propotional shift and differential share that shows a negative value. Similarly, from the projection of shift share analysis between the parent regions with the resulted regions from 2016 to 2020 there is no change in economic structure.
Analysis of Development Performance Indices between the Parent Area with the Expansion Area. When viewed from the results of economic performance calculation then the region of the division able to grow rapidly equivalent to the parent region. This also means the determination of the area of division policy is an area capable of standing alone parallel to the parent so that indirectly can improve the welfare of society and improve the existing conditions.
Judging from the economic distribution of the parent region with the newly created region shows that this policy has a positive impact such as the distribution of physical development and the availability of public service facilities throughout the region. From the
description above, it can be described that causes the economic growth of the region of the division able to balance and grow rapidly equivalent to the parent region:
• Equitable Distribution of Economic Potential. From the data that has been presented, it is known that the area of expansion has good economic potential and can be managed and utilized so that it can compete with the parent region. In this case the potential in question is a component that can significantly improve the economy such as agricultural areas, management of forest products, fisheries, ponds, productive plantations, industrial estates, mining and other supporting components.
• Reduced Poverty Rate. Previously it has been described that from the results of the data presentation it is recognized that the parent region has the most abundant population when compared to the area of expansion. This means that there is a need for policy regulation of the government program of the targeted parent territory which is capable of driving the wheels of the economy so that it can increase the income of the community. Poor people in general have limited human resources, both in terms of education, knowledge and ability in order to generate income. For that with the division of the potential of natural resources more evenly, it can be managed and have a higher level of productivity.
Financial Performance:
60,00
^ 50,00
¿ 40,00
£ 30,00
^ 20,00 10,00
-BULUNGAN
-MALINAU
-NUNUKAN
-TARAKAN
-TANA TIDUNG
Figure 3 - Local Government Financial Performance Index
Overall, the financial performance of the regions resulting from the division appears to be higher than the parent regions, due to a number of problems in regional finance:
a) Fiscal Dependency. Where both parent regions and regions of expansion still have a fiscal dependency on the central government. Thus, with the expansion of the central government burdened in terms of financial budgeting so that the goal of fiscal decentralization and regional autonomy cannot encourage the independence of local governments in carrying out development, for it is necessary to optimize the increase of sources of economic potential. Funds from the central government that should be the initial capital in order to optimize local revenue create a dependence on the government.
b) Optimizing revenue and low economic contribution. Parent regions that should have a better economic level are inversely proportional to the region of the division. The budget allocation policy still lacks the right target, where there is a need to focus more serious efforts to support the growth of the economic centers. The inadequate role of the government of the broadcasting policies issued by each local government has had an impact on the underdeveloped economy which ultimately makes the regional income not optimal so that the fiscal self-sufficiency is not achieved.
c) The share of allocation of capital expenditures from local government is low. The portion of low allocation of capital expenditure is not able to encourage economic growth. This can be used as a measure of the ineffectiveness of budgeting policy in an effort to increase economic activity either consumptive or investment.
201 201 201 201 201
2 3 4 5 6
33,15 35,31 36,58 34,22 27,54
36,68 39,71 35,80 27,61 24,08
32,68 34,91 33,34 33,33 26,74
35,58 36,08 38,00 25,14 25,92
48,46 48,86 43,60 33,36 32,96
Performance of Public Services. The development of Public Service Performance Index (IKPP) of the parent regions throughout the year 2012-2016 is below the region of the divisionnya. This is a picture of less optimal public services in the parent regions than the region of the division. Less optimal public services in the parent region especially concerning the availability of school building facilities, the availability of health workers, the quality of road infrastructure and also no less important the availability of educators.
The not yet optimal public service in the parent region is caused by a number of problems. Can be mentioned in between:
a) Less effective use of funds. The policy of expansion then each district / city get a relatively equal portion of the budget. With the General Allocation Fund and the Special Allocation Fund from the central government, it should be able to encourage the expansion and even distribution of services in the field of education and health. It should be used to encourage the improvement of public services and the improvement of facilities and infrastructures. However, the parent regions have a lower service index when compared with the exposed blood. Overall Bulungan District has a higher index compared to other districts but lower than Kota Tarakan.
b) Limited manpower and ineffective placement of public service personnel. Of all available medical personnel cannot reach the service in all regions of the parent or the result of the expansion except the City of Tarakan. Geographical conditions are a limiting factor in every service. Where extensive coverage, inadequate facilities and difficult transportation means lead to the recruitment and deployment of public service personnel is difficult. Especially for teachers who have the status of Civil Servants, they prefer to be placed in better areas such as the district capital. Similarly, the health apparatus, where for remote areas and far from the district capital no one chooses to live there. The fulfillment of medical personnel such as doctors, nurses and midwives at the sub-district level is with the appointment of PTT (Non-Permanent Employee) workers whose working period is limited to two years.
CONCLUSION
Based on the results of the above analyzes, it can be concluded that the structure and pattern of the economy that formed after the division is having a negative impact for Bulungan District which is the parent of the regions - districts are split. This is because the economy of Bulungan District before the expansion only focused on economic growth without any effort to distribute income evenly.
After the division, it was seen that the economy of the district of Bulungan started to grow but not significant when compared with the region of the division. Bulungan District has 8 main sectors driving the economy, namely the mining sector, manufacturing industry, water supply, communications information, real estate, government administration, education services and other services. This suggests that the role of these sectors is more prominent than the role of the same sector nationally.
Sectors that have locational advantages and are sectors that can specialize in Bulungan District in the future are the sectors of electricity and gas procurement, construction, accommodation provision and government administration. This is because the economic sector has a positive proportional shift and differential share.
The performance index of development in terms of economy, regional finance and public service of the division areas appears to be higher than parent regions, caused by a number of problems in terms of prioritization or direction of development policy, regional potential factors, low incomes and high fiscal dependence. In addition, the lack of optimal public services in the parent area compared to the results of the divisionterutama concerning the availability of school facilities, the availability of health personnel, the quality of road infrastructure and also no less important the availability of educators should be the focus of local government. The lack of optimal public services in the parent regions is caused by a number of problems, including: ineffective use of funds, unavailability of public service personnel, and not yet optimal utilization of public services.
RECOMMENDATIONS
Based on the analysis, discussion and conclusion that have been mentioned above, the suggestions that can be done by the local government are:
1. Efforts to increase local revenue can be made by:
a. Tax intensification. Kecamatan Tanjung Selor located in Bulungan District and also as the capital of North Kalimantan Province is an attraction for investors. The emerging businesses in this area are mostly engaged in the service sector, where businessmen, entertainment and restaurants are emerging.
b. Local regulation on swallow nest tax collection, considering that there are quite a lot of business actors engaged in this field and there is no regulation of regulations and policies that regulate it.
c. Increase local levies.
Implementation of local regulation on retribution which has not been done by local government is kind of garbage / cleanliness levy, funeral and corpse retribution, public roadside retribution, retribution of fire extinguisher and service fee. Therefore, it is necessary to carry out the withdrawal of such levies in order to increase local revenue.
d. Opening business opportunities by way of easier permission to investors who will invest in the field of mining. The potential of gold and coal mines located in Peso and Sekatak subdistricts has not been explored. Only local people are mining traditionally and illegally in the area, so there is no contribution at all to the regional income while the natural potential is quite large.
2. Bulungan Regency Government is expected to increase human resources and community welfare. For that it is necessary:
a. Creation of e-planning system. Due to the frequent implementation of ineffective and unsustainable development and development planning between provincial and district governments overlapping, an e-planning system is required. It is expected to be able to create a more effective and sustainable planning system. So that the development of source of funds derived from the District and Provincial APBD can be realized well.
b. Airport Upgrades. As with the city of Tarakan where the biggest thing that affects the economic improvement of the area is because it has an airport and port of goods bersekala international. Therefore, it is necessary to extend the run way at the airport in Bulungan and the addition of airlines.
c. Port Making. Support the planning of the North Kalimantan Provincial Government to create the International Port Industrial Zone (KIPI) in Tanah Kuning Sub-district. This is in accordance with the results of the President's visit on October 6, 2017 in Bulungan and the master plan has been made.
3. With regards to the Bulungan District Government's plan to be re-established into Kota Tanjung Selor and Kota Sebatik, seyognya conduct a more in-depth study, especially related to the distribution of economic potential. It is necessary to make strategic efforts in terms of regional development so that there is no gap, conduct and preparation of apparatus that has the qualification and competence is good for efficient and effectiveness of public services.
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