RRREEEPPPOOORRRTTT · RRREEEPPPOOORRRTTT EMPLOYMENT DIAGNOSTIC ANALYSIS WORKSHOP AT BANGKA TENGAH ... clean and good government based on IPTEK (Science and . 4 Technology) and IMTAQ

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EMPLOYMENT DIAGNOSTIC ANALYSIS WORKSHOP

AT BANGKA TENGAH

Bangka Tengah, 15-16 March 2013

Prepared by:

PUSAT STUDI PDPM-LPPM ITS

1

1. Background

Unemployment and poverty are common social problems.

Productive employment creation program which are 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 program and facilitated employment program

implementation. However, employment program are very complex.

The government has limited knowledge and capacity to design,

carry out, monitor and evaluate the program. 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 program 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

program 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

2

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:

3

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 Bangka Tengah Regency in the year 2010-2015: “To make the

land of Selawang Segantang prosperous ruled by a trustworthy,

clean and good government based on IPTEK (Science and

4

Technology) and IMTAQ (Faith and Piety) to build an Eco

Friendly Economy”.

3. Definition

As described earlier, this Workshop is aimed at developing

alternative policy direction and program 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

ENVIRONMENT

PRODUCTIVE ECONOMY

EQUALITY

EQUAL AND SUSTAINABLE

DEVELOPMENT

ADDRESS LABOR DEFICIT

ALLEVIATE POVERTY

- 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).

- The existence of economic driving factor support.

- The implementation focuses on the aspect of equality.

- The implementation considers the aspect of sustainability.

PRODUCTIVE RESOURCES

Figure 4.1. Employment Diagnosis Framework

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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 March 8-9, 2013. 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

Bangka Tengah Regency; (b) Explanation of

methodology; (c) Employment dynamics in Bangka

Tengah Regency, and (d) Analysis of economic

diagnosis 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.

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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


Discussion B Achieve

Development Goals based on equality


Discussion C Achieve Sustainable

Development Goals


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

The Workshop was attended by 27 participants including 18

government officers, 7 entrepreneurs, and 2 participants from

different background. From this number, 14 participants (52%)

are men and 13 (48%) are women. List of Workshop participants

is presented in Appendix B.

6. Workshop results

This report was prepared in accordance the workshop process

and consists of four sections, that are, general overview of

Bangka Tengah Regency, followed by First Diagnostic Analysis

of Human Resources and Other Productive Resources, Second

8

Male

Female

Perc

en

tag

es

Rural areas Urban Areas

Sources: Susenas Kab. Bangka Tengah, 2011 Figure 6.1. Distribution of Village and Urban Population in Bangka Tengah Regency

Diagnostic Analysis of Economic Aspects, Third Diagnostic

Analysis of the Aspects of Equality and Fourth Diagnostic

Analysis of Sustainability Aspect. The report concludes with

policy and program recommendations.

6.1 Demography

6.1.1 Population

Bangka Tengah Regency occupies

a total area of 2126.36 km2.

It consists of 6 Kecamatan

(district) and 57 Desa/

Kelurahan (village). The

population of Bangka Tengah

Regency in 2011 is 166,294

persons with population

density of 78 people/km2 with 75.63% of the population live in

urban areas and 24.37% in rural areas.

6.1.2 Distribution of Population by age and sex

Distribution of population by age and sex is featured in

Figure 6.2. The population of Bangka Tengah regency consists

of women (47.64%) and men (52.36%). The majority of post-

productive population age above 65 years is women. The

population of male productive age especially age 15-29 years

old is larger than women.

9

Sources: Bangka Belitung Islands in Figures, 2012

Figure 6.2. Population Pyramid of Bangka Tengah Regency

6.2 Employment Dynamics

6.2.1 Employment Population

In terms of education background, the employment forces in

Bangka Tengah Regency are dominated by low education

background where ≤ 64.67% accounts for elementary school

graduate and 11.72% accounts for junior high school graduates.

Total number of high school education graduate and below is

86.39%.

10

Source: BPS, National Labor Force Survey August 2011 as processed by Pusdatinaker

a) by Education b) by Education and Sex

Figure 6.3. Workforce Population by education background and sex

The distribution of education background is not balanced

either. Male labors are always higher than women in almost all

educational levels, except for higher education levels (D3, D4

and S1). A total of 56.79% of workforce with university

background are women.

6.2.2 Labor Force Participation and Productive Workforce Deficit

Table 6.1. Projected Level of Population, Workers and

Unemployed activities

Distribution of productive population by age – 2011

Men Women Total

1 Population * 87,077 79,217 166,294

2 Employed Population aged 15+

*

60,597 54,261 114,858

3 Labor Force ** 53,836 27,282 81,118

4 Employed 52,528 25,986 78,514

5 Unemployed 1,308 1,296 2,604

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6 Inactive 33,740

7 Dependency ratio by age 49.71% 53.71% 51.59%

8 Activity rate (%) = [3] / [2]

* 100

88.84% 50.28% 70.62%

9 Employment rate (%) = [4] /

[2] * 100

86.68% 47.89% 68.36%

10 Unemployment rate (%) = [5] /

[3] * 100

2.43% 4.75% 3.21%

Sources: BPS, National Labor Force Survey August 2011 processed by

Pusdatinaker.

In general, employment participation rate is not distributed

evenly. This is measured from the level of activity, namely

the ratio of employed population age to working age

population. The level of activity of working age population in

the Bangka Tengah regency is 70.62% which means 29.38% of the

populations are unemployed or work inactively (housewives,

students, etc.). If noted further, it turns out the level of

activity of men reaches nearly 88.84% while women activity is

only 50.28%. While the level of employment in Bangka Tengah

Regency according to the ratio of employed population age to

working age population is 68.36% (see Table 6.1).

The number of labor force is 81,118 persons where 78,514

persons of which are employed so the number of open unemployed

is 2,604 persons (unemployment rate of 3.21%). The poverty

rate in Bangka Tengah regency is slightly higher than the

poverty rate of Bangka Belitung province. Unemployment rate

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Population 166,294

Working Age Population (15+)

11,4858

Labor Force 81,118

Non Working Age Population (<15), 51.436

Inactive 33,740

Employed 78,514

(96.79%)

Unemployed 2,604

(3.21%)

Productive Worker ±73,473

Non-poor Unemployed

Working Poor ±5,041

Poor Unemployed

PROJECTED PRODUCTION EMPLOYMENT DEFICIT: 7,645

cannot be used as single indicator in productive employment

deficit in Bangka Tengah regency. With poverty rate of 6.42%

in 2011 then the estimated number of working poor is 5,041

persons which makes Bangka Tengah regency has productive

employment deficit (lack of decent jobs whether for unemployed

and working poor) of 7,645 persons.

Sources: * Bangka Belitung in Figures, 2012, ** BPS, National Labor Force Survey in August

2011 processed by Pusdatinaker

Figure 6.4 Employment Productive Deficit Forecast in Bangka Tengah Regency

In terms of age, unemployment in Bangka Tengah regency

includes workers who are classified under highly productive

age i.e. 15 - 30 years where 31.91% are junior high school

graduates and 50.84% are senior high school graduates of

general and vocational high schools.

13

14

Source: BPS, National Labor Force Survey August 2011 processed Pusdatinaker

Figure 6.5 Distribution of Labor Force by Age in Bangka Tengah Regency

6.2.3 Labor Absorption in Various Economic Sectors

Labor absorption in Bangka Tengah regency is focused in four

sectors, namely mining and quarrying (accounts for 35.63%% of

total labors) followed by agricultural sector (accounts for

26.69% of total labors) and then trading, hotels and

restaurants sectors (accounts for 15.30%) and services sector

which accounts for 12.33% of the total labors.

6.2.4 Employment Challenges in Bangka Tengah regency

In short, Bangka Tengah regency has productive labor force

deficit for approximately 7,645 persons consisting of

unemployed (2,604) and working poor (5,041).

Employment challenges in Bangka Tengah regency include:

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- More than 75% of the population of Bangka Tengah

regency are junior high school graduates or below.

- The majority of unemployed in remotes areas have low

education background

- The number of working poor is higher than the number of

unemployed.

Whereas discussions conducted during the Workshop found the

following findings:

- Based on the concept of GDP calculation which is

calculated from the number of population living in the

area for more than 6 months, the value added of GRDP

possessed by Bangka Tengah regency may be benefited by

non residents.

- There are many key agricultural products that can be

marketed such as jeruk kunci. The potentials possessed

by the area can be promoted in the area.

- The absence of follow up to various trainings held by

Dinsosnakertran. Workshop participants expect follow up

in the form of capital grant.

- Funds from Dinsosnakertran are allocated for the poor

population despite the fact that not all job seekers

are poor.

- There is an expectation that banks are willing to grant

capital loan to job seekers who do not possess

sufficient competence.

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- Collaboration among sectors is needed to address

marketing barriers for the promotion of local key

products.

- The lack of feedback and control from the community so

that the program being implemented has less significant

impact.

- Landlords should receive compensation so there is

coordination among government, private sector and the

community.

Human and Natural Resources in Bangka Tengah regency also play

important roles to create productive employment. The results

and discussion on the strength, weakness, challenges and

opportunities faced by the resources in Bangka Tengah regency

are presented in Table 6.2

Table 6.2 The Aspects of Resources for Productive Employment Creation

RESOURCES STRENGTH WEAKNESSES OPPORTUNITIES CHALLENGE

Human

Resources

(HR)

The number of

labor force

and working

age population

is high

Low Level of

education

Job

Opportunities

still widely

open

Competition

among local

workers and

migrant

workers

entrants in

terms of wages

(migrant

workers are

willing to be

paid 80rb/day

while local

17

labor demands

150rb/day),

skills and

work ethic

Poor work

ethics. We

found a fact

that mine

workers will

work if they

are under

supervision

(poor

awareness)

Widely opened

job

diversificatio

n

The existence

of seasonal

workers

Poor access to

information

and technology

Many investors

are willing to

establish

business in

the area

Limited

alternative

job

opportunities

Poor worker’s

competency /

skills (the

number of

skilled

workers is

very little

and in most

cases are

taken from

Java)

Natural

Resources (NR)

Rich in

mineral,

agriculture

and marine

Education

Level: Senior

high school in

majority or

Rise in income The

enforcement of

environmental

law /

18

resources below regulation

related to

plantation

land title.

horticulture

agriculture is

available

Limited skill

and competency

Reduce poverty

through job

creation

Many land

conversions

There are 5

islands

(Ketawai,

Semujur, Busur

Asam, Panjang)

that are

potentials to

be developed

for tourism by

building

resorts

May cause

conflict if

not managed

properly

56% area of

Bangka Tengah

is

conservation

forest unless

permit is

obtained from

relevant

authorities

Fisheries

including

aquaculture

and fish

catching,

plantations

and forestry

Continuous

decline in tin

reserves as

leading sector

of the area

Island

ownership is

not clear

Local

treasure:

Sedap Pantai

waterfall

Both tourism

and mining

sectors are

overlapping

Change to

offshore

mining while

sea zoning

regulation has

not been set

up

Ex-mining land

(2400Ha) can

The amount of

unproductive

How to utilize

natural

19

be developed

for fish

farming and

tourism

land is many resources to

generate job

opportunities

Limited area

6.3 Gap Issues

There are three gap issues in Bangka Tengah regency that worth

noting, namely: income gap, gender gap, and employed working

age gap.

6.3.1 Income Gap

In Bangka Tengah regency, sectors that generate many jobs do

not grow in balance. Agriculture comes as sector with the

lowest income levels while construction is the highest. In

rural areas construction sector also generate high income

level as well.

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Table 6.3 Average Wage/Salary Per Sector by Gender.

Sectors

Regional (IRDA) Average

(Rap) Urban Rural

1. Agriculture 1,426,680 989,684 1,050,539

2. Mining and Quarrying 3,083,253 1,438,352 1,722,750

3. Manufacturing 1,447,970 785,500 1,138,838

4. Electricity, Gas And Water 0 1,000,000 1,000,000

5. Building 1,841,183 2,162,649 1,988,766

6. Trading, Hotel & Restaurant 1,077,297 1,198,757 1,097,192

7. Transportation, Warehousing &

Communications

1,184,330 0 1,184,330

8. Finance, Insurance, Real

Estate

1,727,830 0 1,727,830

9. Other Social Services 1,882,627 1,333,331 1,604,183

Source: Pusdatinaker. 2011

This gap occurs due to low education level of labors in

agricultural sector. Besides, there is a big income gap of

between urban and rural in mining and quarrying sector.

6.3.2 Sex Gap

Productive employment can be realized subject to equal

employment opportunities for men and women. Employment rates

between women and men are measured from activity level i.e.

the ratio of working people to the number of working age

population. Women’s participation level in Bangka Tengah

regency is still below men’s participation, as follows:

1) Women’s activity level is 50.28% while men’s activity level

achieves more than 88%.

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2) Employment rate (the ratio of working population to working

age population) for men is 86.68% and women 47.89%. (See

Table 6.1)

The question is why women prefer the level of activity which

is far below men’s activity level?

Discussion on the topic of gender gap in Bangka Tengah regency

was held to assess the causes, opportunities, challenges and

solutions needed. The results of the discussion are featured

in Table 6.4.

Table 6.4 Gender Gap in Employment

FACTS CAUSES OPPORTUNITIES CHALLENGES

Domination of

men labor force

over women labor

force in

employments

(woman

contribution is

deemed minor)

Women in the labor

forces work in

informal areas

Create more

Jobs that require

special skills

(women labor) such

as tourism

industry,

communications,

etc.

The number of

women in the labor

force tends to

increase.

Female job seekers

Tend to increase

along with

education level

upgrade.

Women work because

of economic

pressure

Although men and

women have the

same education

level, women go to

school only for

upgrade

information, learn

a bit skills or

welfare education

Men labor force

earns higher

wage than women

labor force

(especially in

certain sectors

such as

agriculture and

constructions)

Women's labor

force is

considered as side

job seekers

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Indeed, there are some male dominated sectors if women are

considered working side job.

6.3.3. Age Gap

Discussion results also reveal that existence of age gap in

employment. Table 6.4 features discussion results related to

age gap.

Table 6.4 Employment gap by age

FACTS CAUSES OPPORTUNITIES CHALLENGES

Old age population

work in gardens,

fishery, or home

industry

Non-permanent

based employment

due to low

education level

(that make them

work in informal

sector)

Home industry and

SME development

Many forests are

already degraded

by illegal mining

Forest may produce

non-timber

products (honey,

aloes wood,

mushrooms)

Decreasing forest

areas

District potential

map is available

Irregular sea

products

6.4 Economic Sector and Leading Sector Selection

Bangka Tengah’s economic growth rate has increased in 2011. In

2011 Bangka Tengah’s economic growth rate was 6.23% while in

the previous year was 5.52%. Unemployment rate decreased by

3.21% in 2011 and poverty rates in Bangka Tengah regency was

lower than the national poverty level.

23

Source; BPS Prov. Bangka Belitung 2012; Pusdatinaker 2011

Figure 6.6 The Ratio of GRDP to Employment Distribution by Sector

In terms of economy, 22.17% GRDP contributions come from

manufacturing sector followed by financial sector (1.91%),

mining and processing (19.76%) and agriculture accounts for

13.72%. However, the contribution of each sector in job

creation is uneven. Agricultural sector provides 26.69%

employment, mining and quarrying sector provides 35.63%,

financial sector provides only 15.30% and manufacturing sector

only provides 3.97%. This means there is productivity gap

between one sector with another.

Hence, the selection of viable sector that is capable of

creating decent jobs continuously needs to be considered. The

selection should consider the following aspects:

a. Absorb new labors

b. Offer high added value

c. Connection to other sectors (multiplier effect)

24

Figure 6.7. Market System Framework presented in Donut Chart

d. Ensure equal employment opportunities between rural and

urban residents and men and women

e. Guaranteed sustainability in terms of market, social and

environmental aspects

f. Easy implementation.

g. Affordable cost

Based on the criteria

mentioned above and

comparative advantage there

are two potential sectors

to be picked up as leading

sectors, namely agriculture

and trading, hotel and

restaurant.

The following Market System Framework presented in Donut Chart

is used to divulge 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 support functions to grow the sector.

25

Table 6.5 Selection of superior sector

SECTOR REASONS

COMPETITIVENESS

POTENTIAL

OPPORTUNITIES CHALLENGE

SECTOR:

AGRICULTURE

SUB SECTOR:

PLANTATION

(RUBBER, PEPPER,

OIL PALM)

Peasant

community

culture

Gov. policy /

regulation

(Central to

regional) →

Spatial

Planning

Pepper →

distinctive

and

world famous

Supporting

environment

(enough

nutrient

contents) to

produce

optimum yields

and land

potential

especially oil

palm and

rubber.

Has typical

flavor.

Extensive

market share

(exports to

the EU and the

US).

Contribute to

foreign

exchange

earnings.

Plantation

community

development

Partnership

between

farmers and

businessman

(must be

enhanced).

Processing

industry is

not available

yet

SECTOR:

AGRICULTURE

SUB SECTOR:

PLANTATION

(WHITE PEPPER,

RUBBER, GAHARU

(FRAGRANT WOOD),

OIL PALM )

Land

suitability

Local and

international

marketing

(competitivene

ss)

HR

Plantation

business

experience

Market brand

is already

existed

(Muntok white

paper)

High market

demand for

products

There is

regulation

governing

spatial

planning for

Bangka Tengah

2011-2013

Land ownership

monopoly

Fluctuation in

product prices

SECTOR:

TRADING

SUB SECTOR:

WHOLESALE AND

RETAIL

Contribution

to regional

economy (GRDP)

is moderately

high (93% for

trade sector)

Bangka Tengah

is the main

entrance gate

Bangka Tengah

is strategic

location as

transit point.

Moreover, if

bonded area is

developed as

international

port then

There are many

national

events held in

Bangka Tengah,

opportunity to

introduce

Bangka Tengah

nationally and

internationall

FTA since 2010

and facing the

2015 AEC, the

competitive

advantage of

products and

human

resources are

challenged

26

to Banka

Belitung

Islands

province and

bordering

directly to

Pangkal Pinang

City.

Potential

economic

development in

Bateng Besar

Bangka Tengah

is potential

to be the

center of

trade,

businesses and

industries and

will be the

main

contributor

for Bangka

Belitung

province

y

Products from

small-scale

industry have

promising

marketing

prospects both

local and

national

Abundant local

natural

resources not

yet explored

optimally.

SECTOR: TRADE,

HOTELS AND

RESTAURANTS

SUB SECTOR:

TOURISM

Potentials:

marine,

forest,

culinary

Natural beauty

(small

islands)

The beauty and

uniqueness of

the fisherman

village of

Kurau

Bangka Tengah

heritage

Build tourism

school (human

resource

development)

Licensing

facility, e.g.

tax exemption

in the first

year

7. Discussion concerning Efforts to Reach Productive Employment

Target in various sectors

The government of Bangka Tengah 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. It is impossible to

27

alleviate high unemployment rate in Bangka Tengah in

seconds, however, there are at least measures that can be

taken by the government of Bangka Tengah regency to reduce,

as follows:

1. Reduce dependency on migrant workers

2. Provide entrepreneurship trainings to young people

3. Create more number of jobs for locals

As discussed in previous chapter, 2 sectors have been

selected to be the leading sectors for Bangka Tengah

regency. At first, each group selected 3 leading sectors

which are viewed to have competitiveness in Bangka Tengah

then voting was conducted to select two leading sectors of

the area. After group discussions, finally four sectors

were selected as the leading sectors of Bangka Tengah

regency, namely agriculture, trade, hotel and restaurants,

mining and manufacturing industry. Two leading sectors

selected by voting are agricultural and hotel and

restaurant trade sectors. To that end, the sub sections to

follow will describe contemporary condition of each sector,

policy recommendation and its relevant successful

indicator.

Selection criteria and program recommendations:

- Absorb labors

- Offer high added value

- Has connection with other sectors (multiplier effect)

28

- Provide equal employment opportunities (rural vs. city,

male vs female)

- Guaranteed sustainability (market, social and environment)

- Effortless application

- Affordable Cost

The following tables feature program recommendations and

indicators of successful program for both selected sectors:

29

Table 7.1 Policy Proposal and Recommendation for Leading

Sector

SECTOR FIELD RISKS RECOMMENDATIONS

Agriculture

Subsector:

Plantation

Social Behavioral change from

productive to consumptive

Poor interest to education

Population growth against

limited land availability

Social conflict because

migrant workers take over

jobs from local workers

Companies more interested to

hire migrant workers due to

casual labor contract

pattern

Land Conversion policy

from production forest

to other use

Regulation governing

the use of migrant

workers


restrictions on land

use by individuals to

plasma plantation

Economy Local labor cost higher.

Abundant products, excess

supply, uncontrolled prices

Use community

institutions to market

agricultural products

Post-harvest

processing especially

for oil palm

Environment waste management risk (odor,

non compliant with quality

standards, plantation is

built before settlement.

Environmental

management and

monitoring and

monitoring needs to be

enhanced

Trade, Hotel

and

Restaurant

Subsector:

Large and

Small Scale

Trade

Social Changes in people's behavior

who prefer pure transaction

(without bargain) with

wholesaler

Modern markets jeopardize

small and retail merchants

Socialization of

Regulations governing

modern stores to

maintain conducive

business environment,

including

collaboration

(Regional Regulation

No. 18/2012)

Economy Monopoly of certain products Sound synergy between

30

(B)

High transport costs during

wave season

the government and

local community

Bangka Tengah should

have its own port

Socialization of


the establishment of

modern stores to

maintain conducive


including cooperation


No. 18/2012)

Environment Poor sanitation of

traditional markets (K)

Waste generated from

traditional are accumulated

and produce stink odor,

tarnish

Utilization of wastes

generated from markets

Trade, Hotel

and

Restaurant

Subsector:

Tourism

Social Tourists coming from

different cultures cause

change in value that can

lead to social friction

(Namang For agro tourist

village)

Degradation of local ethics

and religious values

Drug issues

The community is not ready

with tourism development

(small islands and agro)

Youths are not ready

mentally, potential threat

of free sex

Design tourism

awareness programs by

keep preserving local

culture

Police searches should

be carried out more

frequently

Socialization of

government programs

(events)

Youths should be under

supervision

Economy Harm the community around

tourist sites

The entry of culinary from

Public involvement in

planning,

implementation,

31

outside area monitoring and

evaluation process.

Promotion of local

culinary

Environment Accumulation of garbage

Excessive carrying capacity

of environment because

measures to protect small

islands should be taken

(conservation, research /

education, travel, etc.)

Environment awareness

(waste management,

waste bank program,

increase the number of

cleaning personnel,

fine / penalty)

Law socialization

7.1 Trade Sector

Trade sector is selected as one of leading sectors in

Bangka Tengah regency because the sector is believed not

only capable of absorbing large number of labor force, but

also supported by local government. Every year the amount

of GRDP from trade sectors shows steady increase up to

present time. The development of trade sector is also

believed to provide considerable impact on other sectors.

What follow is the result of discussion concerning the

rationale to select trade sector as leading sector:

Table 7.2 Reasons to select Trade Sector

WHAT WHY

TRADE, HOTEL

AND RESTAURANTS

(17)

Contribution to GRDP increases steadily every

year.

Create more productive employment

Connected to many other sectors / involves

and supports many sectors to give more

contribution.

32

Favorable regulation and policies.

Support rural – urban linkages.

Great tourism potential

The availability of representative hotel

accommodations.

Based on the reasons above mentioned, both groups

agreed that trade, hotel and restaurant is one of the

leading sectors in Bangka Tengah regency. However, to

optimize the leading sectors each sub sectors of relevant

sector must support one to another to generate better

outcome. For example, trading activities can be conducted

in any hotel and restaurant existed in Bangka Tengah

through local product marketing agency available in those

hotels.

7.1.1 Opportunities and Challenges of Trade Sector

After assessing the reasons to select trade sector as

one of leading sectors, the next activity is identity

potential competitiveness, opportunities and challenges of

trade sector. What follow is the result of discussion

potential competitiveness by both groups:

Table 7.3 Discussion Results of Reasons & Potential of Trade Sector

WHAT WHY COMPETITIVENESS

POTENTIALS

SECTOR: TRADING

SECTOR SUB:

WHOLESALE AND

RETAIL

Contribution to

regional economy

(GRDP) is moderately

high (93% for trade

Bangka Tengah is

strategic location as

transit point. Moreover,

if bonded area is

33

sector)

Bangka Tengah is the

main entrance gate to

Banka Belitung Islands

province and bordering

directly to Pangkal

Pinang City.

Potential economic

development in Bateng

Besar

developed as

international port then

Bangka Tengah is

potential to be the new

central of trade,

businesses and industries

and will be the main

contributor for Bangka

Belitung province

The following tables feature the opportunities and

challenges:

Table 7.4 Opportunities and Challenges of Trade Sector

OPPORTUNITIES CHALLENGES

There are many national events

held in Bangka Tengah,

opportunity to introduce Bangka

Tengah nationally and

internationally

Products from small-scale

industry have promising

marketing prospects both local

and national

FTA since 2010 and facing the

2015 AEC, the competitive

advantage of products and human

resources are challenged

Abundant local natural resources

not yet explored optimally.

7.1.2 Potential Risks and Recommendations for Trade Sector

Trade sector does not only offer positive effects, but

it also involves social, economic and environmental risks.

The risks discussed in this section come from large scale

34

industry (B) and retail/small industry (K). Tables below

present risk potentials that may arise from trade sector.

Table 7.5 Risks involved in Trade Sector

SOCIAL ECONOMY ENVIRONMENT

Changes in people's

behavior who prefer

pure transaction

(without bargain)

with wholesaler

Monopoly of certain

products (B)

Poor hygiene of

traditional markets

(K)

Modern markets

jeopardize small and

retail merchants

High transport costs

during wave season

Waste generated from

traditional are

accumulated and

produce stink odor,

tarnish

To cope with the risks mentioned above, the following

recommendations are proposed:

35

Table 7.6 Recommendations for Trade Sector


Socialization of


modern stores to

maintain conducive


including

collaboration


No. 18/2012)

Maintain sound synergy

between the government and

local community

Use of wastes

generated from

markets

Bangka Tengah should have

its own port

Socialization of

Regulations governing the

establishment of modern

stores to maintain

conducive business

environment, including

cooperation (Regional

Regulation No. 18/2012)

7.2 Agricultural Sector

Agricultural sector is the next sector selected as

leading sector in Bangka Tengah regency. Selection of this

sector is based on the availability of vast land, large

number of labors of young to old working age. Table below

features the results of discussion concerning the

background of selecting agricultural sector:

36

Table 7.7 Reasons of the selection of Agricultural Sector

WHAT WHY

AGRICULTURE

Abundant Natural and Human Resources

Favorable policies (capital, facilities and

infrastructure

Sustainable

Requirement of quality improvement

Product diversification

Availability of feedstock / agricultural

products

Absorb labors regardless of age

7.2.1 Opportunities & Challenges involved in Agricultural

Sector

After assessing the reasons of selecting agricultural

sector as one of leading sectors, the next activity is

identify competitiveness, opportunities and challenges

potentials of the sector. What follow is the result of

discussion of the subject by both groups:

Table 7.8 Competitiveness Reasons and Potentials of Agricultural Sector

WHAT WHY

COMPETITIVENESS

POTENTIALS

SECTOR:

AGRICULTURE

SUB SECTOR:

PLANTATION

(RUBBER,

Peasant community

culture

Gov. policy /

regulation (Central

to regional) →

Supporting

environment (enough

nutrient contents) to

produce optimum

yields and land

37

PEPPER AND OIL

PALM)

Spatial Planning

Pepper → distinctive

and

world famous

potential especially

oil palm and rubber.

Has distinctive

flavor.

And the following tables features the opportunities and

challenges

Table 7.9 Opportunities & Challenges in Agricultural Sector

Opportunities Challenges

Broad market shares (export to

Europe and America).

Increase foreign exchange

earnings

Plantation community

development

Partnership between farmers and

businessman (must be enhanced).

Processing industry is not yet

available

The selection of agriculture as one of leading sectors for

Bangka Tengah regency is also exposed to the cultural

issues which appear to be incompliant. In Bangka Tengah

regency there are many agriculture lands but they cannot be

utilized directly. This is a part of social custom in

Bangka Tengah and the people’s mindset should be changed.

7.2.2 Risks and Recommendations for Agricultural Sector

In addition to giving positive impact agricultural

sector also involves social, economic and environmental

risks. The risks discussed in this section come from sub

sectors namely plantation (pepper, rubber and oil palm).

38

Table below features the risks that may arise from

agricultural sector:

Table 7:10 Risks involved in Agricultural Sector


Behavioral change

from productive to

consumptive

Local labor cost

higher.

waste management risk

(odor, non compliant

with quality

standards, plantation

is built before

settlement.

Poor interest to

education

Abundant products,

excess supply,

uncontrolled prices

Population growth

against limited land

availability

Social conflict

because migrant

workers take over

jobs from local

workers

Companies more

interested to hire

migrant workers due

to casual labor

contract pattern

To manage the risks mentioned above, the following

recommendations are proposed.

39

Table 7:11 Recommendations for Agricultural Sector


Land Conversion

policy from

production forest to

other use

Use community

institutions to

market agricultural

products

Environmental

management and

monitoring and

monitoring needs to

be enhanced


the use of migrant

workers

Post-harvest

processing especially

for oil palm


restrictions on land

use by individuals to

plasma plantation

40

APPENDIX

Appendix A. Workshop’s Objectives & Agenda

No. Expected Outcomes

1 Understanding of the direction and plans of regional

development, including relevant issues and challenges.

2 Understanding of the concepts related to Joint

Employment Program Planning and Productive Employment.

3 Current depiction of the condition (problems, challenges

and opportunities) of human resource development,

education and skills and chance to get job in the area.


and opportunities) of economic growth in the Areas.


and opportunities) of socio-economic development

equality in the Area.

6 Identification of Potential leading sectors of the area


and opportunities) of Value Chain and Value Added of

Leading Sectors

8 Policy recommendations which are required to follow up

opportunities and address the problems and challenges

mentioned above.

9 Recommendations to perform further studies as are needed

to support the policy recommendations give above.

41

DAY 1

Time Session Agenda Goal Methodology

(speaker)

08:00 -

08:30

Registration of

Participants

08:30 -

09:00

Opening

09:15 -

09:45

Introduction

09:45 -

10:00

1 Introduction to the

Methodology used in

Joint Manpower Program

Planning

2

10:00 -

10:20

2 Regional Development

Strategy (20 minutes)

1,3,4,5 Panel

Discussion followed

by question and

answer with

moderator

Speakers: Bapedda,

Experts in Economy,

Manpower.

Moderator: Expert of

Sustainable

Development

& Community

Empowerment

10:20 -

10:40

3 Facts about Regional

Economic Development (20

minutes)

4.5

10:40 -

11:00

4 Facts about Employment

in the Area (20 minutes)

2.3

5 Facts about Equality &

Sustainability

11:00

to

12:00

Question & answer

13:15 6 Challenges of Productive 3,4,5 Presentation:

42

to

15:00

Resources (Natural

Resources and Human

Resources) in the Area.

Discussion A was divided

into 4 groups, 2 groups

discussed about Natural

Resources and other 2

Groups discussed about

Human resources.

Expert of Employment

&

Community

Empowerment

followed by group

discussion

15:15 -

17:00

7 Inclusive Employment 5

17:00 Day 1 closed

DAY 2

Time Session Agenda Goal Methodology

(speaker)

08:30 -

08:40

Summarizes discussions

held on day 1:

Briefing of day 2

activities & ice breaking

08:45 -

10:00

8 Achieve the goals of

Sustainable development

Discussion C was divided

into 4 groups:

village, city, coastal,

mountain.

08:45 - 9 Understanding of leading

sectors

6 Presentation by

economic expert

followed by group

43

discussion

10:00 Discussion D: problems,

opportunities and

challenges

10:15 -

12:00

10 Inclusive

and Sustainable

Productive Employment

7 Presentations by

development expert

followed by group

discussion

13:15 -

15:15

11 Recommendations for

policy, work plans,

inputs and further study

8.9 Group discussion

summarized by

Sustainable

Development and

Community

Empowerment Expert

16:45 -

16:55

12 Evaluation

16:55 -

17:00

13 Workshop was closed

44

Appendix B. List of Workshop Participants

Companies (Private)

No Name Sex Entity

1 P. Stanislaus Bani M Catholic Church of Koba

2 Yumarsiah F PKK Kab

3 Refiardi M HNSI Bateng

4 Syahrudin M HKTI

5 Hadi Azhari M PT. Timah

6 Casa K. M Dewantara Comp.

7 Reza A M Bank Sumselbabel

Government Agencies

No Name Sex Entity

8 Fitri Amelia F KLH

9 Ridho Ilahi M BPS

10 drh. Rahmawati F DPP

11 Etty Hartati F Dinsosnakertrans

12 Riri Rianza F Dinsosnakertrans

13 Catur Yudena M Dinsosnakertrans

14 Afrizal F Dindik

15 Syahrizal F Dinsosnakertrans

16 Heru Irianto F head of fisheries and marine

17 Roy Hendrawan F Dinsosnakertrans

18 Tria Sagita F Dinsosnakertrans

19 Emat A. Aziz M Dinsosnakertrans

20 Riri Selvia F DPP

21 Nur Hidayat M. M Dinsosnakertrans

22 Jhon Faizal M Dinsosnakertrans

23 Dian Akbarini F Bappeda-SPM

24 Auzi'a Husni Santoso M Dinsosnakertrans

45

25 Elis Suryana F The Ilalang Institute

Public Participants

No Name Sex Entity

26 M. Ikhsan M BPMPD

27 Yoke M IWAPI

46

Appendix C. Expectations, Concerns & Contribution to 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

Understand theories

to be presented

Gain new information

especially on

employment in Bangka

Tengah regency which

can be beneficial

Add insight

Workshop produce

solutions and

recommendations for

the local government

to be implemented.

Gain inputs for

further development

of SMEs in Bangka

Tengah Regency to

accommodate people

Participants resign

/ fail to finish the

workshop (e.g. due

to immediate

instruction)

Minor interruptions:

power failure, hot

room, sound system

not working

Cannot understand

the materials

completely

Activity application

/ follow up

failed. Nor, the

program cannot be

implemented

No follow-up

Participate actively

in designing plans

to create jobs

Provide training /

internship in

accordance with

company requirements

Facilitate

activities in the

area and create

jobs as well

Provide adequate

data for the

government and the

community to make

employment policy

Provide access to

employment

47

aspirations

Other parties should

be invited (labor

force practitioner,

labors, mine

workers, SPSI)

Less knowledge of

the condition of

workforce in Bangka

Tengah

Can’t do anything

because there are no

supporting facilitie

s at all

information to job

seekers

Recommend the

revocation of labor

contract system, pay

decent minimum wage

to workers

Improve labor

supervision to

optimize labor

protection and

maintain harmonious

relationship between

labors, employers

and government.

48

Appendix D. Workshop Evaluation

During early stage of designing this workshop and communicated

it to the Government of Bangka Tengah, it seemed that this

workshop was intended to handle employment disputes (between

employer and employee). In fact, the Manpower Department of

Bangka Tengah have prepared invitations and materials with

more concerns on the handling of employment disputes and the

relationship between workers and employers where information

to be presented are dominated by the number of companies,

number of labors, labor disputes, number of job applicants,

and human resources capacity and local manpower department

budget.

After the workshop was held, there is a significant change in

perception that the workshop should explore on how to make

most of the existing resources to accommodate labor capacity.

Thus it is generally concluded that this workshop is good

option to be held all Regencies throughout Indonesia so that

current manpower handling paradigm can be changed from simply

tackle the existing issues to proactively participate in

designing future plans.

The tables below feature the results of workshop evaluation:

1) Methodology

Description Average score *

The methodology is useful to make

decisions associated with policy.

4.39

The methodology is very helpful to make 4.39

49

employment analysis.

I can use this methodology myself. 3.89

I might want to use this methodology in the

future

4.56

Average score of methodology assessment 4.31

* Score: 1 (poor) 5 (excellent)

Participants will use this methodology in:

- training, program planning and education

- designing regional development plans

- Decision making and problem solving

- Socialization of labor laws

- Developing people understanding of the importance of the

environment as the ultimate factor in economic

development

- Developing agricultural and livestock sectors

2) Instructions


The methodology is presented clearly 4.39

The Presenter possesses extensive knowledge. 4.39

Very interesting and practical presentation 4.39

Group discussion and interactions is very

useful.

4.56

Average score of instruction assessment 4.43


Commentaries about the quality of instruction given:

50

o Materials are presented clearly, easy to understand and

applicable

o Instructions should be given straightforward

o Written material for discussion is required

o Some speakers have no understanding of the situation and

do not give clear depiction of current employment

situation

3) Materials


The material provided is very useful. 4.61

The material provided is very broad. 4.61

Average score of material assessment 4.61


Other materials or information that may be useful to

participants:

o Selection of key sectors

o Understanding of sustainability

o Program planning and employment

o Video presentation should be given to make it more

interesting and avoid boring and sleepy

o Information about regions/provinces that have a success

in using this method (the extent of such success)

o Solving major problems using the methods offered

4) Time


Workshop duration is sufficient. 3.56

51

Too many assignments 3.83

Time allocated for discussions is adequate 3.56

Average score of time assessment 3.648


Commentary about workshop time by the participants:

o The duration is too short, answers given are vague and

failed to describe the existing problems

o Too many delays, lack of discipline

o The room is too small and not as per standards for

workshop.

5) Setting/Management


The workshop is announced properly and on

time.

3.56

Our trip and place of stay is satisfactory. 3.5

Arrangement during the workshop is very

satisfactory

3.78

Average score of management assessment 3.61


6) Overall


In overall, what is your opinion of this

workshop in term of quality?

4

This Workshop will help me in my work. 4.44

Training in job analysis is very useful. 4.33

After this workshop, I gain better

understanding of work challenges in

4.56

52

Tuban.

After this workshop, we have common

understanding of the existing problems

and policies needed to create productive

jobs in Tuban.

4.06

Average score of translation assessment 4:43


Goals and expectations of the participants from this

workshop:

- Develop insight and knowledge

- No idea because of immediate assignment from department

head, however, hopefully this workshop can improve

analytical skill

- Understand clearly that employment requires mature

planning

- Understand the appropriate facts and solutions in

accordance with the potency possessed by Bangka Tengah

regency.

- To be able to work in accordance with the program and

achieve the goals

- Have an understanding of economic outlook and what

measures should be taken by the government of Bangka

Tengah.

To what extent these expectations have been realized:

- Have an ideal model and more attractive method in

designing a plan

53

- Fairly good, they have met the expectations

What materials you would add in this workshop:

- Total enforcement of regulations to avoid excellent

programs missing due to succession

- Successful regency should be featured to give more

motivation

- SWOT Analysis should be used in manpower planning

- Simulation of field employment and required and

available skills

- Materials for debates among groups

- Training for cadres to improve human resources

- Trade Management

- Applied technology to create new employment

- Presentation by experts from Bangka Belitung

- Social research and analysis methods

What kind of assistance desired by participants after the

workshop:

- Mentoring at the time preparing a plan at work.

- Sustainable development

- Confirmation that proposals are fully implemented

- Financial assistance from relevant institutions local

and national

- Facility and monitoring from relevant agencies

- Capital loan from Small and Medium Scale Business

- Contribution in the form of a concept of manpower

development design e.g. treatment technology

54

The best aspects of the workshop:

1) The methodology, interactive dialogue and sound

discussion atmosphere

2) No distance between the public and the government,

family atmosphere.

3) Focused discussions to explore root causes of

employment problems in Bangka Tengah.

4) Good presentation of materials with active participation

and enthusiasm from participants

5) Professional and nurturing speakers

6) Materials are rich of new information and mind blowing

7) The techniques used for problem identification and

solving

Matters need improvement:

- Facility and place of the workshop

- Workshop duration should not be too long but adequate to

finish discussions

- Distribution of workshop materials

- Collaboration between government, public, employers and

stakeholders to carry out development.

- Participants’ active participation

- Information given by speakers should be improved to

allow comparison to other developing areas outside

Bangka Belitung

Other comments:

55

- Similar event should be held more frequently, more

participants from SKPD should be invited.

- Workshop venue should be arrange better and participants

should pay more attention

56

Appendix E. Workshop Photographs

Workshop Opening

Material Submission and discussion

57

For further information please contact:

Pusat Studi PDPM LPPM-ITS

Kampus ITS Sukolilo-Surabaya

Telp. 031-5962271

Material Submission and discussion

Documents

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