Potential Development Of Tanjung Buton Industrial Area Against Increasing Job Opportunities

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Development is very important to create a just and prosperous society and to achieve a better standard of living for the people. The purpose of development in essence is to increase economic growth oriented to creating as many jobs as possible, creating social justice, and the ability to use power alone (Soedjatmoko, 1983: 81). Indonesia in its spirit of Pancasila Economy continues to carry out development in accordance with the mandate of the 1945 Constitution of the Republic of Indonesia.

The embodiment of the mandate of the 1945 Constitution is contained in the 2005-2025 National Long Term Development Plan which basically wants to achieve equitable development to create prosperity and prosperity for all Indonesian people. In addition, of course the development of the development is targeted to further increase national economic growth. According to Adisasmita (2005: 4), one of the issues that is often debated in regional economic policy, is whether there is an effort to accelerate the growth of regional development with a national development policy with overall objectives.

The process of economic progress seen from the view of development theory will place regional elements which are subnational elements to be important and interesting in development planning, so that regions have an increasingly clear and decisive role. The area dimension is very important and is a factor that must be taken into account in analyzing and determining where a program or project is put in development planning. Regional development policy makers have goals and objectives to be achieved in each of their policies, namely reducing the number of economic disparities between regions with various types of development policies. Whether it is in the development of industrial or non-industrial based sectors.

Added value in a region must be able to be raised as high as possible with various kinds of development policies which of course must be adapted to the potential of the region. Natural resources and human resources in an area are very empowered with such a policy direction. Regions that have various kinds of resources are very feasible to explore their potential so that the value of the benefits possessed by a region can maximize various benefits. The construction of an industrial estate is a sufficiently appropriate step to maximize these benefits. With the presence of industrial estates, there is certainly an increasing number of employment opportunities for the community. The presence of various supporting infrastructure for industrial estates will certainly have a direct impact on the community such as the construction & repair of roads, construction of health facilities, as well as improving the quality and facilities of education.

In Riau Province, precisely in Sungai Apit District, Siak Regency, it has been prepared to become a Special Economic Zone. This project was started in 2004 with the birth of the Siak Regency Regional Regulation No. 8 of 2004 which contained the establishment and development of the Tanjung Buton Industrial Zone. In 2017 through the Presidential Regulation of the Republic of Indonesia number 58 in 2017 the Tanjung Buton Industrial Zone was included in the acceleration program of the National Strategic Project. The presence of KITB is expected to be able to increase regional economic growth by maximizing the potential of the existing resources in Riau Province, especially Siak Regency, both natural resources and human resources.

With good use of regional resources, it will have an impact on the improvement and growth of economic activities of the community as a multiplier effect of the existence of major projects and KITB supporting projects. The development of Industrial Estates is intended to encourage the growth of the industrial sector to be more focused, integrated and provide results that are more optimal for areas where industrial estates are located. Some important aspects that form the basis of the concept of developing industrial estates include efficiency, spatial planning and the environment.

In Riau Province the potential of natural resources is quite high in the agro sector (oil palm, rubber and sago) and oil and gas. Oil production in Riau Province amounts to 325,000 barrels per day. Production of CPO (Crude Palm Oil) in Riau is 7,333,333 tons / year, rubber is 374,901 tons / year, and sago is 366,032 tons / year. PT. Bosowa Corporindo has been present as the industry's main driving force at KITB. MoU with PT. KITB (as a regional company managing KITB) has agreed on the development and management of KITB and the CPO downstream industry. MoU with PT. Bumi Siak Pusako has also agreed on the development of the oil and gas downstream industry. Finally, to support port activities, the MoU with PT. Samudera Siak has also been carried out to improve port service management and port facilities (PT. KITB 2017). All these industrialization activities will certainly need a lot of labor. The government continues to strive for more and more workers who are ready to be used in the industrial world, one of which is the presence of Vocational High Schools (SMK). According to Enoch (1992: 172) education graduates who are more qualified in technical knowledge and skills naturally contribute to economic growth in general and increase special individual income.

Thus education can be considered as consumer goods and investment in human capital so that it shows that economics and education influence each other. Economic progress drives the development of education, and advanced education is one of the requirements for economic development. In 2017 as quoted by Republika (2/10) the Government through the Ministry of Industry has signed a cooperation agreement between the industrial world as many as 107 companies with 226 Vocational Schools in North Sumatra. Aceh with 3 companies and 9 SMKs, North Sumatra with 54 companies and 117 Vocational Schools, West Sumatra with 7 companies and 20 Vocational Schools, Riau with 5 companies and 38 Vocational Schools from a total of 292 Vocational Schools, and Riau Islands with 37 companies and 41 Vocational Schools. This step was taken because the vocational education program is a joint program between Vocational Schools and industry players so that the program does not only rely on theory in the classroom but also conducts basic vocational practices. Some are carried out in schools, and some are carried out in the workforce.

The pattern of administering education in these two places will make vocational institutions closer to their work activities, adjusting the content to the needs of the world of work to facilitate the transfer of values and work behavior as applicable in the world of work. Here it is very important that there is a link and match between SMK and industry so that vocational graduates can be directly absorbed in the world of work. Considering the sizeable number of vocational school graduates who have and will be available in Riau Province, it is expected that the cooperation between Vocational Schools and the business world in the industrial sector will further increase the absorption of vocational graduates.

Data at the Riau Province Central Statistics Agency (BPS) as of February 2017 recorded graduates of Vocational High Schools (Vocational Schools) dominating the number of Open Unemployment Rate (TPT) in Riau Province which reached 15,681 people or 8.7% of the total workforce of 180,237 people. There are also not many graduates of other education levels who are absorbed by the job market, namely SMP only 11,012 people or 6.11%, undergraduate as many as 12,797 people or 7.10%, Diploma as many as 13,950 people or 7.74%, SMA as many as 15,356 people or 8.52 %. With the high open unemployment rate, the Government creates new economic growth centers such as industrial estate development projects that are evenly distributed throughout the country, so that the unemployment rate is expected to decrease and can increase regional economic growth through the population of productive age who have work.

Besides creating new economic growth centers the Government through the Ministry of Education and Culture in 2017 set the spectrum of vocational expertise contained in 14 expertise / fields to answer the needs of the industrial world of business. Regional development in the form of industrial estate development is a process carried out by many parties to improve community welfare evenly. One party that plays a role in regional development is youth, youth are part of the wider community members who always participate as development actors.

As stated by the President of Indonesia at the youth conference in Barcelona, Spain in 1985 that youth and development are two sides of a coin that cannot be separated. The position of youth in society is an agent of development which plays an active role for the welfare of himself and the surrounding community (Rohmad, 1998). this study aims to analyze the obstacles in the future in the process of recruiting young graduates of vocational schools in Riau Province to become laborers, analyzing the types of fields of expertise that must be possessed by young graduates of Vocational Schools in Riau Province so that they can be absorbed into the maximum workforce

Literature Review

Regional Planning

Regional planning is planning the use of regional space and planning on activities in the regional space. Regional spatial planning is usually outlined in regional spatial planning while activity planning is usually included in regional development plans, both long term, medium term, and short term (Tarigan, 2003: 32). Regional planning should begin with the determination of regional vision and mission. Vision is the ideal of the future of the desired area. The vision is often abstract but wants to create an ideal regional characteristic so that it serves as the inspiration and encouragement in regional development planning. Mission is a condition between or a stage to achieve that vision. Mission is an ideal condition that is level under the vision but more realistic to achieve it (Tarigan, 2003: 32).

The development plan is a plan of activities that will fill the space. Thus, in the end the form of the intended space will be achieved. Spatial planning also gives signs about what is allowed and what is not allowed on each side of the space. Thus, spatial planning is the main guide in planning various activities in the region (Tarigan, 2003: 33).

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Sectoral Approach

A sectoral approach is where all economic activities in the planning area are grouped into sectors (Tarigan, 2003: 36). Then each sector is analyzed one by one. Each sector sees its potential and opportunities, determines what can be improved and where the activity of the increase is. The method is to break down each sector so that there are homogeneous groups that can be used for the group. For example, to analyze the agricultural sector, the sector can be divided into food crops subsector, smallholder plantation sub-sector, large plantation subsector, and so on.

Regional Approach

In regional development efforts (Sirojuzilam, 2015: 29), the most important problem that is of concern to economists and regional planning is the process of economic growth and equitable development. Regional growth is a theory of national economic growth that is adjusted on a regional scale. The difference in the theory of regional economic growth and the theory of national economic growth lies in the nature of openness in the process of input-output of goods and services and people. In the system of entry and exit people or goods and services are relatively open, while on a national scale are more closed (closed regions). Furthermore Tarigan (2003: 40) says the regional approach is an economic approach and a space approach.

The economic approach, especially for regional economic branches, can be used by various analytical tools both in terms of general economics / development economics, or more specifically regional economics to see the direction of the development of an area in the future. Regional economic analysis can provide answers to which sectors need to be developed and the priority level of development. However, it has not been able to answer questions, such as where the sector was developed, how much land was used, and the amount of infrastructure or social facilities that needed to be built along with its location.

Regional economic analysis is then combined with a spatial approach, so it must be accompanied by maps to facilitate and strengthen analysis. In addition to describing the current situation, there is also a map that illustrates the projected direction of the transfer of production factors and estimates of future conditions.

Area Development

Regional development basically means increasing the value of regional benefits for the people of a particular region, being able to accommodate more residents, with an average level of community welfare improving, besides showing more facilities / infrastructure, available goods and services and business activities - increasing community effort, both in terms of type, intensity, service and quality (Sirojuzilam and Mahalli, 2010: 35). Whereas Mulyanto (2008: 1) defines regional development as all actions taken in order to exploit existing regional potentials, to get better conditions and order of life for the interests of the community there in particular, and on a national scale. According to Budiharsono (2001: 10) regional development should at least be supported by six pillars / aspects, namely: biogeophysical aspects, economic aspects, social aspects, institutional aspects, location aspects and environmental aspects.

Employment Opportunity

Job opportunities are identical to the National Development Goals, especially Economic Development, because employment is a source of income for those who obtain employment opportunities, besides being a source of increasing National Income, through increasing Gross National Products. Therefore, in GBHN in Sagir (1982: 61), it was stated that the National Development goals in addition to increasing national production, economic growth must also accelerate the growth of employment, because employment opportunities not only have economic value, but also contain human values by fostering a sense of self-esteem, so as to provide content to the principle of humanity. Sagir (1982: 61) points out several main problems in expanding employment opportunities.

Among the first is the growth of the workforce that is not balanced with the absorption of employment opportunities. then the second is the low level of productivity of the workforce due to several reasons, namely the level of education, nutritional level and lack of technological level. Furthermore, the third cause of the main problems in expanding employment opportunities is the low purchasing power of the people in buying goods produced domestically. The fourth reason is the low carrying capacity of the modern sector. Capital intensive industries with advanced technology have not been able to support the development of labor-intensive / traditional industries. Then the fifth is the low level of capital accumulation in the country. And the last is the absence of an integrated and consistent policy by the Government regarding the domestic business and employment system.

Vocational Secondary Education

Rupert Evans (1978) (in Djojonegoro, 1998: 33) defines vocational education as part of an education system that prepares someone to be better able to work in one work group or one occupational field than in other occupational fields. Vocational education is expected to be able to bridge the needs of skilled workers who are at least able to adapt to the work environment in accordance with their competencies. Graduates of vocational education will be trained to work so that they have differences from general secondary schools that provide the theory of science to be developed purely. While graduates of vocational education are more inclined to the sciences that are applied and some programs of expertise emphasize aspects of psychomotor knowledge. Nevertheless vocational education continues to develop three existing learning domains, namely, affective, cognitive, and psychomotor. Whereas Calhoun (1982: 22) defines vocational education related to preparing people for work and by increasing the potential of workforce training.

This includes all forms of education, training, or retraining that are designed to prepare people to enter or continue work in a recognized job. Vocational secondary education according to the National Education System Law is 'secondary education which prepares students primarily to work in certain fields' (Explanation of Article 15 UUSPN 20 Year 2003). Even at the beginning of the implementation of UUSPN No.2 in 1989 there was a debate about secondary education, where vocational education was considered as specialization education which prepared graduates to enter employment. Djojonegoro (1998: 38) emphasizing the preparation of vocational school graduates to work has more specific meanings of special expertise than general secondary education. Students are provided with skills that are applicable to various types of work that exist in the business or industry, or even opportunities for entrepreneurship with those skills.

Youth Resources

Youth are individuals who when viewed physically are experiencing development and psychologically are experiencing emotional development, so that young people are human development resources both now and in the future. As a candidate for the next generation that will replace the previous generation (Mardizal, 2012: 33). According to Republic of Indonesia Law number 40 of 2009 concerning Youth, Chapter I General Provisions Article 1 paragraph 1 describes the definition of youth as Indonesian citizens entering an important period of growth and development aged 16 (sixteen) to 30 (thirty) years

Materials & Methods

This research was conducted at the University of North Sumatra Library and in the field. For field studies carried out in Tanjung Buton Industrial Estate (KITB), Mengkap Village, Sungai Apit District, Siak Regency, Riau Province. While the time of the study was conducted in March to May of 2018. This study used descriptive methods that were explorative in nature. descriptive method research is the process of solving the problem under investigation, by describing or describing the state of the object of research at this time, based on facts that appear or as they are.

Research with this method focuses on finding the facts (fact finding) as the real situation. While exploration research itself has the aim of exploring extensively about the causes or things that affect the occurrence of something (Arikunto, 2016: 7). So descriptive exploratory research is research with problem solving that is explored extensively about the causes or things that influence the occurrence of something based on facts that occur in the field. In qualitative research it does not use population, because qualitative research departs from certain cases that exist in certain social situations and the results of the study will not be applied to the population, but transferred to other places in social situations that have similarities with the social situation in the case studied (Sugiyono, 2008: 50). In this study 4 informants were:

  1. Director of PT. KITB as an industrial estate manager,
  2. Director of PT. Samudera Siak as the port manager,
  3. Director of PT. Bumi Siak Pusako as the manager of the oil and gas downstream industry, and
  4. Director of PT. Bosowa Corporindo as the manager of the agro industry.

All informants are part of the company in Tanjung Buton Industrial Zone which is responsible for the recruitment of workers in each company. In this study the resource person was determined by purposive side. Purposive sampling is a technique of sampling data sources with certain considerations. This particular consideration, for example, the person who is considered the most knowledgeable about what we expect, or maybe he is the ruler so that it will facilitate researchers to explore the object / social situation under study (Sugiyono, 2008: 53).

Data collection techniques in this study were Field Research and Library Research. Research Field is a primary data collection technique, carried out by giving questionnaires to informants consisting of several forms of questions. Library Research is a secondary data collection technique, carried out by collecting materials and documentation from various relevant agencies, such as the Central Bureau of Statistics, the Education Office, other relevant agencies, and libraries regarding the results of previous research and the literature supporting this study.

Statistical Analysis

Riau Province (Figure 1) is geographically located at the position of 01005 '00 'South Latitude - 02025'00' North Latitude and 100000'00 '- 105005'00' East Longitude which has an area of 8,915,016 hectares. Administratively, Riau Province has the following limits:

  • North Side: Malacca Strait and North Sumatra Province
  • South Side: Jambi Province and West Sumatra Province
  • East side: Riau Islands Province and Malacca Strait
  • West: West Sumatra and North Sumatra Provinces

The strategic position of Riau Province, which is directly adjacent to Malaysia, Singapore and Thailand; on the economic path of the Malacca Strait; and is on the trajectory of movement between regions on the island of Sumatra, thus providing an opportunity to build high access to the traffic of goods, people, information and capital; location advantage as a center of activity; and as a location for the transit of people and goods.

The research then focused on when the company was willing to provide a place for vocational students to do Industrial Work Practices, from 8 selected Vocational Fields whether there was a field that would not get a place for Vocational students in doing Industrial Work Practices. Two companies answered doubtfully, namely PT. KITB and PT. Samudera Siak. While the two companies, namely PT. Zapin Energi Sejahtera answered there was no reason why please (vocational students) learn and share knowledge, and PT.

Bosowa Corporindo also answered that there was no reason for apprenticeship for us and the company, it was a process in implementing the knowledge and skills that they had acquired when in Vocational High School so that it could make young Vocational graduates more 'ready to use'. Vocational high school, the research then provides several alternatives to the company in conducting the recruitment process of youth workforce graduates of Vocational Schools and cooperating with the world of Vocational Schools. PT. KITB and PT. Zapin Energi Sejahtera said that it would conduct a Recruitment Process. Recruitment Process is where Vocational Schools conduct a screening process for application files for students / alumni in their schools to be sent to companies that need labor.

The file screening process is tailored to the needs of each company. Besides that, PT. ZES will also conduct School Recruitment, where companies go to schools to conduct a direct recruitment process for human resources who have received competency debriefing while studying at the school. Whereas two more companies, namely PT. Bosowa Corporindo and PT. Samudera Siak will do Come to Company, which is where SMKs pick up the ball to companies. Vocational schools visit companies to explain the various advantages of schools and the competencies that have been given to students / alumni in order to increase the selling value and trust of the industry to young graduates.

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