JAKARTA (31/5) – Senior LREDSF Advisor, Ms. Natalis Padang, and other NSLIC staff had an informal discussion regarding “Identification of Local Economic Development Potential” presented by a economic development expert, Mr. Sugeng Budiharsono.

The discussion focused on two themes: a) exploring the needs of local economic development through action plans that are in line with regional needs; and b) building a communications platform for stakeholders (LRED) that ensures the action plan can proceed as planned.

Mr. Sugeng Budiharsono indicated that the action plan (masterplan) is an important part in developing the regional economy. However, before the master plan is drafted, it is best to perform a stakeholder mapping exercise and identify any inhibiting factors. Preparation of the action plan cannot be considered a stand-alone product. It is necessary that institutions driving the implementation of the action plan through coordinated action. The methodology for analysis should be participatory focusing on a particular value-chain, examining linkages within local markets as well as linkages to external markets. The Local Government should harmonize local economic development priorities with National development priorities as well as Sectoral Agency programs.

Currently Kemendes PDTT is reviewing master plans prepared in 10 Districts / Cities including: Pesisir Selatan, Pandeglang, Muna, Mamuju, East Aceh, North Kayong, Buol, Manokwari and Jayapura.

The review of the existing master plans instigated a shift from a District-based master plan to an economic cluster zone master plan. As such, identification of the priority sector for economic development is based on regional advantage among administrative regions (villages) sharing the same regional advantage. This approach more accurately identifies the needs for local economic development.

In the future NSLIC / NSELRED will try to apply this masterplan preparation approach in ten districts in the two focus provinces, Southeast Sulawesi, and Gorontalo. The creation of the Multi-Stakeholder Forums at the District Level in the Project focus area is compatible with the approach prescribed. As an early step towards actualizing the economic master plans, NSLIC will facilitate the review of the economic action / master plans by the Multi-Stakeholder Forums in each District beginning with Districts with pre-existing master plans.

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