Regions Must Increase Competitiveness in Facing Globalization


Jakarta, dpd.go.id - Committee I DPD RI considers that increasing competitiveness is not only oriented to economic indicators. But rather on the ability of the region to face challenges and global competition. This was stated during a hearing on the 'Development of Regional Competitiveness' at the DPD RI Building, Jakarta, Tuesday (11/12).

"The level of competitiveness between regions is the spearhead for increasing national competitiveness amid the demands of global competition," Eni Sumarni said.

According to her, the higher the level of competitiveness of a region will automatically increase the level of people's welfare. "For that, the regions are required to be more creative and innovative in order to compete with other regions," Eni said.

Eni added based on Indonesia's regional competitiveness ranking report in 2017. It has been shown that five provinces with the best competitiveness ratings are DKI Jakarta, East Java, East Kalimantan and North Kalimantan, Central Java, and West Java. Whereas the regions with very low competitiveness are West Papua, Papua, North Maluku, NTT, and Maluku.

"The competitiveness shows that there are still imbalances in growth and development," said this senator from West Java.

Eni assessed that the low level of regional competitiveness has caused high poverty, income inequality, and public services to be not optimal. "If this condition continues it will certainly have an impact on national competitiveness. So that it interferes with Indonesia's ability to compete in the world arena, "she said.

Meanwhile, Deputy of Policy Studies of the State Administration Agency (LAN) M. Taufiq said regional competitiveness was formed because of good governance and financial performance in the regions. In addition, regional competitiveness is also influenced by the ability of regional governments to carry out management. "This management capability must continue to be improved through a good bureaucratic reform process," he explained.

Therefore, Taufiq continued, to strengthen regional competitiveness, bureaucratic reform holds an important key. The goal is to encourage the strengthening of regional economic potential through strengthening governance, regional financial performance, and development planning.

"Indeed, in terms of regional governance, there are still some fundamental issues. One of them is regulatory problems, "Taufiq explained.

At the same opportunity, Plt. BKPM Deputy Investment Climate Development Yuliot explained that the development of globalization is where developed countries increase competitiveness through efficiency and productivity. "This condition has triggered a trade war between the United States of America and China, and Britain's exit from the European Economic Community," he stressed.

Yuliot explained that a country with high efficiency and productivity would be the main choice of investors. For the largest investment flows to Asian countries, China is USD 136 billion, Singapore is USD 62 billion, and India is USD 40 billion. "While the flow of investment to Indonesia is only recorded at USD 24 billion," he explained.


11 Desember 2018