MIMBAR, Vol. 35 No. 1st (2019) pp. 146-155

Public Policy Pragmatism on Special Economic Zone in Tanjung Lesung,

1 2 3 DEDE SRI KARTINI, RAHMAN MULYAWAN, MURADI

123Universitas Padjadjaran, Jalan Raya Bandung-Sumedang Km. 21 Jatinangor, , email: [email protected]; [email protected]; [email protected]

Abstract. The policy of Special Economic Zone (SEZ) in Tanjung Lesung has provided various special facilities to investors, such as tax breaks, business use rights, and building rights for 80 years. This research is discussing whether this is an ideal policy or only pragmatism. It is an attempt to discover and analyze whether the Special Economic Zone policy in Tanjung Lesung is an ideal policy that has met the public interest. Using qualitative methods, researchers conducted an interview with the government, Regional House of People’s Representatives, and society. The results of this study indicate that Special Economic Zone policy is divided into three conditions: conditions that describe policy pragmatism such as ensuring fair competition among hotel and lodging business actors, respecting people who do not want to sell their land, both domestic and foreign investors have the same rights and obligations; conditions that do not describe policy pragmatism such as rules that cannot be applied; and conditions that describe half pragmatism such as formal tourism education aimed for vocational schools only. Keywords: Public Policy, Pragmatism, Special Economic Zone

Introduction establishment of SEZ Administrator is an Action Plan for Delegation of Authority and Governments in various developing Determination of SEZ Development Business countries carry out various ways to improve Entities in Tanjung Lesung. In addition, the people’s welfare, including by issuing policies SEZ Administrator was formed by Regional in the form of easy investment for both foreign Regulation No. 2 of 2014 which carries out and domestic investors to boost people’s the One Stop Service Function. income so that it can reduce poverty. This was also done by the Indonesian government After being inaugurated in 2015 by through the establishment of several regions President Joko Widodo, SEZ in Tanjung to be Special Economic Zones (SEZ). This is Lesung was facing policies that had not been a form of government response to improve in favor of public interest (Riant D. Nugroho, welfare by using the concept of historical 2004), for example, competition in the field of perspective modernization (Sztompka, 2011). lodging between hotels managed by investors with large capitals and homestays managed The Law No. 39 of 2009 concerning by local people with small capital. There are SEZ was then responded by the Government 13 legal rules governing SEZ without being Regulation (PP) No. 26 of 2012 concerning accompanied by technical rules which confuse Special Economic Zones in Tanjung Lesung. the field implementers on how to implement The PP can be used to further strengthen the them. A rule of tax incentives is one of them role of this region as a tourism area. This that cannot be applied. Business entities Government Regulation was then responded being empowered are limited to the owners by the Regional Development Planning of homestays, so that there is progress in the Agency of Pandeglang Regency with an SEZ of Tanjung Lesung. Education to face action plan of forming institutions consisting global challenges already exists, although of the establishment of the SEZ Board, and it is only limited to the establishment of establishment of SEZ Board Secretariat. The

Received: 2018-12-29, Revised: 2019-02-25, Accepted: 2019-05-28 Print ISSN: 0215-8175; Online ISSN: 2303-2499. DOI: http://dx.doi.org/10.29313/mimbar.v35i1.4283 Accredited S2 based on the decree No.10/E/KPT/2019 until 2024. Indexed by DOAJ, Sinta, Garuda, Crossreff, Dimensions

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Tourism Vocational Schools. The privatization and regulated capital investment.” For of State-Owned Enterprise does not yet exist researchers, today it is not only companies since there is no State-Owned Enterprise that that capitalist, but the government can be invests SEZ in Tanjung Lesung; subsidies are capitalist too with a set of policies issued. not on target and domestic investors have not Through policies, rural areas with traditional received optimal attention. Whereas, good properties are transformed into investment governance as an interaction between local land with a set of rules. government, investors, and the public is still SEZ policy has brought social change to waiting for the central government command. traditional communities in the region. This is The only one thing that has been fulfilled in because modern conditions that immediately this SEZ policy is building the democratic bring the concept of development clearly skills. affect human personality. The influence of Previous research on SEZ policy in modernity on humans is reflected through Tanjung Lesung has not yet been found so urbanism, industrialism, mobility, and mass that it becomes an element of novelty in this communication (Sztompka, 2011). Judging study. The research with a theme of policy from the policy typology, the SEZ policy is a similar to this one is by (Henckels, 2018) who procedural policy because it does not arise discusses the public policy and investment, from the needs of the community but rather and (Pakdeenurit, 2014) who discusses SEZ emphasizes on who will implement and how in India. Henckels did a research on how far it is implemented (Agustino, 2008). the law can give an exception to investment, The government is indeed an institution with the meaning that there is a convenience and part of the political process, a place to for the coming investments, provided that it choose what public policies to be made (Kraft does not disturb the stability of a country. & Scott R. Furlong, 2007). Policies made Pakdeenurit saw the failure of SEZ in India was are also influenced by various conditions, due to the management errors. He identified such as social and economic, government that 60% of the countries that enforced the structures, local and national cultural norms, SEZ were successful because it was managed and others. This condition will then determine by private sector. This research is different policy alternatives (Kraft & Scott R. Furlong, from both Henckels and Pakdeenurit because 2007). Policy choices are part of the “way” it will not view the rules regarding investment to implement the chosen policy to solve or the failure of SEZ but will see the extent to problems or explore the benefits of the which SEZ policies have succeeded in fulfilling program (Siong & Geraldine Chen, 2007). the public interests. The making of policy has various objectives, The definition which states that policy including the goal of regulating and liberating is whatever a government chooses to do or and (Nugroho, 2015). not to do is no longer appropriate for the According to (Jayasuriya, 2006), a systematic analysis of public policy. The capitalist economic system that upholds the thing that must be prioritized is what the values of liberalism has one characteristic that government does in accordance with the is similar to the contemporary forms, namely needs of the community (Adam A Anyabe, in viewing a welfare-oriented government. 2018). The researcher agrees with Anyabe’s One way to achieve prosperity is to bring in as opinion, and this is parallel with what Ian many investors as possible by providing global Patrick Agustin stated, as quoted (Nugroho, facilities. For example, the right to use and the 2004), that policies must be pragmatic, rights of business use in SEZ Tanjung Lesung meaning that policies issued must meet public are the same as SEZ in any country which needs. This study wants to see the extent to has been applied for 80 years. This indicates which the Special Economic Zone policy in that capitalization is in line with globalization. Tanjung Lesung have succeeded in meeting public needs by using the policy pragmatism The government, in general, cannot theory by Ian Patrick Agustin. escape globalization which is usually inherent in capitalization, but the government can When an area is intentionally opened adapt and accept its effects because of for capital owners to carry out their economic three things: (a) In terms of the economy, activities and the capital investment is global economic integration can be said to be regulated, then the capitalization occurs. “inefficient” in the way of setting limits for As said by (Saksosno, 2015): “Capitalist domestic politics but allowing openness for the companies refer to disciplined labor global economy; (b) Globalization has caused

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an imbalance, but it also offers technological 5 Education refers to Education exchange needed by developing countries. It’s global challenges uniformity the reason for globalization to be adapted in 6 Building democratic Opening the path the country; (c) Globalization can strengthen skills of democracy or weaken state institutions depending on the without any clear size, power, and domestic political culture boundaries in which the country is involved (Keohane & 7 Privatization in the Privatization of Donahue, 2000). form of distribution State-Owned of ownership of Enterprises in the Jaysuria argues that a person’s State-Owned form of transferring capability or ability can be a mediator and is Enterprises to the monopolies from the key to reconciliation between the liberal domestic public the state to the conception of individual autonomy and social fairly and evenly private sector or to commitment to equality. The ability and foreign parties capability of the government in involving all 8 Subsidies are Subsidies are existing stakeholders is the key to bringing proportional/in without limits or accordance with total/extreme together the interests of capital and broader the desired subsidy removal of public welfare. In essence, Kanishka Jaysuria targets subsidies wants to bring up “the third way” as an 9 The same Prioritizing global alternative thought to harmonize the market opportunity for investors to control system (liberalism) with socialism that domestic and global national productive prioritizes shared prosperity. investors to control economic assets national productive According to Ian Patrick Agustin, the economic assets ideal policy he calls pragmatism in public 10 Policies that Policies that policy means a policy model that uses the guarantee the give groups the “profit-loss” ratio of a policy (Nugroho, application of discretionary right 2004), as introduced in the cost and benefit good governance to implement good analysis paradigm proposed by Boardman principles in each governance in (Nugroho, 2004). Every policy must take organization into account the profit and loss without Source: (Nugroho, 2004) ignoring the ethical element. According to Molan in Nugroho (2004), pragmatism is not Pragmatism is not opportunism but synonymous with opportunism. Pragmatism is has the ethical meaning as well as various also not just practicalism. Pragmatism refers meaning of policies. Policies can refer to more to the necessity of each idea to refer actors, programs, formal authorities, and to the consequences of its implementation. others (Turner & David Hulme, 1997). Pragmatism is closer to the setting theory goal, meaning that each action must refer to a goal. Pragmatism must be ethical and Research Methodology strategic. Ethical means that the pragmatic This research uses qualitative method, nature is intended for the public interest and which according to (Ritchie, 2014) is: not for the elite (Nugroho, 2004). According to him, the ideal policy has the following “A set of interpretative, material practices that make the world visible. These practices characteristics as mentioned in Table 1. transform the world. They turn the world into a series of representatives, including field notes, Table 1 interview, conversation, photographs, recording Ideal and Deviant Policy Characteristics and memos. Qualitative researchers study things in their natural settings, attempting to No Ideal Deviant make sense of interpret phenomenon in term of the meaning people bring to them.” 1 Ensuring a fair Giving protection competition and monopoly The qualitative research method without clear interprets empirical matters until they boundaries become clear. The interpretation is carried 2 Legal certainty Legal bias out through a set of activities which include 3 Proportional tax Regional taxes that field notes, interviews, conversations, absorb the ability of photographs, and recordings. In this study, the general public the researcher will interview the community, 4 Empowering Business entities on the Head of the SEZ Administrator’s Office, business entities sale the Head of Regional Development Planning

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Agency of Pandeglang District, the Head of territory of the Unitary State of the Republic Panimbang District, and the Head of Tanjung of Indonesia which is determined by carrying Jaya Village. The selected informants are in out economic functions and obtaining certain accordance with the characteristics of SEZ in facilities. Thus, each SEZ performs economic Tanjung Lesung in addition to surrounding functions and special facilities provided by communities who have been there first, such the Central Government, in which these as fishermen and the owner of the inn. The special facilities do not exist elsewhere. This Head of Administrative Office that runs the function of the economy and special facilities SEZ managing the processes from licensing that differentiates districts with SEZs from to investment enters the SEZ in Tanjung districts without SEZ. In accordance with Lesung. The Head of Regional Development Government Regulation Number 26 of 2012, Planning Agency must adjust development the SEZ in Tanjung Lesung is designated as planning in Pandeglang Regency with the the SEZ of Tourism Zone, an area designated presence of SEZ in Tanjung Lesung. Head for tourism business activities to support of Panimbang Subdistrict, as the head of the implementation of entertainment and the foremost region where Tanjung Lesung recreation, meetings, incentive trips and is located, should have the knowledge of exhibitions, and related activities. Tanjung Lesung development with all its the When the Central Government issues positive and negative impacts. Finally, the a policy, the regions inevitably have to Head of Tanjung Jaya Village as a village follow it. Regarding this SEZ policy, it is a directly adjacent to Tanjung Lesung SEZ. national policy that is implemented together This village was the first to experience the by the Province and District. The SEZ is a direct impact of SEZ presence, both positive central government program, so that the and negative. regional government of Pandeglang district This qualitative research has contextual cannot refuse it. Nevertheless, the Regional function often called descriptive or exploratory. Government must prepare the community The main objective of this study is to investigate to be able to deal with the SEZ impacts by and interpret the social phenomena of prioritizing local content. The program is experience that researchers must understand. planned since 2010 and will be ratified and The validity in this study includes: credibility implemented in 2012. It can be said that the (internal validity), transferability (external SEZ in Tanjung Lesung is a trial program validity), dependability (reliability), and because the devices are not ready yet. In a big confirmability (objectivity) (Sugiyono, 2006). concept, the SEZ is designated as a Special In addition, qualitative research is more Economic Zone aims to attract investment, flexible in determining the focus of research in which there must be something special to (Neuman, 2004). offer. Unfortunately, until now there is nothing happened. Even though it has been declared The approval of Tanjung Lesung as operational, in fact, this SEZ has not done a SEZ has brought new problems such as anything yet. SEZ failed to offer anything to competition between owner of lodgings investors until now although it has been there managed by the community and existing for 5 years. While what is known to the public, hotels in the region, government officials establishing special economic zones is similar who have difficulties implementing SEZ rules, to building industries. training for general public, narrow access to enter the beach for fishermen, and supporting Concerning the issuance of policies from infrastructure that has not yet existed in the both the Central and Regional governments, SEZ Tanjung Lesung. From these problems, the explanation below will elaborate whether the question arises is: to what extent SEZ those policies are in accordance with the ideal policies have fulfilled the public interest? The policy characteristics that favor the public. fulfilled or unfulfilled public interest will be Thus, the benefits of this research are the confirmed by the theory of pragmatism in public, in which their importance or needs public. can or cannot be accommodated by the SEZ policy in Tanjung Lesung. Results And Discussion Ensuring a Fair Competition In the Law No. 39/2009 concerning Special Economic Zones (SEZ), it is stated According to the Tanjung Lesung master the meaning of Special Economic Zones plan, there will be 12 buildings in operation. as an area with certain limits in the legal However, until now there is only 3 buildings

Accredited by Sinta Rank 2 based on Ristekdikti No.10/E/KPT/2019 until 2024 149 DEDE SRI KARTINI, et al. Public Policy Pragmatism on Special Economic Zone in Tanjung Lesung, Pandeglang... exist. It turns out that the physical presence that the Regional House of Representatives of SEZ with the infrastructure promised by supported the budgets needed for the region. the Central Government has an impact on the For example, the Administrative Office pattern of competition that occurs between submits various budgets, and the Regional the lodging businesses. House of Representatives regulates to actualize the budgets. Likewise, the Regional The construction of SEZ is predicted House of Representatives does the same to invite massive investment, so that thing to the road construction to the SEZ in the government needs to guarantee fair Tanjung Lesung. Unfortunately, until now, competition. Competition needs to be there are no investors who actualize those anticipated between hotel owners, hotel projects in reality. Verbally, there are many owners and homestays, or competition who interested, but there has not been any between the homestays themselves. However, investor yet who really did put his capital in. the feared competition does not occur because They are waiting for the toll road construction, promised accesses such as toll roads, ports, airports, and others. At present, the presence and even airports have not yet built and cannot of SEZ has not given a positive value to the be predicted when it will be realized. This community. resulted in a hotel occupancy rate of only 35% on weekends. The SEZ in Tanjung Lesung, In addition to the 83.6 km Serang- which is designated as a tourism area, relies Panimbang toll road infrastructure, South on visits from domestic and foreign tourists Airport, Panimbang, the acceleration to liven up the SEZ. To meet this need, hotels of transportation, electricity and clean become a priority place. In accordance with water infrastructure in the Tanjung Lesung Tanjung Lesung master plan, Tanjung Lesung area has also not been realized. The three Beach Hotel was built in conjunction with infrastructures have become National Strategy other beach tours, namely the Beach Club Projects (NSP), but there are still obstacles to and Sailing Club. However, the master plan the realization. There are damages of national alone is not enough to operationalize SEZ and roads by 30%, provincial roads by 12% with it needs other infrastructures to support. The severely damaged, and district roads by 30%. provisions of national, provincial and district Another obstacle is the absence of type C roads that lead to Tanjung Lesung will support terminals close to the SEZ in Tanjung Lesung the SEZ, in addition to toll roads, airports and there is no Banten ring tourism tour/ and reactivation of railroad transportation as bus transportation, other than PLN (National National Strategic Projects. Electricity Company) that has not been willing to build a substation if there is no certainty of With a hotel occupancy rate of only demand from investors. Despite the obstacles, 10% and a maximum of 35% on weekends, there are also supporting factors such as the this indicates that tourists are still reluctant railroad that is ready to be reactivated. to visit the SEZ in Tanjung Lesung. The long- distance factor excludes Tanjung Lesung as Legal Certainty a place to visit on weekdays. In addition, the facilities promised in the construction of There are 13 policy products regulate Serang-Panimbang toll road will only begin SEZ in Tanjung Lesung, which from the form in 2019. These are the imbalances occur of laws to regent regulations. Each policy between the Central Government’s policy product has an emphasis on what should on SEZ and real conditions in the field. Even be done to the SEZ in Tanjung Lesung as P.T. Banten West Tourism Development the region was officially opened in 2012 by Corporation which proposes SEZ this company President Jokowi. With no operational rules and other companies are still waiting for toll covering the SEZ, investment is hampered. road facilities from the Government. However, it turned out that the Investors are still waiting, and the Head equipment provided by the central government of the SEZ Administrative Office in Tanjung for investment was not optimal. First, the SEZ Lesung can only do a promotion. If the toll road constraints encountered in Tanjung Lesung already exists, then 11 Mou (Memorandum occurred in all SEZ. Thus, the obstacles can of Understanding) of investments that are be found from various sides: the investment currently in the SEZ will be realized. It was side, the rules of the game, the mastery of the also strengthened by Yangto as a member field, and the master plan. it is not wrong for of the Regional House of Representative of the public to think this project goes very slow Commission IV in Pandeglang District, stating because the policies at the central level have

150 ISSN 0215-8175 | EISSN 2303-2499 MIMBAR, Vol. 35 No. 1st (2019) not been completed, such as the concept of enliven the area first, hold a festival, prepare the device and everything needed. In contrast the community, and build the homestays. to abroad, the SEZ is ready to be operational When all SEZs are ready and available, with all the devices have been completed and there will be no market competition between the incentives for the rules of the game are businesses in the SEZ area and buffer zone all done. because both have their respective target markets. Government targeted the inside Proportional Tax area for the upper middle class market, while buffer zone for the lower middle class Through Law No. 39 of 2009, the market. In fact, many domestic tourists stay government provided conveniences to SEZ at homestays, while tourists from abroad stay investors, such as deferring import duties, in the region . The government hopes that exempting excise tax, and no charge for in the end it can avoid the exclusivity of this Value Added Tax, Tax on Luxury Goods, and SEZ. This synergy is maintained by the SEZ Import Income Tax. Every taxpayer who Administrative Office to avoid competition and conducts business at SEZ is given incentives have a partnership instead. in the form of exemption or relief of regional taxes and regional levies. Besides that, the Education that Refers to Global Chal- regional government can also provide other lenges facilities if needed. Formal education that refers to the new In addition to the above facilities, SEZ global challenges is limited to the Vocational also has the convenience of obtaining land Tourism. The Regional House of People’s rights, as well as facilities and relief in the Representatives manages it by asking the fields of business licensing, business activities, government to conduct human resources industry, trade, and immigration for foreign training, such as tourism awareness training. business people, as well as security facilities. This training is intended first for homestay This convenience can also be legal owners. because there are no derivative regulations, The clash between religious local culture such as convenience in Land and Building and the arrival of foreign tourists must be Taxes, imported goods, and Income Taxes. anticipated. While formal tourism education This law also allows global investors to control in accordance with the needs of SEZ does national productive economic assets, for not exist yet, the Regional Government takes example the construction of hotels that take the initiative to conduct tourism awareness the area where fishermen usually get their fish training, such as training for homestay for living. It appears there is a policy deviation owners. The training is conducted to provide if the researcher uses the policy theory. education for the people who can support Empowering Business Entities them in facing the potential and risks arise from SEZ policy, as it was stated below: While waiting for the accessibility “As far as I am concerned, the presence of a to be built by central government, the homestay will be initiated from BWJ (Banten local government, in this case, the SEZ West Java). Offer ‘hospitality’ to guests, and Administrator Office in Tanjung Lesung has people here can serve guests. If the hotel is full, you can come here. Let’s help each other revived small-scale investments, such as out.” homestays, restaurants, which are actually strategies to show at least (little) progress But after being further observed and of SEZ in Tanjung Lesung, although there is examined, the training seemed to be merely risk of losses from business actors. This is a a formality. It was not meant for a long term. place where different interests of government Findings from the field showed that SEZ and business met. policies can bring benefits to the welfare of the community with the condition that both The feasibility of SEZ policy is low central and regional governments through because it has not finished its accessibility relevant agencies able to design long-term yet. This situation is bad because it will be sustainable training programs. This training hard to attract investment without the airport becomes important to improve the quality of and toll road (that have not built yet), while human resources in Tanjung Lesung, so that accessibility is the most sensitive thing for they can actively participate and utilize the investors. Thus the strategy is, while waiting potential brought by SEZ policies and not the accessibility, the Regional Government only be observers. On the other hand, it will

Accredited by Sinta Rank 2 based on Ristekdikti No.10/E/KPT/2019 until 2024 151 DEDE SRI KARTINI, et al. Public Policy Pragmatism on Special Economic Zone in Tanjung Lesung, Pandeglang... be more effective for the SEZ policy if human take part. Is this study a must? The state resources in the region are already qualified. should clearly define r what it is for. Is it for the welfare of the community or not? What are the aspects for? Is it only for foreign investors? Building Democratic Skills We can also understand the wishes of the Kiai. Maybe local wisdom is lost, right? We don’t In addition to formal juridical methods, want Pandeglang like the second Bali, right? “ which will later cover the relations between workers and company owners, the Regional Apart from the community side, Government does not mention the rights maturity in democracy also took place people who currently inhabit the land of SEZ at the government level. The aspirations in Tanjung Lesung, that is Kampung Bodur and interests of the people who are often for exact, even though the land is actually a expressed through demonstrations, on the place of state workers as stated by Hadi, “Now basis of awareness of rights as democratic for the land problem, there is no solution yet. citizens, also force the government to respond I have with the BWJ leaders (Banten West appropriately to those aspirations. Java) several times to find a solution that can From these findings, it can be seen accommodate the interests of all of them. “ that the SEZ policy in Tanjung Lesung has This shows that the Regional a good impact on the democratic learning of Government, namely the Regional House the people. Regardless of the interests and people’s representatives and Regent, respects mounts that accompany the expression of the rights of people of Bodur village who have opinion and organization, or the stuttering and been hereditary in the area which is now a scepticism of local government in responding SEZ. In addition, the Regional House people’s to the expressions made by the community, representative also considers that there is we can all see it as a process of maturing still a lot of land that has not been utilized democracy. by PT. BWJ. Privatization in the Form of Dis- This SEZ policy then educates the tribution of Ownership of State people to be aware of democracy. The values Owned Enterprises to Domestic of organizational freedom and freedom of Public in a Fair and Equitable Way opinion, for example, appear as a means of society in the process of maturing and There has not been a domination of understanding the democracy itself. In Ownership of State-Owned Enterprises in SEZ facing this SEZ policy, in the end, it forces Tanjung Lesung so far since only PT Telkom the people of Tanjung Lesung to realize their will do the investment in SEZs. It is because rights as citizens in the scope of democracy. other investors are still waiting so that there When there are polemics and interests that is no spread of ownership of State-Owned they perceive as not in accordance with Enterprises to the domestic public fairly and the needs and welfare of the people, they evenly. Other State Owned Enterprises will dare to express their opinions by holding a conduct their activities when there is funding demonstration to the government. from the Central Government, such as the construction of toll roads, railways, and In addition, the public also realizes airports. Toll roads and airports are included that to aggregate their interests and in the National Strategic Project. However, get accommodated by the government until now there has been no State Owned as policymakers of SEZ, they need an Enterprises working on the National Strategic organization with the same vision and mission Project (NSP). to protect the interests of the community and not to be eroded by the existing capitalization. Subsidies are Proportional/ In Based on this reason, there are already many Accordance with the Desired Sub- community organizations and associations in sidy Target Tanjung Lesung region which often become the means of the community to express their The presence of SEZ in Tanjung Lesung aspirations. One example is the aspirations of has an impact on the provision of subsidies Kiayi associations who view this SEZ policy as from the government to the people in the having a bad impact when it is not guarded by area, especially fishermen. However, results strong aspects of morality. This was stated by of this study indicate that there is still an cleric Yana as a community leader: inaccuracy or even the absence of these “Besides that, there are also external parties, subsidies to the public, as revealed below: namely groups of Kiai who are not willing to “From the Government, there may be

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continuous funds, but for certain people and reach the fishermen and goes to certain people, not for the fishermen. If our group just made the bosses, the rich ones. “ it yesterday, it because there was help from floating cages. That makes it hurry. The official person is straight away. “ The Same Opportunity for Domestic The ineffectiveness of subsidies and Global Investors to Control Na- provided by the government to the people in tionalProductive Economic Assets the Tanjung Lesung region is also revealed: Until now, there are 8 (eight) investors “We must also have a fisherman card as the who will invest their capital, but they are still term card for the programs. This is a card for waiting for infrastructure development from the real fisherman with insurance in it. If you the Government. The following are the names are a teacher, you can not possibly have a fisherman card. (laugh). But are no help for of investors who will invest in the SEZ Tanjung our facilities. Madam!” Lesung in Table 2. The existence of subsidies that are The table above shows there are 5 not aligned precisely with the government’s foreign investors and 3 domestic investors, target, according to additional information indicating that domestic and global investors stated by Anang, can occur because of the have the same opportunity to control national dishonesty occurs among members of the production assets. Although this area is cooperative. Anang added, free for anyone who wants to invest in SEZ Tanjung Lesung, there are rules to obey, “I heard a lot of people asked the cooperative people. There are many, but only certain people for example, no permit for casino. There can. They took benefits only for themselves, are some businesses that fully owned by and so did the government . The personal foreigners and some that partially owned by identity card is collected, but the follow-up foreigners. Joyce Irmawati states: doesn’t exist. Everything is here. Banten has the most help. But this assistance does not

Table 2 Investors in SEZ Tanjung Lesung

Company name Project name Progress and Status Pigeon Barries Ltd, UK Hunting Lodge & Shooting Range Construction Phase (Ongoing) Area: 5 ha President University Center for National Maritime Phase of Pre-Feasibility Study Culture studies (ToR) PT. Telekomunikasi Indonesia Tbk Tanjung LesungDdigital World e-ticketing and fiber optic Area: 1500 ha installation, as well as installing wifi in the area (On going) PT. Pelindo II Cruise and Terminal Marine The preparation phase of the Area: 100 ha Feasibility Study. Masterplan with consultants of: 1. Royal Haskening 2. BMT Asia Pacific 3. AECOM 4. Roland Berger Daewoo Development Construction and Infrastructure Phase Cooperation Agreement Area: 1500 ha (PCA) (On going) Korea Teddy Bear Association Theme Park Phase Cooperation Agreement Area: 1 ha (PCA) (On going) Kedutaan Besar Mongolia Theme Park Phase Cooperation Agreement Area: 1 ha (PCA) (On going) Middle East Infrastructure and Joint Phase Cooperation Agreement Area: 1500 ha Development (PCA) (On going)

Source: Administrative Office of SEZ in Tanjung Lesung, 2017

Accredited by Sinta Rank 2 based on Ristekdikti No.10/E/KPT/2019 until 2024 153 DEDE SRI KARTINI, et al. Public Policy Pragmatism on Special Economic Zone in Tanjung Lesung, Pandeglang...

“ PP other regulations, and later on the BKPM, also preparation and evaluation continue to be regulate this. In addition to the limited business carried out routinely, for example, economic fields, there are foreign ownership permitted up evaluation by the Coordinating Minister to 100%. There are some fields that may not be full, a maximum of 50% if I am not wrong. And every 6 months and the Administrative Office also the ownership of foreign investors may have conducts evaluations every 3 months. This a place to live. Ownership rights and use rights is done in order to manage the obstacles valid up to 80 years. It is home footprint. Why is arisen in SEZ policies such as investors, it enforced? Because almost all SEZ in the world carries out the same strategy” infrastructure, and other supporting factors which are still unavailable. This evaluation is Ownership Rights and Use Rights have carried out involving all existing stakeholders a time limit up to 80 years according to the to find solutions and ways to resolve and deal rule of SEZ throughout the world. If the with the obstacles arisen. This means that SEZ in Tanjung Lesung does not apply the the government tries to accommodate all same thing, then it will not be good for the opinions and interests not only from the main competition with SEZ in other countries such stakeholder and intermediary but also other as Malaysia, Korea, and Singapore. They stakeholders of private sector investors and offer the same things just like SEZ in Tanjung local community. Of course, what is done by Lesung. It is the only reason for the SEZ in the government in guarding the SEZ policy in Tanjung Lesung to deal with this strategy. the Tanjung Lesung can be seen as one of the However, Indonesia must offer different applications of good governance principles, things. If foreign ownership is the same as although in some cases the government local, then the SEZ in Tanjung Lesung must still prioritizes the interests and opinions of have minimized the social impact. investors than the society. In order to support the existence of free from social conflicts-SEZ in Tanjung Lesung, Conclusion the Regional House Representative plans to propose a port construction. First, the port There are 3 conditions towards policy: will become the national fish production, conditions that have described policy so that there will be more of fishing boats pragmatism, conditions that do not describe found and stay in the port. Second, ports policy pragmatism, and conditions that half for the transportation of goods and people illustrate policy pragmatism. Conditions that to can pass Panimbang region. describe policy pragmatism can be seen from Regional House Representative encourages good competition without any disturbance in this development to become an alternative lodging business of both outside and inside to congestion in the port of Merak. However, the SEZ. The existence of SEZ policy has the convenience given by the government built public awareness to defend their rights. to foreign investors withvery large capital Respecting a group of people who do not is not given to the community and small want to sell their land is in line with building traders in the SEZ. In other words, in terms of democratic skills in the community and development, inequality does occur. Investors managing the SEZ. Existing business entities with large capital are promised infrastructure are empowered by training home business development that consumes large amounts groups, so that they have the ability to of money, while residents of the community welcome and do the interaction with tourists. around the SEZ experiences difficulties in Both domestic and foreign investors have the obtaining adequate infrastructure. same rights in accordance with SEZ rules such as Business Use Rights and Use Rights for 80 years, tax facilities, but are not allowed to run Policies that Guarantee the Applica- prohibited businesses such as casino. tion of Good Governance Principles The condition that does not describe in Every Organization policy pragmatism is proportional legal and The research results regarding the tax certainty, which normatively cannot be application of good governance principles show implemented because there are no technical that Indonesia is still in the stage of achieving instructions. Likewise, the distribution of an ideal SEZ policy compared to other ownership of State-Owned Enterprises to countries which have already implemented the domestic public in a fair and equitable this SEZ policy well. Indicator of readiness manner does not yet exist with regard to and ongoing evaluation are needed to achieve the State-Owned Enterprises that will invest, the goal above. Field findings indicate that namely PT. Telkom and PLN are still awaiting

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