Recent Advances on Finance Science and Management The development of cluster industry and product innovation based on seaweeds in the effort of expanding and piloting the sea shore area in the province of southeast sulawesi ROSTIN Depatment of Economics Universitas Halu Oleo Kendari Indoensia [email protected] AMBO WONUA NUSANTARA Depatment of Economics Universitas Halu Oleo Kendari Indoensia SUTIKNO Economy of Development University of Trunojoyo Madura Indonesia MUNTU ABDULLAH Department of Accountancy Universitas Halu Oleo Kendari Indoensia SAMDIN Depatment of Management Universitas Halu Oleo Kendari Indoensia Abstract: - The research aimed at : (1) identifying potential location of seaweeds; (2) analyzing regional support in determining the cluster location industry; (3) analyzing social budget in developing cluster entrepreneurship in the region; (4) analyzing the relationship of seaweeds and another product. Findings in the research among others: (1) the region recommended as the development is located in Muna Island; (2) social budgeting is significant in pushing the development of cluster industry based on seaweeds in Muna Island; (3) meanwhile, some of innovation products of seaweeds operated in this cluster were: (a) pharmacy grade, (b) industrial grade, and (c) food grade. Key-Words: cluster industry, seaweeds, innovation. 1 Introduction seaweeds are high. The global needs of seaweeds Seaweeds is one revitalisation in fishery. type Eucheuma is estimated 236.ooo ton dried per The length of the seashore, the estimation of the year, and about 145.000 ton achieved, for type potential of the land 1,1 million ha. And about 20% Gracilaria is the raw material of seaweeds is of the land cultivated. The prospect of the market is estimated 96.000 ton, and about 48.500 ton dried bright, as it is easy to be managed, and the needs of per year. Recently, the production on dried seaweeds in the world estimated 1,2 million ton. ISBN: 978-1-61804-335-1 122 Recent Advances on Finance Science and Management About 50% is from Indonesia and 35% is from Therefore, innovative and creative are Philippines. included in product diversification, product system, Indonesian seaweeds is exported to and the use of technology, financial engineering is Denmark, China, Philippines, Hongkong, Spain, the key of managing the seaweeds to be proceed as Japan, and the US, as food, medicine, and cosmetic other materials. As a main material, seaweeds have materials. The biggest export is dry seaweeds. The more than 500 end products. This indicates that value of export reached 36% from the total export of seaweeds as a raw materials seaweeds is needed by fisheries with 30 million. Meanwhile, seaweeds type the industry both food and non-food. Euchena Catonii reached almost 90% of exporting Otherwise, the development of cluster in forms of chips and flour, so the value is reduced. industry and products innovation based on seaweeds The developing of products based on is regarded not easy, there have been some seaweeds in the effort of improving the tax and challenges needed to be solved to develop the farmers and fishermans’ values of the country,a cluster. Referring to the concept of cluster, good strategy should be improved from top to down. according to Porter (1998) there are some ways The real step taken by the government in developing should be conducted in developing the cluster. the potential of seaweeds through bilateral Porter noted that it is important to cretae a cluster to coorporation between industrial ministry and marine achieve a compettitve In resulting the prosperity in and fishery ministry to open a wide range of economy. There should be steps taken, to see the imrovement of national product of seaweeds, and to performance of economy of a region, and analyzing sustain the program, the ban on exporting the the economy composition, and noting the evolusion seaweeds started in 2014. of its economy, and find out the determination of its This plan, however, needs to be analyzed, as regional power support, and measuring the ability of problems requiring the solutions. The eforts on the innovation. At the end, selecting the cluster. developing the mainstream of the commodity, 2.1. Aim of the Reserach should meet the prosperity of the community of ..., The afforomentioned problems would be however, the problems come to the community in solved through the following: (1) identifyng the ...., the owner of the factory completed with modern location of potential seaweeds, in guaranting the technology and has an acces to the market, however, availibility of materials suply in the location of the difficulties on supply guarantee on raw materials cluster industry; (2) analyzing the supporting of the either in quality and quantity. The problems faced region in determining the center of cluster industry; by fishermen and farmers were the ability in (3) analyzing the capital of social community in accesing the market and eal with technology, but developing cluster industry in the region; (4) skillfull. analyzing the relationship between seaweeds and another products, as the effort of developing the 2 Problem Formulation innovation of products based on seaweeds. The problem solving of managing the 2.2. Method of Analisis seaweeds comodity between farmers and In determining a potential area of seaweeds government,in Indonesia, especially in Southeast commodity of superior and non- superior in a sub- Sulawesi, a good strategy is the development of district of a Regency in Southeast Sulawesi analysis cluster industry and the innovationof products based of Location Quotient (LQ) is used. From the result on products. Cluster is assumed to avoid asimetreis of the analysis of LQ could be found out a information between the needs of investor as the commodity of superior or non- superior, was owner of technology and capital to develop the determined as the following: the commodities with prodcut of farmers/ fishermen to supply the aterials LQ < 1 are not included into superior commodity. of seaweed. The analysis equipment used to measure the The existence of cluster industry ensures the competitive and supporting of a region as the increasing of productivity and the value of seaweeds location of cluster developing scalogram analysis comodity. So, this condition had an impact on the was used. According to Blakely (1994) scalogram increase of the income from this sector. From analysis discussing the facilities of a city belonged government sector, this cluster will generate the to an area as an indicator that the area is functioned development of seaweeds management which refers as a developing area. The facilities became to pillars of blue economy development which has supporting indicators of the development of the an important role in the revenue, hiring the cluster that are: (1) facilities related to economic employment, and zero waste. activity; and (2) facilities related to social activities. Confirmatory Factor Analysis (CFA) used ISBN: 978-1-61804-335-1 123 Recent Advances on Finance Science and Management to test the measured variables (indicators) of social Kolaka Regency has 7 districts of superior capital to be able to affect the scale of ... based on commodity of seaweeds, they are in Watubangga, seaweeds. CFA used to test and measured variables Tanggetada, Wundulako, Kolaka, Latambaga, to describe the systematic and logic of the seaweeds. Wolo, Samaturu. These 7 districts producing the The relationship between seaweeds average similarities amount of seaweeds, therefore it commodity and another commodity was analyzed is likely difficult to determine the center of by using input-output analysis comprised of two clustering of seaweeds. In Muna Regency has 9 parts: (1) relationship analysis, and (2) key sectors district as the growing of superior commodity of analysis. seaweeds, they are in Kontukowuna, North Tiworo, 1) relationship analysis Kusambi, Lohia, Duruka, Towea, South Counting the relationship by using Rasmussen Wakorambu, Pasir Putih, Pasi Kolaga. From these method could be formulated as follow: nine districts, Kontukowuna is the most producing n area of seaweeds; therefore, this area is considered R = ……………… (2.1) FLi ∑mij as the most potential to grow the cluster industry j=1 n based on seaweeds. R ...................... (2.2) Wakatobi ha three district as the central of BL j = ∑mij i=1 growing superior comodity of seaweeds and where BLRj dan FLRi showing the relationship of another sea plantation, Kaledupa, South Kaledupa, back and ward in Rasmussen method, while mij is and South Wangi-Wangi. From these three districts, the element in matriks invers Leontif, M = (I – South Kaledupa producing the big amount of A)-1. seaweeds. And kaledupa becomes the potential area 2) key sectors analysis as the center of cluster industry development based n on seaweeds. m ∑ ij α = i=1 ………. (2.3) j 1 3.2. Analysis of Regional Power Support n ∑∑mij i j This analysis used to identify the role and n the ability of a Regency/City to the community and ∑mij economy service particularly to the activity of β = j=1 ………. (2.4) clustering development based onseaweeds. A good i 1 n ∑∑mij service given indicating that the Regency has a high i j level of service. where αj is the ability of power of The service ability conducted in the dispersion, and βi is sensitivity of dispersion with Regency completed by the facilities belonged by the two indexes to compare the relationship ratio of Regency/City. The more the facilities varied, intersector degree, which later be determinde by any showing that the Regency/City is able to conduct a of superior sectors, key sector or by leadership good service to the community compared to another sector in economic development planning (Arief, city/Regency. This condition, resulting the role of 1993). the regency/city as the ceter of cluster industry development based on seaweeds. The facilities that 3 Problem Solution would be analyzed by scallogram in the research 3.1.