Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Research Article: 2019 Vol: 22 Issue: 1

Shift-Share Analysis of the Development of Local Competence as a Basis for Interregional Cooperation in West Sulawesi Province, Indonesia

Dahyar Daraba, Institut Pemerintahan Dalam Negeri (IPDN)

Umi Farida, Lembaga Layanan DIKTI Wilayah IX Sulawesi

Risma Niswaty, Universitas Negeri Makassar (UNM)


Collaboration and coordination between regions and inter-regional organizations is a key factor in the successful development of local competencies in a region. The article of this research aims to analyze and explain the development of local competencies as a basis for inter-regional cooperation in West Sulawesi. Quantitative research methods through survey-evaluative are used in collecting data to be analyzed using the shift-share analysis technique. There are various potentials and local competencies of each regency as "development capital" and a source of competitive advantage to be developed sustainably in three sectors as a basis for cooperation, namely the primary sector, secondary sector, tertiary sector. The result is that there are two regencys (Central Mamuju, North Mamuju) that are suitable for the development of the primary sector as a basis for the advantages of competitiveness. Meanwhile, four regencys (Mamuju, Mamasa, Polewali Mandar, and Majene) have the potential to develop secondary and tertiary sectors as the basis for the development and excellence of regional competitiveness. The mapping of local competencies is a reference for the establishment of strategies for developing inter-regency cooperation in West Sulawesi Province. The findings of this study are in line with the focus and locus of the development strategy "five strong points of development" (infrastructure, education, economy, health, and the cocoa movement) in West Sulawesi Province. The essence and orientation of the sector and regional development activities on an ongoing basis need to refer to the development of local competencies that are owned as the basis of the advantages of competitiveness.


Basic Sector, Local Competence, Cooperation And Coordination, Regional Competitiveness.


Collaboration and coordination between regions and inter-organizational regions is a key factor for the successful development of local competencies in a region (Asheim, 1996; Helmsing, 2001; Stimson et al., 2006; Waters & Smith, 2002; Yeung, 2009). Therefore, the urgency of this research is based on the reality that inter-regency cooperation and inter-regional organization in development governance in new autonomous regions in Indonesia, and specifically in West Sulawesi Province need to be carried out (Bappenas EKPD Report, 2009-2012, 2015), in order to have a positive impact on the development of local competencies as a basis for superior competitiveness.

The terms cooperation have long been recognized and conceptualized as a source of efficiency and quality of service (Ikhwanuddin, 2005; Kiljunen, 1990; Yeh, 2002). Cooperation is understood as the right way to take advantage of economies of scale. Joint spending or purchases, for example, have proven these benefits, because large-scale purchases or exceeding "threshold points" will be more profitable than on a small scale. The fruit of the collaboration is that overhead costs will be overcome even on a small scale. Likewise sharing in investment will provide a more satisfying result such as in the provision of facilities and equipment and the appointment of specialists and administrators. Cooperation can also improve the quality of services such as in the provision or procurement of facilities, because each party cannot buy it on its own. With cooperation, expensive service facilities can be purchased and enjoyed together, such as recreation centers, adult education, transportation, and so on. Therefore, inter-regional government cooperation is a form of cooperation arrangement that is carried out between regional governments in agreed fields to achieve greater efficiency and quality of service.

In developing countries, a collaboration between local governments often appears in development planning activities, such as Integrated Area Planning/IAP (Banerji & Fisher, 1974). This form of cooperation is a breakthrough to fill the void or complexity of the problems faced because it cannot be handled with development planning based on administrative boundaries. It is recognized that all this time inter-regional cooperation has not been seen as a necessity, although various problems or internal decisions of a regency, city or province are often related to problems or decisions outside their borders.

In order to successfully carry out cooperation, general principles are needed as contained in the principles of good governance (Banerji & Fisher, 1974; Ikhsan, 2001; Ikhwanuddin, 2005; Rosen & Wang, 2010; Rudianto, 2006). Some of the principles of good governance that exist can be used as guidelines in conducting collaboration between local governments, namely transparency, accountability, participatory, efficiency, effectiveness, consensus, mutual benefit and advancing. In addition to these seven general principles, there are several specific principles that can be used as a reference in this collaboration, namely: The collaboration must be built for the public interest and broader interests; The attachments that are woven into the collaboration must be based on mutual need; The existence of such cooperation must mutually strengthen the parties involved; There must be an attachment of each party to the agreement that has been agreed upon; Must be orderly in the implementation of cooperation, as has been decided; Cooperation should not be political and nuanced in KKN (collusion, corruption and nepotism); Cooperation must be built on mutual trust, mutual respect, mutual understanding and the benefits that can be obtained by both parties.

Research Methodology

This study uses an evaluative survey approach (Sandler & Tschirhart, 1980; Fowler, 2013) to analyze and explain various aspects of the impact of regional expansion policy on the development of local competence as a basis for inter-regional cooperation in West Sulawesi Province. Through this approach is carried out: (1) exploration of concepts, theories, research results, and relevant and up to date data; (2) tracking and inventorying various issues and documents of regional cooperation, (3) deepening of cases, forms or models of inter-regional cooperation; (4) retrospective analysis of determinants of the development of inter-regional cooperation models based on local competencies owned by each Regency West Sulawesi Province.

The data collection technique uses questionnaires (complete survey) as the main technique, supported by observation techniques and techniques of focus group discussions, as well as documentation techniques (Sugiyono, 2004). The survey was conducted on respondents (five officials inherited each regency, 30 respondents). Group discussion with members of the regional apparatus organizations in each regency. Documentation data on Gross Regional Domestic Product (GRDP) for six regencies in West Sulawesi Province.

Data analysis result of this research is done by using qualitative-quantitative descriptive analysis technique and shift-share analysis (Kalbacher, 1979). Descriptive analysis is done with a comprehensive description of qualitative-quantitative data obtained through field data search, survey, and documentation. The results of this analysis become very valuable input for decision makers (policy stakeholders) in describing the execution of their duties. Next, do a shift-share analysis. The approach used to perform the comparative analysis is to look at local competencies based on the base sector. The base sector is defined as a sector or activity whose existence tends to "center" (as a dominant sector) in a region compared relative to the presence of that sector in other regions. This centralization makes the sector concerned has a comparative advantage. The base sector is also regarded as a sector that can export its products, either in the form of goods or services on a competitive basis. Understanding the above makes a base sector can be considered a leading sector which is a local competence owned by a region (Saggaf & Akib, 2014). One of the analytical methods to identify the base sector is by using Location Quotient analysis technique, abbreviated LQ (Miller et al., 1991; Kalbacher, 1979).

Results And Discussion

Mapping the Characteristics of Local Competence in West Sulawesi Province

A competency may be called "Core competence” only if it meets certain conditions (Asheim et al., 2007). Further, it was revealed by Asheim et al. (2007) that regional competence is a unique regional advantage, such as human skills, natural resources/natural resources, environment, culture, and market prospect, both for primary and processed products. Primary products (Chambers & Gordon, 1966) in question include: human resources, natural resources, environment, market and cultural prospects. While the processed products (Bessière, 1998) include:

1. Product aspect.

2. Ecotourism.

3. Technology.

4. Infrastructure.

5. Market.

Regional competence has a different local repertoire for each region (Leigh & Blakely, 2016). The local competency-based areas must have characteristics, such as:

1. Having the potential to be seen in a market.

2. Giving a real contribution to the region and having the principle of benefit for the region than other areas.

3. Having uniqueness when compared to the area others.

Similarly, in the province of West Sulawesi is a division of the province of South Sulawesi, of course, has its uniqueness (Akib, 2007:2009; Direktorat Otonomi Daerah Bappenas, 2006; UNM, 2012).

Efforts in knowing the potential of the region in West Sulawesi Province, it can be seen from the indicator of GRDP (UNM, 2012). Where the GDP, which is located in West Sulawesi is a national and international translation indicator used by every region of the world (Table 1).

Table 1
Determination Of Base Sector Using Lq Analysis Of Business Field Regency Of West Sulawesi Province (2011-2015)
Regional Potential Mamuju Mamuju Utara Mamuju Tengah Mamasa Polewali Mandar Majene
Agriculture, Forestry, and Fisheries 0.86 0.84 0.84 0.85 0.86 1.19 1.17 0.86 1.03 0.98 - 1.70 1.72 1.74 1.77 0.88 0.86 0.85 0.81 0.79 0.93 0.91 0.90 0.90 0.90 0.86 0.86 0.85 0.86 0.85
Mining and Quarrying 1.55 1.54 1.55 1.13 1.61 0.46 0.48 0.57 0.51 0.50 - 0.53 0.56 0.61 0.61 0.79 0.91 0.90 1.04 1.07 1.00 1.03 1.07 1.07 1.08 1.10 1.08 1.14 1.22 1.23
Processing Industry 0.42 0.41 0.40 0.42 0.41 2.31 2.31 2.47 3.11 3.39 - 1.13 1.13 1.16 1.14 0.62 0.61 0.61 0.60 0.59 0.70 0.68 0.68 0.72 0.73 0.64 0.63 0.60 0.47 0.47
Procurement of Electricity and Gas 1.42 1.48 1.56 1.64 1.54 0.37 0.54 0.75 0.66 0.64 - 0.36 0.39 0.41 0.40 0.50 0.52 0.50 0.53 0.52 1.38 1.30 1.32 1.37 1.33 1.68 1.88 1.89 1.66 1.76
Water Supply, Waste Management, Waste, and Recycling 2.06 2.20 2.39 2.40 2.37 0.04 0.04 0.05 0.05 0.05 - 0.40 0.42 0.41 0.41 0.66 0.65 0.63 0.70 0.69 1.06 1.09 1.10 1.07 1.07 0.85 0.83 0.86 0.92 0.92
Construction 1.38 1.32 1.31 1.35 1.35 0.95 0.99 1.17 1.01 1.01 - 0.14 0.15 0.17 0.18 0.89 0.92 0.94 0.98 1.08 0.95 0.94 0.97 0.98 1.00 0.98 1.00 0.96 0.98 0.98
Large and Retail Trade, Car Repair and Motorcycles 0.99 1.01 1.02 1.03 0.97 0.50 0.49 0.52 0.45 0.45 - 0.43 0.43 0.44 0.42 1.08 1.05 1.04 1.07 1.04 1.54 1.53 1.54 1.55 1.51 0.95 0.95 0.95 0.98 1.00
Transportation and Warehousing 1.34 1.30 1.26 1.28 1.26 1.00 0.96 1.05 0.90 0.91 - 0.40 0.40 0.41 0.41 0.70 0.68 0.67 0.74 0.71 0.89 0.85 0.84 0.86 0.86 1.15 1.13 1.10 1.15 1.17
Provision of Accommodation and Drinking 1.12 1.14 1.15 1.14 1.09 0.58 0.56 0.59 0.51 0.50 - 0.75 0.76 0.80 0.78 1.44 1.42 1.39 1.44 1.43 1.13 1.10 1.09 1.09 1.09 1.09 1.10 1.13 1.19 1.18
Information and Communication 1.64 1.66 1.71 1.79 1.81 0.28 0.28 0.33 0.29 0.29 - 0.25 0.26 0.27 0.28 0.83 0.84 0.83 0.82 0.80 1.19 1.17 1.20 1.20 1.23 1.02 1.10 1.11 1.12 1.12
Financial Services and Insurance 1.37 1.46 1.43 1.39 1.35 0.31 0.32 0.33 0.28 0.27 - 0.41 0.41 0.39 0.38 1.02 1.10 1.11 1.10 1.06 1.11 1.16 1.14 1.12 1.11 1.59 1.59 1.59 1.63 1.66
Real Estate 0.82 0.78 0.74 0.73 0.71 0.56 0.51 0.52 0.44 0.42 - 1.14 1.09 1.10 1.11 1.59 1.52 1.48 1.49 1.41 1.21 1.17 1.15 1.13 1.12 1.13 1.15 1.18 1.21 1.24
Company Services 1.28 1.26 1.22 1.21 1.18 0.93 0.88 92.34 0.76 0.75 - 0.19 0.19 0.18 0.18 1.02 1.01 0.98 0.98 1.00 1.20 1.19 1.23 1.20 1.20 0.59 0.60 0.58 0.62 0.61
Administration of Government, Defense, and Social Security 1.37 1.51 1.58 1.62 1.66 0.58 0.62 0.66 0.55 0.56 - 0.13 0.15 0.18 0.19 1.64 1.70 1.73 1.80 1.87 0.83 0.92 0.93 0.91 0.94 1.45 1.36 1.40 1.44 1.42
Educational Services 1.05 1.08 1.10 1.10 1.08 0.53 0.57 0.63 0.53 0.52 - 0.76 0.77 0.74 0.73 1.70 1.76 1.82 1.85 1.89 0.87 0.95 0.95 0.92 0.90 1.58 1.59 1.64 1.75 1.81
Health Services and Social Activities 1.03 1.02 1.04 1.04 1.02 1.02 1.16 1.23 1.03 1.00 - 0.15 0.15 0.15 0.15 1.17 1.26 1.25 1.31 1.34 1.21 1.30 1.27 1.25 1.25 0.69 0.68 0.73 0.73 0.74
Other Services 1.87 1.84 1.81 1.81 1.53 0.27 0.27 0.29 0.25 0.24 - 0.10 0.10 0.10 0.11 0.53 0.53 0.55 0.56 0.56 1.24 1.21 1.17 1.19 1.20 1.99 1.87 1.84 1.81 1.81

Every potential area in West Sulawesi Province shows a significant contribution to the development of the region. To know more dominant contribution in each region can be seen from three groups, namely: (1) Primary Sector; (2) Secondary Sector; (3) Tertiary Sector. This is supported by data analysis from the Indonesian Central Bureau of Statistics (Statistik, 2005), namely:

1. Primary sectors: Sectors that do not process raw materials, but only utilize natural resources such as land and everything contained in it. This sector covers the Agricultural Sector as well as the Mining and Quarrying Sector.

2. Secondary sectors: Sectors that process raw materials from the primary and secondary sectors themselves, thus becoming other goods with higher economic value. This sector covers the Building Sector, Manufacturing Processing Sector, and Electricity, Gas and Water Sector.

3. Tertiary sector: Sector whose production is not in physical form, but in the form of services. These sectors include Trade, Hotel, and Restaurant Sectors, Transport and Communications Sector, Financial Sector, Corporate Rental and Services and Services Sector.

Each regency in West Sulawesi Province has indicated the existence of these three sectors, only a sector that gives greater contribution compared to other sectors in each regency tends to vary. The most dominant areas of development in the primary sector are Mamuju Tengah Regency and Mamuju Utara Regency. This is because both Regency is newly established regions (new autonomous regions), with potential large areas of land and resources. While the most dominant areas of development or contributing to the secondary sector are Mamuju Regency, Polewali Mandar Regency, and Majene Regency. Meanwhile, the most dominant areas of development in the tertiary sector are Mamuju, Mamasa, Polewali Mandar, and Majene Regency (Table 1).

Patterns and Forms/Models of Inter-Regional Cooperation in West Sulawesi Province

The efforts of the West Sulawesi Provincial Government to develop the regional potentials are based on the appropriate model of inter-regional cooperation (Akib & Risma, 2016; Akib, 2007:2009; Direktorat Otonomi Daerah Bappenas, 2006; Keban, 2005; Paterson, 2008). The Provincial Government of West Sulawesi develops its regional potential through inter-regional cooperation in various fields, including education, economics, agriculture, health, energy and mining.

Education sector

To improve the quality of qualified undergraduate (S1) and master (S2) teachers, the provincial government of West Sulawesi cooperates with the Open University. This cooperation has been running since 2007. The form of cooperation is in the form of providing educational assistance to 50 primary school teachers every year. In addition to working with the Open University, the provincial government of West Sulawesi also cooperated with Universitas Negeri Makassar (UNM) since 2009. The form of cooperation is the provision of education funding for teachers to continue their education at the Postgraduate program at UNM.

For the teacher qualification (education level) improvement program, West Sulawesi Provincial Education Office in cooperation with Universitas Negeri Makassar in Magister (S2). In 2010, the West Sulawesi Provincial Government established a partnership with the Foundation Asia Foundation/YASMIP. In this cooperation, the provincial government has received funding assistance in the form of physical assistance, such as the procurement of several computer units. While non-physical assistance in the form of training for community empowerment and women's empowerment (gender). In 2013, the Provincial Government of West Sulawesi welcomed the cooperation plan offered by the United States government in the education development sector, to accelerate the improvement of human resources in West Sulawesi.

Since 2015, in particular, in Mamuju Regency, there are four cooperation programs, which are managed by Millennium Challenge Account-Indonesia (MCA-I), as MCC representatives in Indonesia. The four programs that receive grant funds from MCA-I are the first procurement of goods and services through the Procurement Services Unit (ULP); Secondly, in the health sector addressing the nutritional needs and nutritional needs of children who do not grow normally according to the average height of their children; Third, in the agriculture sector dealing with cocoa issues; and fourth in the field of electric energy in Karampuang Island. In addition to these four areas, when the United States Consul General in Surabaya, Joaquin F. Monserrate, visited Mamuju Regency on Monday, March 30, 2015, his side again offered a program in the field of education. The educational program provides an opportunity for students of (i) high school who are achievers and able to speak English to study in the United States for one year.

Along with the introduction of the ASEAN Economic Community (MEA) in 2016, the provincial government of West Sulawesi is cooperating with the Swiss government in the education sector. For the education sector, the government of West Sulawesi sends three people every year to continue their education in tourism and hospitality majors. Cooperation undertaken with Switzerland is more on the education sector in support of the presence of quality students to understand the development of the tourism sector.

Economic sector

In 2015, Bank Indonesia inaugurated the opening of Bank Indonesia Representative Office in Mamuju Regency. It aims to synergize as a strategic partner of the local government in accelerating structural reforms to develop regional economies, including in controlling inflation and formulating economic policy, so that the region also contribute actively to assist in the development of small and medium micro enterprises in West Sulawesi. In the cooperation, priority sectors are the leading sectors, such as cocoa butter, cosmetics, and finished foods.

Bank Indonesia also designed the Bank Indonesia Social Program in the form of providing clean water facilities through a pipeline system for approximately 1,400 residents of Pati'di Village, Mamuju Regency. Bank Indonesia also showed its concern by helping to provide additional books collection for university libraries in West Sulawesi.

Agriculture sector

One of the missions of West Sulawesi in the long-term development of West Sulawesi in 2005-2025 is to push the progress of West Sulawesi Region evenly. Local progress can be equally encouraged through the optimization of local resource management and utilization as well as the development of inter-regional cooperation and inter-agency partnerships in resource management. Therefore, the development of this cooperation is needed to increase the productivity of natural resources in West Sulawesi.

The potential natural resource to be developed in West Sulawesi is the potential of the agricultural sector, which is the sector that dominates every sector in the Gross Regional Domestic Product (GRDP). The development is supported by various government cooperation to improve the quality of the agricultural sector (Table 2).

Table 2
Cooperation In Agricultural Field Of West Sulawesi Province
No. Years Activity Impacts
1 2013 Urumqi, Xinjiang Province, China is planning cooperation in the agricultural sector.
2 2014 Russian businessman cooperation in agriculture.
3 2015 The Polish Ambassador, Morawski, is interested in establishing a lucrative partnership with the West Sulawesi Provincial Government in developing the potential of Natural Resources (SDA) existing in the region.
4 2016 Socialization And Launching Recipes Traditional Cuisine of West Sulawesi In Diversification Program Of Processing Of Agriculture And Fishery Products To Support Resilience (R & D Field of Bappeda).

Health sector

The Provincial Government of West Sulawesi in the context of the success of the MDGs program takes the strategic steps outlined in the decision of the Governor of West Sulawesi No. 131/2011 on the Regional Action Plan for the Acceleration of the Millennium Development Goals (RAD-MDGs). Also, it is contained in MDGs RAD Document of West Sulawesi Province as stated in Governor Regulation No. 21 of 2011 on development planning agenda in West Sulawesi Province.

To actualize the regulation, it needs health cooperation that can give a significant contribution to the success of the program. The cooperation made by the West Sulawesi Provincial Health Office with Yayasan Mitra Bangsa Foundation (YASMIB) in 2011 to 2012 is to prepare Gender Responsive Planning and Budget Documents as a form of gender-specific accountability to inform that programs and activities are responsive and gender-biased. This is in line with the purpose of Presidential Instruction No. 9 of 2000 on gender mainstreaming in national development (Saleh, 2016), which in this case mandates to each region to plan, formulate, implement, monitor and evaluate policies according to their respective duties and authorities.

Energy and mining sector

Energy and mining are natural resources available in West Sulawesi Province. To manage the natural resources, the government conducts inter-regional cooperation, such as in 2015, the Ministry of Home Affairs (MoHA) facilitates the Provinces of West Sulawesi and the Province of South Kalimantan to cooperate in the management of natural resources, in the form of oil and natural gas. The cooperation provides the benefit of involving both parties to a 10 percent Participating Interest (PI) in oil and gas management in Sebuku Block, South Kalimantan, where the MoU has been signed based on Government Regulation No. 35/2004 on Upstream Business Activities and Natural Gas. The cooperation lasts for one (1) year. Furthermore, after the cooperation is completed, it still provides an opportunity for each region to negotiate in enhancing inter-regional cooperation. The agreement is on the management of oil and gas potential and resources in the waters, including, participating interest management, institutional establishment, licensed under the authority, and other matters as agreed by the parties involved.

In this study, the abbreviated concept (acronym) of "SAKA SAKTI (Satu Kabupaten, Satu Kompetensi inti)” one regency, one core competency introduce by Martani Huseini, in Wenda & Akib (2015) is an appropriate model for developing the base sector resulting from the shift-share analysis (Akib, 2009; Kalbacher, 1979; Miller et al., 1991) conducted. This model is used because it is in line with government policy to empower the resources potential of West Sulawesi Province, also can reflect and replicate One Village, One Product Movement (Japan) concept and is part of best practices for developing the concept of Commodity Zone, as one of "Tri Conception" as Economic Development Strategy in South Sulawesi (the main area of Province of West Sulawesi before the expansion of the region). The other two concepts are "change of mindset," and (acronym) "PELAJU" or Pick, Process, Sell (in Akib, 2009).

The concept of core competence, which Huseini abbreviated as "Saka Sakti," is understood in the language that Saka means pole or milestone, while magic is the power, strength, or science of pledge. Thus, the Sakti model can demonstrate the power or strength of each regency in West Sulawesi province to build its core competence so that the products and services produced can compete in regional, national and international markets. Thus, the strength of core competencies or basic sectors is an indicator of the effectiveness of governance, development, public service, and community empowerment based on Gross Regional Domestic Product (PDRB) in West Sulawesi.

Various multidimensional development problems implemented in West Sulawesi Province are similar to those implemented in other provinces in Indonesia so that they can be classified into areas and sectors of activities, more specifically as indicators in Gross Regional Domestic Product. Gross Regional Domestic Product (GRDP) is a way of calculating economic growth in regency or city, while in the country's size is used Gross Domestic Product or GDP. According to Fitriani et al. (2014) that, GRDP is the amount of added value generated by all business units within a region. Meanwhile, according to Goossens et al. (2007) that, GRDP is the total value of additional gross and services (commodities) produced by economic sectors in a domestic/regional region in a certain period without paying attention to ownership of factors of production. In this study, it is understood that GRDP is the entire value of the results of the business produced or is in every region/regency in the province of West Sulawesi within a certain period.

A result of PDRB analysis of each Regency in West Sulawesi Province is a series of indicators that indicate the level of growth and economic development of the region. In the indicator of PDRB, besides being shown various sectors and sectors of economic development, it is also shown the achievement of the result (effectiveness) of development in various fields as the basis for increasing the competitiveness of the sector and the sector of development activities, especially economic development in West Sulawesi Province.

There are several basic sectors in the PDRB indicator of each Regency in West Sulawesi Province. If more intensive regarding categorization of development sector, especially economic development, it is seen that the strengthening of the secondary sector and tertiary sector as the basic sector (priority) is feasible to be developed sustainably, while the agricultural sector becomes the second choice sector to be developed. This supports the views of experts and the results of previous research (Akib, 2009; Barika, 2014; Fitriani et al., 2014; Midgley & Tang, 2001) that one characteristic of a growing region a significant economy is the strengthening of secondary and tertiary sectors beyond the primary sector as a basis for development. Similarly, developing regions tend to shift occupations (livelihoods or employment) of the community, formerly or formerly working in primary sectors, then switch to the services sector or secondary and tertiary sectors, even more, visible today tend to be based on information technology.

Indeed, the serious effort of the West Sulawesi Provincial Government to make its regional development effective is not easy, since welfare has many aspects that show the interconnectedness of one another. Similarly, each region in providing welfare to its community requires a strategy that can develop and utilize the potential of its resources. As well as West Sulawesi Province, in order to realize its regional mission and mission, "The realization of the acceleration of economic growth and prosperity of the people of West Sulawesi in 2011-2016", it not only understands the welfare dimension of the economic aspect but also understands from the aspect socio-cultural and other aspects as equally important factors, including the aspects of security and order as a form of stability as well as a precondition for the effectiveness of multi-dimensional development implementation. West Sulawesi Province as a result of the expansion of the region from South Sulawesi Province, in addition to facing challenges for the welfare of its people, it is understood that the initial challenge to realize the welfare of society is to prepare the necessary preconditions for the development of an effective and sustainable autonomous regional economy.

The discussion of the results of the above research by the understanding of Barika (2014) that, economic development essentially aims to improve the welfare of the community, then to improve the welfare of the community hence increased economic growth and income distribution more evenly. Similarly, by the view of Sukirno (2004) that, economic growth is a problem of the economy in the long run and is an important phenomenon experienced by the world. Therefore, every State or region is competing to improve its development performance in various fields based on high economic growth and stability.

Finally, the study's findings indicate the suitability of the focus and locus of the "five strong points development" (infrastructure, education, economic, health, and cocoa movement) strategies, particularly economic development in West Sulawesi Province. Therefore, it is clear that the essence and orientation of the sector, sector and priority activities of the development undertaken need to keep referring to the development of the basic sector as the basis of excellence of each regency in the province of West Sulawesi.


The development of locational competence as a basis for inter-regional cooperation in the Province of West Sulawesi shows the peculiarities that characterize and differentiate local competencies owned and developed by each region. The development of local competencies serves as a source of comparative advantage as well as the superiority of regional competitiveness. The results of GRDP analysis for each regency in West Sulawesi Province are a series of indicators that show the level of economic growth and development of the region. The GRDP indicators are shown in various fields and sectors of economic development and also shows the achievements of the results of development in various fields as a basis for increasing the competitiveness of the fields and sectors of development activities, especially economic development. There are several basic sectors in GRDP indicators for each regency in West Sulawesi Province. If examined more intensively in relation to the categorization of the development sector, especially its economic development, there is a strengthening of the secondary sector and the tertiary sector as a basic (priority) sector that is feasible to be developed sustainably, while the agricultural sector is quite a second choice sector to continue to be developed.


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