1.Economic characteristics of KBI and KTI
a. Still Being an Investment Center
We can see this in the realized value of Foreign Investment (PMA) in the western
region from 2010 to Q3 2014 reaching 81 billion USD or 73% of the total
investment, compared to FDI in KTI which was only 29 billion USD or 27% of
the total investment.
b. The Wheel of Economic Turnover is Classified as High
The population in KBI is more than the KTI, this is also one of the reasons for the
large economic cycle due to the large amount of consumption and demand.
c. KBI Still Becomes Indonesia's Business and Economic Center
Because a lot of investment has been made in western Indonesia, automatically
the business center and economic turnover in the west are relatively high, we can
also see that many companies in Indonesia have their headquarters in Jakarta, both
from mining, palm oil, construction companies and others.
KTI
a. Inadequate Infrastructure
This is one of the reasons for the low level of investment in KTI, which is lower than in
KBI.
2. KBI and KTI economic problems
KBI (West Region of Indonesia) Nearly 80.15% of the region's contribution to the
national economy comes from the West Region of Indonesia, especially the islands of
Java and Sumatra.
KTI (Eastern Indonesia) is still not optimally contributing to national economic
growth.
3. The background to the implementation of the regional economy in Indonesia:
The regional autonomy system is a mandate given by the 1945 law, to be carried out
based on a law formed specifically to regulate regional government. Regional
autonomy is the authority of the autonomous regions to regulate and manage the
interests of the local community according to their own initiative based on the
aspirations of the community in accordance with statutory regulations.
4. Project and its features:
A project is an activity that is complex and has characteristics that cannot be repeated,
has a limited time or a series of work that is carried out at certain intervals and has a
specific purpose.
Project features:
•Have a specific end product goal
•Total costs, schedule targets and quality criteria in the process of achieving
project objectives are determined
•Temporary
•Nonroutine, not repeated. The type and intensity of activities change
throughout the project as it progresses.
5. Projects need to be evaluated because the available resources are limited while the
development or utilization of these resources is relatively unlimited.
6. Financial approach and economic approach:
•The financial approach is all about managing money circulation funds,
availing and extending credit, capital market activities, investment and
banking activities. In addition, it relates to planning, procurement, utilization,
management and control of business or other entities. Aims to convert the
funds saved or collected into productive use.
•The economic approach is related to production, distribution, consumption of
goods or services, transfer of wealth and all influencing factors. In addition it
refers to the branch of knowledge that analyzes the economy, making choices
with or without spending money.
The difference between finance and economics is that finance involves saving
and lending money. Then pocket credit interest. Meanwhile, economics
describes the factors involved in the scarcity or surplus of goods and services.
Besides that, it also analyzes human behavior with respect to limited
incentives or resources.
7. - Community-based development is an approach in the development process that
processes humans related to good community management, so that it can be the
answer to development challenges such as poverty, environmental degradation, lack
of community participation in the development process that concerns them.
- Community empowerment-based development is an effort to improve people's
welfare. One of the goals is efforts to realize economic growth. - Promote and
develop community structures and challenge 'Office Structures' through
regulations based on social justice
- Implementing local level development integrated with local culture
