Why so important? Farm activities – food productions Concentration of population Socio-economic status Urban vs Rural ---- Rich vs Poor Poverty trap --- Vicious circle of poverty Government failure vs Institutional failure Prosper Rural livelihood is a National Objectives

1. Rural Economic Development
for
Wasana Praja Bilingual Class
IPDN Jatinangor
2015

2. Final Grade
• Midterm Exam 30 %
• Final Exam 40 %
• Stuctured Assigment 20 %
• Classroom participation 10 %

3. Rural Economic Development
Why so important?
• Farm activities – food productions
• Concentration of population
• Socio-economic status
Urban vs Rural ---- Rich vs Poor
• Poverty trap --- Vicious circle of poverty
• Government failure vs Institutional failure
Prosper Rural livelihood is
a National Objectives

4. Introduction
• Past development has created economic disparity
among regions and within region. Urban vs rural.
West vs East
• Too heavily emphasize on growth ignoring equality
aspect has widen the gap between the rich and the
poor. Including between urban and rural economy
• Past policy was more in favor of big industry rather
than small industry
• Sectoral approach which is expected to foster the
linkage, in fact has created “sectoral ego”
• The gap the most fortunate and most unfortunate is
even widening as we enter the global economic era

5. Globalization has complicated even more our
development program. Now we are facing both
internal (domestic) and external problems (global)
Global Economy – is a commonly topic discussed at the
beginning of 21st century
One cannot determine what to produce and how much?
Or one cannot determine how much and what product
that society can provide—we rely on data from global
market
Think Globally, acts locally
• Interdependency call for global consideration as one
activity in one parto of the worlld will affect other part
of the world, say it pollution (bad) or products (good)
—haze problems. But, we still have to works at local
community, in the field

6. Why global?
• Information and communicationTechnology
facilitate a global economic market to operate
easily and faster than ever
• Gap between concentration of production and
consumption can be bridged
• Flow of Goods and services can be arranged from
wherever supplier and consumers
• The problem is not all people or community
group in the DC have an access to global market
due to low technology capacity and low income

7. Problems of National Economy
• Economic disparity – between regions, urban
vs rural
• Unemployment – in the absent of rural labor
markets and urbanization
• Low farm price at farm gate
• Small scale enterprise in rural area – agrarian
labor to (home) industrial labors
• To reduce global economy impacts need a
stronger rural economy

8. PERSPEKTIF KEBIJAKAN PEMBANGUNAN
KEBIJAKAN PEMBANGUNAN (DEVELOPMENT
POLICY)
PENDEKATAN UNTUK MENANGKAP ISU YANG LEBIH SPESIFIK
UNTUK MEREALISASIKAN TUJUAN DAN SASARAN
PEMBANGUNAN
PROGRAM PEMBANGUNAN (DEVELOPMENT
PROGRAM)
RUMUSAN IMPLEMENTASI DARI KEBIJAKAN PEMBANGUNAN
YANG BEROPERASI LEBIH SPESIFIK DI SETIAP WILAYAH

9. CONTOH
• ISU SPESIFIK ADALAH PEMBANGUNAN
PERDESAAN
• DIDOMINASI KEGIATAN PERTANIAN
• TRADISIONAL
• KEBIJAKAN PEMBANGUNAN: PEMBANGUNAN
PERTANIAN
• PROGRAM PEMBANGUNAN YANG DIRANCANG:
• INTENSIFIKASI PERTANIAN
• PROGRAM BIMBINGAN MASYARAKAT
• PROGRAM TRANSMIGRASI

10. KEBIJAKAN DAN PROGRAM
PEMBANGUNAN
• LEBIH MERUPAKAN HASIL KOMPROMI
PARA PEMANGKU KEPENTINGAN
(STAKEHOLDERS) SESUAI KEPENTINGANNYA
MASING2 DARI SISI POLITIK, SOSIAL.
EKONOMI, LINGKUNGAN, BUDAYA
• DARIPADA PERTIMBANGAN TEORITIS DAN
TEKNIS ANALISIS
• Bagaimana di negara lain?

11. PERSPEKTIF KEBIJAKAN PEMBANGUNAN
• SEJARAN PEMBANGUNAN SUATU NEGARA
SANGAT SPESIFIK – SULIT MENJIPLAK POLA
SUATU NEGARA
• SELALU ADA MOMENTUM PERUBAHAN –
KEPUTUSAN POLITIK YANG PENTING
• POLA UMUM
• DIMULAI DENGAN EKSPLOITASI SUMBER DAYA ALAM --
AKUMULASI KAPITAL
• INDUSTRI DASAR DAN MANUFAKTUR
• INDUSTRI JASA
• ERA TEKNOLOGI INFORMASI

12. SIKLUS PEMBANGUNAN
SUMBER DAYA ALAM
EKSPLOITAS SUMBER DAYA
KERUSAKAN LINGKUNGAN
AKUMULASI MODAL
PENGEMBANGAN INDUSTRI (JASA)
PENINGKATAN KESEJAHTERAAN
KESADARAN LINGKUNGAN
KUALITAS SUMBERDAYA

13. PERJALANAN PEMBANGUNAN RI
TAHUN KEBIJAKAN PEMBANGUNAN
KEPUTUSAN POLITIK
PENTING
1945 - 1949 MEMPERTAHANKAN
KEMERDDEKAAN
PERUNDINGAN DENGAN
BELANDA UNTUK
KEDAULATAN NKRI
1950 - 1960 PEMBANGUNAN INFRASTRUKTUR
POLITIK
PEMILU 1955
1961 - 1966 PEMBANGUNAN TERPIMPIN
KEPUTUSAN POLITIK
DITANGAN ORESIDEN
1967 - 1980 PEMBNGUNAN EKONOMI STABILISASI
PEMBANGUANAN
PERTANIAN DLM ARTI
LUAS
KONSEP REPELITA

14. TAHUN KEBIJAKAN PEMBANGUNAN KEPUTUSAN POLITIK
PENTING
1981 - 1987 PROTEKSI DAN INDUSTRIALISASI
KEBIJAKAN KKN DLM
SEKTOR SDA, INDUSTRI
BERAT, INFRASTRUKTUR,
KIMIA DAN SKTOR HULU
1988 - 1997 LIBERALISASI EKONOMI
Liberalisasi perbankan
Liberalisasi perdagangan
global
1997 - 1998 KRISIS EKONOMI
KESEPAKATAN IMF UNTUK
RESTRUKTURISASI
PEREKONOMIAN
1999 - SKR DEMOKRASI, OTONOMI, HAM PEMILU 1999 DEMOKRATIS
UU NO. 22/1999
UU 25/199
9PERIMBANGAN
UU 28/1999
PEMERINTAHAN BERSIH

15. How to develop rural economy in
Indonesia
• Improving price for goods and services
produced by farmers, particularly basic needs
such rice and other farm products (cocoa,
coffee, vanillla etc) among other through
finding internatioal market for farms’
produces
• Increasing farmers income will increase
demand for goods, it creates what so called
multiplier effects

16. What the Government should do?
• Develop new infrastructures such as water
reservoir, dams, roads, nurseries, warehouses,
fertilizer, and extension workers
• Develop strong cooperatives backed up by
strong higher education focusing on human
resources for cooperative development
• Market information that regularly provide in
time informstion on price and quality of
commodity produce by farmers

17. Competitions and competitors
• The competitors Thailand, Vietnam, India, China
and USA
• Unfair competition as those countries subsidising
their farmers so they can sell their products to
Indonesia at a low price
• Protect farmer from global market through tariff
and non tariff barrier policy
• The spirit: if we raise the price farms goods it
meas we sthrengthen rural economy.. Finding
international market fro farm products is one
solution as another countries do

18. Global Economic Threat
• The fast development of technology is a driver of
global economy
• Advanced technology develops rapidly in developed
countries
• Developing countries tends to be the users of
technology—depend or rely on
• Need a better HR...education, training and research
• NIC=New Industrial countries BRICS-Brazil, India,
China, South Korea
• Victims of Globalization are LDC and within DC the
victims are Rural Economy—imported agricultural
products has risen significantly in the past decades