This document provides an overview of Rembang Regency in Central Java Province, Indonesia. Rembang has potential for economic growth due to its coastal location and natural resources. The local government is working to develop industries like fisheries, mining, agriculture, and trade to increase GDP and reduce dependence on neighboring Tuban Regency. Major projects include a sea port, power plant, and integrated maritime area to support Rembang's role as a central development hub for eastern Central Java.

1. REMBANG REGENCY AS THE CENTRAL DEVELOPMENT
ON EASTERN CENTRAL JAVA
I. Introduction
1.1 Overview of Rembang Regency
Rembang Regency, located on northeast of Central Java Province, has been
legitimate to become part of this province according to Act number 13 year 1950 which
concerns about regencies established under Central Java Province region. The area of
Rembang Regency has special characteristics. Thus, it has differences in physical
condition between northern and southern parts. On the whole, the northern part is coastal
areas while limestone mountains stretching on the southern part. Meanwhile, this regency
has total area 101,408 ha (1,014.10 km²), in which it consists of 14 sub-districts, 287
villages and 7 kelurahan. In 2010, its total population reached 611,886 people with density
of population 587.730/km2. The border regions of Rembang Regency are:
Northern : The Java Sea
Eastern : Tuban (East Java Province)
Southern : Blora Regency
Western : Pati Regency
Furthermore, Rembang Regency has 65.11 km coastline along the northern part of
the regency from Kaliori sub-district in the west to Salang sub-district in the east. Owing
to the fact, this regency livelihoods rely on its location, thus dwellers living in the northern
part make a living on fisheries and marine resources, whereas settlers on the southern part
depend on mining and agriculture sectors. The number of fisherman amounted to 19,703
people, which is nearly 3% from the total population of Rembang Regency.
Another strategic advantage is that along the northern part of the region is passed by
North Java Main Road which is generally called Pantura. This busy road gives economic
benefit. As a result, it would trigger the development of business in the area and other
potential activities for future growth.
Since last decade, Rembang government tried to boost development on this regency
by planning several programs in order to empower the local source. It also has purpose to
reduce dependency on Tuban Regency East Java Province, because Rembang Regency
does not have sufficient facilities. In this case, the local government wants to build many
construction projects such as Sea Front City, steam power plant, national port, cement
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2. industry, an integrated maritime area or known as “Kawasan Bahari Terpadu” (KBT) as
well as central of fishery industries. Particularly, KBT is a mega project which the
infrastructure and facilities and have been constructed since 2006 and this has purpose to
integrate all facilities in one area such as harbor, jetty, auction facilities, gasoline pump
and administration office. All those projects will support Rembang as the central
development on eastern of Central Java, In addition, it also reduce dependency of
Rembang Regency to Tuban Regency facilities, and it will reduce the cost and increase
revenue for Rembang Regency.
Rembang has long history related to its establishment and growth. Thus, Rembang
was known as the marine region in the past. The history of Rembang Regency can be
divided into five periods, which are:
a. Majapahit Period (1293 M – 1478 M), Rembang was under Lasem authority.
b. Islamic Empire Period (1478 M – 1619 M), Rembang was under Tuban authority,
part of East Java Province.
c. Colonial Period (1619 M – 1942 M), Rembang became Regency and Lasem was
under Rembang Regency.
d. Japanese Occupation Period (1942 M – 1945 M)
e. Present era
When central government applied decentralization in 1999, the local government
managed to promote economic development of Rembang by harnessing local resources as
well to attract local or international investors to make business in the region.
Rembang has strong potential economic in fisheries, mining, agriculture, trade and
service. This can be evidenced on Gross Regional Domestic Product of Rembang Regency
by Industrial Origin at Current Price between 2005 and 2009. It is noticeable that total
GRDP in 2005 was only IDR 2.77 trillion and it increased significantly to IDR 4.45 trillion
in 2009, which is 62,20% higher than that in 2005. Agriculture was the dominant both in
2005 and 2009 and followed by Trade, Hotel and Restaurant as the second contributor in
economics of Rembang. Meanwhile Electricity, Gas, and Water Supply were the least both
in 2005 and 2009. Nevertheless, Trade, hotel and Restaurant have shown a steady
increase during the same period. Moreover, GRDP per capita increased considerably from
IDR 4.70 trillion in 2005 became IDR 7.30 trillion in four years later (Rembang in Figures,
2010). This paper aims to review and explore about concepts and theories of local and
regional development of Rembang Regency.
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3. 1.2 Economic Profile
Regarding to Local Regulation number 10 year 2010 about Medium Term Planning
Development (RPJMD) of Rembang Regency 2010-2015 in which it has vision to make
Rembang more prosperous, autonomous, advance and dynamic. Besides that, this regency
also encourages investment, supports small scale industry, increases local revenue,
provides infrastructure and increases social facilities such as health and education
facilities.
Accompanying its vision, Rembang regency set up several strategies namely
attracting investor to come, giving fund for small scale industries, increasing efficiency
and effectiveness in local revenue, providing means for education and health services. It
will generate quality human resources, strong local economy, and competitive, democratic
and good governance as well as sustainable natural resources.
Since central government conducted autonomy in 1999 with Act No. 22/1999 about
Local Governance and it revised with Act No. 32/2004, the authority of Rembang
attempts to encourage their development which is clearly stated in RPJMD 2010-2015.
Fortunately, the local government has opportunity from central and province government
to participate in huge project that will be implemented in Rembang Regency such as steam
power plant, national port, integrated maritime area and cement industry
(Rembangkab.go.id 2011). Rembang also has excellent program to become central growth
on eastern of Java.
The project applied in Rembang Regency has potency to support development, in
which this sector has relatively large contribution in GRDP and the value of production.
Based on Rembang in figures 2010, productivity tends to increase during the last 5-year
period, it is evidenced that this sector has strength in providing employment as well as
Figure 1. GRDP of Rembang 2005-2009 increasing local
resident’s income
especially in rural
areas.
From the
figure, it is obvious
that the increasing
of three sectors
was significant
Source : Bappeda and BPS Kab. Rembang, 2010 between 2005 and
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4. 2008 namely Agriculture, Animal Husbandry, Forestry and Fishery (54.13%), Trade
Hotel and Restaurant (58.43%), and Services (79.40%). (Bappeda and BPS Kab. Rembang,
2010). The achievement of Rembang regency is higher than Pati Regency, its adjacent
regency. Thus, three sectors in Pati regency during the same period are 49.77%, 49.31%
and 42.03% respectively (BPS Kab. Pati, 2011). Moreover, total GRDP of Rembang
Regency between 2008 and 2009 increased considerably to 9.60% larger than that in
Central Java province which is only 8.27% from IDR 362.94 trillion rupiah to IDR 392.98
trillion (BPS Prop. Jateng, 2010).
Related to the location Rembang Regency has potency to became central growth on
Central Java, because Rembang has natural resources of limestone, in which the area is
10,735 ha and it can produce volume of approximately 2.2 billion m3 limestone
(www.kppt.rembangkab.go.id). Besides that, Rembang which has area about 1,014 km2
and coastline 63 km, 35% from all area is coast line and it has coast area 355.95 km2. From
14 sub-districts, 6 of them are close to the sea. Meanwhile, people involving in fishery
sectors almost 3 % of total population which is only 19,703 people. It will boost Rembang
regency as marine city and encourage local economic growth, if this regency can capture
that opportunity.
Similar to other regions, Rembang has weakness to improve its region. This is
related with budget provided by the authority of Rembang, human resources and
inadequate infrastructure. Generally, building infrastructure in Rembang depends on the
central government through public allocation fund (DAU), and the level of employee in
Rembang Regency is quite low.
Threat of economic growth is that Rembang regency should compete with other
region, especially Tuban in East Java province. Thus, Tuban has national harbor and
cement factory. Therefore, it triggers local government of Rembang to construct national
port and cement industry as well which would offer revenue to the authority of Rembang
rather than spend revenue to other region.
II. Government Role and Intervention
2. 1 Central Government
Since the Act 32/2004 about Local Government is legitimated, local government or
municipalities have rights to run the administration by themselves. They have
authorization to make some policies, rules, programs and activities as long they are not
contradictive to the law and other higher level policies. They have rights and obligations to
manage and their sources (capital, natural and human) in order to gain revenue from
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5. which can be used to finance their expenditure such as building infrastructure, public
facilities and other government expenditures. Generally, the municipalities have bigger
opportunities to determine their own destiny.
Municipalities also have chances to achieve higher direct income compared to
income from central government through bureaucracy. Thus, they have more budgets in
developing their region. Through autonomy, the municipalities could make suitable
policies for the citizens because they understand their condition and situation they have
and the potential sources for improving the region.
However, there are several drawbacks of the autonomy. Firstly, sometimes the
municipalities make some policies which against with central government or province
government policies because they often misinterpret the law and policies. Secondly, there
are more chances in corruption, collusion and nepotism activities in running the
administration which are not good in formatting good governance. Third, it can impact to
competition with other local government which can lead to conflict. Nevertheless, the
competition can be useful to push themselves in term of innovation and technology.
Finally, in some cases, the municipalities have spatial conflicts among each others in term
of the administrative boundaries. Obviously, every municipality wants to have bigger
territory and have more resources. Thus, they could exploit the resources for increasing
their community welfare. In fact, the wider the territory a municipal has, the more
inefficiency of the services to the community (Harmantyo, 2007). Due to these facts,
intervention for central government is still needed to overcome the problems.
The main purpose of decentralization is to increase the prosperity and to give
contribution economically in national level. Economy growth and reducing unemployment
are the major issue in the early decentralization. Nevertheless, the facts show that around
80% the municipalities become burden for national government, particularly in budgeting
(Harmantyo, 2007).
However, in the early formation of municipalities, they do not have sufficient budget
to run the governance because they needs huge amount of finance, particularly in paying
the wage of their officer. Consequently, the municipalities have not fully released from
central government role. They still need central or province government intervention,
especially in budgeting. For instance, Rembang Regency received around IDR 552.1 billion
from central and province government in 2009. Meanwhile, the local income was about
IDR 56.8 billion at the same period. It means that Rembang Regency needs budget
approximately half of the total from central and province.
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6. Since Rembang Regency desire to develop its coastal area, it needs support from
other institutions such as central government, province government and public-private
sectors. Integrated Maritim Area Program (Program Kawasan Bahari Terpadu) is a
program which the main purpose is to develop coastal area in increasing community
welfare. Obviously, Rembang which is located on northern part of Java Island has massive
potential on fisheries and other sea products.
One of the most important parts of this program is the port. It is expected that the
port could give significant contribution in developing the region. Rembang Regency is able
to develop its sea products through processing industry which can give value added to the
products. The port also can contribute in transportation which gives local income through
custom of commodities export-import.
2. 2 Province Government
Decentralization make the province government delivers some of the authorities.
Indirectly, municipalities are still connected with province government. According to Act
32/2004 article 13, Province government has authority in municipal aspects: social aspect,
labor and human resources, small and middle level of business, and land services sectors.
Province government has right to be involved on those aspects, from planning to
monitoring and evaluating.
On the other hand, the government province also has obligation toward the
municipalities such as infrastructure provision and budgeting. There are also some
authority delegations from province to municipalities, especially for the services sector in
order to service the community simpler such as land administration, healthy and other
public facilities services.
In planning, the province government makes a master plan that is integrated with
several sectors by involving all the sectors and municipalities. Spatial planning or land use,
for example, will be implemented on the municipality level. Meanwhile, the province
government will control and monitor the progress of the program. Any obstacles in the
progress should be consulted to the province government and discussed together with all
stakeholders in order to find some solutions of the problem. In brief, all the problems that
could not be solved in municipal level will be brought to province or national level.
2. 3 Local Government
Rembang Regency as one of municipalities in Central Java Province tries to develop
its region by empowering all the resources in order to improve the welfare of the
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7. community. It also wants to give a significant contribution to economy growth to the
national level by utilizing its characteristic and all the resources.
According to Badan Pusat Statistik (2009), agriculture sector contributed
around 47% on employment. However, this sector has not yet given a significant
contribution on community prosperity which was only IDR 3.4 million per capita. It
means that the personal income on Rembang people is still under poverty line based on
World Bank version (Salim, 2010). Consequently, this sector must be optimized. The
government should make some programs in order to achieve higher income of the people
through agriculture diversity and intensity.
Based on its position, Rembang Regency is located close to coastal line on the
northern side of Java Island. It has several potential sectors to be developed such as
fishery products, sea transportation, and tourism. However, it needs an integrated
planning to exploit those potential to something that can contribute to regional economy
growth, particularly in increasing community prosperity and reducing unemployment.
There are some alternative ways to develop those potential sectors by building
and improving several infrastructures. Building a larger harbor, perhaps, can affect to the
growing number of fisheries because bigger ships are able to dock there. Consequently,
fisheries processing industry also will be developed which they can give value added to the
fish products (Sosiawan, 2008). They also can absorb employment from around the region.
So, they could give contribution the welfare of community and reduce the unemployment.
The harbor also can be utilized to transport local commodities (freight) from
Rembang to other places. Directly, it has positive externalities in regional economy growth.
The economy activities in the region become more active. Thus, it can attract investors to
invest their fund to Rembang.
To achieve the goals, local government should make a good planning to
accommodate all sectors. Fisheries and sea transportation as the leading sector should be
provided with a bigger harbor in which is integrated with the industry. For this reason, the
government built Integrated Maritime Area in 2001.
The local government set up policies and instruments for this program, such as
establishing Fisheries and Maritime Agency and rearranging the fish bidding system by
reducing the tax and bureaucracy. Hopefully, it can attract people to do trading in this
region.
In fact, the result of this policy is satisfying. It can be seen from the target that has
been determined by the government and the production result that has been achieved. The
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8. 2008 target was IDR 1.45 billion, while the result was IDR 1.77 billion (Dinas Perikanan
dan Kelautan, 2009). Although this sector only contributed around 4% of GDP, with all
the achievements and the efforts, it is predicted that this sector will overtake the
agriculture sector as the leading sector in the next few years for Rembang Regency.
In addition, infrastructures are also the key of the regional development. Roads,
markets, housing, health, education and other public facilities should be concerned as well
by the local authority in order to give good services to the societies. These provisions, of
course, are essential for the communities for their daily lives. Some revenues gained from
retribution and tax should be used for community welfare improvement.
III. Planning Development
3. 1 Plan-Making Process
Implementation of development in Rembang regency has been adjusted with
existing spatial arrangements so that in compiling RPJMD of Rembang regency 2010-
2015 – local regulation No. 10/2010, local government takes notice on Spatial Plan
(RTRW) of Rembang regency.
This plan-making process started from lower administrative level to accommodate
citizens’ aspirations in regard to RTRW of Rembang regency. Their aspirations are then
brought to head of Kelurahan to collect main points of planning in local communities.
After assembling all information, head of Kelurahan gives draft of local development
planning to Sub-District. In this stage, head of Sub-district then invites local council to
make hearings to local people for further detail about the draft submitted.
Next thing to do is delivering each draft from Sub-Districts which has been adjusted
to Local Development Planning Agency (BAPPEDA) in order to make shortlists and
concept of local development planning. BAPPEDA as representative of local government
proposes the concept to local council to be discussed. During the dialogue, local council
also invites community leaders and Non-Government Organizations to craft deeper
adjustment. The final draft produced in the meeting then approved by local council after
several adjustment through debate and argument from all stakeholders.
3. 2 Regional Cooperation
Actually, Rembang regency does not have specific cooperation with other regions.
The recent regional cooperation pioneered by Blora regency in the form of collaboration
among four regions in Central Java and East Java province namely Rembang regency,
Blora regency, Tuban regency, and Bojonegoro regency.
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9. This cross-province cooperation inaugurated on 21 September 2010 in government
office of Bojonegoro regency tends to endorse regional development of Ratubangnegoro
(stands for Blora, Tuban, Rembang, and Bojonegoro) in infrastructure, economy,
education, health and other fields. The purposes of this cooperation are to overcome
economic and live problems, to reduce regional inequalities, and to enhance economic
growth (Government of Blora 2010).
However, regional cooperation among regions is not very promising thus some areas
are still expecting more success evidences in implementing inter-regional cooperation.
This perception has to be changed with other optimistic approach. Communities should
understand inter-regional cooperation in different way. It is appointed to cover limited
ability of the region to develop its policies through the concept of inter-regional
cooperation. Due to the fact that capabilities of each region are so diverse that the
shortcomings and limitations of other regions can be complemented in mutual
cooperation among regions (Biro Administrasi Kerjasama Provinsi Jawa Timur 2010).
3. 3 Approaches to Development
In RJPMD, it is noticeable that local government has programs to encourage local
development and it applies many theories which related to Local and Regional
Development. Therefore, Rembang local government realizes that they have to apply
several approaches or theories in order to reach a goal.
3.3. 1 Neo-Classical Growth Perspective
Making a steady economic growth rate can be achieved by increasing capital stock,
labor force and technical progress. Strategic issues in RPJMD 2010-2015 try to
accommodate the importance of building infrastructure in the region to increase those
facets. Research found that infrastructure plays a central role to promote economic growth,
to share the benefits of growth with poorer groups and communities, and to connect
countries within the region and with the rest of the world (ADB, Japan Bank, World Bank
2005).
Incorporating its strategic purposes, local government plans to build several
infrastructure projects such as integrated maritime area so called “Kawasan Bahari
Terpadu” or KBT, steam power plant, Sea Front City, and Cement Industry. These
projects show that investment in Rembang grows rapidly in the last decade thus this
regency has gained confidence from investors as well as central government to this mega
projects (Suara Merdeka 2004, 2011). Consequently, this circumstance would attract other
stakeholders to invest their capital to this regency.
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10. Next facet to be considered is availability of human resources as potential workforce
to support this development. Although the value of Human Development Index (HDI) in
Rembang is below than that achieved by Central Java province, Rembang’s HDI is still
higher than other regency in the region such as Blora and Pati (Bappeda Rembang 2010).
Moreover, Central Bureau of Statistics of Rembang noted that rate of population
growth in this regency during 2000-2010 amounted to 0.49% which is above the rate of
population growth on average in Central Java province which is only 0.37% (ANTARA
Jateng 2010). However, population density in Rembang is still low at the same range with
Blora which only 570.19 per km2 and 467.10 per km2 respectively compared with other
adjacent regencies such as Pati (788.11 per km2) and Jepara (1,103.38 per km2).
Another significant aspect is progress in technology. In fisheries and marine area,
the authority of Rembang encourages local fishermen to utilize new technology in
increasing production of fish and pioneers to establish Polytechnic of Marine and
Fisheries. There are three decent courses would be opened in the Polytechnic namely Seed
and Feed Technology, Technology of Fisheries, and Technology of Aquaculture (Suara
Merdeka 2011).
3.3. 2 Sustainable Development
Generally, there are aspects of sustainable development which can be categorized
into three main principles namely economic, environmental, and social (Harris 2000).
Vision and mission of RPJMD 2010-2015 reveal a considerable policy direction and
strategy in order to adopt sustainable development. The local government wants to
endorse management of sustainable natural resources by implementing several policies
(Bappeda Rembang 2010).
Table 1. Sustainable Development Policies of Local Government
Policies Economic Environmental Social
1 The rehabilitation and restoration of environmental 
carrying capacity
2 Preservation of environmental support and have a   
social responsibility towards the welfare of local
communities
3 Various mitigation and conservation of land and water 
4 Diversification of primary energy and renewable energy   
for energy distribution and fulfillment distribution
5 Increase in added value and benefits of mining 
6 Increase community participation in forest  
conservation
7 Marine resource management and preservation of 
ecosystem-based environmental carrying capacity
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11. 8 Optimization of land use 
Source: RPJMD Rembang 2010-2015
3.3. 3 Export Base Implementation
Rembang regency has several advantages from its strategic location and knowledge-
based products such as fisheries, furniture, and textiles which is demanded by many
enthusiasts from both local and international communities. The authority of Rembang
conducts some policies to gain maximum benefit such as providing facilities to increase
export of fishery and marine areas, facilitating the provision of land mines especially C
Figure 2. Total Export of Rembang Regency 2005-2008 class (material for
cement industries), and
supporting local
products to find
opportunities in local or
regional market.
By doing so,
Rembang regency has
achieved significant
progress in exporting
goods other regions or
Source: RPJMD Rembang 2010-2015 countries. During period
of 2005-2008, on the whole, total export of this regency tends to grow albeit there is a
slight drop in 2006 due to declining demand from several countries.
3.3. 4 Institution and Socio-economics
The growth and development of localities and regions promoted by institutional
organization and regional cooperation are to develop indigenous assets and resources.
These purposes are then formed into four policies:
 Developing coordination and communication among local governments
(Ratubangnegoro) and coordination with province and central government
 Encourage and facilitate export-oriented products.
 Improve institution and infrastructure for business, health and education
 Applying good governance.
There are some achievements in response of these policies:
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12.  Economic growth increases steadily due to development of infrastructures which is
mostly implemented in real sectors such as integrated maritime area (KBT) and
Steam power plant.
 Several mega projects executed in Rembang regency offer direct job opportunities and
indirectly foster the welfare of society.
 Coordination among local, province, and central government tends to be harmonious
 Easy of access and transportation of goods and services
IV. Conclusion
1. Authority of Rembang regency conducts several theories to boost its local development.
2. Massive scale projects have significant impact to encourage local development and it
increases employment and GRDP .
3. Fisheries and marine sector influence development of Rembang regency, and it becomes
excellent sector.
4. Improvement and innovation are needed to diminish the dependency to Province or
Central government
5. Good governance and accountability are required to support local development.
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13. References:
ADB, Japan Bank, World Bank. "Connecting East Asia: A New Framework for Infrastructure." World Bank.
March 16, 2005. http://siteresources.worldbank.org (accessed November 2011).
Andy Pike, Andreas Rodriguez-Pose, John Tomaney. Local and Regional Development. New York:
Routledge, 2006.
ANTARA Jateng. Pertumbuhan Penduduk Rembang di Atas Jateng. August 27, 2010.
http://www.antarajateng.com/detail/index.php?id=33814 (accessed December 2011).
Badan, Pusat Statistik. Kabupaten Rembang Dalam Angka. Rembang: Badan Pusat Statistik, 2009.
Bappeda Rembang. RPJMD Rembang 2010-2015. Rembang: Government of Rembang, 2010.
Biro Administrasi Kerjasama Provinsi Jawa Timur. Fasilitasi Pemprov. Jatim Dalam Kerjasama
Regionalisasi RATUBANGNEGORO. September 30, 2010.
http://pusatdata.jatimprov.go.id/eis/content.php?dept=495&post=297 (accessed December 2011).
Dinas, Perikanan dan Kelautan Kabupaten Rembang. Laporan Tahun 2008. Rembang: Dinas Perikanan
dan Kelautan Kabupaten Rembang, 2009.
Government of Blora. RATUBANGNEGORO Adakan Kesepakatan Bersama. September 21, 2010.
http://www.blorakab.go.id/?fn_mode=fullnews&fn_incl=0&fn_id=178 (accessed December 2011).
Harmantyo, Djoko. "PEMEKARAN DAERAH DAN KONFLIK KERUANGAN." Depok: Departemen Geografi,
FMIPA, Universitas Indonesia, April 16, 2007.
Harris, Jonathan M. "Basic Principles of Sustainable Development." GLOBAL DEVELOPMENT AND
ENVIRONMENT INSTITUTE. Medford MA: Tufts University, 2000.
Rembangkab.go.id. Rembang, Gerbang Timur Jawa Tengah. January 18, 2011.
http://rembangkab.go.id/index.php/component/content/article/67-newsflash/764-rembang-gerbang-
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dan Otonomi Daerah Tahun 1998-2008. Semarang: Universitas Diponegoro, 2010.
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Rembang. Semarang: Universitas Diponegoro, 2008.
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—. Niat Kuat Membangun Kawasan Bahari Terpadu. February 18, 2004.
www.suaramerdeka.com/harian/0402/18/dar19.htm (accessed December 2011).
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14. —. Rembang Rintis Politeknik Perikanan. November 15, 2011.
http://suaramerdeka.com/v1/index.php/read/news/2011/11/15/101880/Rembang-Rintis-Politeknik-
Perikanan (accessed December 2011).
—. Swasta Bangun Pelabuhan Batu Bara di Rembang. November 11, 2011.
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Batu-Bara-di-Rembang (accessed December 2011).
Essay outline:
I. Introduction
a. Overview
b. Brief History
c. Economic Profile
II. Government Role and Intervention
a. Central Government
b. Province Government
c. Local Government
III. Planning Development
a. Plan-Making Process
b. Cooperation Rembang with other regions
c. Development Planning According Theories
IV. Conclusion
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