Strategies for Maritime-Based Economic Development in Konawe Islands in Southeast Sulawesi

The purposes of this study were: (1) to draw up a scale of priority in programs (objects) for the development of maritime economy in Konawe Islands district. (2) to determine the best strategies for utilizing and increasing the carrying capacity of maritime economy so that it can contribute to revenue increase. (3) to provide stakeholders in maritime sector with a variety of data and information about maritime potentials in Konawe Islands. The study was conducted in Konawe Islands. The analytical methods used were Delphi method and SWOT analysis. Results of the study showed that: (a) To develop the maritime economy of Konawe Islands, four programs need to be given priorities, including: (i) establishment of cooperative units; (ii) empowerment of fishermen domestic economy, (iii) development of Kampadan beach as a tourism object; and (vi) development of Langara beach, (b) These programs for improving the welfare of fishermen households need to be given a special attention since fisherman is a dominant community in Konawe Islands, (c) The development of Langara Beach can become a very interesting program, for several reasons: (i) as a district capital, Langara is naturally given a priority in the development of land and coastal infrastructures; (ii) Langara beach is beautiful because it directly faces the ocean; (iii) Langara beach can be developed into an amusement site for the public, as well as a source of local people’s income and the local government’s revenue. (4) Konawe Islands has many interesting coastal tourism objects, including Tengkera Beach, Polara Beach, Lamongupa Beach, Tumbi Tumbi Beach, Kampa Beach, Tekonea Beach and Tourism Dugong. The study revealed that the government of Konawe Islands has been constrained by limited budget, so the development of maritime economy in the region needs to be done gradually.


Introduction
The Republic of Indonesia has been known as an archipelagic state. However, Indonesian people prefer to call it a maritime country (maritime state). A maritime country is one whose backbone of its existence, development, greatness and glory lies on maritime power. Therefore, this island nation should be seen from both geographic and non-geographic point of view. Indonesia is rich of marine resources that have the potentials for development (Kamaluddin, 2014) It seems more correct to regard Indonesia as a maritime state rather than an island nation for the following reasons: (1) the sovereign territory of Indonesia comprises 2/3 of its sea, and all natural riches contained in its sea should consequently be utilized to the maximum for the welfare of Indonesian people; (2) The Indonesian Exclusive Economic Zone (EEZ) territory covers a 200-mile area stretching from the outer limit of Indonesian water and should be utilized for the welfare of Indonesian people. The recognition of this Exclusive Economic Zone has been firmly maintained by Indonesia through Indonesian Exclusive Economic Zone Act 1983 No. 5. It aims to improve the welfare of the nation by utilizing all available resources, both the livings and the non-livings; (3) As a nation, Indonesia is comprised of 750 tribes living on thousand islands that scatter around the country.
A geopolitical enactment of archipelagic concept has served as a bond of all regions in the nation; (4) As a matter of fact, since long time ago the waters between the archipelago have become a factor that unites, rather than divides, the nation; (5)  developmental missions, one of which is to bring Indonesian archipelago into existence. Chapter III of the Appendix of the Act states that one of the missions of Indonesian development in the next 25 years is to transform Indonesia into an independent, advanced, powerful archipelagic nation that is based on national interests, by instilling a maritime insight among the people and the government so that Indonesia can adopt a maritime-oriented development; to improve the capacity of human resources with maritime insight by developing marine sciences and technology; to manage national maritime territory in order to defend the sovereignty and prosperity of the country, and to develop Indonesian maritime economy in an integrated manner by optimizing the utilization of marine resources in sustainable manners (Indonesia Marine Board, 2012) and Diposaptono (2014).
Act 2014 No. 23 concerning the implementation of regional autonomy (decentralization) has granted a full authority to every region to organize its territory in accordance to the potential and aspirations of its people. This law is considered democratic since it paves a way for the empowerment of all people in the region, including those living in villages. As a result of the greater local authority to manage its developmental and governmental affairs, the needs for human, natural, and capital resources are also www.scholink.org/ojs/index.php/jepf Journal of Economics and Public Finance Vol. 4, No. 1, 2018 18 Published by SCHOLINK INC. increasing.
Regional autonomy (decentralization) is basically the rights, powers, and obligations exhibited by every region to organize and manage itself. The rights are acquired through the handover of governmental affairs from central to local government in accordance to the regional circumstances and capabilities (Djohan, 1990, p. 2). Regional autonomy is also an adoption of decentralization principles, and is therefore expected to provide local people with the best services. This is because the Regional Autonomy Act has granted "freedom" to the heads of the region to take various actions in accordance to the local people's conditions and aspirations. This presumption is based on the fact that the local government knows better what its people demand and desire (Nadir, 2013).
The Regional Autonomy Act states that autonomous regions hold the authority to regulate and manage the interests of their local communities at their own initiative based on the aspirations of the people within a unitary bond of the Republic of Indonesia. This Act also maintains that autonomous regions assume the authority to regulate and manage the interests of their people at their own initiative following the aspirations of the people in accordance to the laws. In addition, the law indicates that local governments have the right, authority, and responsibility to carry out all governmental and developmental tasks based on the potentials and aspirations of their people. Regional governments are therefore required to figure out creative and innovative ways of developing the potentials of their region, and given that the improvement of public welfare is highly dependent on the abilities of the region, it is important to promote maritime-oriented characters among the people, especially the young adults (Hutabarat, 2014).
Indonesia has abundant maritime potentials (Diposaptono, 2014). Since a maritime sector is a multi-sectoral area and a close relationship exists between all domestic and foreign economic activities, maritime development needs a policy that can synergistically bond all related sectors. To achieve the visions and missions of Indonesia, the country should adopt a national strategy for sustainable development in the spirit of pro-poor, pro-jobs, pro-environment. In addition, maritime development should be based on the concept of Blue Economy.
Blue Economy is a concept which integrates an economic development with environmental preservation. This concept adopts the way nature works (ecosystems), i.e., by working efficiently in accordance to what is provided by the nature, enriching rather than reducing the nature, turning production waste into raw materials (to become a source of energy for other production), so that the life system lies on a balanced ecosystem. In developing its maritime economy, Indonesia needs to adopt this theory and the model of blue economy (Indonesia Marine Board, 2012). and was expected to accelerate the revival of Indonesian maritime economy. Those attending the meeting agreed to continue strengthening their coordination in the future in order to ensure the effectiveness of various policies in accordance to their respective authorities with a view of bringing Indonesian maritime-based economy into existence. The idea suggested by the Bank of Indonesia is in line with what is proposed by Diposaptono (2014) and Purnomo (2014).
As a follow-up to the above policies, the government of Konawe Islands intends to formulate a strategic policy that is based on its natural, human, and institutional potentials. Although the government faces many challenges, it continues its effort to improve local people's welfare. However, since the regency is a new region, data and information about the region are still very limited. Certainly this issue needs to be dealt with since data and information are among the important requirements in formulating correct strategies and policies.
A research conducted by BAPPEDA of Konawe Islands (2015) has reported the followings: (1) Konawe Islands regency is a water region with a lot of marine biotas such as mangroves and seagrass beds that become the habitats for fish, shrimp, crabs, and other marine potentials; (2) the water area of Konawe Islands is so huge that there is a lot of marine potentials in the area, such as fish and seaweeds.
The marine potentials possessed by this region can be developed into a capital to improve people's welfare. These potentials can be identified from the facts that: a.
There are many fishermen households in the area, who do either aquaculture or caught fishing at sea. b.
There are many traditional fish traders, either the mobile ones or those who sell fish at traditional markets or on the edge of harbor.
c. Fishery processing industry remains simple, causing it unable to support the economy of communities in the region.

d.
Konawe Islands has a lot of potentials for marine tourism that have not been optimally managed.
e. There is a shipping activity in the region, as characterized by the use of the pier/harbor to support the mobility of human and goods.
Based on the above facts that are identified, it is necessary to conduct a research aimed at formulating strategies for optimal, sustainable empowerment and utilization of the potentials in accordance to the regional capability.
Research on the roles of the maritime economy in promoting economic growth and development has gained considerable attentions from some experts. Giyanto (2014), for instance, states that maritime economy can be generalized as an integrated system of economic value. In this sense, sea is not seen only as a source from which fish, seaweed, or other marine commodities can be reaped. Sea, according to him, is a means of fulfilling human needs for food, energy, and mobility. Since a maritime economy is an integrated system of values, all human needs can be fulfilled by exploiting marine resources that are connected either directly or indirectly to sea. Humans build their economic philosophy based on sea, believing that sea can prosper their life. Humans also adopt a maritime-based education by inculcating a maritime orientation. Humans should therefore utilize sea in sustainable manners. This view is in line with that of Hutabarat (2014) who emphasizes the importance of building maritime-oriented characters among the youths and the next generation, who are expected to continue building our nation's maritime economy.

Data Type
This study used both primary and secondary data. Primary data included the existence and importance of all maritime objects or resources in the region, the quantity and quality of the objects or resources, as well as the strengths, opportunities, threats, and challenges associated with the development of each resource or object. The most important source of information is the respondents who were asked to score and weight each indicator of strategic maritime development. The primary data were obtained from the local government, local community leaders, and the people of Konawe Islands.
Secondary data included: -Aquaculture production and the value of its products; -Trade and value of commercial fisheries; -Industry for processing fishery products; -Transportation; and -Tourism.

Method of Analysis
The study employed two methods, i.e., Delphi and SWOT analysis. Delphi method was used to determine the scale of priority for developing maritime objects or resources. SWOT (strength, weakness, opportunity, and threats) analysis was used to draft strategies for developing maritime resources in Konawe Islands.
Delphi is a widely used, acceptable method of collecting data from respondents in a research domain. program planning, assessment, policy making, and resource utilization which seek to develop a range of alternatives, explore or expose underlying assumptions, and correlate assessment on a topic obtained from a wide range of disciplines. Delphi technique is suitable for building a consensus by using a series of questionnaires accompanied with some explanation to collect data from a panel of chosen subjects.
SWOT Analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats associated with a project or a business. This process involves determining the specific goals of a business venture or project and identifying internal and external factors that support and do not support the achievement of the goals. There are two types of SWOT analysis, i.e., External Strategic Factors Analysis Summary (EFAS) and Internal Strategic Factors Analysis Summary (IFAS). External or EFAS analysis is used to analyze the opportunities and threats in the development of a business, while the internal analysis or IFAs is used to analyze the strengths and weaknesses (Rangkuti, 2015).

Indicators of Strategies for Maritime Economic Development
To correctly determine whether or not an object is potential for maritime economic development, several aspects, which also serve as the basis of analysis, need to be considered, including: a.
A basis on local resource potential: this criterion can be calculated by determining the contribution of imports of raw materials to the total raw materials. A large portion of share contributed by imports of raw materials indicates a decreased superiority.
b. High chance of access to domestic and world markets: featured business areas must have clear markets today and bright prospects in the future. Besides, for the purpose of determining a strategy for development, clear markets for a commodity will encourage fishermen and maritime entrepreneurs to sell their marine commodities. In addition, a clearly linked market will make it possible for certain area to specialize, which will promote inter-region trades that eventually became a main economic driving in the region. A large quantity of a maritime commodity that can be marketed in a region is an indication of the competitive ability of the commodity for marketing since the market shares of such business sector will also increase. This indicator is of paramount importance in determining strategies for developing marine commodities.
c. Support of technology and skilled human resources: technological support and reliable human resource must be available in the area concerned since they also determine how excellent a marine commodity is. These supporting factors can provide a stimulus for businesspersons to continue increasing their productivity. In addition, they can make businessperson become more dynamic in running their business, processing their products, trading, or conducting other business affairs. d.
Environmentally friendly use of technology, optimal waste utilization, and appropriate waste management: an environmentally friendly process of producing featured marine commodities will help reduce losses or damages to the environment. A production center that does not cause pollution and environmental damage will be considered to have a lower indicator of negative impact. The more negative the impact, the higher the production cost can be, because a large amount of budget must be used to deal with any pollution and environmental damages. e. Implementation of business-oriented cooperative principles: this criterion underlines the importance of cooperating with other parties if we wish to run a business without facing too many difficulties.
f. Contribution to the economy: the greater the contribution to revenue and earnings, the greater the score gained by the maritime object or resource for development.
g. Creation of employment opportunities, which is a positive effect resulted from developing a commodity. The more employment opportunities are created, the higher is the score gained.

h.
A commodity is competing with other commodities. The tougher the competition, the higher the score.
i. Social and cultural aspects refer to the values that exist and are believed by a community.
Commodities to be developed should not conflict with the social and cultural values of the local people.
The greater the socio-cultural support gained from the community, the higher the score.

Weighting the Indicators of Strategy
To analyze data about respondents' assessment of indicators of featured maritime products or commodities, Delphi method was employed by calculating the average score of the respondents' assessment of each indicator. Then, the calculation result is multiplied by the weight of each indicator specified by the respondent.

Priorities in the Development of Maritime Economic Commodities in Konawe Islands
As far as a maritime economic development is concerned, ten objects and/or programs in Konawe Islands need to be given a special attention, including: (1)    Sources: Primary data (results of interview, processed).

Drafting the Priority of Featured Maritime Economy in Konawe Islands
It is obvious from  Source: Primary data (results of interview, processed).

Strategies for Developing Maritime Economy in Konawe Islands
As explained earlier, in addition to using Delphi method, this study employed the SWOT analysis. This analysis consists of two types, i.e., EFAS and IFAS. The former was used to analyze the opportunities and the threats, while the latter to analyze the strengths and the weaknesses associated with the development of an object/commodity. The SWOT matrix of maritime economic development in Konawe Islands is summarized in Table 3.

The Development of Fishermen Domestic Economy
The development of fishermen domestic economy is analyzed by using IFAS and EFA matrix as summarized in Table 4 and Table 5.  Source: Primary data (processed).
The result of multiplying the weights and the rate of the strengths and weaknesses is 0.31, which suggests that the internal potentials for economic development of fisherman households are very small.
To develop this, external interventions from the government, banks, and employers are needed.
Furthermore, the potentials for developing the domestic economy of the fishermen based on the External Factors Analysis Strategy (EFAS) are summarized in Table 5. Source: Primary data (processed).
The result of multiplying the weights and the rate of the opportunities and the threats is 0.04, indicating that the external potentials for developing the domestic economy of the fishermen are also very small.
To develop this factor, supports are needed from both internal factors (i.e., the local communities) and external factors including the local government, banks, and entrepreneurs.

Development of Langara Beach
The development of Langara beach is analyzed through IFAs and EFA matrix as summarized in Table 6 and Table 7. The result of multiplying the weights and the rates of the strengths and weaknesses is -12.44. This indicates that the internal potentials for developing Langara beach are still very low, particularly due to inadequate budget.
In contrast, an analysis of external factors suggests that Langara beach is highly potential for development, as can be seen from the result of multiplying the weight and the rate of the opportunities and the challenges, which was 7.75. This figure indicates that the external potentials for developing Langara beach are very high.

Discussion
Based on the above SWOT analysis, several strategies can be formulated, namely: (1) SW strategy, which combines the strengths and weaknesses. This strategy aims to employ the strengths in order to minimize the weaknesses; (2) ST strategy, which combines the strengths and threats. This strategy aims to employ the strengths in order to anticipate the threats; (3) SO strategy, which combines the strengths and opportunities. This is the most strategic one as it aims to employ the strengths in order to seize the opportunities.
The best strategies that could be employed by the government of Konawe Islands are: a. The local government needs to verify data about fishermen households based on their main livelihood in order to avoid overlapping with other livelihoods in the community.
b. The local government needs to facilitate the establishment of fishermen cooperative units.
c. The local government needs to facilitate fishermen households with anything they need to be able to seize positive opportunities offered by the central government, in particular those related to the "maritime pivot" policy. d.
The government needs to run trainings in the use of technology in catching, cultivating, and processing marine products. To ensure the availability and sustainability of marine and coastal potentials, the government also needs to raise people's awareness of prohibited methods of catching fish, such as bombs, which can be very harmful to marine biota and other resources.
e. The government needs to build facilities for domestic production of marine commodities, as well as provide mentorship to help local fishermen access legal and affordable financial sources.
f. The government needs to run trainings in how to manage domestic finance. This is important to anticipate hard times when fishermen are unable to go fishing due to natural factors or the other hampering issues. g. The development of Langara beach is a very interesting program, for several reasons: (i) As the capital city, Langara is naturally given a priority for development of land and coastal infrastructures; (ii) Langara beach is beautiful since it directly faces the ocean; (iii) Langara beach can become an amusement site for local people, as well as a source of income for the people and local revenue for the local government; (vi) Due to limited budget, the local government needs to plan the development of Langara beach in a gradual manner. h.
There are many beautiful beaches in Konawe Islands that can be developed into tourism objects, including Tengkera beach, Polara beach, Lamongupa beach, Tumbu Tumbu beach, Kampa beach, Tekonea beach, and Dugong tourism attraction. As is the case with the development of Langara beach, the government is currently constrained by limited budget, therefore developmental planning needs to be done gradually. The government can cooperate with private parties or institutions to develop local tourism.
i. Dugong tourism attraction is probably the most unique one in Indonesia, or even in the world, so it is worth to be further studied. b. Programs for improving the welfare of fishermen households need to be given a special attention since this type of household is the most dominant one in Konawe Islands.
a. The development of Langara beach is a very interesting program, for several reasons: (i) As the capital city, it is natural that Langara is given a priority for development of land and coastal infrastructures; (ii) Langara beach is quite beautiful since it directly faces the ocean; (iii) Langara beach can become an amusement site for local people, as well as a source of income for the local people and local revenue for the local government; (vi) Due to limited budget, the local government needs to plan the development of Langara beach in a gradual manner.

b.
Konawe Islands has a number of potential objects for beach tourism, including Tengkera beach, Polara beach, Lamongupa beach, Tumbu Tumbu beach, Kampa beach, Tekonea beach and Dugong tourism attraction. As is the case with the development of Langara beach, the government is currently constrained by limited budget, therefore developmental planning needs to be done gradually. The local government can cooperate with private parties to develop local tourism.