Sustainability Analysis of Sei Mangkei Palm Oil Based Industrial Cluster

Abstract

Sei Mangkei Industrial Park have been designed by Government of Indonesia as industrial cluster for palm oil derivative product industries. In many cases, selected areas for industrial cluster developed into an industrial aglomeration than industrial clustering. To ensure industrial cluster accomplishment, sustainability analysis should be done. The aim of paper was to conduct  sustainability analysis of Sei  Mangkei industrial cluster development. Multidimensional scaling (MDS) was used to determine the value of sustainability index.  There were 23 attributes considered for measuring the index categorized in 5 dimensions : economic, social, enviromental, infrastructure and technology, and institutional.   The index score range used was 0-100. Results showed that the average of sustainability index of Sei Mangkei Palm Oil Based Industrial Cluster Development was 52.84  showing that the industrial cluster development categorized as sufficient category. The lowest index was found for institutional dimension (36.21) and the highest was environment dimension (64.79). From the leverage analysis, some critical attributes in each dimensions were found and need improvement to increase the sustainability. Institutional strengthening and accelerated development of infrastructure are the crucial factor should be prioritized for the development of palm oil based industrial cluster at Sei Mangkei. This could be a significant reference for the decision makers, in this case is Government and in cooperation with private sectors, to develop Sei Mangkei Industrial Park. Too, readers would find out and learn in developing an industrial park needs sustainability study for comprehensive development.

Keywords: industrial cluster, sustainability analysis, mutlidimensional scaling