Public Policy Evaluation on the Implementation of Free Trade Zone (FTZ) Using Enclave Model in Karimun Island

Abstract

Implementation of Public Policies on the Establishment and Development of Free Trade Zones by Enclave Model on Karimun’s Island according to Law No. 36 of 2000 aims to encourage international trade traffic activities that bring foreign exchange to the Country and able to provide great influence and benefits for Indonesia, to be able to open the widest possible employment opportunities, increase tourism and investment, both foreign and domestic, currently are over the age of ten years. Various problems have arisen in policy implementation so far which are closely related to the Policy itself, starting from the Formulation process to its implementation. Referring to these conditions, this research aims to analyze comprehensively how the policy formulation process and effectiveness in the implementation of the Free Trade Zone on Karimun Island as well as the Policy Evaluation as intended in order to formulate a more effective and targeted policy alternative model. This study uses a qualitative research method by evaluating policy implementation using a model developed by George C. Edwards III, that policy implementation is influenced by four variables, namely communication, attitudes, sources, and bureaucratic structures. The research results obtained that two models of application or implementation of the Free Trade Zone status, namely the Comprehensive Model which applied in Batam and the Enclave Model which applied in Bintan and Karimun. Especially the Enclave model which is applied at Karimun still not optimized in its implementation. The implementation of FTZ on Karimun Island for ten years has not been running perfectly and need of improvements in terms of legal regulations and the organizational structure of the implementing institution, namely the Region Concession Body. In terms of performance, the Policy Implementer, BP Kawasan Karimun in recent years has not been able to bring in new investors and the value of imports is only slightly lower than the value of exports so that the increase in foreign exchange from exports is insignificant. Answering this problem, the researcher proposes a Theoretical Model for the Application of the Status of the Free Trade Zone through the Multi Stages Plan where with this model the implementation of the policy will be more effective and right on target

Keywords: FTZ, Economic, Karimun, Enclave

DOI: 10.7176/PPAR/11-3-05

Publication date: April 30^th 2021