E.

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Working Paper (1500 words - to be submitted not later than 3 rdNovember
2016)*
Rural - Urban Linkages :
Title Strategic for the Development of Sustainable Ship Recycling Industry in
Madura Island
The ship at the end of the operation time (over 25 years) can not used
again, it can be finished in ship recycling activities. Ship recycling is the
process of retrieving the rest of former ship materials to be processed into
new materials that could be used again with regard for safety and health
of workers and enviromentally friendly. Include the docking, beaching,
dismantling, recovery and processing of materials. The ship recycling
industry has potential market in Indonesia. Madura Island has the biggest
ship recycling yard in Indonesia, in the Tanjung Jati village - Kamal. Its
development need a strategy to achieve an excellence competitive and
being different from competitors, in terms of providing the unique added
value to customers as well as contributing more to the surrounding
environment. Strategic management formulated by using methods from
Abstract Fred. R. David through technique analysis IE Matrix, SWOT Matrix Based on
the analysis, the conditions of Ship recycling industry is in the position to
Grow and Built. In the selection of strategies used QSP method
(Quantitative Strategic Planning). The strategies which are formulated is
the Concentric diversification by producing a new product that is a
component of the ship from the materials of former ship. This strategy is
supported by the concept of rural urban lingkages to develop the rural
area in madura by optimizing the role of the city (Bangkalan) as the
market and research center and the products of ship recycling in the
village (Tanjung Jati). The city can grow with the increase in supply of ship
recycling product and the village can grow with the support of market
center, facilities as well as goods services in the city.

Keywords R-Urban, Linkages, Ship Recycling, Madura

Introduction The ship has an operating time of approximately 25-30 years, the costs
incurred for the maintenance process to make these old ships
uneconomical again and replaced by a new ship so that business
processes remain in progress as well as reduce the risk of damage and
accidents [1] one way to make the ships of the former had economic value
is by conducting a process of recycling by taking and processing of used
ship materials back. The ship was built from different types of materials
and 90% is steel. The rest is made up of the components inside are
materials that are harmful to the environment. The wastes from
demolition activities aboard former (ship dismantling) and recycling a used
ship (ship recycling) is now the world's attention. Toxic materials and
hazardous waste (B3), it can be derived from the various elements of the
body of the ship, among others from the paint used, stainless materials,
and so on. Also from the rest of the fuel or cargo, and of the materials
used in the work itself.Green ship recycling yard is the place where ship
recycling facilities that received permission from the authorities to recycle
 the ships [2]. . Indonesia has potential market in Ship Recycling Madura
Island has the biggest ship recycling yard in Indonesia, (Tanjung Jati village
Kamal).Its development need a strategy to achieve an excellence
competitive and being different from competitors, in terms of providing the
unique added value to customers as well as contributing more to the
surrounding environment. This paper thus discuss the strategy
management to develop the ship recycling yard industry with empowering
urban communities

Methods 1. Summarizes and evaluates the major strengths and

weaknesses in the functional areas of ship recycling industry
By using the tools Internal Factor Evaluation (IFE) Matrix and Eksternal
Factor Evaluation (EFE) Matrix. It also provides a basis for identifying and
evaluating relationships among those areas. intuitive judgments are
required in developing IFE - EFE Matrix, so the appearance of a scientific
approach should not be interpreted to mean this is an all-powerful
technique.
iFe and Efe Matrix can be developed in five steps:
1. List key internal and eksternal factors as identified in the internal-
audit process. including both strengths and weaknesses,
Opportunities and Threats
2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all-
important) to each factor. The sum of all weights must equal 1.0.
3. Assign a 1-to-4 rating to each factor to indicate whether that factor
represents a major weakness (rating = 1), a minor weakness
(rating = 2) a minor strength (rating = 3), or a major strength
(rating = 4). note that strengths must receive a 3 or 4 rating and
weaknesses must receive a 1 or 2 rating. ratings are thus company-
based, whereas the weights in step 2 are industry-based.
4. Multiply each factors weight by its rating to determine a weighted
score for each variable.
5. Sum the weighted scores for each variable to determine the total
weighted score for the organization.

2. Develop four types of strategies with SWOT Matrix :

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an
important matching tool that helps managers develop four types of
strategies: SO (strengths-opportunities) strategies, WO (weaknesses-
opportunities) strategies, St (strengths-threats) strategies, and Wt
(weaknesses-threats) strategies.3 Matching key external and internal
factors is the most difficult part of developing a SWOt Matrix and requires
good judgmentand there is no one best set of matches. The first,
second, third, and fourth strategies are SO, WO, ST and WT strategies,
respectively.

3. Determine the relative attractiveness of feasible alternative

actions with Quantitative Strategic Planning Matrix (QSPM)
1. Make a list of the firms key external opportunities and threats and
internal
strengths and weaknesses in the left column of the QSPM. this
information should be taken directly from the eFe Matrix and iFe
Matrix.
2. Assign weights to each key external and internal factor. these weights
are identical to those in the eFe Matrix and the iFe Matrix.
3. Examine the Stage 2 (matching) matrices, and identify alternative
strategies that the organization should consider implementing.
4. Determine the Attractiveness Scores (AS) defined as numerical values
 that
indicate the relative attractiveness of each strategy in a given set of
alternatives.
5. Compute the Total Attractiveness Scores. Total Attractiveness
Scores (TAS) are defined as the product of multiplying the weights
(Step 2) by the aS (Step 4) in each row.

Result and Discussion 1. Summarizes and evaluates the major strengths and
weaknesses in the functional areas of ship recycling industry By IE
Matrix
The strength on the internal factors in the industry of ship recycling yard :
1. Metal recycling is familiar bussines in Madura island
2. A good geographical Factors that supports the yard
3. Strong branding image
4. The largest Ship recycling in Indonesia
5. Human resources price is cheaper

The Weakness :
1. Low workers skills
2. Lack of product innovation
3. Technology that has not been in accordance with the international
guidelines
4. Poor coordination between Central Office and unit
5. High loads for workers
The Opportunities
1. Potensi pasar Ship Recycling dalam dan luar negeri
2. Adanya aturan pemerintah yang mendukung daur ulang kapal
3. Peningkatan kebutuhan baja
4. Adanya industri perkapalan di sekitar lokasi yang dapat menyerap
hasil produksi
5. Tersedianya tenaga kerja
6. Animo pasar yang tinggi pada produk daur ulang
Ancaman yang berada pada eksternal faktor dalam industri ship recycling
yard :
1. Infrastruktur yang kurang memadai
2. Kelesuan ekonomi dalam negeri
3. Persaingan baja dan besi impor dari china
4. Fluktuasi harga produk
5. Persaingan dengan ship recycling yang ada di Asia Selatan
Hasil analisis faktor internal menggunakan matriks IFE diperoleh skor
terbobot sebesar 2,66 dan hasil analisis faktor eksternal menggunakan
matriks EFE diperoleh skor terbobot sebesar 3,04. Berdasarkan diagram
hasil analisis matriks IE menunjukkan bahwa industri daur ulang kapal
berada pada posisi Grow and Built (tumbuh dan membangun). Strategi
yang cocok adalah strategi intensif (Market Penetration, market
development, dan product development) atau strategi ter-integrasi
(backward integration, forward integration, dan horizontal integration).

3.2 Penyelesaian matriks SWOT

Dari analisa 4 element (Strength, Weaknees, Opportunity, Threat) dapat
kita susun matriks yang memudahkan kita dalam menyusun strategi
(SWOT Matrix). Matriks tersebut terdiri dari
Strength - Opportunity Strategies :
- Meningkatkan strategi product development dan terus melakukan
penetrasi pasar (S3, O1, O3, O6)
- Mengembangkan produk melalui rural urban linkages (O4, S5, O5)

Weakness - Opportunity Strategies:

 - Mengupgrade teknologi untuk meningkatkan kualitas fasilitas
pabrik (W2, W3, O3)
- Melakukan diversifikasi produk (W2, O4, O3)

Strength Threat Strategies:

- Menerapkan green recycling yard (T1, T5)
- Menguatkan sumber daya manusia (SDM) untuk menjaga
keberlangsungan perusahaan dengan memperbanyak pelatihan
(S5, T5, W5)

Weakness Threat Strategies:

- Memperketat cash-flow guna menjaga stabilitas ekonomi , T4, T5)
- Menerapkan green recycling yard (W6, T3)

3.3 Pemilihan strategy dengan menggunakan QSP (Quantitative

Strategic Planning) Matrix
Seperti yang telah diketahui pada matrix IE, strategi yang cocok adalah
strategi intensif (Market Penetration, market development, dan product
development) atau strategi ter-integrasi (backward integration, forward
integration, dan horizontal integration). Maka QSP matrix ini kita
menentukan strategy mana yang harus diambil berdasarkan tingkat
keatraktifannya. Dengan mengacu pada kajian QSP terlihat bahwa Dua
strategi terpilih yang memiliki nilai tinggi adalah Market development dan
Product development yang berarti dua strategi tersebut adalah yang
sesuai dengan kondisi dan keadaan perusahaan saat ini.

3.4 Penjabaran strategi : Konsep Rural Urban Linkages pada ship

recycling di Madura
Strategi yang dihasilkan melalui metode di atas, adalah :
1. Market Development
Memperkenalkan produk barang atau jasa pada lingkungan pasar
yang baru.
2. Product Development
Meningkatkan penjualan melalui pengembangan produk barang
atau jasa yang sudah ada, atau pengembangan produk-produk
baru.
Konsep yang diusung dalam penerapkan strategi tersebut adalah rural
urban linkages , keterkaitan desa (tanjung jati kamal) dan kota
(bangkalan). Strategi rural urban linkages juga dilakukan untuk
mengangkat perekonomian masyarakat desa.
Kondisi Kota : Tidak ada tempat yang proses pembongkaran kapal,
kapasitas SDM cukup, padat penduduk, potensi pasar tinggi (dekat dengan
2 galangan), informasi cukup, modal usaha tersedia. Kondisi Desa : Kondisi
geografis yang sesuai untuk recycling yard, Jumlah SDM tinggi tapi rendah
kapasitas, Rendah informasi, Modal usaha kurang

Peranan Kota : Penyedia teknologi produksi dan riset, Penyedia modal

untuk produksi, Tempat pemasaran hasil produksi desa, Penyedia
informasi. Peranan Desa : Penyedia input produksi, Tempat berproduksi,
Penyedia SDM untuk produksi. Daya Tarik Kota sebagai tempat pemasaran,
daya Tarik desa untuk investasi produksi dan tenaga kerja

Program kerja terkait strategi di atas antara lain :

1.Pembangunan pusat marketing dan research di kota Bangkalan
2.Dilakukan pengembangan produk yaitu :
- Pengolahan plat hasil recycling secara mandiri, sehingga jenis dan
tipe produk menjadi bervariasi dan sesuai kebutuhan
 - Produk reuse dan recycle komponen kapal
3. Melakukan peningkatan SDM di desa dengan pelatihan dan sharing
knowledge

1. Kondisi Internal dan Eksternal Industri ship recyling di Madura berada

pada kondisi grow and built Perusahaan mempunyai kekuatan internal
yang baik untuk berkompetisi dengan kompetitor. Hasil analisis faktor
internal menggunakan matriks IFE diperoleh skor terbobot sebesar 2,66
dan hasil analisis faktor eksternal menggunakan matriks EFE diperoleh
Conclusion skor terbobot sebesar 3,04
2. Strategi yang cocok untuk perusahaan berdasarkan matching stage
adalah Product Development dan Market development
3. Konsep rural urban linkages digunakan dalam mengaplikasikan strategi
terpilih. Dengan peranan kota sebagai tempat pemasaran dan desa untuk
investasi produksi serta tenaga kerja.
Alkaner, S., U. Stracthclyde Project Report, D 4.1 Generic Guidelines for
optimum Shipbreaking facilities, EU-SHIPDISMANTLING, 2006

Andersen, A.B. Worker Safety in the Ship-breaking Industries. An Issues

Paper. The International Labour Office. 2011

Asolekar, S.R., Greening of ship recycling in India: upgrading facilities in

Alang. In: The Proceedings of 7th Annual Ship Recycling Conference
References
Organized by Informa Maritime Events and Lloyds List, UK and Held in
London during 19th & 20th June, 2012.

David, F.R. Strategic Management, Concepts and Cases, 13th Edition,

Prentice-Hall, New Jersey. 2011

Tarigan, A., Rural - Urban Economic Lingkages. Universitas Indonesia.

2009

Note:
One aim of this workshop is to publish an edited book. All participants
have the opportunity to submit a chapter (subject to acceptance by the
editors) for this publication. All participants therefore need to submit a
working paper of about 1,500 words no later than 3 rdNovember 2016. If
the participants cannot meet this deadline, the organising committee
may offer the place at the workshop to another candidate (waiting list
candidate).
Participants will be expected to further develop their papers for an
agreed deadline following the Workshop.
You may use your own style/format for writing the paper as long as it
follows the content mentioned on the above guideline/template.
 F. Presentation Guidelines
All participants will present 10 slides in PowerPoint format at the
Workshop on their own research as it relates to the theme of the
conference as outlined below:
Page 1 Title of paper/research, name, affiliation.
Page 2-4 Introduction
Page 5 Methods
Page 6-9 Result and Discussion
Page 10 Conclusion

Note:
Each slide will run automatically in 20 seconds; you will presentation will
be about 3 minutes in total.
You can submit the presentation file no later than 25th November 2016.