CHAPTER I

INTRODUCTION

1.1 Background

Approximately 65% of the total population of Indonesia (220 million) or

143 million people live in rural areas, whose main livelihood in the agricultural

sector in the general sense (including sub-sector of food crops, plantations, animal

husbandry, fisheries, and forestry).

The Rural areas in indonesia are very spacious, having population more,

lower level of education, income and health status, and also less accessibility to

the productive factors, venture capital and investment, and obtain information, so

that the progress and prosperity of rural communities far behind than urban

society. There is a gap or social and economic inequality between urban and rural

areas. Rural areas have very important the role and function, produce a variety of

agricultural commodities, fisheries and plantations to meet urban population

needs, for example raw materials for industry, and export commodities in major.

Therefore, the rural development efforts have been provided priority and must be

addressed seriously in the future (Adisasmita, 2006: 1).

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 In construction and development of the area, the infrastructure has a role

as a leading sector. Infrastructures in this regard includes transportation, water and

sanitation, electricity, irrigation, port and telecommunication, as well as social

infrastructure such as infrastructure of education, health. If infrastructure services

is excessive, it is a waste of resources, in contrary, shortage of infrastructure

services will obstruct the development of other sector, so that the construction of

this infrastructure should be based on the principle of needs (local needs) and

effectiveness (appropriateness).

Indonesia, the largest archipelago country in the world with maritime

terrioty is wider than mainland. The total islands of Indonesia are 17,508 islands

with coastline area of 81,000 km. About three-quarters (5.8 million km²) of

Indonesia terrioty is sea waters, which is consists of coastal waters, high seas,

bays, and straits. Those territory are territorial waters with approximately 3.1

million km² in area. Indonesia also has the right of management and exploitation

for fish resources in the Exclusive Economic Zone (EEZ) area of approximately

2.7 million km².

Indonesian fishery potential both sea and open waters/freshwater is

estimated 65 million tons/ year whose value of 82.064 million US dollars. By

having the great potency, then fishery resources is one of the key sector that can

be relied upon for the development of nation. In fact, maritime resources are

mentioned as the one of prime mover of Indonesia economics (Kordi, 2008: 1).

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 In the period of 2004, Indonesian fish production reached 6 million tons,

or 9% of the potential production (Kordi, 2008: 1). It means that the potential for

production and development of fishery is still very large, especially for

fishery(primary sector), the management of post-fishing (secondary sector), and

tertiary fishery sector.

1.2 Formulation of the Problems

At least, there are some fundamental problems of rural development in

coastal territory that are related to one another like a vicious circle, that welfare,

population and employment, shortage and lack of infrastructure problems, as well

as institutional issues. The first basic problem is poverty, both absolute and

relative poverty issues. Absolute poverty has defenition as the inability of rural

community to meet their needs appropriately based on pre-defined poverty line.

While the relative poverty related to inequality of ownership for assets and

income in rural areas which often also worsen people condition suffering in

absolute poverty category, and potentially result in other social problems, such as

envy and social unrest.

The second main problem is a problem related to human resources, namely

the problem of population and employment issues. The human resource issues

associated with the natural growth rate, health, education, low productivity level

and unemployment in rural areas. Rural areas are characterized by birth rate and

infant mortality that still relatively high. Those are related to the condition of the

health infrastructure in rural areas wich is relatively limited. The low level of

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health in conjunction with low levels of education result in a low level of

productivity of human resources, also lead to low income level and

unemployment due to limited skills and finally lead to the problem of poverty.

The third fundamental problem is the infrastructure shortcomings in rural

areas. Limitations of physical infrastructure, economic, and social in rural areas

has become a classical problem in rural development, but until now it has not

been resolved well, infrastructure improvement should based on the principle of

necessity and efficiency.

The fourth fundamental problem is an institutional issue. According to

North (1990) as cited in (Arsyad et al., 2011: 8), it includes institutional rules or

procedures that govern how people interact, and how organization implement the

rules to achieve the expected results. The rules include government law and

regulation, the rules used by private organizations, and public and private

organizations operating under public law and unwritten social rules such as social

norms, social sanctions, customs, and culture society (informal institutions).

These issues are not only availability of institutions in the field of economic,

social, political, and culture but also whether these institutions make a function

well or not. In addition, the attention and appreciation to social capital are the

aspect of culture that result in low development process or even sometimes

ignored, it should be terminated at all. The development is not performed in a

vacuum space but in an area whose not only human and physical resources but

also possess value systems, traditions, and culture.

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1.3 Research Questions

Based on the problems formulation revealed, relevant research questions to

analyze some problems of this study in the scope of the study of infrastructure

management and community development are as follows:

1. How are the physical condition and performance of fishery infrastructure

(such as roads, ports, fishing boats, ice plants, and gas station) in Puday

Village?

2. What are the prospects of economic development in the fishery sector in

Puday Village?

3. What are infrastructure needs and development opportunity through

partnerships in Puday Village?

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1.4 Research Objectives

Based on the problems formulation presented, as the research questions,

the objectives of research within the scope of infrastructure management and

community development are as follows:

1. Documenting the condition of fishery infrastructures such as roads access,

port capacity, fishing boats, ice plants, and Fishermen Gas fueling stations

conditon both the shortcomings and limitations

2. Investigating the prospects of economic development in the fishery sector

in Puday Village

3. Identifying the dvelopment need and infrastructure management processes

in Puday Village through the concept of partnership

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1.5 Benefits of Research

1.5.1 The theoretical benefits

The theoretical benefits expected of this research in improving the

knowledge and insight in the aquaculture development efforts are important to

observe both physical and non-physical aspect holistically. Economic growth is

the goal, but in managing and utilizing natural resources should be optimally not

the maximum exploitation that natural resources are not depleted and remain

sustainable development for the future.

1.5.2 Practical benefits

The practical benefits of this research is expected to be as a reference in

determining the consideration of policies and programs for regional development

of aquaculture in order to provide a positive impact for optimum economic

growth, social welfare, environmental conservation and sustainable development.