Development Strategy of Indonesian Palm Oil Industrial Cluster Based International Trade Connectivity

Indonesia is the largest producer and the exporter of palm oil in the world which has three palm oil industrial cluster (POIC) areas that are Sei Mangkei (North Sumatera), Dumai (Riau), and Maloy (East Kalimantan). To carry out the delivery of palm oil products to the destination countries, the Palm oil from the three POICs must be transshipment in Malaysia and Singa­ pore. In line with this issues, a strategy to develop the POIC based international connectivity need to be done. This study aims to identify the actual conditions of POIC Indonesia, to deter­ mine the factors (internal and external) that influence the development of POIC, and to formu­ late priority strategy for developing POIC Indonesia. These are needed so that Indonesia can become a hub port of international trade especially in Asia. This research uses "Diamonds" Porter’s Model, gap analysis, and the Analytical Hierarchy Process (AHP). Based on the ana­ lysis connectivity, the main strategy that can be formulated in order to develop Indonesian palm oil industry cluster is infrastructure improvements. This strategy can be done if the government (the Ministry of economy, Ministry of industry and trade, Ministry of sea, PT PELINDO, and local government), private sector, academic, and the public is able to work together and inte­ grated.


Development Strategy of Indonesian Palm Oil Industrial Cluster Based International Trade Connectivity INTRODUCTION
Indonesia is the largest producer and exporter of palm oil in the world. Oil palm plantations in Indonesia in 2018 reached 14.3 million hectares and In 2020 Indonesia's crude palm oil (CPO) productio n rose from 46 million tons to 49 million tons or grew 6.1%, with the amount of production Indonesia is still the largest palm oil producer and controls 48% of the world market share (Wiryawan 2013, Crop Estate Statistic 2019. The export value of palm oil in 2011 reached US $ 16.2 billion for CPO products and US $ 1.55 billion for palm kernel oil (PKO) products. The large export value of Indo nesian palm oil to the international market shows the important role of the palm oil industry in Indonesia's economy.
The development of the oil palm in dustry through the ordering and building industrial clusters following the Decree of the Minister of Industry (KMP No.13/M IND/PER/I/2010) which has designated three areas as locations for the estab lishment of the oil palm industrial cluster (POIC), namely Sei Mangkei (North Su matra), Dumai and Kuala Enok (Riau), and Maloy (East Kalimantan). The three regions are currently not well connected to the domestic market and the interna tional market. So, to make a shipment, a transshipment must be carried out which causes Indonesian palm oil products to be unable to compete with Malaysian palm oil products, especially for downstream palm oil products. This is not in line with the concept of industrial clusters that will be formed by the government, where in dustrial clusters can be defined as geo graphic concentrations of related indus tries and their integrated institutions (JICA 2004).
The connectivity in the three areas of POIC Indonesia which has not been de veloped has made the competitiveness of Indonesian palm oil products not yet strong. Several things that need to be considered in the development of industri al clusters include identification and map ping of the characteristics and connecti vity of the cluster area with other regions, creating a conducive climate through im proving government policies, stakehol der cooperation, and providing supporting facilities and institutions cluster (Gumbira Said et al. 2012).
Based on this, a strategy is needed to develop an Indonesian palm oil industry cluster based on international trade. The objectives of this study include identifying the actual conditions of Indonesia's POIC (Sei Mangkei, Dumai Pelintung, and Maloy), determining external and internal factors that influence the development of Indonesian POIC, and recommending appropriate strategic priorities for devel oping Indonesian POIC so that Indonesia can become the entrance to the world oil palm trade, especially Asia.

MATERIALS AND METHODS
This research was conducted within eight months which took place in Bogor, Jakarta, North Sumatra, and East Kali mantan. The sampling technique used in this study was nonprobability sampling. Determination of respondents intentional ly (purposive sampling) through the ap proach of expertise judgment (Cooper & Schindler 2006). This technique is used because the selected respondents are experts who have the capacity and ability to formulate a development strategy for POIC Indonesia. The research involved several stakeholders in the development of oil palm industry clusters, namely: In donesian Palm Oil Society (MAKSI), Indo nesian Palm Oil Council (DMSI), Indone sian Palm Oil Entrepreneurs Association (GAPKI), Business Actors, Academics, Local Government.
This study uses two types of data, namely primary and secondary data. Primary data obtained from structured interviews using a questionnaire to ex perts as respondents. Secondary data were obtained from various sources through library studies, agencies, and other institutions as well as internet references. The technique of collecting data and information in this study was carried out by means of observation, in terviews, and literature study.
Data analysis uses the Berlian Porter model to analyze the internal and exter nal environment of POIC Indonesia. Por ter's Diamond Model is a competitiveness model to describe the competitiveness of a country (region) which consists of input factor conditions, demand factor condi tions, competition conditions in the con text of corporate (state) strategy and rival ry, as well as related supporting industries to produce competitive advantages in the form of power. competitiveness of indus trial clusters as a derivative of the gem model (Snowdown & Stonehouse 2006).
Analysis of the internal and external environment using the Berlian Porter model will produce a picture of the actu al conditions in POIC Indonesia. After that, it is followed by a gap analysis to get an overview of the actual and expect ed conditions. The gap analysis used as a benchmark is the Lahad Datu Palm Oil Industrial Cluster (POIC). After that, the strategy will be formulated using the Analy tical Hierarchy Process (AHP). AHP is a measurement theory using a quanti tative approach and/or intangible criteria (Saaty, 2000). Decisionmaking is done with a multicriteria approach through pair wise comparisons that come from a prefe rence scale among a group of alternatives (Saaty 2000).

RESULTS AND DISCUSSION
Analysis of the internal and external environment of POIC Indonesia is an alyzed using Porter's Diamond Model which is shown in Figure 1. The PorterDi amond Model used was adopted from the Oil Palm Industry Cluster Model (Pratiwi 2011).
Based on the results of the analysis of the internal and external environment, the actual cluster conditions are shown in Table 1. Form this analysis it shown that the readiness of POIC in terms of plan tation land is quite good, but it needs im provement in the element derivative prod uct. Infrastructure of land transportation, ports and other facilities is classified as need to be improved.
Gap analysis was carried out using the elements obtained in the POIC internal and external environmental analysis. In this analysis, POIC Lahad Datu, Malaysia is used as a benchmark as a reference for ideal industrial cluster conditions. The grouping of the condition scores for the elements is very poor with one (1), bad for two (2), good for three (3), and for very good for four (4). The results of the analy s is are shown in Figure 2 and Figure 3. The result of study shown that internal and external facrors which are classified as good are area plantation and synergy between central and local government. The others factors neet to be improved especially port and facilities that classifies as poor. Pahan (2011) said that develop ment of industrial cluster performance were need strong foundation of bussiness and economic environment competitive ness that manifested on supporting infra structure upgrading. This activity would support supply chain facility integration and network externality.
Analytical hierarchy process was used to formulate the strategy of development of palm oil industry clusters in Indone sia based on connectivity. This methode was used in the development of palm oil industry clusters in the East Kalimantan (Monayo 2013) and development strate gy of managing special economic zone Sei Mangke based industrial cluster and integrated (Febriano et al. 2017).
The results of selecting the priori ty cluster development for the oil palm industry in Indonesia were carried out using the analytical hierarchy process (AHP) method as shown in Figure 4. Based on the results of the analysis using the hierar chy process, there are several things that need to be done by the go vernment, the private sector, and aca demia, including improving regulations, improving infrastructure, and increasing added value through continuous innova tion. This result was in accordance with the result of Manayo (2013) that said the priority goal of development strate gy of POIC in East Kalimantan (Malay) was strategy allian ces with the main goal to increase export of derivated product.     (Pahan 2011). From this research (Figure 4), the government, in this case, the ministry of transportation, the ministry of industry, the ministry of economy, and PT Pelabuhan Indonesia have an important role in im proving infrastructure related to improving logistics systems, ports, transportation systems, as well as information and tech nology. The importance of supporting in frastructure were requisite for successful of industrial cluster and critical for Ministry Industry policy initiatives (Pahan 2011). In addition, to achieve international connec tivity, the transportation contract system should be changed from FOB to CIF, so it is hoped that more efficient connectivity is achieved as shown in Figure 5.

CONCLUSIONS
Based on the results of the analysis of the internal and external environment, several elements influence the develop ment of the Indonesian palm oil industry cluster. Internal elements that influence the development of POIC Indonesia are the area of plantation land, produc tion volume of CPO, land transportation infrastructure, ports and other facilities, government policies, and the core indus try and CPO processing. External fac tors that influence the development of Indonesia's POIC are industrial cluster competitors (Malaysia), product demand, central and regional government syner gies, distribution channels and palm oil exports.
Based on the analysis using a hierar chy process, what the government needs to do is improve infrastructure and in crease added value through continuous innovation. To achieve international con nectivity, the transportation contract sys tem should be changed from FOB to CIF. So, it is hoped that more efficient connec tivity is achieved.

RECOMMENDATIONS
Suggestions for further research are needed to add the factors that influence the development of the oil palm industrial cluster, which is compiled in Porter's "Di amonds" model. Further research efforts are needed to develop oil palm industri al clusters in each of Indonesia's POIC areas by adjusting developments in the field.