BITUNG SPECIAL ECONOMIC ZONE (SEZ): A DYNAMICS STUDY OF ESTABLISHMENT AND DEVELOPMENT PROCESSES

In the context of regional development in Indonesia, Special Economic Zones (SEZs) are designated to accommodate industrial and economic activities for regional acceleration. To date, Indonesia has 19 Special Economic Zones that have been designated, one of which is the Bitung SEZ. In its designation, the Bitung SEZ focused on the fishery and coconut processing industry, as well as its derivative products. The development of the Bitung SEZ as a government product in the plan is expected to give trickling down effects to the surrounding, but in the practice, it does not escape problems (in the spatial, institutional, and socio-economic aspects). Thus, this paper aims to explain how the establishment and operational dynamics of the Bitung SEZ are based on the physical, policy, and social dimensions as dualism in development. This research used mixed methods, with data sources and materials obtained from the research, news, and planning documents. The findings of this study, the dualism of development occurs in both theoretical and practical settings, instead of creating a new growth center, development can also cause some problems.


A. INTRODUCTION
The history of special economic zone (SEZ) is inseparable from the emergence of industrial areas that existed in the 19th century. In 1876 an industrial area was developed in England, namely Trafford Park estate with an area of about 500 ha which was the largest industrial area until the 1950s (Kumar, 2008).  (Kumar, 2008). the residential area was also included in the business park area (Maramis, 2013).
However, the use of the term SEZ was only born in the middle of the 20th century. The term SEZ as an industrial park was introduced in Puerto Rico in 1947.
At that time, SEZ aimed to capture investment opportunities from the United States mainland (Kumar, 2008). This concept was later adopted by Ireland and Shift-Share analysis (Soepono, 1993).
LQ analysis was used to identify base and non-base commodities (Astasari et al., 2018;Hendayana, 2003;Tiebout, 1965), and Shift-Share analysis was used to identify changes in employment opportunities by sector (Soepono, 1993).
LQ Formula (Purwanti, 2009 Shift-Share formula (Soepono, 1993): rn=(E*n -En)/ En ri n=(E*in -Ei n)/ Ei n ri j=(E*ij -Ei j)/ Ei j E*i j : employment opportunity of local sector I end of year Ei n : employment opportunity of regional sector I regional early year E*i n : employment opportunity of regional sector I end of year En : total employment opportunities of regional early year E*n : total employment opportunities of regional end of year rn : total rate of change in employment opportunities of regional ri n : rate of change in employment opportunities sector I of regional ri j : rate of change in employment opportunities sector I of local This research used secondary data, which collects from several documents    (Bappenas, 2021;Papuling, 2021;Pratomo, 2020;Ramalan, 2021).

Local Regulation
The Bitung City Government is ready to run the SEZ program, this is based on the issuance of supporting regulations (see Table 2). The issuance of the regional regulation was the result of a policy that was formed before Bitung was  This regulation was formed to direct the development objectives of the Bitung City area (including space utilization and regional spatial patterns).
This regulation is the basis for the integrated use of the area and its potential. 2 Bitung Regional Regulation Number 7 of 2011 on Regional Medium-Term Development Plan This regulation was formed to guide government and community actions through a structured planning approach.
This regional regulation is the juridical basis for institutions in the Bitung city area in formulating regional development programs. 3 Bitung Regional Regulation Number 6 Table 3).
From the graph on Figure 3 internationally.

Social Aspect
The social dimension in the study focused on population growth and labor force growth as positive factors in spurring economic growth (Purwanti, 2009). Based on the results of population growth, Bitung City's population growth in 2014-2020 has increased between 200,000-230,000 inhabitants (see Figure   4). The increase in population is expected to increase labor growth which will improve the economy. In addition to population growth, the level of education can affect the quality of human resources as an economic driver (Todaro & Smith, 2003).
Based on the aspect of education, seen from the Net Participation Rate (NPR), Bitung City's NPR at the high school level is 56.9%. There was a decline in the high school level NPR in 2017 (see Based on the growth of the workforce (see Table 4