Deskriftive analysis of oil palm agroindustry development of Special Economic Zone of Sei Mangkei as a new city in Indonesia

Abstract

This study aims to find out and analyze descriptively the business activities of oil palm agroindustry development Sei Mangkei SEZ as an industrial area into a new city in Simalungun Regency, North Sumatra Province-Indonesia. The article is part of the outors dissertation in the study in the Regional Planning. The research method used is Input-Output analysis and descriptive analysis of Indonesian regulations and policies. The Government of Indonesia has poured an initial investment of 2.7 trillion IDR to develop the Sei Mangkei SEZ infrastructure, plus state-owned enterprises and private investment, has amount 5.10 trillion IDR for year ended 2017. Does the impact of infrastructure development on the agroindustry Sei Mangkei SEZ make it a new city?. The results of the study conclude that Sei Mangkei SEZ oil palm agroindustry was developed through a public policy by forming an area in the form of a new city with the construction of facilities and infrastructure to produce spatial economic growth that affects each other in an economic system. Industrial sector as secondary operating in Sei Mangkei SEZ experienced an increase in the linkage function and a large interaction with the sector internally and the overall economic system in the interegional region. That the amount of investment used to build facilities and infrastructure in the region can improve the function of the region as a new city in Indonesia North Sumatra Province by the development of infrastructure, facilities of a high value of degree of sensitivity effect as push factor and pull factor as spread effect index.