IMPROVING INDONESIA'S COMPETITIVENESS: INNOVATION, VALUE CHAINS AND CLUSTER-BASES FOR REALISING THE HUGE POTENTIAL OF MARINE AND FISHERIES

This paper is intended to continue and complete a presentation by Porter (2009), focusing on innovation in the Indonesian fisheries. On 28 September 2009, Michael E. Porter gave advice to the president of Indonesia on the subject "How to improve Indonesia's competitiveness in the international world". According to Porter, the problems faced by Indonesia still include weakness in innovation and the low level of cluster-based development. One area of huge potential for Indonesia is marine and fisheries, which is managed by the Ministry of Marine Affairs and Fisheries (MMAF), who are the principal agency responsible for the planning, policy and administration that will determine future achievements. Porter's original concept requires additional in-depth study so that the fishery policymakers can choose and enhance a cluster-based strategy with value chains supports. The cluster-bases (Minapolitan) concept is actually an implementation of Porter's cluster concept for improving the competitiveness of the marine and fisheries sector and needs to be enhanced by ongoing study. [PUBLICATION ABSTRACT]