DEVELOPMENT STRATEGY OF LEADING COMMODITY THROUGH COMMUNITY-BASED ENTERPRISE IN INDONESIAMALAYSIA BORDER AREA
MULYO, JANGKUNG HANDOYO
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Indonesia-Malaysia border area in Sebatik Island is regarded as isolated and underdeveloped area both in social and economic aspects. Most of people in Sebatik Island depend on agricultural sectors. The farmers should sell raw commodity to Malaysia due to the lack of processing technology so they cannot get a higher added value to increase their welfare. This objective of this study is to find a strategy to solve the problem by developing a leading commodity. Leading commodity was identified by using Location Quotient (LQ) method based on secondary data provided by Agriculture Department of Nunukan Regency and Nunukan Central Bureau of Statistic, 2013. LQ analysis result was validated by Focus Group Discussion (FGD) that was held among Sebatik farmers as well as Sebatik and Nunukan government officers. Based on LQ analysis and FGD, the identified leading commodity is banana. The development of leading commodity can be done through the establishment of Community-based Enterprise (CBE). Golden Triangle Strategy that consists of three main components, namely rural agribusiness, community empowerment and the entrepreneurial community will be implemented in developing a successful CBE. These three components must be integrated and worked together to achieve community welfare.