Standardization of Goods Prices in East Kalimantan

Samarinda, 11/10/12. The Central Government should not generalize the prices of goods in the East Kalimantan area, especially in the northern part of East Kalimantan with other regions, especially on the island of Java, because this will never reach an end point, because the prices of goods in East Kalimantan, especially in the North or border areas near the State of Malaysia, for example the cheapest cement price is IDR. 750 thousand up to the highest price reaching Rp. 1.5 million, this is the real price in East Kalimantan, not to mention the price comparison for basic goods for people's needs is very high compared to other areas.

This was revealed by the Mandiri National Community Empowerment Program (PNPM) evaluation team during the Rural Development Index meeting in the Propeda Meeting room on the second floor of the East Kalimantan Bappeda office, Jl. Kusuma Bangsa Number 2 Samarinda, led directly by the Head of Human Development, Drs. Hariyo Santoso. This meeting was held in collaboration with the Ministry of National Development Planning/National Development Planning Agency, attended by approximately forty-five participants, consisting of SKPDs from both the East Kalimantan Provincial Government and Regency/City Governments throughout East Kalimantan.

In accordance with the presentation material submitted by the Ministry of National Development Planning/BAPPENAS, in this case the Director of Urban and Rural Affairs, Deputy for Regional Development and Regional Autonomy, the background to this activity includes: 1. Identification of the potential, problems and challenges still being faced in rural development in Indonesia; 2. Mapping the status or level of development of villages in Indonesia so that it can assist in determining appropriate interventions for villages according to their respective conditions; 3. Mapping all villages in Indonesia according to ranking and rate of development, benefits of development, and impacts of development; 4. Utilize village rankings and rates for sectoral and regional development planning and evaluation.

Meanwhile, the aim of this activity is to compile a rural development index with the following targets: 1. Develop a theoretical basis for compiling a rural development index; 2. Identification of constructs, variables and criteria that reflect the level of progress in rural development; 3. Identification of rural development indicators; 4. Identification of the weight of each rural development criterion and indicator, and 5. Compilation of a rural development index.

The hope of the Rural Development Index is participation in the discussion of participants present so that they can provide ideas, suggestions and criticism for the process of compiling this rural development index both in terms of rationale, selection of variables and indicators, and data analysis.
The long-term direction of village development in accordance with the 2005-2025 RPJPN is community equality and increasing village competitiveness. According to PP 72/2005 concerning villages, the formation of villages is directed at the welfare of the community. In general, according to Law Number 32 of 2004 concerning Regional Autonomy, it is directed at community welfare, public services and regional competitiveness. In Amendment IV of the 1945 Constitution, the unity of the national economy and social welfare is arranged in Chapter XIV.

The preparation of the rural development index is based on the medium and long term vision for the village. From data on village potential in 2003, 2005, 2008 and 2011, it can be predicted until 2050. In the social sector, the number of villages, residents and families in villages continues to increase. In the health sector, the services of doctors, midwives and posyandu are increasingly fulfilled. Energy and electricity services are in line with needs. However, in the education sector, it is predicted that elementary school services to the population will decline. In the economic field, market services associated with population development have also decreased, whereas kiosk and shop services have increased.

Meanwhile, according to studies from the UN in 2007 and various other studies, the trend in the concept of rural development is moving from agricultural development (agricultural sector) towards development of rural areas. As a consequence, the substance of rural development includes various development sectors.

While the results of seminars on development indicators by the UN and OECD, as well as comparisons of rural development indicators by the UN and OECD, it was agreed that rural development indicators are more appropriate to be composite, rather than single. The composite indicators of rural development include: material standards, infrastructure, health, education, individual activities, social relations, environment, insecurity, politics and governance, and competitive economy.

The rural development index is intended to be used for all villages in Indonesia which can be stated as the core or core of rural development. Apart from that, rural diversity is formulated as constant regional and sectoral attributes.

Regional attributes include large island areas, provinces, districts/cities, underdeveloped, outermost, border, remote, post-conflict, disaster. Sectoral attributes include tourist villages, energy management, legal awareness, telematics base, and various flagship programs of ministries/institutions.

In accordance with the comparison of the preparation of rural development indicators in various countries, the development value is arranged in a composite manner. Currently there are two alternatives, namely: a. Composite value for each index, thus obtaining the 6 development indices above; b. The composite value is only one index which includes the composite of all the 6 indices above. (Public Relations of the East Kalimantan Bappeda/Sukandar, S.Sos).