PENERAPAN KLASTER INDUSTRI PADA KAWASAN BATAM, BINTAN DAN KARIMUN DI PROVINSI KEPULAUAN RIAU

Abstract

Free trade agreement has lessened the existence of lndonesian products as seen in the current reports of interstates trade particularly after China joining the ASEAN free trade agreement. In response with tough competition from other countries in industrialization and businesses, producing low-price commodities through efficiency becomes a key strategy .This research attempted to see whether the formation of industrial clusters in special economic zones such as in the Riau Archipelago Province can create efficiency and increase competitive advantage of the Indonesian products. The research examined problems confronted by the province in producing competitive products through the creation of industrial clusters in Batam, Bintan, and Karimun regions. For this reason, the writer argues that successful industrial clusters need specific requirements in institutions, regulations, and infrastructures.