Background of the study
As a country that was initially successful in agriculture, Indonesia has moved into a New Advanced Industrial Country as well as a platform that has been laid. Indonesia's industrial progress is on the one hand still based on agriculture or agro-industry base, especially palm plantation, cocoa, rubber and marine industries, but further development is done by overseas so that the added value of commodity economy is enjoyed by the country having more advanced processing technology and business management which are mostly engaged in the downstream industry and the marketing of the final product.
To assess and analyze the economy statistical data are required. This data works for decision-making tools. The economy is divided into 3 sectors namely the premier, secondary, and tertiary sectors. The efforts of development in South Tangerang city aims to improve people's lives. Mature planning is needed so that the development can be optimized optimally and tailored to the vision and mission of South Tangerang city. To calculate the regional economic indicators is PDRB (Gross Regional Domestic Product).
Primary business field group consists of 1) Agricultural field, 2) Forestry and Fisheries, 3) Mining and Quarrying. Group of secondary business field consists of a) field of processing industry business; b) Electricity and Gas Procurement; c) Water Supply; d) Construction. Then tertiary business field group consists of a) field of business of Big Trade and Repair of Car and Motorcycle; b) Transportation and Warehousing; c) Provision of Accommodation and Drinking; d) Information and Communication; e) Financial Services; f) Real Estate; g) Company Services; h) Government Administration, i) Defense and Social Security Obligatory; j) Educational Services, Health Services and Social Activities and Other Services.
The economy in Tangsel city based on Figure 1 is 73.07% is tertiary, 26.62% is secondary, and 0.32% is the premier.
Tangsel City's economic structure is dominated by wholesalers and retailers, and car and motorcycle repairs are around 17.56% with nominal value of 8.977 trillion rupiah. The second contributor category is real estate of 16.21% or worth 8.302 trillion rupiah. The third contributor category is a construction of 15.02% or equal to 7.690 trillion rupiah
Arising population is the one of set problems urban living. Others are land, economy, residence, litter, culture, governance administration, unemployment, quality of life, traffic, and hard competition. Furthermore, smart city can be one of solution for urban living question.
There are several indicators of smart city that are: 1) Smart Governance, 2) Smart Environment, 3) Smart Living, 4) Smart Mobility, 5) Smart Economy, and 6) Smart People. Those support city to become smart city.
In this paper, researcher focuses only on smart economy because South Tangerang city has good economic growth as long established 10 years ago. Smart economy is the proponent smart city. Smart economy show an economy which endorsed by technology innovation to make cost for consumer, investor government, importer, and exporter more efficient.
There are examples for targeting smart economy that are Holyoke (Massachusetts), Kochi (India), Malta, Manado (Indonesia), Nanjing (China). Smart Economy also describe a rivalry from own urban living. Indicators smart economy is innovation, productivity, innovation, entrepreneurship, patent, market information and openness.
From those explanations, researchers are interest in title “Analysis Criterion and Indicators Estimation Smart City in South Tangerang City, Banten Province (An Analysis through Smart Economy)
Identification of the problem
This research will describe smart city from smart economy, which has several indicators to support its.
Formulation of the problem
• How is the economy of South Tangerang City?
• How is information technology applied in South Tangerang City?
• How many employees are government and private sector that have capability to operate information technology?
• How many consumers use information technology to fulfil their needs?
• How many entrepreneurs use information technology in their business?
• Is there any exporter and importer use information technology in their process?
• What area regulation and procedure made by local government to support economy with information technology?
• How is smart economy in South Tangerang City?
• What are barriers and boosters for smart economy in South Tangerang City?
• Has smart economy applied well in South Tangerang City?
Objective of the study
According to research question, the research objectives are:
• For understanding economy South Tangerang City
• For understanding the progress information technology has applied in South Tangerang City
• For detecting the number of private and governance employees understand to operate information technology
• For detecting the number of consumers use information technology to fulfil their needs
• For detecting the number of entrepreneurs use information technology in South Tangerang
• For counting the number of exporters and importers use information technology in their business process
• For finding out the rules and procedures local government about innovation from technology which contribute to gross regional domestic product
• For understanding the component of smart city in South Tangerang City
• For understanding barriers and boosters Smart Economy
• For understanding the application of smart economy is suitable for stimulating smart city in South Tangerang
Significance of the study
The benefits of this research are
• Local government in South TangerangHopefully, output can be a material as basic information and consideration local government South Tangerang to apply innovation, productivity, entrepreneurship, images and trademarks, International Embedded, and flexibility labour market so that those can support the policy which make output effectively and efficiently
• Academic peopleThe output will become literature to add knowledge, and reference to provide information about analysis information technology to economic growth including innovation, available occupation, and international embedded, and images and trademarks as the proponent of smart economy.
• WriterThe output will increase concept and expand researcher's knowledge in regional economic research above information technology facing the indicators of smart economy.
• Future ResearchThis research will be the one of source information to be used as reference for future research.
2. Review of Literature
According to Letaifa (2015) there is several definition of intelligent city. Following definition will explain that:
• The city which can manage resource alone, plan maintenance activity, and supervise security aspect to obtain service maximum to their citizens.
• The city whose ICT's strengthen freedom for speech and transparent.
• The city which has tools to integrate all of life with camera, hand phone, and healthy equipment. Intelligence describes complexity analysis, model, optimise and visualise operational business process to make the best decision for instance Singapore (intelligent island), Toronto, Winnipeg, and Taipei City.
There is several definition of smart city. Following definition is
• A city which has good performance economy, people, governance, mobility, environment and live in the future to build smart combination from legacy and own decision, independent, and care to citizens.
• A tools of technology smart computer which build an important infrastructure and service such as administration, education, healthy, public security, property, transportation, smart tools, internet, and efficient.
• City which do and distribute information and technology information communication technology to support social and city growth through economic value added citizen's awareness, and efficient governance.
• Safety environment and efficient city centre with modern infrastructure from the future for instance sensor, electronic tools, and networks to stimulate continuity of economic growth and high quality life for example: London, Stockholm, Amsterdam, Vienna, Luxemburg, Turku, Eindhoven, and Montpellier.
Creativity city has several definitions that are:
• A city which obtain inspiration, culture, knowledge, and life to motivate her citizen's motivation to grow in their life.
• A city which innovate, develop, and propose welfare and occupation to her citizens, feel that they can be placement in area where science and creativity are grown up. Cultures usually add in this area where will not only increase worker's knowledge but also their economy.
• Smart economy enter economics' knowledge which innovation and technology consideration as the significant bulk booster.
• Smart economy put into cluster innovation implementation and mutual benefit each other between companies, research institution, and national development, implementation, and promotion through these networks.
• Smart economy mix economics' company and innovation or idea from economy. Smart economy is character from human capital utility (knowledge, skill and creativity, transform idea become process, product and service value added). Smart economy also make green economy through green company research (promote recycle source energy so that it can sink total cost).
• Smart economy is capability to organize available resource in developing and producing innovation solution.
• Smart economy is economics' networks developing new networks model production, distribution, and consumption.
• Smart economy is flexible economy and capability to openness, high value added, based on knowledge, creativity, social responsibility and green development.
• Smart economy is nice environment to increase economic growth and high value added integration economy.
• Smart economy distinguishes capability among economics' challenges, new occupations, new business establishments, raise interests, and regional competition.
• Streamlined town is identified smart city, as known as effective interest and skill maintenance operation city, new business, new students, new tourists, and residents.
• Smart economy is competitive innovation, entrepreneurship, intellectual ownership, efficient, flexible labour market and global market integration.
• Smart economy is green economy. It support carbon dioxide reduction industry and suggest “clean economy”.
• Smart economy relate to economic competition and innovative involvement, entrepreneurship, economic vision, efficient and flexibility labour market, local and international integration.
• Smart economy includes employment from information and communication technology in active economy, new smart business process, and smart technology sector. Smart business is characterized by business growth, new position, qualify addition and efficient profit.
• A city is called smart when it put investment on people, social equity, transport, and modern information, communication and technology (ICT) infrastructure as material sustainably economic growth and high quality of life, by means of wise management from natural resource, in the manner of government participation.
• Smart economy involve economy which is characterized by chief of business, make good business environment in order to attract old business and new business, the notable path from long term urban growth.
Smart economy indicators
According to Simon Kuznets in Jhingan (2010) economic growth is raise capability a nation or region to support economy goods for their residents, which is implemented by increasing national output continuity with additional technology and institutional adjustment, attitude and ideology which has been needed . Boediono (1999) in Almulaibari (2011) describes economic growth as explanation about what factors define increase in output per capita in long term and explain how those factors become growth process. Additional output must be higher than additional total citizens and in long term there is continuity growth .
Adam Smith in Tarigan (2005) illustrates one of factors defined that economic growth is residence development, additional citizens will enlarge share market and expansive market will increase specialisation in that economy . Moreover, specialisation will increase productive labour in order to raise salary and profit. In addition, the growth process will move until all of resource used.
David Ricardo in Tarigan (2005) gives different vision to Adam Smith. His opinion, citizen's development at the ending will decrease back economic growth rate to lower rate. The economic growth pattern has been starting from low total residents and relative abundant resources .
Schumpeter and Hicks in Jhingan (2010), there are differentiation in definition economic development and growth . Economic growth is alteration spontaneously and broken off in stationary condition which always change and replace equilibrium situation before meanwhile economic growth is long term alteration slowly and certainly happen through saving and population. Several economic experts differentiate definition between economic development and economic growth. Economic experts differentiate both definitions. Enhancement income per capita community is gross domestic products growth in certain year is divided by growth population rate, or gross domestic product which has occurred in a nation which is accompanied by reshuffle and modernisation economic structure (transformations structural). Moreover, economic growth has interpreted as escalation gross domestic products without staring those raise are bigger or smaller from growth population rate, or those expansion economic structure occur or not.
Economic growth rate is obtained by gross domestic regional products (GDRP) based on constant price. It comes from led GDRP value in y years to y-1 years is divided by y-1 years and then multiplied by 100 percentages. In counting economic growth is used GDRP based on constant price in order to describe the growth production real goods and service as impact of process production without incremental inflation.
Economic growth is influenced by several important factors as follow (Arsyad,2010) :
• Accumulation CapitalAccumulation capital is including all new investment such as land, fiscal tools and human resources, will be owned if there are savings and investing to enlarge output in the futures. Accumulation capital will add new resources and available resources.
• Growth PopulationGrowth labour and the things that relative to enhancement total labour forces are known as positive factors in stimulating economic growth, but the capability stimulate economic growth depend on the capability of economic systems application in absorb and employ available worker productively.
• Technology AdvancesAccording to economists, technology advances is important factors for economic growth. In simplest frame, technology advances are caused by new ways and old way which has been fixed to finish traditional occupations.
Supporting core competency based on regional competitiveness
Core competence first time is used by Prahald and Hamel (1990). Core competence is defined as collective learning in an organization/company, especially how to coordinate variation skills in production fields and integrated many technology development. Several understanding about core competence as like :
• According to Gary Hamel and C.K. Prahald (1994) in Report of KIID Kotawaringin Barat 2013, a capability company is supposed to build technology integration and core competence. This new paradigm is developed by to help company in order to effectively competitiveness in a dynamical global environment. A set of integrated capability from a set resources and supporting tools as the results from process of individually learning accumulation and organisation will significantly affect successful in competition. The capability that is operated alone will never optimize the best competitiveness .
• Hitt et al (2001); core competence is resource that owned and capability is collaboration tangible and intangible used as resource to make superior competitiveness company comparing to each other's ..
• Stewart (1999) in KIID Kotawaringin Barat 2013; core competence as skills or intangible talent which contribute value added and strategic value .
• Hammer (2001) in KIID Kotawaringin Barat 2013; core competence is set activities that can be well done by company so that company succeed in competitiveness .
• Kanter (2001) in KIID Kotawaringin Barat 2013; core competence as skills or distinctive skills are different to other company.
• Hit et al (2001) in KIID Kotawaringin Barat 2013; core competence an area is a capability resource area that is source of excellence competitiveness that area compare to others. As the results, when it is concluded on entity which larger than scope of company, then those area must be capable to dig their valuable capability such as not easy imitated and replaced by other regional .
• Kotler (1994) in KIID Kotawaringin Barat 2013; shows requirement that core competence must be main source for superior competitiveness in order to allow benefit for organisation growth, hard to be imitated and have large application. Core competence of regional industry is collective learning in variance element in a regional which coordinate the capability of variance production and integrate with optimally variance technology. Core competence of regional industry as known in national industry policy is set superior or unique source including natural resource and capability region to build competitiveness for purposing province development and regency/city to be independent. Building core competence region means coaching in order to upsurge competitive product which has been produced by an area to increase economic value added that is focus, effective, and efficient that is suitable to their potencies.
Core competence region has criteria as follow:
• Potential access to enter variance market or can be called backward linkage. Those orientation find proponent industry to be evaluation from industrial competitiveness.
• Processing can affect multiplier effect which can push other growth of economic activity.
• Becoming unique so that is hard to be imitated by competitor. Traditional knowledge which has commercial value must be registered to intellectual property because it has uniqueness.
This policy in industrial development in region has been pointed out to improve regional competitiveness through utilizing natural resource, capital, or other's tangible asset, also utilizing intangible assets for instance, technology, work process knowledge, and the best design. Region must be capable to conclude inference on privilege which has been owned that area. In this things become important for stakeholder to think clearly, and sharply what superior commodity can become product which has additional value and from series process to change commodity become product that can easily compete in market, which process will be chosen and become core competence region.
Economic development is defined as a process which caused raise real income per capita the residence in a nation in long term which is followed by fixing institute systems (Arsyad, 2010). According to Meier (1995) inside Kuncoro (2006), economic development is a process which income per capita a nation terrace for long time with notice that total population which live under 'absolute poverty line' do not increase and income distribution is not lame. The enhancement revenue per capita in long term is the key for defining an illustration of economic development.
Process development is released from achievement. According to Todaro (2006) process development at least has three core achievements that are:
• Increase in available and enlarge distribution many basic life's needs
• Increase in life's standard
• Enlarge in economic choices and socials.
Beside of having core aims, development in outline has key indicators which are classified become two that are economic indicators and social indicators. Economic indicators are Gross National product per capita, economic growth rate, GDP per capita and Purchasing Power Parity. Moreover, social indicators are Human Development Index (HDI) Physical Quality Life Index (PQLI) (Kuncoro, 2006).
Regional economic development
Arsyad (2010) allow regional economic development is a process which local government and community manage available natural resource and format a pattern partnership between local government and private sector to create a new employment opportunity and excite economic development within that area. Regional economic development is a process that is, process encompass format new institute, develop alternative industries, correct available work force to produce product and service, identify new markets, convert science and knowledge, and development a new company (Arsyad, 2010).
Economic development planning can be called as planning to fix utilization available public resource in that area and for repairing private sector in order to create value of private resource responsibility. In regional economic development is needed intervention by government.
If regional development is fully submitted to mechanism market then development and the result cannot be spread evenly (Arsyad, 2010) .
In accord with Arsyad (2010) economic social situation is different in every region will offer implication that is, scope of intervention government in each region is different as well . The distinction among region development rate, provide discrepancy regional welfare rate. Economic expansion of one region can supply negative influence for another region because available sork force, capital of trade, will be moving to region which has that expansion as follow Mydral (1957) inside Jhingan (2010) about backward linkage in a region .
Lazouria Soscia (2012) state smart economic factors boosters (obstacles) that are available (not available) innovation, available (not available) entrepreneurship, available (not available) economic images and trademarks, available (not available) international embed available (not available) productivity, and available (not available) flexibility of labour market.
3. Method of Research
Location of the research
This research will be done at related official governance with smart city that is Information and Communication Office and smart economy that is trade and industry office, Cooperative, Small Medium Enterprise Office, Fishery Agriculture, and Food Security Office, Regional Asset and Welfare Distribution Agency, Regional Revenue Agency South Tangerang city.
This research will be used interview and documentation study to fulfil the objective of study.
Source of data or population and sample
Source of data is secondary data which obtain from study literature books and prior research, Central Bureau of Statistic South Tangerang city, also interview other related agency, and interview related office and related expert.
Technique for collecting the data
Method which is used on smart economy of South Tangerang city is started on literature of study. Then, we visit related office and agency to complement data. That is:
• Gross Domestic Regional, employment rate, and others from Centre Bureau of Statistic South Tangerang city.
• Interview with Informatics and Communications of South Tangerang city
• Attaching question to several offices to obtain indicators smart economy such as, Regional Revenue Agency, Regional Asset and Financial Distribution Agency, Trade and Industry Office, Small Medium Enterprise and Cooperative Office, Fishery Agriculture and Food Security Office
• Asking several entrepreneur to know how much the cost for using ICT in their business
Technique of data analysis
This research uses comparative and competitive from cause and effect of fishbone diagram
Validity of the test
Validity of the test supports this research, that is:
• Credibility test is implemented by lengthen observation time, literature addition, triangulation (source, time, and technique) and friend's discussion
• Transferability test is made this research report more detail, clear, systematic, and significant in order to reader can decide whether this research is god or bad become reference's their research.
• Dependability test and conformability is made together with obtaining report step by step to supervisor.
4. Data Collection and Analysis
Economic growth and development
|Source: Centre Bureau of Statistic South Tangerang |
Table 1 show that economic growth South Tangerang City is the highest comparing to Indonesia and Banten. The economic growths from 2012 to 2016 are 8.66 percentages, 8.75 percentages, 8.05 percentages, 7.20 percentages and 6.98 percentages. The economic growth of Indonesia between 2012 and 2016 are 6.03 percentages, 5.58 percentages, 5.02 percentages, 4.88 percentages, and 5.02 percentages. In addition, the province of Banten among 2012 and 2016 are 6.803 percentages, 6.67 percentages, 5.51 percentages, 5.40 percentages, and 5.26 percentages.
|Component||GDRP Based on Expenditure (Million IDR)|
|Non-profit Private Institute Expenditure||70570.64||76268.24||80015.13||87623.21|
|Establishment of Gross Fixed Capital||14128123.08||15359536.36||15937570.7||16644710.09|
|Source: Central Bureau of Statistics South Tangerang City |
|Component||GDRP Based on Expenditure (Million IDR)|
|Non-profit Private Organization Expenditure||99877.13||103331.66||106082.85|
|Establishment of Gross Fixed Capital||17530641.24||17637358.8||18343476.41|
|Source: Central Bureau of Statistics South Tangerang City |
Table 3 Household expenditures from 2010 to 2016 are 27,436,459,850,000; 28,843,278,330,000; 30,741,517,590,000; 32,375,298,680,000; 34,007,214,340,000; 35,667,902,580,000; and 37,485,622,070,000. Non-profit Private Organization Expenditures among 2010 until 2016 are 70,570,640,000; 76,268,240,000; 80,015,130,000; 87,623,000; 99,877,130,000; 103,331,660,000; and 106,082,850,000. Government Expenditures from 2010 to 2016 are 643,174,140,000; 689,808,270,000; 699,016,060,000; 721,940,670,000; 720,750,610,000; 755,445,720,000; and 802,054,720,000. Establishment of Gross Fixed Capital from 2010 to 2016 is 14,128,123,080,000; 15,359,536,360,000; 15,937,570,700,000; 16.644.710.090.000, 17.530.641.240.000, 17,637,358,800,000; and 18.343.476.410.000. Inventory alterations from 2010 to 2016 are 1.900.153.700.000, 1.794.252.530.000, 2.311.528.680.000, 2,287,332,150,000, 2,017,657.010.000, 979,682,430.000, and 29,417,680,000. Exports in 2010-2016 are 20,782,871,460,000, 22,037,898,080,000, 22,437,890,350,000, 223,535,802,500,000, 24,189,342,890,000, 26,954,584,140,000, and 28,773,459,660,000. Import as a less in GDRP South Tangerang City.
|District||Total of Population (people)|
|South Tangerang City||1298504||1346102||1394405||1443403||1492999||1543209||1593812|
|Source: Central Bureau of Statistics South Tangerang City |
Table 5 show that economic development of South Tangerang City. In 2010-2016, there are 23.5, 24.7, 25.9, 27.2, 28.4, 29.5, and 30.5.
|In Million Rupiah|
|Kota Tangerang Selatan||1492999||1543209||1593812|
|Source: Author's own work|
Table 6 shows that the comparative HDI among city and regency in the province of Banten. Pandeglang regency from 2011 to 2015 is 59.92, 60.48, 61.35, 62.06, and 62.72. Lebak regency from 2011 to 2015 is 59.82, 60.22, 61.13, 61.64, and 62.03. Tangerang regency from 2011 to 2015 is 68.45, 68,83, 69.28, 69.57, and 70.05. Serang regency from 2011 to 2015 is 61.97, 62.97, 63.57, 63.97 and 64.61. Tangerang city in 2011 to 2015 is 74.15, 74.57, 75.04, 75.87, and 76.08. Cilegon city from 2011 to 2015 is 69.26, 70.07, 70.99, 71.57, and 71.81. Serang city from 2011 to 2015 is 68.69, 69.43, 69.69, 70.26, and 70.51. South Tangerang city from 2011 to 2015 is 76.99, 77.68, 78.65, 79.17, and 79.38. The province of Banten from 2011 to 2015 is 68.22, 68.92, 69.47, 69.89, and 70.27.
|Regency/City||Human Development Index|
|South Tangerang City||76.99||77.68||78.65||79.17||79.38|
Informatics and communications technologies in South Tangerang City
|Information and Communication Technology (ICT) Service||ICT service in South Tangerang city is still prototype of process business for Government. In addition, the service is still not integrated and well connected. This application has two builders that one is built by local government and the others are built by central government.|
|ICT Infrastructure||ICT network infrastructure in South Tangerang is provided by Information Technology Administrator Agency (BPTI), almost all Local Government Agency (OPD) until districts are well connected by LAN from local government, in fact, the output are still unreliable because there are some lack from network setting management. Moreover, OPD rely on other independent network to implement their operational work. Not all access is provided by local government for resident so inhabitant uses their own resource to follow developing needs.|
|ICT's Governance||There are two institutes handed ICT South Tangerang that are Information and Communication and Information and Communication Administration Agency (BPTI) in Regional Secretariat. Moreover ICT acceleration team support on coordination among developing information technology in South Tangerang city. The policy which is implementing now to establish ICT service is Major Regulation No. 6 of 2014.|
|Source: End Report of Study Estimation and Arrangement blue print Smart City in South Tangerang City |
Total government and private employees can operate ICT
Data in South Tangerang city is still not integrated yet.
The number of consumer using ICT
Table 8 shows that man and woman using hand phone / wireless are 84.99 percentages and 80.60 percentages. Man and woman having hand phone / wireless are 80.25 percentages and 76.14 percentages. Man and woman using computer (PC/Desktop, Laptop/Notebook, and Tablet) are 45.19 percentages and 37.31 percentages. Man and power accessing internet (including Facebook, Twitter, BBM, Whatsaap) are 70.17 percentages and 63.47 percentages.
Quintile expenditure from 1 to 5 using hand phone/wireless 65.10 percentages, 80.62 percentages, 83.22 percentages, 91.03 percentages, and 93.52%. Quintile 1-5 having hand phone/wireless are 61.70 percentages, 71.73 percentages, 78.45 percentages, 87.84 percentages, and 90.71 percentages. Quintile 1-5 using computer are 16.19 percentages, 25.36 percentages, 33.42 percentages, 56.12 percentages, 74.52 percentages. Quintile 1-5 accessing internet (including Facebook, Twitter, BBM, Whatsaap) are 42.14 percentages, 60.67 percentages, 66.24 percentages, 77.44 percentages, and 86.91 percentages.
Educative classification for people never school, graduated from elementary school, junior high school and senior high school or above using hand phone/wireless are 44.44 percentages, 75.17 percentages, 89.36 percentages, and 97.38%. People never school, graduated from elementary school junior high school and senior high school or above having hand phone / wireless are 28.95 percentages, 70.23 percentages, 86.05 percentages, and 96.66 percentages. People never school, elementary school, junior school, and senior high school or above using computer 17.95 percentages, 28.53 percentages, 27.96 percentages, and 56.28 percentages. People never school, elementary school, junior high school, senior high school or above accessing internet are 27.62 percentages, 48.59 percentages, 60.13 percentages, 87.41 percentages. In 2017, total citizens who have hand phone are 82.81%.
|Characteristics||Using Hand Phone / Wireless||Having Hand Phone / Wireless||Using Computer (PC/ Desktop, Laptop/Notebook, Tablet)||Access Internet (Include Facebook, Twitter, BBM, Whatsaap)|
|Never School Or Equal||44,44||28,95||17,95||27,62|
|Elementary school or Equal||75,17||70,23||28,53||48,59|
|Junior High School or Equal||89,36||86,05||27,96||60,13|
|Senior High School or Above||97,38||96,66||56,28||87,41|
|Source: Central Bureau of Statistics South Tangerang City |
Sampling Susenas on March 2017 for South Tangerang city about 880 household spread up in seven districts. The result is representative but it does not know the differences of living place.
Sampling is chosen by method of two stages from one phase stratified sample:
Step 1 Choose 25 percentage of resident census using Probability Proportional to Size (PPS), at size number of household from the result of SP2010 on every level.
Step 2 Choose the number of n-block census appropriate to systematic allocation in every level urban/rural per district or city per level of welfare.
Step 3 Choose 10 household which is updating systematically sample with implicit stratification based on highest education that have graduated household consumption (KRT).
Collection data use two questionnaires that are Kor Questionnaire (VSENI7.K) and Consumption and Expenditure Questionnaire (VSENI17.KP)
Total entrepreneurs using ICT
The data for entrepreneurs who use ICT are still not found in this research but after survey to UKM exhibition in Mayor Office on 21-22 May 2018, most of them use social media to promote their goods such as Instagram, Facebook, and Whatsap. They also have small groups to enhance and develop their skills in their selling.
Total exporter and importer using ICT
The data for exporters and importers using ICT have still not integrated yet.
The regulation to support economy with ICT
The rules support Smart City that is:
• Law No. 17 of 2003 on National Finance
• Law No. 1 of 2004 on National Treasury
• Law No 32 of 2004 on Local Government
• Law No. 33 of 2004 on the balance of the financial centre and local government
• Instructions for President No. 3 of 2003 on E-Government
• Informatics and Communications of Ministry Regulation No. 41 of 2011 on Public Guidance of Governance National Informatics and communications
• Indonesian Republic Trade Ministerial Regulation No. 13 of 2006 on Regional Financial Allocation Guidance
• Indonesian Republic Trade Ministerial Regulation No. 59 of 2007 on changing on domestically ministerial regulation;
• Indonesian Republic Trade Ministerial Regulation No 32 of 2008 on states budget revenues preparation guidance of budgeting 2009
• Government Regulation No. 24 of 2005 on Government Accountable Standard
• Government Regulation No. 58 of 2005 on Regional Financial Allocation
• Government Regulation No. 56 of 2005 on Regional Financial Information System
• Government Regulation No. 41 of 2007 on Regional Device Organisation (OPD)
• Government Regulation No. 38 of 2007 on Distribution of Affairs among Government, Province Government, and Regency/City Government
• Banten Province Regional Regulation No.2 of 2011 on Provincial-level Spatial Plan (RTRWP) Banten 2010 – 2030 (Regional Paper Banten Province of 2011 No. 02, Additional Regional Paper Banten Province Number 0211)
• South Tangerang City Regional Regulation No. 15 of 2011 on Urban Land Use Plan (RTRWK) of South Tangerang City of 2011-2031 (South Tangerang City Regional Paper of 2012 No. 01, Additional Regional Paper South Tangerang Number 0112)
• Law No. 23 of 2014 on local governance that the concept of smart city, local government is pushed on doing innovation and renewable, especially Information Technology based on society service. Innovation is all of renewable formed on implementing local government, among implementation the result of science and new technology in implementation government. Innovation policy districts show on principles: Efficiency improvements, effective correction, service quality correction, no conflict interest, public interests orientation, openness, following values of decency and can be accounted for the self-interest. 
• Mayor Regulation No.4 of 2016 on incoming mail and outgoing information system local government of South Tangerang city
• Law No. 17 of 2017 on innovation area
• Regulation Law Informatics and Communications Ministry No. 14 of 2016 on Guidance Form Nomenclature Informatics and Communications
|Years||Employment Rate in Knowledge Intensive Sectors|
|Source: South Tangerang City in Number 2010-2015 [20-27]|
Table 9 shows that employment rate in knowledge intensive sectors. In 2010 – 2015, employment rate in knowledge intensive sectors are 4.4 percentages, 7.4 percentages, 20 percentages, 30.9 percentages, and 83 percentages.
Patent in South Tangerang city are 41 in 2018. Comparing to population 2016 1.593.812, the fraction obtains result 0.002 percentages.
Table 10 shows Small Medium Enterprise in Ciputat Timur is 3.910; Ciputat is 4.165; Pamulang is 2.859; Pondok Aren is 5.021;Setu is 1.662; Serpong is 3.558; Serpong Utara is 4.825.
Table 11 shows Ciputat Timur, Ciputat, Pamulang, Pondok Aren, Setu, Serpong, Serpong Utara have 2.836, 2.284, 2.238, 3.563, 1.253, 5.222, and 3.275 Small Medium Enterprise.
Table 11 shows Serpong, Pondok Aren, Pamulang, Ciputat Timur, Ciputat, Serpong Utara, and Setu have 234, 602, 28, 278, 59, 406, and 100 new registered of Small Medium Industry.
|DISTRICT||DaTA SMALL MEDIUM INDUSTRY PER DISTRICTS|
|Source: http://disperindag.tangerangselatankota.go.id/ikm-tangerang-selatan-2017 |
Table 13 shows that type of task from workshop, smithy, furniture, service, crafting, the basic chemical, convection, the basic meal, food, printing, trading, ranch, and property have 55, 87 209, 112, 13, 4, 276, 9, 884, 22, 34, 1, and 1 Small Medium Industry.
|TASK||TYPE OF SMALL MEDIUM INDUSTRY|
|The Basic Chemical||4|
|The Basic Metal||9|
|Source: http://disperindag.tangerangselatankota.go.id/ikm-tangerang-selatan-2017 |
Economic image and trademarks
Economic Image and Trademarks in South Tangerang city are dodol cilenggang food, krupuk jengkol food, Krupuk RHR food, sagon bakar food, bir peletok beverages, anggrek flowers, batik of South Tangerang city, and kacang kranggan.
Table 14 illustrates productivity in South Tangerang city in 2011-2015. There are 56.6, 61.5, 63.24, 64.6, and 70.6 in million rupiah per employed person.
Flexibility labour market
Table 15 shows that proportion in part-time employment from 2010 to 2015 are 1.43 percentages, 2.59 percentages, 1.62 percentages, 0.86 percentages, 15,06 percentages, and 9.51 percentages.
|Years||Total Free Lance Workers||Proportion in part-time employment|
|Source: Author's own work [20-27]|
Working ages population from 2011 to 2015 are 957.896, 984.101, 1.070.776, 1.118.827, and 1.160.021 people. Workforces start 2011 until 2015 are 667.098, 638.659, 650.259, 705.312, and 685.752 people. Workforce is divided by two parts that are employment and unemployment. Employments from 2011 to 2015 are 587.163, 587.131, 620.627, 656.498, and 643.694 people. Unemployment from 2011 to 2015 is 79.935, 51.528, 29.632, 48.823, and 42.058 people. Not labour forces from 2011 until 2015 to 2015 are 290.798, 345.442, 420.517, 413.506, and 474.269 people.
Employment rates (TKK) from 2011 to 2015 are 88.02 percentages, 91.93 percentages, 95.44 percentages, 93.08 percentages, and 93.86 percentages. Unemployment rates (TKK%) in 2011-2015 are 11.98 percentages, 8.07 percentages, 4.56 percentages, 6.92 percentages, and 6.13 percentages. Workforce participation rates (TPAK%) from 2011 to 2015 are 69.64 percentages, 64.90 percentages, 60.73 percentages, 63.04 percentages, and 59.12 percentages.
Barriers and boosters for smart economy in South Tangerang City
Smart economy in South Tangerang City
The target of smart economy in South Tangerang City is to establish ecosystem which support economical society in harmony with adaptively regional superior economic to alteration that occur in information area nowadays, also increase financial literacy of society through many programs such as less-cash society. The target is manifested with three elements in smart economy that are industry, additional welfare of society, ecosystem of financial transaction. Initiative development of smart economy has implemented in several indicators as follow:
• Building competitive ecosystem of industryBuild regional competitive industry on leading sector which is integrated among primary (agriculture, fishery, farm, etc.), secondary (manufacture, processing, packaging, etc.) and tertiary (regional product market) industry.
• Manifesting welfareRaise welfare of society through increasing income household and employment also empowerment.
• Building ecosystem of financial transactionBuild digital ecosystem of financial less cash for financial transaction, bankable to access capital for entrepreneurship and push e-commerce and market place.
Economic growth and development
South Tangerang city is the biggest economic growth in province of Banten and Indonesia, even though from 2012 until 2016 the economic growth of South Tangerang city decreases. It means that GDRP increase but the total population is grower than (Simon Kuznets, inside Jhingan, 2010). In South Tangerang city, the components of GDRP such as, household expenditure, non-profit institute expenditure, government expenditure, establishment of gross fixed capital, inventory alteration, export and import from 2010 to 2016 describe that household expenditure is the biggest number to support GDRP and import is the biggest number to reduce GDRP of South Tangerang city. It means that the citizens of South Tangerang city is more consumptive than productive, it also can be seen from the data import which has bigger than export. Total population of South Tangerang city every years increases followed by economic development. Social indicator such as, HDI describes that South Tangerang city the highest for HDI among cities/regencies.
ICT's South Tangerang City
ICT's South Tangerang city has three focus that are service, infrastructure and governance. ICT's service well connected but not integrated each other's. ICT's infrastructure still unreliable but based on interview in five OPD they obtain limited so OPD rely on independent network and residence still use their resources for their needs. ICT's governance is supported by BPTI and ICT Office.
Total government and private employees operating ICT
In this research the number has not yet counted.
The number of consumer using IT
Man is bigger than woman for using hand phone, having hand phone, using computer, and access internet. The higher expenditure lever is more people using hand phone, having hand phone, using computer and access internet. The higher education is more consumers using hand phone, having hand phone, using computer, and accessing internet.
Total exporter and importer using ICT
Total exporter and importer using ICT has not been counted yet.
The regulation to support economy with ICT
The regulation to support economy with ICT has been made and the problem only in integrating among OPD.
Indicators smart economy for South Tangerang City
Innovation in South Tangerang city is very low in 2010-2014 but jumping in 2015.
Table 19 shows entrepreneurship in Ciputat Timur has changed in 1704; Ciputat has added 1881, Pamulang has added 62; Pondok Aren has increased 1458; Setu has hoisted 409; Serpong has sink 1604 and Serpong Utara has grown 1550.
The biggest from the smallest growth Small Medium Industry among districts in South Tangerang city are Pondok Aren, Serpong Utara, Ciputat Timur, Serpong, Setu, Ciputat, and Pamulang. The biggest alteration types of task from small medium industry are food, convection, furniture, service, smithy, workshop, trading, printing, crafting, the basic metal, the basic chemical, and property.
The productivity of South Tangerang city in 2011 is modest but until 2015 South Tangerang city succeed to increase productivity. Moreover, the flexibility and unemployment of South Tangerang city is very low. Lower unemployment in South Tangerang city is superb but most of them are workers not entrepreneurs.
International embedded in South Tangerang city is only companies which are located in South Tangerang city. The original entrepreneurs have not issued stock yet
Initiation smart economy based on local govrnment
Indicators smart economy South Tangerang city describes that the residences in South Tangerang city are low innovation, high entrepreneur, modest productivity, low flexibility, local product which only krupuk jengkol is favourite food, and economic image and trademarks which have not large market, and companies which have issued stock in stock market.
Smart economy in South Tangerang city divides to 5 local government agencies (OPD) such as, Regional Asset and Financial Allocation Agency of South Tangerang city, Regional Revenue Agencies, Food Security Agriculture and Fishery Office, Cooperation and SME Office, Trade and Industry Office.
Smart economy in South Tangerang City has delivered to local government agency, for instance. Food Security, Agriculture and Fishery Office (DK3P), Trade and Industry Office,
• Food security, Agriculture and Fishery Office (DK3P), Regional Regency Revenue,
• Trade and Industry Office
Table 21 shows that in 2011, 2012, 2013, 2014, 2015, 2016, and 2017, there are 322, 386, 90, 93, 63, 105, 84 companies who have exported their products. The values in domestic rupiah are IDR. 921.263.339,816 ($83.751.213), IDR. 1.007.116.353.738 ($91.556.032), IDR. 1.107.648.951.889 ($ 100.695.359), IDR. 565.169.578.382 ($51.379.053), IDR. 558.538.604.430 ($43.595.452,18), and IDR. 171.718.648.055 ($12.719.899,93).
|Source: Regional Revenue Agency|
Tabel 22 illustrates taxpayers who have paid from 2011-2018. Total number taxpayers who have paid 2011-2018 are 15.086, 17.889, 18.009, 18.811, 23.637, 21.210, 24.520, and 10.085. There are increase significant every years except 2018 because data 2018 is data in the middle of years
Starting January 1 2018 28.133 has succeeded.
|Source: Regional Revenue Agency|
Tabel 23 describes e_notification of tax due (E-SPPT) 2014-2018. In 2014 total tax payer who paid is one. From 2015 to 2018, user E-SPPT has grown about 115, 265, 564, and 514.
Table 24 describes non-duty on land and building right acquisition (NON-BPHTB). Firstly, NON-BPHTB for hotel is 46 hotels that are out town is none; Serpong are 22 hotels; Serpong Utara are 9 hotels; Pondok Aren are 8 hotels; Ciputat Timur are 3 hotels; Pamulang and Setu is none. Secondly, the restaurants which have paid by online are 1.061 restaurants that are out town is one restaurant; Serpong are 262 hotels; Serpong Utara are 300 restaurants; Pondok Aren are 350 restaurants; Ciputat are 33 restaurants; Ciputat Timur are 46 restaurants; Pamulang are 62 restaurants; Setu are 7 restaurants. Thirdly, the entertainments are 205 that out town are 16 entertainments; Serpong are 55 entertainments; Serpong Utara are 75 entertainments; Pondok Aren are 32 entertainments; Ciputat are 10 entertainments; Ciputat Timur are 2 entertainments; Pamulang are 14 entertainments; Setu is one entertainments.
Advertisement are 3.983 that Out Town are 1.814 ads; Serpong are 481 ads; Serpong Utara are 663 ads; Pondok Aren are 431 ads; Ciputat are 163 ads; Ciputat Timur are 161; Pamulang are 208 ads;, Setu are 62 ads. Total parking which have been paid by online are 229 that out town are 2 parking; Serpong are 58 parking; Serpong Utara are 59 parking; Pondok Aren are 55 parking; Ciputat are 19 parking; Ciputat Timur are 14 parking; Pamulang are 21 parks; and Setu is one parking. Groundwater total is 600 that out town is zero; Serpong are 92 groundwater; Serpong Utara are 153 groundwater; Pondok Aren are 133 groundwater; Ciputat are 76 groundwater; Ciputat Timur are 50 groundwater; Pamulang are 69 groundwater; and Setu are 27 groundwater.
Innovation of smart economy in South Tangerang City
• Developing small convection industry village in Sub district West Jurangmangu, East Jurangmangu, District Pondok Aren. 150 household small convection industry (Hawaii pants), it has penetrated Tanah Abang, Cipulir, Sumatera, Kalimantan, Jabodetabek, where process producing and marketing is very simple. There are some weaknesses such as design production, raw materials from the first hand (now the fourth hand) also capital and marketing system output production.
• Development of tourism village industry in sub district Kranggan district Setu. There are 107 households which product snacks, sangarai peanut, rengginang, cassava chips, banana chips, etc. Tourism in Karanggan is still natural so it could be tourism destination.
• SIDAKU is a set data of Small and Medium Size which is arranged on certainly correlated or cluster rules so user will be easier to arrange and to obtain information about availability Small and Medium Size.
• Portal Web SME is website which provide variance information, facilities and media for SME subject in promoting their products. The SME's subject and consumer can obtain information about other products in South Tangerang City.
• SIMONET (Transaction Monitoring System) is system application which is used to monitor transaction which is done by tax-payer in real time
• The development small industry village tempe in sub district Kedaung district Pamulang. There are 120 household small industry village who produce tempe. Production has been controlled by quality standard of Gugus Kendali Mutu. There are innovation such as tempe chips products which have variance taste
• Field Tax I: PBB CONNECTION and AMMPLOP PBB (Duty on Landand Building Right Acquisition Object Location Mapping of Independent Community Application) is a network communication system between Regional Revenue Agency, Urban Village Office, and Sub District Office to communicate information about completeness of file services duty on land and building right acquisition
• Investigation fields: SIPPP (Tax Audit Control Information System). It facilitate information system monitoring completion of tax audit, starting from proposal normative list of tax payer which will be evaluated until tax audit report. These modules are integrated in tax audit information system
5. Conclusions and Suggestions
• Economy growth and development are stable.
• ICT's South Tangerang city focus on Government but it is still not integrated.
• Data user's ICT for state and private employees, exporter and importer in South Tangerang city has not completed yet.
• The number of man, Quintile 5 and education in senior high school or above have bigger for using hand phone, having hand phone, using computer and accessing internet.
• Entrepreneurs in South Tangerang City have significant growth and they use social media, for example: facebook, twitter and instagram, to promote their products.
• The regulation is supporting smart economy
• Indicators smart economy has pointed out less innovation, growth of productivity, not flexible labour market, less public companies but large proportion of entrepreneur.
• Cooperative and SME Office have supported new entrepreneurs to start and organizing their business with free charge coaching technology. Trade and Industry Office have supported to note export and import, and patent, smart economy has not yet implemented well because the total patent is very low. Regional Revenue Office has supported online paying tax for Duty and Non-duty on Land and Building Right Acquisition. Regional Asset and Financial Allocation Agency has been integrated by SIAP BMD for e-planning. E-budgeting, e-reporting, non-cash payment and disbursement. Food security Agriculture and Fishery Office do not focus on smart economy.
• The barriers are so little companies have issued stock, there are no recorded air passenger, very low patent per inhabitant, very low proportion time and self-employment rate. Meanwhile the boosters are many businesses have registered, unemployment is very low under nine percent. Growth productivity is well and desire to be an entrepreneur is high.
• There are several programs that have been implemented well in South Tangerang city for instance, developing small convection industry village in Jurangmangu, development of tourism village industry in Kranggan, SIDAKU, Portal Web Small Medium Enterprise, SIMONET, development small industry village tempe producer in Kedaung, Field Tax I: PBB CONNECTION and AMMPLOP PBB, Field Tax II: e-ABT and Ads and Audit Fields: SIPPP
• Local Government must maintain economy growth and development so it always be stable
• Focus ICT's South Tangerang City is wished not only to government but also to society as well
• Data user's ICT for state and private employees, exporter and importer in South Tangerang City must be collected to evaluate how effective smart city in South tangerang City.
• It needs to socialize smart city because only senior high school above and man who have hand phone, using computer, and accessing internet
• It still needs implementation to socialize regulation for smart economy so every local government employees and residences know what is their rights and obligation.
• Increasing innovation, productivity and flexibility labour market
• Stimulating Food Security Agriculture and Fishery Office and Trade and Industry Office will support smart economy South Tangerang city.
• Trade and Industry Office must socialize how to patent their invention.
• Integrated the systems among OPD (local government) for smart economy.
• Make sure internet connection is stable for facilitating smart economy in South Tangerang City
This research cannot be started and done without Pak Irwansyah and Pka Suworo that is why the biggest thanks i offer to him. Secondly, writers thank to Head of LPPM and Dean of Economic Faculty that are Pak Ali Maddinsyah and Pak Dr. Ir. R. Boedi Hasmanto, M.Si. because without their permission and encouragement this research cannot be recognized by Higher Education and Technology Research Ministry. Thirdly, writers also thank to our colleagues such as, Pak Syamruddin, Pak Nefo Indra, and Pak Ahmad Nazir who have provided their time to help several problems in our research. Fourthly, writers would like to thank to Ibu Dian Anggraini,S.T., M.Si as head of ICT,s Human Resources and Corporative Smart City and her staff such as Pak Hasikin and Heri Darmawan from ICT Office because she has lent master plan smart city of South Tangerang city and has no burden to answer every question from us. Fifthly, writers thank to head of Economic department and Mbak Hijri from Economic department because they invited us to regional inflation meeting before ramadhan, Pak Artiyugo from Cooperation and SME Office because he has answered our question about micro small medium entrepreneur, staff from Trade and Industry Office, staff Regional Asset and Financial Allocation Agency, Pak Sriyono and Pak Bachtiar STP, M.Si. and other staff of Regional Revenue Agency, the head of planning from Food Security Agriculture and Fishery, Pak Sodikin and mbak Riyan from Tourism Office, and Head of administration of Labour Force Office.