ABSTRACT

In order to realize these targets, the Indonesian Ministry of Industry has set two approaches to build a national industrial competitiveness which is integrated and synergized with central and local government. First, through a top-down approach that develops of 35 industrial clusters priorities which is designed by central government and followed by the participation of selected areas based on international competitiveness as well as the potential of the Indonesian nation. Secondly, through a bottom-up approach that determines the core competencies that are the hallmarks of industrial areas, in which the central government helped to build it, so that each region has a competitive edge. Development of core competencies in the province called the Leading industry in the province and district/city called Core Competence Industrial District/City. The second approach is an approach that is based on the spirit of regional autonomy.