Special Economic Zone (SEZ) development is becoming a preferable policy by the Indonesian government to boost economic growth in less-developed local regions. This is because of the promise that SEZ could attract investment and job creation based on local competitive commodities. One of these areas is Bitung SEZ, North Sulawesi - Indonesia, a coastal-based SEZ, as its strategic position for logistics, fishery resources, and coconut plantation. To explore the promise of growth proposed by developing SEZ in Bitung, we developed a Systems Dynamics model of the interaction between economic growth, social development, and environmental impacts. Based on the model understanding and development, we identified three factors the Indonesian government should improve: coconut plantation productivity, fisheries ship management, and education index. With these three factors in mind, several policy options were tested in the model, resulting in a more substantial impact than the business-as-usual condition.@en

A seaport attracts firms to it; such firms are often complementary and find ways to interact with one another, forming port clusters. The growth and decline of these clusters largely depend on government policies. Large port clusters have more economic activity but are also characterized by negative externalities, such as air pollution. This study investigates the dynamics and sustainability of the Tanjung Priok port cluster. System dynamics are used to examine the issue, and port cluster sustainability is assessed by modeling the dynamics of the system over a 20-year timespan. The growth of a port cluster has been found to positively influence the regional economy and the level of employment while also damaging the environment. This study investigates further the impact of an alternative port cluster development program (namely a free trade policy) and shore power system (SPS) program policies on the sustainability of a port cluster. The model indicates that when a free trade policy and an SPS program are implemented in tandem to maximize the economy and reduce environmental damage, they provide additional benefits.@en