Analysis on performance of inter-regional cooperation institutions in improving regional economies of scale: a study of institutional aspects a case study of inter-regional cooperation of Banjarnegara, Purbalingga, Banyumas, Cilacap And Kebumen

Abstract

Cooperation between regions is an issue that needs attention from the government because of its role in helping to solve socio-political and economical problems in the region as a result of the negative effects of regional autonomy. For this reason, this study is focused on the study of the role of inter-regional cooperation in solving the economic problem, i.e. a low scale of local economy. By taking the case of the interregional cooperation institutions of BARLINGMASCAKEB, this study aimed to: (1) identify the factors that trigger the formation of inter-regional cooperation, (2) evaluate the performance of inter-regional cooperation, (3) determine whether the formation of inter-regional cooperation is an appropriate strategy for strengthening the scale of regional economy, and (4) formulate an appropriate form of inter-regional cooperation in order to perform its functions optimally. The data analyzed in this study are of primary and secondary data. The primary data were taken from the respondents by a purposive sampling while the secondary data were collected from the documents of various institutions such as regencies in figures, the report of SKPD activities, and the reports of BARLINGMASCAKEB Regional Management. By using a descriptive analysis, game analysis, transaction cost analysis and AHP (Analytical Hierarchy Process), this study obtained the following results: (1) the motivation to form the interregional cooperation institution was to conduct a joint marketing of the economic potential at the regional level and make cooperation and synergy among the regions to enhance regional economic development; (2) the resulted performance in terms of output or outcome is still at a very low level; (3) based on the game analysis and transaction cost analysis, the establishment of inter-regional cooperation institutions was effective and efficient to improve the regional economic scale; and (4) the autonomous form of inter-regional cooperation institution was the strategy selected by expert respondents in an effort to improve the functions of inter-regional cooperation institutions.