The Effect of Trade on the Welfare of Local Communities on the RI-PNG Border

Main Article Content

Elsyan Rienette Marlissa


Over the past decade, the activities of the trade sector in the RI-PNG Border area have shown Indonesia's huge profits with a turnover of up to Rp100 billion per year. The Skouw – Wutung pilot market has proven to be a gateway for Indonesian goods to enter the PNG region (Kajian oleh Kementriaan Perdagangan RI 2015).
In its trade pattern, people who come from the PNG region and want to shop at the border Skouw market have a Cross-Border Card that is valid only within the cross-border area in lieu of passports, visas, and vaccination cards. This trade also affects the economic growth of local communities in the RI-PNG Border area. There are similarities in international trade and trade activities of local and cross-border communities, but there are differences in sales procedures and mechanisms.
This study aims 1) to determine the effect of trade on the welfare of traders of the local community of the RI-PNG border; 2) to find out the factors and strategies that support and hinder trade in local communities in the border areas of the Republic of Indonesia–PNG. The data used are secondary and primary data in the form of interviews and use a SWOT analysis tool (strengths, weaknesses, opportunities, threats) in the preparation of trading strategies for the welfare of traders.
The results of the study are: 1) Trade profile on the welfare of traders of the local community border RI-PNG has several characteristics, including ethnicity, age, gender, level of education, form of business and length of business, Net Trader Income within one week in the border market area, the highest reaching more than Rp. 4,500,000, - and the lowest reaching less than Rp. 500,000, - and the average net income which is between Rp. 500,000, - up to Rp. 1.500.000,- for a period of one week where there are three market days. 2) The highest supporting factor for success in the inhibiting factor is the quality of human resources (HR). Policy recommendations need to be made to strengthen the cooperative relationship between the government and traders. The government developed an entrepreneurship training program to improve the quality of human resources (HR) of traders, as well as market development and building public transportation routes from Jayapura city to the border area at Skouw market. From the results of the SWOT analysis, it was found that the SO Strategy, every existing strength can be used to take advantage of opportunities in order to support the increase in trade of Indonesian-PNG border traders.

Article Details