**1. Introduction**

### **1.1 Global south and north**

Globalization that has been since the 1980s comes from the word global that means universal in one word that can be articulated as borderless, no barriers, and distances as if the ball ripped through the goal net forms networks and social interactions. Globalization a social phenomenon that was born in the twenty-first century through an egalitarian spirit toward a new modernity, apparently also creating a divergence between the northern regions that in fact are developed countries and the southern regions that symbolize Third World countries. In fact, compared to the global north the countries in the south region has a tool of investment.

The book entitled "A Brief Guide to Global Inequality and its Solutions" written by Jason Hickel [1], one of the Professor from the Institute for Environmental Science and Technology of the University of Barcelona and he is also an economist whose

writing focuses on economic issues of anthropology, inequality, imperialism, and political economy, saying: The strong narrative of framing aid from rich countries and international donors to poor countries through the act of pouring funds up to billions of dollars reflects so many aid flows, as if to give the image that rich countries have contributed so much to poor countries as well as developing countries.

The trend of inequality can be felt by increasing the number of poverty rates from the 80s to the 90s based on the basic figures released by the World Bank, namely US \$ 1.90/day, the significant difference in per capita income between the global north and south gives a hint as if colonialism occurred, and the south is made a playground for investment but on the contrary does not create prosperity.

Many world economists disagree that a country's economic growth is a mirror of a country's economic fundamentals not as great as the Government says with a series of publication figures such as everything controlled by numeric? Evidence shows that economic growth is often unable to solve the problems of poverty and unemployment, disparities in the production of service goods, and inequality in one region to another, and even inequality occurs in one country that is geographically a source of raw material supplies.

Another reference relating to the present situation is The Winners Take All: The Elite Charade of Changing the World by the author Anand Giridharadas [2] in his review writing about the investigation of how the efforts of global elites to "change the world" maintain the status quo and obscure their role in causing problems that they then want to solve, an important read to understand some of the horrific abuses of power that dominate the news today.

### **1.2 China's growth**

A country that has experienced a pace of economic growth in the last five decades obtained through an increase in GDP can be seen in the chart below (**Figure 1**).

The average GDP earned by China in the last 50 years was 8% was in 2007 reaching 14.2% until the COVID-19 pandemic hit with the worst achievement in 2020 worth 2.2% in its economic history and then back increase again to 8.1% in 2021.

**Figure 1.** *GDP growth of China.*

*Ultra-Micro-Business Algorithm: Village Economic Metabolism in the Coastal Area DOI: http://dx.doi.org/10.5772/intechopen.110242*

#### **Figure 2.**

*Number of small medium Enterprises in China Last Decade. Source: Statista, 2022.*

The accelerated pace of China's economic growth is inseparable from the contribution of small medium enterprise (SMEs) with the growth of the increase in the number of SMEs. Based on data in Q1 of 2022 every year, there are around five million more SMEs in China, representing at least ten percent year-on-year (YoY) growth rate. Since the economic reform in China 40 years ago or 30 years after China's independence, SMEs have become one of the driving forces of the economy. In 2019, the number of SMEs is estimated to be more than 38 million. In Beijing alone, there are more than 3100 industrial SMEs that generated more than \$2.8 billion in annual revenue in 2017 from a GDP of \$6.9 billion in the same year (**Figure 2**).

SMEs are important for economic development in China. Today, SMEs represent more than 90 percent of companies. They also contribute more than 60 percent to GDP and contribute 80 percent of national jobs. Thus, MSMEs play an important role in economy to promote economic growth, create employement, push for innovation, and generate a healthy environment for inclusive and sustainable economic development [3].

However, the SME cycle in China is often hindered by rising costs, financing difficulties, and limited innovation capacity. To support the growth of SMEs, the Chinese government decided to reduce the minimum mandatory demand requirement ratio as well as readjust tax policy in early 2019. Another strategy to bring together MSEs and investors is to open a Stock Exchange, for example Shenzhen which is centered in a city centered in Shenzhen one of the three stock exchanges in China besides the Shanghai Stock Exchange and the Hong Kong Stock Exchange. The Shenzhen Stock Exchange is the ninth largest stock exchange in Asia by market capitalization. The strategy is dedicated to attracting more SME investors as well as in China's fast-growing e-commerce economy, and some SMEs have developed their B2B e-commerce platforms to expand their sources of income. The revenue from this e-commerce platform is expected to reach 6.4 billion U.S. dollars in 20201 .

China's economic landscape is not symmetrical to other countries in South Asia including developing countries such as Indonesia. Another strategy from China in the global fight is the Belt and Road Initiative (BRI) that is a grand design in terms of

<sup>1</sup> https://www.statista.com/statistics/783899/china-number-of-small-to-medium-size-enterprises/ Ref. [4].

President Xi Jin Ping's geo-political strategy to penetrate a number of countries with yuan deposits in the form of loans in infrastructure projects such as roads, bridges, railways, and ports, and if we observe closely the aggressiveness of China's investment and trade today to various countries, especially countries in the South Asian region, which are carried out by state-owned enterprises of the Chinese government, this is China's geo-economic strategy. It is not enough just to invest, but another target is the distribution channel for goods and services for their SMEs which are strongly supported by the government, on the other hand this can potentially become an economic threat to countries that receive investment and distribution of goods and services.

#### **1.3 Global inequality**

Economic by the theory is a push margin, for that it is important to be careful and must realize that the ecological dimensions of the earth are layered such as Donut, inhabited by billions of populations with the support of social foundations (energy, water, food, housing, and so on) and ecological ceilings (land, water resources, air) whose function is like oxygen for people's lives.

While in other parts, the structure of world society today is like the shape of a supposed pyramid, in which few of the world's population are able to control large resources; on the contrary, poor people with a sizable population are at the bottom level of the pyramid. The question then there is the problem of inequality and there must be something wrong in the system.

The World Bank groups the population into three groups according to the size of the income: 40% of low-income residents, 40% of middle-income residents, and 20% of high-income residents. The gap is based on income, which describes the distribution of income in a community in an area or region at a certain time. In Indonesia, one fundamental cause is the income inequality that occurs in Indonesia, namely due to the lack of attention to small and medium enterprises (MSEs), and high economic growth will be meaningless if income equality is not distributed properly. In other words, well-being can only be felt by a handful of people.

Farhad Rassekh, a Professor of Economics at the Barney School of Business University of Hartford, wrote four theories about market economics (2016). In an occasion delivering his presentation at the University of Texas, he said "Free-trade does not necessarily mean free everything, it does not necessarily mean free migration, it does not mean free follow up capital to cross countries but focus on the free flow a goods and services. Trade promotes economic growth through labor productivity and investment against significantly income inequality in Indonesia".

Indonesian government policy with the availability of abundant natural resources focusing on interventions to rural areas where natural resources are located. The government focuses on efforts to increase the IDM scale (Village Development Index), which is built through three measurement variables, namely the Social Resilience Index, Economic Resilience Index, and Environmental Resilience Index.

The framework of government programs is primarily ensuring the accuracy of intervention on target by taking into account the characteristics of the village region, namely typology and social capital, although the government is aware of the implementation of programs faced with the challenges encountered such as the ability of human resources, technology, culture and various other dimensions.

Therefore it is very important to restore the metabolism of rural communities in facing of these complex matters to ensure that the national program policies

#### *Ultra-Micro-Business Algorithm: Village Economic Metabolism in the Coastal Area DOI: http://dx.doi.org/10.5772/intechopen.110242*

implemented in the Local Government's Medium-Term Development Plan will encourage the improvement and growth of the village economy.

The huge of state's assets dominated by the area of maritime, especially in coastal areas, is an opportunity as well as challenges in line with the aggressiveness of regional development carried out through government programs and the private sector, is one of the potential threats is loss of the livelihoods of the people from marine and fisheries product which incidentally is buffer the basic needs of urban communities as well as other problems such as the potential for climate and environmental change.

Several world rating institutions such as Standard & Poor and Moody often release the results of their research and convey information about the status of the condition of a developing country, including Indonesia in terms of finances that are most likely to be proven but inversely proportional to the actual facts.

Indonesia must re-recognize the nation's identity as a large nation with two-thirds of the sea area, which is the largest archipelagic country in the world, the sea that stretches from west to east Indonesia has 17,499 islands with a total area of about 7.81 million km2, of which 3.25 million km2 is the ocean and 2.55 million km2 is the Exclusive Economic Zone, while only about 2.01 million km2 is land area, so vast is the sea area that adA reflects having enormous marine and fisheries potential<sup>2</sup> .

This book tells about Banten which is one of thirty-four provinces in Indonesia and is located near the Sunda Strait, which is a national and international trade route for the Indonesian Archipelago Sea Channel (ALKI), and the Banten sea area is one of the potential sea routes. The Sunda Strait is one of the strategic sea traffic routes because it can be passed by large ships connecting Australia and New Zealand with Southeast Asia, for example, Thailand, Malaysia, and Singapore, thus making the position of the Banten Province very strategic, as well as one of its areas, namely Tangerang Regency.

Tangerang Regency as part of Tangerang Raya is the only area that has a water area in the form of an ocean area of 377.40 km 2 with a coastal area of 298.52 km2 based on the administration of the sub-district in Tangerang Regency consisting of 7 glasses and 23 peisisir villages consisting of Kronjo District, Mauk District, Kemiri District, Sukadari District, Pakuhaji District, Teluk Naga Subdistrict, and Kosambi Subdistrict [6].

Indonesia, which is 2/3 of the ocean, has great potential for an increase in GDP through the development of marine products and fisheries, but in reality coastal areas have not been able to utilize the advantages of their resources in the fact that it is less than 5 percent of GDP compared to 1.3 times GDP or 130 percent This chapter focuses on the coastal area of Tangerang Regency of Indonesia, which is actually the gateway to Indonesia because it is adjacent to Jakarta, the capital of Indonesia.

## **2. Rural coastal area: geo-economy and global race**

An ecoton are areas of steps transition between ecological communities, ecosystems, or ecological regions along an environmental gradient [7].

The history of Indonesia's sea area located on the islands that existed during the era of President Soekarno's rule did not belong to Indonesia, but at that time Prime Minister Juanda said that this was not true and asked a young man named Mochtar

<sup>2</sup> Website Direktorat Jenderal Ruang Laut, Kementerian Kelautan Perikanan-Indonesia https://kkp.go.id/ djprl/artikel/21045-konservasi-perairan-sebagai upaya-menjaga-potensi-kelautan-dan-perikanan-indonesia. Ref. [5]

Kusumaatmadja who was diligent in learning about international law of the sea to continue to carry out international diplomacy and in the end then the term. Wawasan Nusantara is the idea of Indonesia's territorial boundaries through the Djuanda Declaration in 1957, which is legendary and a world topic even though at first many countries opposed it and did not approve of it but in the end with a long struggle at the UN conference, Professor Mochtar Kusumaatmadja who at that time was the Minister of Foreign Affairs met American State Secretary George Shultz could claim that the sea inside the islands belonged to Indonesia and became an archipelagic country. All of that is mentioned in the United Nation on The Law of the Sea convention.

The sea area within Indonesia's territory is traffic for world economic trade, considering that Indonesia has five sea within the country's territory and this is hardly found in other countries; in general, other countries only have straits. The question then is how to leverage the power of geography into economic strength? We know that in the world there are six major straits or the term major straits because they are traversed by large ships such as tankers, mother vessels, such as Suez and the Panama straits. Four of the six straits are located in the Indonesian region, such as the Strait of Malacca, the Sunda Strait, the Makassar Strait, and the Lombok Strait. It is conceivable that if Japanese commercial ships descend from the north into the Makassar Strait into the Middle East and into Europe, while Australia wants to send its goods to China, it will pass through the Lombok Strait and Makassar Strait, while in the Malacca Strait Chinese ships entering from the South China Sea descend toward natuna and it can be imagined if thousands of ships a year pass through Indonesian territory.

How important the straits in Indonesia are for other countries such as China and Korea as a producing country that exports its goods to Africa, Europe and America always pass through the Strait of Malacca, until this triggers China to control it because it greatly affects the country's economy.

The description above reveals how powerful Indonesia's underwater treasures are, how bile is utilized and can be utilized for the benefit of the entire population, but not only under the sea, other economic sources from coastal areas have unusually high economic value, there will be no imports of salt, tuna, and so on, and all are met and even able to meet the needs of the population and the world market; not the other way around, the task increases due to damage to marine ecosystems and anthropogenic or human actions or activities either intentionally or unintentionally and carried out continuously, which have a bad influence on society because it triggers or accelerates the occurrence of disasters ([8], p. 248).

The sea is the source of life of the country and its main community in coastal areas that limit land and oceans is an ecotone area or meeting area of two ecosystems and is a buffer for the stability of terrestrial and marine ecosystems for that it needs to be preserved so that it continues to be productive and its biological resources can be utilized for the prosperity and welfare of marine biodiversity and there are various potentials such as energy, food, amenities, and many more that can be converted into goods of high economic value, not counting the marine service sector.

#### **3. Economic landscape and its challenge in the coastal area**

Producing various services for humans, various sources of life come from marine such as food sources and connectivity media as well as services in terms of protection of economic assets such as coastal protection, erosion control, and pollution control devices.

#### *Ultra-Micro-Business Algorithm: Village Economic Metabolism in the Coastal Area DOI: http://dx.doi.org/10.5772/intechopen.110242*

Marine management is a pattern to ensure the sustainability of fish resources and the environment as the carrying capacity of marine and fisheries communities, especially in coastal areas, which ultimately produces economic resources sourced from the use of resources and biodiversity. Indonesia is the country with the second longest coastline ownership in the world after Canada; however, the management of coastal areas with this length has not been optimally utilized evenly, and only 55 percent of the potential existing resources are utilized. Development in all sectors in coastal areas has contributed a lot to marginalizing local communities who generally have activities as traditional fishermen and leaving aside the sustainability of environmental ecosystems and natural habitats. Having the opportunity to live in a country that has the longest coastline in the world is a matter of pride for the people of Indonesia. This is because the length of the coastline indicates the length of the chain of socioeconomic life of the community.

Supriharyono in Syahrin [9] defines a coastal area as a meeting area between land and sea toward land coastal areas covering parts of land, both dry and submerged in water, which are still influenced by marine properties such as tides, sea breezes, and saltwater seepage. Meanwhile, toward the sea, coastal areas include parts of the sea that are still influenced by natural processes that occur on land such as sedimentation and freshwater flows, as well as those caused by human activities on land such as deforestation and pollution.

Coastal communities are compound communities that generally consist of fishermen, fish farmers, fish processors, traders, and dockers, as well as other professions. Coastal communities are often matched with an economy that is not yet prosperous and environmental health that is not yet decent, as well as low education. The dynamics of coastal communities with the complexity of the problems faced require a comprehensive strategy to be able to escape such social problems, not to mention other problems such as poverty levels due to economic uncertainty, damage to coastal resources from destructive management, and environmental health from the impact of waste, as well as the use of marine areas for fishermen open access and limited open access.

#### **3.1 Challenge**

The problems faced in the management of coastal and marine areas, especially in Indonesia, are dual utilization, unbalanced utilization, the influence of human activities, and pollution of coastal areas. Common problems faced by coastal communities include poverty levels (economic uncertainty), damage to coastal resources, and environmental health, as well as the use of marine areas for fishermen (open access and limited open access).

However, the problems of stimulating development in efforts to grow the village economy in coastal areas generally include several things such as: rising costs or prices due to inflation, financing difficulties, and limited innovation capacity strongly influenced by internal and external factors.

Through its "economic system as it is today" pushing the gap bigger and bigger between rich and poor, the population of rich people as little as it looks like a system does not work well, which then the sharp difference gives birth to the concept of poverty of a family so that in the end the poverty line is born due to source power, production, distribution in certain groups, and resources for the benefit of the masses should not be dominated by certain groups or parties, which describes structural

poverty. Josep Stiglist, Nobel Prize, Professor of Economics at Columbia University a book "The Price in Equality" states that the model built gives birth to inequality and poverty. Economic growth, which is symbolized by the increase in GDP, should have an impact on increasing the population of the business sector that produces goods and services absorbing labor; in fact, the opposite is true, and growth (growth) is actually growing the number of unemployed.

Anthropocene is a time that began when human activities began to have a global influence on the Earth's ecosystems. The term seems to have been used by Soviet scientists since the early 1960s to refer to the Quaternary of the current geological period. Anthropogenic activity leaves (sabbatical) a long enough trace for ecosystem life in the coastal areas.

Anthropogenic patterns create terrified (fear) economic metabolic loss due to loss of resources and biodiversity. Another challenge in the development of coastal areas is the sensitive resources such as Gumuk (sand dunes), wetlands, as well as coastal hazards, which are influenced by natural factors, such as earthquakes, landslides, tornado tsunamis, storms, large waves, tidal, and so on.

#### **3.2 Coastal landscape**

Various conditions experienced in coastal areas inhabited by communities with marginal characteristics experience various problems such as structural and cultural poverty, missed problems in development priority plans, and bureaucratic influences in the form of various authorities by each related technical institution often having an impact on programs that are not integrated and overlap. Another obstacle is that the development of commercial areas that convert rural areas into urban areas poses a threat to the socioeconomic structure of coastal communities.

Development aims to convert coastal areas into urban areas by changing the function and landform, changing the coastline with walls, increasing the number of buildings resulting in an increase in the number of populations both occupying the location and migrants, replacing non-functional vegetation, or removing part or all of the coastal endemic vegetation if not taking into account biophysical and ecological will degrade coastal areas, and for indigenous peoples the coast will be displaced and lose its livelihood and ultimately create new poverty and the threat of hunger.

According to J Lee, [10] a spatial pattern is something that indicates the placement or arrangement of objects on the earth's surface. Any change in spatial patterns will illustrate the spatial processes indicated by environmental or cultural factors.

The intensity of spatial planning development and regional development will pose a serious threat to three aspects, namely: economic, social and environmental in the form of ecological problems such as abrasion, sedimentation processes, waste which causes marine pollution and biodata will be disturbed so that it can result in endangered species existence.

Socially, regional development is a long-term problem due to discrepancy between rural communities and urban communities that are formed, Development in all sectors in coastal areas has contributed a lot to marginalizing local communities whose activities are generally traditional fishermen and leaving aside the sustainability of environmental ecosystems and natural habitats, because the length of the coastline signifies the length of the chain of socioeconomic life of the people.

#### **3.3 Spatial problems and anticipatory strategies**

Anticipating various threats of change, it is important to have a coordination of planning by various parties to obtain broad insights and perspectives on the future,

#### *Ultra-Micro-Business Algorithm: Village Economic Metabolism in the Coastal Area DOI: http://dx.doi.org/10.5772/intechopen.110242*

so that the distribution of management to one party and the development process continue to pay attention to various things so that coastal landscapes realize sustainable and developing development patterns. This case is specifically for aggressive development by parties, especially private sector (developers) who obtain privilege from the Government to carry out the development of one area or preservation term. Deregulation is exploited by business groups raised by state protection, and they are getting bigger and able to compete globally, which then can dominate the liberalization period.
