Based on the development of local potentials can contribute to local revenue to improve local financial conditions and not rely on central and provincial funds. Local financial management should be improved in accordance with local wisdom and regional development needs. Human resources, especially in the field of planner in each SKPD should be given training and training on development planning as well as trying to improve mindset sense of belonging, needed to participate optimally in the development planning process. The activities of the development planning process have focused on the essence of regional development. The planning process is viewed from the holistic principle, the mechanism of development planning and its implementation is led by Bappeda and is controlled by all SKPD. Compliance of planning documents as a means of monitoring or evaluation undertaken by Bappeda to be well integrated and coordinated.

The planning process is seen from the principle of sustainability, monitoring and evaluation which is done macro by Bappeda every quarter. Each SKPD coordinates its activities by taking into account strategic plans so that Bappeda as a leading actor plays an active role in the process of development planning process. Enthusiasm in the planning process undertaken by all SKPD is very high and supported by human resources and financial resources. The planning process undertaken in Banyuwangi Regency seen from the principle of participation has been implemented. Interactive planning method used in this research, to make planning in the future based on current problems faced then designing planning design to overcome those problems. In national development planning as well as in regional development planning, planning approach can be done in two ways: sectoral and regional (region) approach. The purpose of this study is to analyze the preparation of economic development plans based on local economic potential in Banyuwangi by using interactive planning approach.

Limitations of funds as a stimulant are also not matched by the active role of local governments to emerge regulations to encourage superior sectors. Less optimal process of implementation of development process due to lack of synergy between sectors and target. Bagaimana caranya bisa mengikuti kegiatan Musrenbang Setiap usulan warga di RT yang bersangkutan dapat disampaikan melalui RT masing- masing. It can be seen that each agency tends to emphasize its duties and functions in development activities. Many problems related to the process of development planning in the region is the existence of вЂњego sectoralвЂќ between the government apparatus in carrying out development.

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