Analysis of the Impact of Policy and Political Economics in The Development of The Rattan Craft Industry in Cirebon

Abstract

ABSTRACTThe rattan handicraft industry is growing rapidly, supported by government policies in the rattan trading system and people who have expertise and skills in managing rattan into household handicraft products. The presence of this industry creates a pattern of relations in it as a symptom of political economy, where the pattern of relations which generally involves business and political relations develops into a pattern of relations between actors in the economy itself. These actors take advantage of the rattan industry for profit (rent-seeking) improperly or through transaction processes outside the economy. The results showed that the dynamics of the rattan industry development were highly dependent on government policies in the raw rattan trading system. The production process involves exporters, pengesub, raw material traders, and local traders. The rattan industry creates a relationship pattern in the form of exploitation and cooperation with three types of socio-economic-political relations between actors in the rattan handicraft industry. Rent-seeking can be categorized into local, national, and global rent-seeking.Keywords: rattan handicraft industry, political economy, rent-seeking actors