Competitiveness of Export-Based Competitiveness of Export-Based Small and Medium Industries (IKM): Case Study of Creative in DKI Jakarta

Abstract

Ministry of Industry assesses that the processing industry is still consistently contributing the most to the achievement of export value national. There are manufacturing industry sectors that have achieved low scores on the contribution of export value. Namely the apparel industry, wood industry, and industrial furniture. There are obstacles and problems for the three industries to increase export value. The problem is the low competitiveness of the three industries in exporting. This study aims to analyze and see the condition of the competitiveness of the Small and Medium Creative Industry in the KI Jakarta based on exports from the supply-side analysis. This research is qualitative research using interview and survey methods. The samples of this research were Furniture / Furniture IKM, Batik IKM, and Handicraft IKM which succeeded in contributing the export contribution value to IKM. The results of this study indicate that the conditions of the three creative SMIs in Jakarta have different capabilities and strategies in contributing to export value. Based on the results of the SWOT and SPACE matrix analysis, a special strategy is needed to increase competitiveness. Among them, the right strategies are Furniture IKM and Handicraft IKM located in the quadrant size “aggressive” which indicates that the Furniture IKM in DKI Jakarta is in a very good position in using its internal strength. Therefore, the strategies suitable for use by IKM Furniture in DKI Jakarta include market penetration strategy, market development, product development, backward integration, forward integration, horizontal integration, or diversification. Meanwhile, IKM Batik is in the quadrant position “Conservative” which indicates that IKM Batik is in a low or weak competitive position and must improve the company's strategic position to have strong competitiveness