Establish the Regional Excellence through the Cluster Development of Small and Medium Manufacturing Industry Center with Effective and Dynamic

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One of the strategies for developing countries is spurring the development of regional excellence through the development of Small and Medium Manufacturing Industries (SMMI) with a clustering approach. With the industry cluster approach to the potential that exists in the region can develop due to be analyzed in a comprehensive and integral. Industrial cluster is to form an organizational structure for economic development and trade in the global context. Industrial cluster as an instrument of industrial policy is an effective platform to respond to economic decentralization and the development of effective SMMI in Indonesia. With industrial clusters, the potential that exists in the region can be developed in accordance with core competencies possessed. Cluster development of SMMI center effective and dynamic can be done with some of the following: (1) Industry cluster development approach needs is grown. The essence of the strategy is the creation of a unified and solid cluster to build a synergy to achieve an economic growth with a wide base. (2) With the passage of local autonomy, the SMMI sector plays an important role in national economic development. Open opportunities for local governments to provide facilities for the development of regional advantages (potential territory), including the development of SMMI. For that we need the synergy between the main activities auxiliary activities, and (3) Development of SMMI focused on driving regional economic groups, among which SMMI supporters, SMMI export-oriented group, and SMMI the new initiative. The motivation and contribution of this research, this research is expected to provide benefits or contribution of in the form of recommendations or fill in cultivate the creation of centers of Small and Medium Industry (SMMI) effective and dynamic, with industrial cluster development approach, in developing areas of excellence in other places. Because with regional autonomy has progressed at this time, it is evident that SMMI sector plays an important role in national economic development. The open opportunities for local governments to provide facilities for the development potential of the region, including the development of SMMI, with clustering approach. Keywords: regional excellence, cluster development, Small and Medium Manufacturing Industry (SMMI).