Small Scale Agricultural Industry Performance in Southeast Sulawesi, Indonesia

Abstract

This study aims to reveal the performance and various obstacles faced by small-scale agricultural industries in Southeast Sulawesi. Research, utilizing secondary data published by various government agencies, and primary data on small-scale agricultural industries located in 12 districts in Southeast Sulawesi in 2018. The results showed that small-scale agricultural industries employ 42.01% of the workforce in the sector industry, as well as the investment value which covers 59.73% of industrial sector investment in Southeast Sulawesi, but the value of agricultural products industry products only covers 26.57% of the total value of industrial products in Southeast Sulawesi. This condition is largely caused by small-scale agricultural industries with legal entities that are relatively small, only around 30.48 percent of the total small-scale industries in Southeast Sulawesi. This condition indicates that most small-scale agricultural industries have not experienced and become an obstacle in conducting partnerships with medium and large industries. Furthermore, Competition to obtain raw materials with larger industries in Java also makes it difficult for many local furniture industries to obtain better quality raw materials. Knowledge and skill of the workforce are relatively low compared to advance or big industries. These factors influence the ability to scale agricultural industries to access capital, to create good product design, manage their business as well as expand markets. That is generally the circle of problems that surround small and medium industries in Indonesia. Therefore, in the context of developing small and medium industries, the strategies used cannot be overcome by problems but all comprehensively.