Small And Medium Industries Research Articles

The Role of the Ministry of Industry as the Main Stakeholder in the Development of IKM Centers in Indonesia

Small and medium industries (SMEs) are vital sectors in Indonesia's economy, with significant contributions to Gross Domestic Product (GDP) and job creation. The IKM Center, which groups small and medium-sized business units in one location, is expected to improve production efficiency and industrial competitiveness. However, many centers are experiencing problems in management and revitalization. This research aims to explore the role of the Ministry of Industry as the main stakeholder in the development of IKM Centers in Indonesia. Using a descriptive qualitative approach, this study examines the role of the Ministry of Industry as a regulator, facilitator, catalyst, investor, and strategic planner in developing SME Centers. The results of the study show that although the IKM Center has great potential, there are still challenges in policy implementation and management that require revitalization. The government is expected to continue to strengthen its role to support the sustainability and growth of the IKM Center in the long term

Analysis of Halal Certification in Small and Medium Industries in the Development of Halal Tourism in Tourism Areas in North Sumatra

Halal Certificate is an important thing for Small and Medium Industries to have in terms of marketing their products and for the economic welfare of the people. Likewise, for Small and Medium Industries located in Tourism Areas where it can develop Halal Tourism in these tourist areas. However, in reality there are many obstacles faced by Small and Medium Industries in terms of issuing these halal certificates. This study uses the Mix Methode research method where the authors conduct Indept Interviews with experts and business people then provide questionnaires to business people regarding the process of making halal certificates for the businesses they run. The procedures for making halal certification for Small and Medium Industries (SMIs) in the development of Halal Tourism in Tourism Areas in North Sumatra include: understanding halal certification requirements and attending halal assurance system (SJH) training, implementing a halal assurance system (SJH), preparing halal certification documents, registering halal certification (uploading data), conducting preaudit monitoring and payment of certification contracts, conducting audits, conducting post-audit monitoring, obtaining halal certificates. The results of this study indicate that only 50% of SMEs understand about halal certificates and procedures for making them. The obstacles in making halal certificates are not believing in the importance of halal certification for their business, not believing in the importance of halal certification for their business. For SMEs that have succeeded in having a Halal Certificate after a simple Linear Regression Test the results show that Halal certificates have a positive and significant effect on SME income of 77.7%.

The Effectiveness of Updating Data on Small and Medium Industrial Business Actors in the Industrial Sector at the Cirebon City Cooperatives, Small and Medium Enterprises, Trade and Industry Office

The development of Science and Technology (IPTEK) affects various aspects of human life, including in the context of organizations and government agencies. In Cirebon City, the management of Small and Medium Industries (SMEs) by the Trade and Industry Small and Medium Business Cooperative Office faces challenges in updating data that has not been fully computerized. This study uses a descriptive qualitative approach to evaluate the effectiveness of the IKM data update process. The study results show that the number of SMEs is increasing every year, although there are still obstacles, such as incomplete information and manual processes that slow down efficiency. The application of digital technologies, such as applications for data collection and update, is proposed as a solution to improve the efficiency and accuracy of processes. It is hoped that better data updates, facilitated by digital technologies, can significantly support the development of the creative economy of Cirebon City through the identification of more appropriate needs and opportunities, as well as the optimization of government programs in the SME sector.

Peri-urbanisation in Surakarta City and Economic Transformation in the Fast-Growing Region of Sukoharjo Regency

The massive development of Surakarta City, a city with a strategic location, has caused a butterfly effect on its surrounding area. This research explores the economic transformation of Sukoharjo’s peri-urban, specifically in five districts, namely Mojolaban, Gatak, Grogol, Kartasura, and Baki, as the area adjacent to Surakarta City. A quantitative approach is employed with descriptive quantitative analysis techniques and scoring analysis. Primary data collection is based on the results of stakeholder’s interviews and field observations and secondary data gathered from government documents and literature review. The study results show that in the period 2000 – 2020, there has been economic transformation in Sukoharjo’s peri-urban area, especially the changes from rural to urban characteristics. The transformation can be indicated by the changes in population, livelihoods, agricultural land use, regional investment, and the number of emerging small and medium industries (SMIs) in each peri-urban region in the northern part of Sukoharjo. This research contributes a perspective on the unique characteristics of the diverse economic transformation driven by different patterns of land-use changes. It recommends that policymakers foster the roles of peri-urban areas in creating mutual development and sustainable urbanisation.

Implementasi E-Katalog IKM Berbasis Website Pada Dinnakerind Di Kabupaten Demak

In this digital era, information technology is very important to develop small and medium industries (SMEs). The Department of Labor and Industry of Demak Regency seeks to improve the competitiveness of SMEs through a website-based e-catalog. The aim of this research is to create and implement an e-ICM catalogue that can be accessed online by the public as well as to evaluate how effective the catalogue is in promoting local products. Needs analysis, system design, implementation, and testing are the measures used in this research. This research aims to design and implement an SMEs e-catalog that can be accessed online by the community, and evaluate its effectiveness in promoting local products. The research method includes needs analysis, system design, implementation, and testing. The result is an e-catalog website that displays complete information about SMEs products in Demak Regency, including product descriptions, images, and manufacturer contacts. This website also has a search feature and product categories to facilitate users. Using the black-box testing method, the test was conducted with a usability survey of 22 respondents, which yielded a score of 86.8%. It is expected that the system will help develop small and medium-sized industries (SMEs) in Demak district, improve product visibility, and support the local economy.

Mamdani's Fuzzy Logic-Based Tapioca Optimal Production Amount Prediction System

This research focuses on the imbalance between supply and demand in the tapioca industry, especially on the scale of Small and Medium Industries (SMI). Such challenges involve price fluctuations and lack of efficiency in determining the optimal production amount. Using fuzzy logic as an artificial intelligence method, this research aims to develop a system for predicting the optimal amount of tapioca production that can increase efficiency, reduce waste of raw materials and energy, and stabilize prices. The data used in this study was obtained through interviews with resource persons who are involved in the field of tapioca SMI. Furthermore, the data was processed using the Mamdani Fuzzy Inference System method. The results showed that in the case of production when demand is 400 kg and cassava availability is 2000 kg, the optimal production amount of tapioca is 630 kg. This value is also consistent when proven using the Matlab R2015a application. This shows that the model can be relied upon in determining the decision on the amount of tapioca production by considering demand factors and raw material availability.

Implementation of the Government Regulation of the Republic of Indonesia Number 29 of 2018 Concerning Industrial Empowerment (Case Study in the National Shipbuilding Industry in East Java)

Indonesia is a maritime and archipelagic country that requires a fleet of ships to support the logistics supply chain throughout Indonesia. The need for the independence of the National Shipping Industry, namely Shipyards, must be developed and maximised so that it can support the reliability of the national shipping fleet. For this reason, Government policies must support the existence and development of the Shipping Industry. PT Adiluhung Saranasegara Indonesia is one of the national shipping industries in East Java which has partnerships with several SMEs (small and medium industries) in the production and operational processes. Researchers conducted research on the Implementation of Government Regulation of the Republic of Indonesia No. 29 of 2018 concerning Industrial Empowerment, especially in the Shipping Industry in the Scope of Institutional Strengthening and Empowerment of SMEs. This type of research is descriptive research with a qualitative approach which is analysed based on Van Meter and Van Horn’s theory, namely aspects of standards, goals and activities, resource policies, institutional characteristics, communication, performance, economic conditions, social, cultural, political and attitudes of implementers. As well as Milles, Hubermann and Saldana (2014) theoretical guidelines in data processing. From the results of the research, there are inhibiting and supporting factors for the implementation of this regulation. The inhibiting factor is that there is still no standard in the implementation of this regulation and the supporting factor is that the government has maritime stakeholders to support the implementation of the regulation. And the government is still not optimal in implementing this regulation. The new thing that the author found in the research is that PT Adiluhung Saranasegara Indonesia has implemented institutional strengthening which should be the obligation of the Government. Based on SWOT analysis (Strengths, Weakness, Opportunities, Threats) and the results of the Cartesius Strategy Diagram (SO-Strengths Opportunities), the strategies that can be applied are collaboration between shipping industry stakeholders to strengthen SMI institutions, increase Domestic Content Levels (TKDN), Technical Policies to support the implementation of these regulations, and maximise Technical Implementation Units (UPT) related to the National Shipping Industry SMI.

HALAL INDUSTRIAL PARK: INOVASI KAWASAN GREEN ECONOMY DALAM PEMBERDAYAAN INDUSTRI KECIL DAN MENENGAH

This research aims to explain the innovation of Governor Regulation No. 6 of 2022 on Roadmap of West Nusa Tenggara Halal Industrial Park. The research used integrated literature approach which are the combination between literature review and systematic review. This method used to explain the concept of the Roadmap of Halal Industrial Park in terms of the Green Economy perspective and the empowerment of Small and Medium Industries (SMI) in Wes Nusa Tenggara Province. The results show that the Roadmap of Halal Industrial Park is a clean and clear green location that functioned for scaling up and increasing productivity of SMI. The Roadmap of Halal Industrial Park ensures the sustainability of raw materials for industry through integrated urban farming. This regulation also assures the empowerment of SMI from the production process to market segmentation. Furthermore, the SMI will be encouraged to produce national and international product standards.

Analysis of Efficiency, Productivity, and Performance of Small and Medium Industries in the Sarbagita Region, Bali Province

This study aims to: 1) analyze the level of efficiency, elasticity, and the impact of inputs on the productivity of Small and Medium Industries (SMIs) in the Sarbagita region of Bali Province; 2) examine the influence of inputs and productivity on the performance of SMIs in the Sarbagita region of Bali Province; and 3) investigate the indirect effect of inputs on performance through the productivity of SMIs in the Sarbagita region of Bali Province. Non-probability sampling was employed, with a quota of 200 samples, and each district/city represented by 50 SMI actors. Data collection methods included observation, collection of relevant documents, and structured interviews using questionnaires. The analysis technique utilizes the Cobb-Douglas production function and SEM PLS. The analysis concludes that: 1) the use of capital and labor inputs has not yet reached optimum efficiency, and the elasticity of output to input is inelastic; 2) capital and labor inputs have a positive and significant effect on productivity, social capital has a positive and significant effect on performance, and productivity has an insignificant impact on the performance of SMIs in the Sarbagita region of Bali Province; and 3) there is no indirect influence of capital and labor inputs on performance through productivity in SMIs in the Sarbagita region of Bali Province. If the use of inputs, especially labor, is not well regulated, it results in inefficient operations and does not impact the improvement of business performance.

Perencanaan Desain Layout Optimal pada Unit Pelaksana Teknis Dinas Rumah Kemasan

UPTD Rumah Kemasan established by the Southeast Minahasa Small and Medium Enterprises Cooperative Office is a packaging service center for Small and Medium Industries (SMI), the construction of the Rumah Kemasan is based on the number of Small and Medium Industries (SMI) which has increased from year to year. The correcting problem faced by the UPTD Rumah Kemasan is related to the layout of machinery and equipment. The problem faced by the UPTD Rumah Kemasan is related to the layout of machinery and equipment. The conditions in the current areas of the Rumah Kemasan have not been determined and there is no planning and arrangement, this will certainly have a major impact on the operation of the UPTD Rumah Kemasan. There are two methods used to solve the packaging house problem, the first is BLOCPLAN (Block Layout Overview with Layout Planning) and the second is the CORELAP method (Computerized Relationship Layout Planning Algorithm) which can provide solutions related to optimal initial layout planning for the UPTD Rumah Kemasan. The results of data processing after being compared, the recommended layout is the output of the CORELAP (Computerized Relationship Layout Planning Algorithm) method, with the most optimal results, seen from several indicators and the results of the distance obtained based on the activity of the operating process map 49.2 meters and based on the distance of machines and equipment 65.78.

Prospects of Venture Capital Financing in An Effort to Improve The Welfare of Small and Medium Industries in The Maritime Area of The Riau Islands Province

This Study aims to know the prospect of venture capital financing in the frame enhancement welfare of small and medium industries (SMIs) in the province of Riau islands. The analysis method is qualitative with the technique of semi-structured interview used To explore information from micro industry players in the province Riau Islands. Research results show that venture capital financing has prospects For use by SMIs in the Province Riau Islands because the Province Riau Islands needs financing venture capital does not only give financing but also participates in the management company, so there is no loss of control in granting funds. SMIs in the Province of Kepri have also done so and have some criteria for becoming an investee or company partner venture capital. Venture capital own prospect For used in frame development of SMI’s in the Province Riau Islands. Study This gives a recommendation policy to government regions and stakeholders for establishing venture capital company areas in the form of a plan of action for the establishment of a Regional Venture Capital Company in the Province of Riau Islands.

Analysis of the concept of circular economy application by small and medium industries in West Java province (a case study: Padamukti and Cibodas villages, Solokan Jeruk district, Bandung regency)

Although small and medium enterprises (SMEs) have played an important role in Indonesia’s economic growth, they bring various environmental problems. SMEs in the manufacturing sector, also known as small and medium industries (SMIs) are the majority of business entities in Indonesia and are one of the most significant polluters. This study focused on several SMIs located within two villages (i.e. Padamukti and Cibodas) alongside the Citarik River, which is one of the Citarum River tributaries. The study aimed to identify the concept of circular economy application by SMIs in West Java Province consisting of an understanding of (1) the circular economy concept and (2) internal and external factors of the circular economy application. In this study, we applied the snowball technique, closed questionaries, strengths-weakness-opportunities-threats (SWOT), and quantitative strategic planning matrix (QSPM). There were 10 selected respondents, including 4 respondents who were waste generators, while 6 respondents were classified as waste beneficiaries. The study found that 100% of the involved respondents had never heard or understood the concept of the circular economy even though they had partially applied the 5R principles. By using SWOT, driving and barrier factors were identified. The reprocessed waste became a strength factor, while the lack of knowledge and expertise in waste management were two major weaknesses. Meanwhile, there was attention and encouragement from the government for SMIs that implement environmentally friendly businesses as an opportunity factor, and insufficient market availability or consumers are part of the external analysis. Sequentially, using QSPM we suggest that socialization of the circular economy concept needs to be carried out in the wider community as the priority strategy and policy recommendations, followed by policymaking and guidelines for effective circular economy implementation.

Evaluation of OHS practices based on work accident risk analysis using HIRA, FTA, and WISE methods (Case study: Plastic recycling business X)

The lack of OHS implementation is particularly notable in Small and Medium Industries (SMI), primarily due to limited knowledge and motivation concerning OHS application in their work systems. SME X, a plastic recycling business, has experienced several work accidents and necessitated hazard identification and OHS implementation for hazards with high and extreme risks. The HIRA method was employed to assess the extent of risk posed by various types of hazards. After identifying these hazards, the root causes of high and extreme-risk hazards were determined using FTA. Subsequently, measures were taken to mitigate the risks associated with high and extreme-risk hazards through WISE. The results revealed 28 potential hazards, with improvements focused on six high and extreme-risk categories. Proposed WISE interventions include the provision of Personal Protective Equipment (PPE), the use of ramps, the utilization of wheeled aids, and other enhancements to techniques and methods at each workstation.

Towards the New National Capital (IKN) in Indonesia: Premises and Challenges of Food Security

One of the successes of regional independence is food security. The essence of this paper dedicates the linkage between small and medium industry (SMI), population (Pop), food consumption (FC), and economic growth of agriculture, forestry and fisheries (EG_AFF) on food security (FS) towards a holistic New National Capital (IKN) in Indonesia. The comparative linear regression technique frames the data set starting from 2015 to 2021. Cross-regions that are qualified in “geospatial IKN” are focused into four clusters. From this analysis approach, it resulted in two important factors: (1) when SMI, Pop, FC, and EG_AFF increased, the simultaneous effect on FS increased; and (2) SMI has partial effect on FS in Balikpapan, Pop has partial effect on FS in Kutai Kartanegara, and FC has partial effect on FS in Balikpapan, Penajam Paser Utara (PPU), and Samarinda. This finding detects that SMI, Pop, FC, and EG_AFF guarantee food security in the short term. Finally, FC stimulates long-term food security in Balikpapan, PPU, and Samarinda, but has no implications in Kutai Kartanegara. The contemporary agenda is building an integrated agro-industrial system, considering alternative suggestions related to food productivity, and revitalizing revolutionary public facilities to separate food production centers from the new central government zone.

The Influence of Development and Alternative Solutions for the Development of Small and Medium Industries in Hst Regency, South Kalimantan, Indonesia

Analysis of the Effectiveness and Influence of Small and Medium Industry Development on the Income of Small and Medium Industry Actors in (HST) Regency. The research aims to analyze the influence of coaching and alternative solutions for developing SMEs in HST Regency. The research aims to analyze the influence of coaching and alternative solutions for developing Small and Medium Industries in HST Regency. This research is about Small and Medium Industry actors in the HST Regency Trade Service who had the opportunity to receive guidance from the Trade Service in the industrial sector of HST Regency. The respondents in this research were 38 respondents from Small and Medium Industry actors in HST Regency, and this research used quantitative methods, data collection techniques using interviews, observations and documentation. Data analysis by analyzing the impact on respondents and SWOT analysis. The F test is carried out to test whether development (X1), capital (X2), education (X3), labor (X4) and marketing network (X5) together have a significant influence on income (Y) from Small and Medium Industries ( SMEs). Based on the SPSS output table, the Sig value is known. is 0.000. Because the Sig value. 0.000 < 0.05, then according to the basis of decision making in the F test it can be concluded that the hypothesis is accepted or in other words Development (X1), Capital (X2), Education (X3), Labor (X4), and Marketing Network (X5 ) simultaneously influences the Income (Y) of Small and Medium Industries . Based on the diagram above, the position of SMEs by respondents is in quadrant III (negative, positive), this position indicates a business that is weak but has great opportunities. The strategy recommendation given is Change Strategy, meaning that the organization is advised to change its previous strategy. Because, it is feared that the old strategy will be difficult to capture existing opportunities while improving the business being carried out.

PEMANFAATAN LIMBAH ROTI MENJADI PRODUK YANG BERNILAI GUNA MENUJU PENERAPAN CIRCULAR ECONOMY

Bread is one of the products that are mostly produced by small and medium industries (SMEs). Along with the increase in bread production by SMEs, it has the potential to cause many environmental problems. The main environmental problems faced by the bread industry are waste management, efficient use of materials, water and energy during the production process. One solution that can be done to solve these problems is through the application of the circular economy concept. This research aims to study the production process of various flavours of bread and analyse the potential application of the circular economy concept for the development of a sustainable bakery industry by utilising bread waste into valuable products, and to learn how waste is handled in the bakery industry. The research was conducted through field observations and literature studies. The research data were processed, analysed and presented descriptively qualitatively. The results of the study show that the concept of circular economy that can be adopted in the bakery industry such as the utilisation of solid waste in the form of pieces of peeled white bread and unsold bread scraps, as animal feed ingredients.

Analisis Kelayakan Usaha Industri Kecil Menengah Tas Di Kecamatan Tanggulangin Kabupaten Sidoarjo

Small and medium industries (SMIs) have contributed greatly to national economic growth and community welfare. The important role of the SMI sector can be seen from the employment of 12.39 million people or contributing 66.25% of the total workforce in the industrial sector. The important role of the SME sector can be seen from the absorption of 12.39 million workers or 66.25% of the total workforce in the industrial sector. SMEs are able to contribute to the growth of the non-oil and gas industry by 21.22%. This research uses a qualitative analysis method with primary and secondary data. Data were collected through literature study, observation, interviews and documentation conducted on six informants of bag entrepreneurs in Kedensari Village, Tanggulangin District, Sidoarjo Regency. Business feasibility analysis is determined using the cost and profit analysis formula. The formulas used are R/C ratio analysis, B/C ratio, and ROI. Based on the results of research conducted on six bag entrepreneurs in Kedensari Village, Tanggulangin Subdistrict, Sidoarjo Regency, the analysis of R/C ratio, B/C ratio, ROI shows the results >1 which indicates that the business is feasible. This shows that the value of profits earned by bag entrepreneurs is more than the total costs and business capital incurred during bag production.

The Role of Green Marketing and Product Quality on Competitive Advantages of Natural Dyes Sasirangan Fabric: A Study on Small and Medium Industry (SMI) Lins Gallery in Banjarmasin, Indonesia

Green marketing is very important in creating a positive impact on the environment and society. By promoting environmentally friendly products and services, companies can become agents of change that contribute to improving the quality of the environment and society as a whole. In addition, Green Marketing also provides an opportunity for companies to build a positive image and strengthen relationships with consumers who are increasingly concerned about environmental issues. This study aimed to determine the role of green marketing and product quality on the competitiveness of SMI Lins Gallery in Banjarmasin. This study is qualitative research. Respondents to this study were consumers who made a one-time purchase and used the product with a total sample of 100 people. The analysis technique used in this study is SEM-PLS (structural equation modeling-partial least square) through SmartPLS 3.0 software. Green marketing has a positive and significant effect on competitive advantage in Lins Gallery's natural dye sasirangan fabric products in Banjarmasin. Product quality has a positive and significant effect on competitive advantage in Lins Gallery natural dye sasirangan fabric products in Banjarmasin.

Analysis of physical SAF policy planning and implementation for small and medium industries in Maluku Utara Province

Development related to Small and Medium Industries (SMI) in the regions funded by SAF is an interesting thing to analyze since the planning aspect is the basis for recommendations for improvement from this side in the future. In more depth, the evaluation of planning synchronization needs to see how far the Physical SAF supports priority programs in the regions in a desk analysis of the central-regional planning gap. The purpose of writing an analysis related to the Physical SAF in the SMI sector is to identify the relevance of the Physical SAF menu for regional development and identify a portrait of the integration of this fund with Major Projects and various problems at the site level in North Maluku. The analysis method uses a literature review approach and limited discussions with the local government. Based on this, it recommends: 1) the need for participatory SAF planning that is bottom-up, down to the community level; 2) the need for regional regulations to deal with obstacles to the implementation of the Physical SAF in the SMI field, especially during the COVID-19 pandemic;3) encouraging the acceleration of stipulation of Technical Guidelines for the SAF implementation as a primary reference for mapping the menu of SAF activities to be included in Regional Government Information System and accelerating the implementation of SAF activities by Regional Governments; and 4) strengthening the role of Bappeda as well as being involved in determining Priority Locations (coordination of Ministries/Agencies - Regional Apparatus Organizations and Bappeda).

Usulan Perbaikan untuk Meminimasi Reject pada Unit Produksi Keripik Sanjai Rina Kota Payakumbuh

Sanjai Rina is one of the small and medium industries (SMEs) that produces and sells sanjai chips. This study aims to identify aspects that cause rejected production in Sanjai Rina. This study uses the Statistical Process Control (SPC) method with the Failure Mode and Effect Analysis (FMEA) approach. The stages of the research started with problem identification, brainstorming, FMEA calculations, and recommendations for improvement. Identifying problems using the required to-quality method and IPO diagrams followed by brainstorming to identify the existing problems using fishbone diagrams in more detail. FMEA calculations design a questionnaire for RPN FMEA calculations by considering severity, occurrence, and detection weighting. The resulting rejected products are broken sanjai, burnt sanjai, and non-crispy sanjai chips. The research results found that the highest cause for each cause of rejection was the same, namely the potential due to low worker skill failure with an RPN FMEA value of 409.6. Several solutions can be proposed from this research, while the priority solutions are making work SOPs and making work instructions for the frying section.