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SUMMARY
Metalcasting industrial cluster is located in Tegalrejo, Ngawonggo and Batur Villages in Ceper Subdistrict. he primary products of this region are agriculture tools and equipments, household appliances, engine tools and automotive components. Annual production capacity is at around 50.000 tons. he cash low is around Rp. 400 billion annually. Installed production capacity is at 150.000 tons/year. Ceper metalcasting cluster experienced its golden time in the year 1990s, with the establishment of more than 325 industries. Currently, only 25% is fully operational, 45% operates below their capacity and 30% had collapsed. he agglomeration of Ceper metalcasting enterprises producing the same metal products, the supporting industries and supporting services have formed a cluster, eventhough it has not been fully functional. he management of the cluster is run by Batur Jaya Cooperative.
Peranan dan Pemanfaatan Modal Sosial dalam Pengembangan Klaster
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grown and manifested into ‘gotong royong’ or collective action, which further stimulated the formation of metalcasting cluster.
he prominent social capital in the initial stage of cluster development is
bonding, but this type, the social capital will declining in line with the growth of the economy. In the developing stage and at a more mature stage, the cluster is formally institutionalized into Batur Jaya Cooperative. At these stages, the social capital improved into bridging, which involved external cooperation. When business activities slow-down, cluster would also transform, resulting in the decline of the social capital.
Social capital is critical in cluster development and therefore, needs to be supported and developed. he enhancement of social capital can be supported through formal and informal institutionalization of cluster and through government facilitation. he presence of formal institution such as the Cooperative that is run collectively and transparantly, has signiicant impact in the attempt to create and optimize social capital.
he transparant management of the institution resulted in the use of social capital not as instrument to maintain the status quo but beyond that, ofered greater beneit. In the context of informal institution, the social capital may be in form of working relationship created within family businesses, with the parent-owned business becoming the main kontraktor and their children’s businesses as the subcontractors. he infomal institution formed through family relation, kinship, groups, social network, norms and social rules strengthened the impact of the established social capital, which in turn helped build business survival and develop ties among business actors.
297 give priority to the development of SMEs through industrial cluster. Equally important, in eforts to improve social capital, there is need to facilitate the formulation of regulation that is condusive for MSMEs growth. In recent development, however, the social capital is facing greater challenges, due to global economic condition and the rapid changes of technology.
