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The Effect of Management Capability on the Performance of Sasirangan Small and Medium Industry (SME) in South Kalimantan Province

The Effect of Management Capability on the Performance of Sasirangan Small and Medium Industry (SME) in South Kalimantan Province

The economic crisis that occurred in Indonesia since some time ago, whereas many large-scale businesses get stagnated and even its activity stopped. The Small and Medium Industry (SME) sector proved to be more resilient in facing the crisis. Given the experience that Indonesia has faced during the crisis, it is not excessive if private sector development is focused on SME. SME is placed in a factual position because SME is considered to accomplish the necessity to diversify national economy in order to protect it against economic fluctuation and crescents. Management capability is very significant in small, medium and large industries, where each requires management acti vities to coordinate the skills or the workers’ skills and the resources coordination owned by the company. The purpose of this study is to examine and explain the effect of management capability on the performance of Sasirangan Small and Medium Industry (SME) in South Kalimantan Province. The method used is a quantitative approach (positivism), because the obtained data from the survey results are in the form of numbers or digits which then analyzed using statistics to answer questions and test the research hypothesis. The result of the research shows that management capability has a significant direct positive effect on SME performance. GeSCA results obtained by path coefficient of 0.029* and CR = 4.28* (significant) are positive. This result indicates that management capability owned by SME Sasirangan owner can improve SME performance.
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Electricity Energy Saving Assessment for Induction Motors towards Sustainable Energy Practice in Indonesian Small and Medium Industry Yusak Tanoto

Electricity Energy Saving Assessment for Induction Motors towards Sustainable Energy Practice in Indonesian Small and Medium Industry Yusak Tanoto

As one of industrial scale, Small and Medium Industry (hereafter “SMI’s”) create a significant local pollution and other environmental problems due to the nature of these industries with their inefficient use of energy and other resources. Implementation of few options at little or no cost in the industrial sector could reduce carbon dioxide emissions by 10–30% of GHG emissions, while if improved technologies and financing mechanisms such as Clean Development Mechanism introduced by the Kyoto Protocol are adopted, further reduction may be achieved [1]. More than half of the total electricity energy used in industry consumed by motor driven systems [2]. Thus, industrial motors account for a major segment of electricity energy used in industry. Several energy saving strategies commonly available may or may not be fit with respect to several factors associated to the industry scale and their inherent characteristics.
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[Late-Breaking Paper]: Development of Downstream Cocoa Industry: Exploring the Role of Government and Small and Medium Industry in Partnership

[Late-Breaking Paper]: Development of Downstream Cocoa Industry: Exploring the Role of Government and Small and Medium Industry in Partnership

Abstract— Although the development of the downstream industry based on the local commodities has been a government agenda, particularly in Indonesia, few studies address the development of the industry at Small and Medium Industry (SMI) level. These papers examine the role of Government and SMI in partnership to develop the downstream cocoa industry. The six participant that represent government, academia, and the industry have been interviewed to explore the current partnership in the development of the downstream cocoa industry. Findings show the stakeholders that related to the downstream cocoa industry. The collaboration between the stakeholders lead by the government can affect the partnership in the development of the downstream cocoa industry. The study findings imply the importance of government initiatives, sustainable program, database creation, market creation, research partnership, and entrepreneurial spirit as a factor that must be enhanced to increase the partnership. The empirical findings of this study can be used as a basic knowledge to improve the development of the downstream cocoa industry at SMI level.
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Line Balancing And Optimization For Single Model Assembly Line At A Small Medium Industry (SMI).

Line Balancing And Optimization For Single Model Assembly Line At A Small Medium Industry (SMI).

This thesis content is about the line balancing and the method to solving the problem. The scope of this thesis focuses on optimizing the production line of a SME company using Witness simulation software. The implementation of this thesis will be done at the small medium industry located at Shah Alam. There are three alternatives solutions in order to manage bottleneck and optimize the production line. The first alternative simulate about eliminate the workstation for reducing the idle time. Assembly 1, assemble 2 and meter potting is the three processes that reduce the workstation. Next the second alternative is about adding the new workstation at the critical processes. There are three processes that add with new workstation to improve the production line. Programming, FOS passivation and final assembly processes is the process that add with new workstation. This alternative is suitable for use to produce extra capacity in production. Lastly, the third alternative is about reducing the cycle time to optimize the product output. All of the alternative will analyze and compare with the current production line. The best alternative selected to improve the production line. To improve this thesis, further research about simulation needing for improve the simulation result and can give more than three alternative for optimize the production line.
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SME Development Policies in 6 ASEAN Member States   Part 1

SME Development Policies in 6 ASEAN Member States Part 1

In relation to Indonesia’s policies for small and medium enterprises, when asking about the role of Japan, people always came back to the report "Policy Recommendation For SME Promotion in The Republic of Indonesia (July 26,200)” which was commissioned by the Ministry of Economy, Trade and Industry and submitted to Indonesia by Professor Hidejiro Urata of Waseda University. This report has been read by many people that are involved in policies for small and medium enterprises, and was a major reference to the government in setting their basic policies. Someone involved in the process said that this report contained all of the experience of Japanese small and medium enterprise policy, and is considered of great worth for Indonesia, who have not been able to set out clear policies up to now. However, there are problems with considering it as an actual proposal for small and medium enterprises in Indonesia itself, and Indonesia requires original policies which are directly aimed at their unique conditions. But as for what those actual conditions are, surveys are not complete, and it is necessary to wait for the results of full national investigation. As such, not only government institutions but chambers of commerce, industry groups, and grass roots organizations are required, but such grass roots industry groups are not developing. When asked what Japan could do to help in this regard, there was no specific response. It seems like it was a question that they weren’t ready for.
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AGGLOMERATION FOR SMALL AND MEDIUM FOOD ENTERPRISES PERFORMANCE MEASUREMENT

AGGLOMERATION FOR SMALL AND MEDIUM FOOD ENTERPRISES PERFORMANCE MEASUREMENT

ABSTRACT Geographic proximity to similar enterprises has become one of SMEs strategy in order to enhance their market. The proximity is usually called agglomeration or cluster industry. Hence, the aim of this paper is to measure performance of SMEs agglomeration. Performance measurement framework is designed using BSC with four perspective of measurement, thus are social, environment, financial, and internalbusiness processes. The assessment is executed using AHP which is presented based on the designed BSC framework. The measure is applied to an area in Malang city named Sanan which consist of SMEs produce and sell product relate to Keripik Tempe. The study reveals that agglomeration is success to increase all the cluster performance. The cluster performance is good with 75,70% achievement of their key performance indicator. Based on each perspective, the best performance achieve by social aspect that is 78,07% of the target, and the lowest one is economic aspect with 70,42% achievement.
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SMALL SCALE MEDIUM ENTERPRISES PROFILE  INFORMATION SYSTEM SUCCESS MODEL EVALUATION ON SMALL SCALE MEDIUM ENTERPRISES AT YOGYAKARTA USING DEMATEL AND ANP.

SMALL SCALE MEDIUM ENTERPRISES PROFILE INFORMATION SYSTEM SUCCESS MODEL EVALUATION ON SMALL SCALE MEDIUM ENTERPRISES AT YOGYAKARTA USING DEMATEL AND ANP.

In fact, Warung Perak has been internationally recognized, the customers are coming from many cities in Indonesia, Australia, Germany, England, and Asia, Customers may custom the orders by giving the picture, photo, and or specifications and possibly directly choose what has been displayed in gallery and or house, so that Warung Perak is classified as Make to Order (MTO) and Make to Stock (MTS) industry. The products’ difficulty may vary from a simple small size to a complex and huge dimension. Ironically, although Warung Perak has been internationally recognized however the information system is manually applied while using internet such Whatsapp only for communications.
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TNP2K | Reforming Policies for Small and Medium-Sized Enterprises in Indonesia

TNP2K | Reforming Policies for Small and Medium-Sized Enterprises in Indonesia

In the services industry, many restaurants we interviewed want to serve high-quality products, including meat, which is a basic item on menus. Restaurants want to ensure that the meat they are serving is fresh, meets halal certification and is up to their quality standards. However, local meat supplies can be limited. A restaurant owner in Makassar serves a traditional beef rib dish, known as sop konro, with almost every item on the menu. To prepare this dish, the restaurant imports meat from overseas because the same quality cannot be found locally. With this business model, the owner pays a high cost for the meat due to import tariffs. Restrictions on the amount of meat that can be imported mean that this business sometimes faces shortages of essential ingredients. A small number of firms we interviewed reported that they had little difficulty obtaining raw materials. Some firms had developed innovative ways to overcome obstacles with raw materials while maintaining diversity within their business. A food-processing SME in West Java is able to make banana chips with supplies from the local market but sweet potatoes are hard to find and chips are in demand. Their collaborative solution is to import sweet potato chips processed by other firms and to market them as their own. Rather than evidence that accessing raw materials is not a constraint, this exemplifies the types of creative solutions that SMEs turn to in the face of such constraints.
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Modified of UTAUT theory in adoption of technology for Malaysia Small Medium Enterprises (SMEs) in food industry.

Modified of UTAUT theory in adoption of technology for Malaysia Small Medium Enterprises (SMEs) in food industry.

UTAUT theories not only have four main key construct but also there are three additional constructs which are anxiety, perceived credibility and attitude toward using. This construct are theorized not to be direct determinants of intention. (Vankatesh, Morris,Davis, 2003). The UTAUT construct was develop from 8 models which are Theory of Reasoned Action (TRA), Technology Acceptance Model (TAM), Motivational Model (MM), Theory of Planned Behavior (TPB), Model of PC Utilization (MPCU) and Innovation Diffusion Theory (IDT). There are three broad type of extension/ integration to examined UTAUT in new contexts, such as new technologies (e.g, collaborative technology, health information systems, Chang et al. 2007), new user populations (e.g, healthcare professional, consumers, Yi et al. 2008) and new cultural settings (e.g, China, India, Gupta et al. 2008).
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ENTREPRENEURIAL ORIENTATION AND MARKET ORIENTATION ON THE PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES (

ENTREPRENEURIAL ORIENTATION AND MARKET ORIENTATION ON THE PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES (

Shift in the composition of national production is characterized by drastically decreased until cessation of production of goods and services that use a lot of raw materials/auxiliary materials/spare parts imported, although this kind of industry has a significant role in Indonesia's economy during this time. Most of the mainstay of export commodities such as textiles and textile products, apparel, and footwear are highly dependent on raw materials/auxiliary materials imported and the jobs that have been relied on to push the unemployment rate. Activities of land, sea and air which is the backbone of the distribution system is also highly dependent on imported spare parts, so that a continuous supply of services is very hard hit by the slump in the rupiah against the US$. Overall this has resulted in reduction of supply of goods and services overall (aggregate supply shifts to the left above), which raises the pressure of inflation (cost push inflation) and termination of employment as a result of widespread decline in national production.
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Payment Behaviour Of Small And Medium Size Oil Palm Plantation Borrowers.

Payment Behaviour Of Small And Medium Size Oil Palm Plantation Borrowers.

Financing has been one of the important key factors to achieve the success of economic and industry in a nation. As investor or entrepreneur, the level or amount of finance is the main support of the business pillar. However, for financial institute and creditor they are seeking for return but not for the success of a business. The financial institute will borrow the money to those who have the ability to pay back or to those who‟s financial support is strong or those w ho have a good payment history.

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A Snapshot of Indonesian Entrepreneurship and Micro Small and Medium Sized Enterprise Development

A Snapshot of Indonesian Entrepreneurship and Micro Small and Medium Sized Enterprise Development

From the APINDO SME FGD, the participants expressed concerns about the financial gap for MSME financing. Although there are several success stories in companies receiving commercial loans, generally speaking, most entrepreneurs still face difficulties in getting credit loans from banks. The SME diagram from an IFC report below shows that banks primarily target large businesses and corporate/multinational companies (Figure 4). The small and medium sized businesses, which account for approximately 30 percent of total business, have few financing institutions interested in funding them. 51 Meanwhile, MFIs only serve micro businesses, which consist of around 65 to 75 percent of the total businesses. Thus, it makes it difficult for small and medium scale businesses to get financing for their expansion. From the discussion, MSMEs and entrepreneurs were asking for an institution that can give a relatively large amount of loans with more flexible requirements from banks to expand their businesses without harming their operations. An entrepreneur in the garment industry gives an example that the interest rate that was offered to them ranging around 12 to 14 percent, while their profit margin is only around 18 percent. Considering the operation expenditures and other costs, it is highly unlikely for them to be able to pay back a loan at such high interest.
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 J00246

J00246

Since the monetary crises struck Indonesia at the end of 1997, the micro, small, medium-scale industries (MSMsI) have been receiving increased attention and become an interesting topic for research, as they play a role in absorbing work opportunities for the communities. Generally, researches in Indonesia show that they have a tremendous resistance against the impacts of economic crisis, and in particular, some that are export-oriented, immune against those impacts of crisis. The same assertion was made by Cameron, Rustanto, Thamrin, and Sandee (in Sandee, 2000); Sandee (eds., 2001), and Rutten and Sandee (2002). MSMsI are considered a strong economic power in time of crisis, although empirically there is no improvement in their performance and quality of life at a micro level, especially workers in this sector (Manning and Dierman, 2000; Kian Wie, 2004). The endurance of the industry has been well documented, but the actual phenomenon of MSMsI is still systematically difficult to explain. The industries have many variations 1 ; there are MSMsI whose activities are based in the company and others outside the companies or their workers’ houses. The current definition of MSMsI is mostly directed to company-based ones. It means that most of MSMsI whose activities are at their workers’ houses or based on the putting-out
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Small Medium Technological Enterprises and Local Economic Resources Development to Promote Activities of Industry and Trade, in Solok City West Sumatra, Indonesia

Small Medium Technological Enterprises and Local Economic Resources Development to Promote Activities of Industry and Trade, in Solok City West Sumatra, Indonesia

When compared with the areas of influence such as Sijunjung Regency, South Solok Regency and Solok Regency, the conditions are contradictory. In those regions, the economy is more concentrated in the PRIMIER ECONOMY, such as food crops, plantation crops, livestock, forestry, fisheries, mining and quarrying, etc.Solok City economic development can not be separated from the influence of neighboring areas, including the influence of the capital city of Padang and vice versa. Neighboring areas are requested or not, regulated or not, will automatically give effects to the economic growth of Solok City, and vice versa. From the values of LQs, it can be seen that Sijunjung Regency, South Solok Regency and Solok Regency turns out that the economy is dominated by the activities in the PRIMIER ECONOMY. The implication is that the surplus of primary products or commodities in these regions can flow into Solok City as the production input for supporting the secondary economic activities in Solok City. In this case, these commodities can be used as the raw materials for enlargement of SMTEs in Kota Solok.Conceptually speaking, a City like Solok City must be prepared as an engine of regional economic growth. Therefore a city does not necessarily have to develop its economy based on the products or commodities of the primier sector. Commodities from the primary sector in neighboring areas or from other regions may be processed in the Solok City in this case and marketed through the services of firms owned by the residents of Solok City, see Fig 1.Therefore a City should be directed as a center of trade activities, industrial processing and industrial services. This means that the city's economy should be more driven by secondary and tertiary economies.
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Multi Criteria Evaluation Based Motor Energy Saving Strategy for Small and Medium Scale Industry

Multi Criteria Evaluation Based Motor Energy Saving Strategy for Small and Medium Scale Industry

Abstract—This paper presents investigation on multi criteria evaluation of induction motor energy saving strategy particularly applied in the small and medium scale industry. A walk-through motor energy audit is carried out in a typical type of enterprise to collect some important data. During the research, three induction motor energy saving strategies, by which energy efficient motor, variable speed drive, and capacitor bank are considered with respect to five criteria thought to influence the decision making in selecting suitable energy saving strategy for motor. With the support of economic as well as technical data required for each strategy, the multi criteria evaluation using analytic hierarchy process offers feasible solution corresponds to their inherent characteristic. It is revealed that capacitor bank is the most suitable saving strategy to the case of small and medium scale industry in this research and thus suggested to be provisioned at the first priority, followed by variable speed drive and energy efficient motor, consecutively.
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The Role of Regional Government in Growing Small and Medium Enterprises’ Performance towards Creative Industry in Jambi Province

The Role of Regional Government in Growing Small and Medium Enterprises’ Performance towards Creative Industry in Jambi Province

The variables studied in this research are the role of government and SMEs creativity, the role of government is a set of behaviors expected by others of someone with a certain status, the measurement of the government’s role by referring to Law Number 20 of 2008, Piterou & Birch (2014) which measures the role of the Government through 7 (seven) indicators. The second variable studied is the SMEs creativity, which is the capacity or ability to produce or create something unique (Ministry of Tourism and Creative Economy, 2014) that gratify creativity through 3 dimensions. The study was conducted in 7 (seven) districts, the basis of the district is based on topography, which divides the west, the middle, and the east. The selected SMEs are the handicraft, culinary, and fashion sectors, the basis for the selection of these three sectors is they are able to contribute greatly to Jambi Province. The selected sample is 200 respondents. The sampling technique for the respondents in a purposive sampling and the samples taken already meet the criteria that have been determined. Data collection
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Keywords ; small and medium enterprises (SMEs), business clustering

Keywords ; small and medium enterprises (SMEs), business clustering

Lembaga–lembaga yang mensupport operasi kluster sangat bervariasi, antara lain lembaga keuangan,(baik bank atau lembaga keungan non bank), pusat penelitian, Perguruan Tinggi, pihak perantara, dan asosiasi bisnis. Lembaga keuangan berperan dalam menyediakan modal bagi perusahaan khususnya UKM yang mengalami kesulitan modal, kadangkala lembaga keuangan juga terlibat dalam membiayai kredit ekspor perusahaan–perusahaan yang berorientasi ekspor (Shridarana dan Manimala, 1999). Sebagaian besar kluster yang berbasis pada agrobisnis (Wine industry di Australia atau sentra pembudidayaan bunga di Taiwan) dan berbasis informasi dan tekhnologi (seperti Silicon Valley di Amerika Serikat atau Banglore di India) didukung oleh pusat riset atau Perguruan Tinggi sebagai pusat penyebaran inovasi (Aylward, 2004; Chaminade dan Vang, 2008). Lebih jauh lagi, Perguruan Tinggi juga berperan dalam menyuplai tenaga kerja dengan keahlian tertentu yang dibutuhkan oleh kluster maupun menyediakan layanan pelatihan untuk mendorong peningkatan kapasitas kluster. Bair dan Gerefi (2001) mengungkapkan bahwa pihak perantara memiliki peran strategis untuk menghubungkan produk kluster dengan pasar luar negeri, pihak perantara bisa berupa perusahaan yang bergerak dalam bidang ekspor-impor atau juga bisa berupa asosiasi dagang (KADIN) atau bahkan lembaga pemerintah. Asosiasi bisnis diharapkan merupakan fasilitator untuk menganalisis permasalahan sekaligus mencari solusi terhadap permasalahan.
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The Financing Of Small And Medium Sized Enterprise (SMES) And The Impact To Business Performance In Melaka Food Industry.

The Financing Of Small And Medium Sized Enterprise (SMES) And The Impact To Business Performance In Melaka Food Industry.

Special appreciation to my supervisor, Puan Murzidah binti Ahmad Murad for the patient guidance, encouragement and advice she has provided throughout my time as her student. I have extremely lucky to have a supervisor who considers and cared about my research. I appreciate all valuable information that make easier to write the report.

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