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Small-Medium Industries, Which Should Be Labeled First-Rate?
Kemala Febrihadini

Balai Diklat Koperasi UKM Provinsi NTB
Jalan Pemuda Nomor 20 Mataram 83125, Indonesia


Abstract

Without question, having the first-rate label is a privilege. As its label, it can be the first priority, the first to be highlighted, including the first to be facilitated. So as in the field of small-medium industries, from the public sector perspective, the first-rate will be the ones to be first supported and developed by any means of the government programs. The common practice of the government to define the first-rate small-medium industries is by projecting the value-added of excess natural resources which can be converted into industrial products. It takes many efforts and times to guarantee that all those excess natural resources can be produced into value-added industrial products. This paper offers another perspective to define first-rate small-medium industries that are from existing industries instead of projection. The variables to determine first-rate small-medium industries are number of industries, number of manpower, unit price, total production value, monthly consumption, the ratio of demand vs local production, investment value and raw material cost. The comprehensive weight of those variables will be put into a Free Disposal Hull Analysis and the ones defined as the first-rate small-medium industries are the ones positioned on the top left of the Free Disposal Hull Analysis graph. For the empirical study, data are collected from the industry sector of West Nusa Tenggara Province for the year 2006-2016. As for the comparison, it is mentioned in the government regulations that handicraft group is the first-rate of small-medium industry in Mataram City, Lombok Barat, and Lombok Tengah; food & beverage group is the first-rate of small-medium industry in Lombok Timur, Lombok Utara, Sumbawa Barat, Sumbawa, Dompu, and Bima; while clothing & fabric group is the first-rate of small-medium industry in Bima City.

Keywords: First-Rate; Small-Medium Industry; Free Disposal Hull Analysis

Topic: Rural and Regional Governance

Link: https://ifory.id/abstract/KE2tvexWVFP3

Conference: The 4th International Conference on Regional Development (ICRD 2019)

Plain Format | Corresponding Author (Kemala Febrihadini)

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