27 independently because of their different characteristics in their production each
other includ ing different marketing target. Thus, to identify their position in home industry and medium scale industry sector, a quadrant matrix is a starting point.
3. Internal and External Factors
According to the statements in the Master Plan of Small and Medium Industry Development in 2002-2004 developed by MOI 2002, the followings are
identified as the components of SWOT in the current UMKM in general. For the target home industry of tapioca in the research study, all factors should be
identified by site sur vey and FGD. 1 Strengths Internal
1 Basic commodity is easily available and obtained in local markets. 2 The basic skills have been possessed from generation to generation.
3 The availability of technology which is easily to be mastered or transferred.
4 The business can become a main business or means of livelihood of the local people.
5 Supported by policy and programs from private and all governments apparatuses
2 Weaknesses Internal 1 Still using and applying simple management, technology and
equipment, so that it is less efficient. 2 The quality of the products varies without any standardization.
3 Information access to the market is still limited 4 The packaging do not meet technical requirement and unattractive to
the consumers. 3 Opportunities External
1 Quite large-domestic market segment 2 The recovered economic foundation of Indonesias macro economic.
3 The commodity can be developed for export market. 4 ThreatsChallenge External
1 Weak product competitive ability 2 Tighter competition either from domestic or imported products.
28 3 Unfavorable domestic business climate compared to other competitors
facilities. 4 Government policy of increasing tariffs in various fields such as fuel
price. 5 Different interpretations on regional autonomy among the regions have
caused the unfavorable business climate. Ministry of Cooperation and SME also identified UMKM’s weaknesses,
opportunities, and environment Soetrisno, 2005. 1 Lack of access to productive resources, particularly financial
2 Business environment that creates high cost economy for UMKM 3 Limited internal capabilities of UMKM including technological aspect,
management, and entrepreneurship 4 Lack of market access and more tight and un- fair competition
5 Supporting institutions which are not well developed 6 Most of the produc ts managed by UMKM are a primary product.
7 Low level of productivity, especially micro and small enterprises 8 Lack of access to financial source
9 Supporting infrastructures and institutions are not well developed. According to the annual report by Sukaraja district 2005, the conditions
of social and economic, and the current situations of all sectors are evaluated by SWOT.
1 Strengths 1 Geophysical condition is an advantage closing to Bogor city and to
access to Jakarta via highway of Jagorawi Bogor- Jakarta. 2 Because of this, fresh agricultural products are easily supplied to the
consumers in Jakarta. 3 The participation of the people concerned is very aggressive to the
activities and programs provided by the local government of Bogor regency.
4 The agro-business and the agro-complex for touring have been developing to serve to the people of both in the regency and Jakarta
including the surrounding cities.
29 2 Weaknesses
1 The common facilities are still in poor conditions such as accessing roads and educational facilities.
2 The political and administrative hierarchy is not matured enough between the local government of Bogor regency and each one of the
district. 3 The implementation of the designated program and activities are not
well managed for serving social and target people. It must be improved. 4 The quality of servicing performance to the society is not enough
satisfied. 3 Opportunities
1 This district is located a good position closing to Jakarta and other surrounding cities.
2 There are so many potential resources in this district that many investors might be interesting in the resources for their investment.
3 The possible market resources are also abundant not only in the district, but also the other districts including overseas markets.
4 Threats 1 Hike of tariff is the most concern affecting the price up on the 9 basic
commodities such as rice, vegetable oil, flour, sugar, and others. 2 Unstable conditions of economy subjects are a very threat for the
district economic development. 3 The policies by the central government and the regency are not stable
and concrete always to the district. 4 The old generation of the district people is getting older and older who
is not productive power resource. In addition to these mentioned in above, Eriyant 2001 identified the
characteristics of UMKM from view points of their day to day implementation of UMKM under the current environmental conditions and their performance
towards problems and issues. 1 Competitive power is very low because information access is poor and left
behind concerning of the government policies and regulations, the
30 tendency and changes of marketing, new technologies and technical
information. 2 They do not have behaviors to keep the systematic records such as
management, accounting, shipping, and marketing. Because of this, it is not easy job to borrow the capital from bank.
3 It is very difficult to access to the bank to procure the capital because they usually do not have the necessary mortgage.
4 Management is quite in poor related the operation of enterprise, material procurement, marketing, and cost management.
5 Employees are not stable to continue the work in high intensity because wage is low and UMKM is not always stable and no future vision.
31
Current Issues and Problems
Advanced SSTA
Strategy Development
SSTA
Conducive Programs Policy Suppot
Research Target Quality Assurance
III. RESEARCH METHODOLOGY
A. Concept of Research Study
The target of the research is SSTA in order to improve capability and performance producing better Aci through quality assurance activities. Therefore,
strategy development aims to strengthen SSTA through improvement on quality assurance of Aci in the processing cycle of cassava. It also aims at by making
significant evolution in rural area and small scale industry sectors through the local government policy supports and conducive programs for future.
To develop a strategy of quality assurance, the necessary steps are taken into place starting from SSTA’s subjects, for example, identifying the current
conditions and issues, carrying out the strategy development study, identifying the components and factors for development of the conducive policies and programs
for the advanced SSTA for future.
Figure 9 Concept of research study
B. Process of Problems and Issues
The processes and steps are implemented according to research site condition and availability of the target product. The approach of the research is
initiated by identification of the conditions in terms of qualitative factors and quantitative components or parameter necessary for research analysis.
1. Trace problems and issues, and compile all data and information regarding material, processing, and marketing.
2. Upon the results of tracing, the all data and information are aligned and classified into the group wise or factor wise in accordance with problems,
issues, and processing steps of the reason.
