Institutional Repository | Satya Wacana Christian University: Peranan dan Pemanfaatan Modal Sosial dalam Pengembangan Klaster : Studi pada Klaster Cor Logam Ceper-Klaten Jawa Tengah

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.
he evolution in the dynamism of the social capital of the metalcasting
cluster may be observed through the development of the cluster itself. In the initial
stage of cluster development or so called the embryonic stage, the formation of
social capital is inluenced by religious, custom and cultural factors. he social
capital in form of trust, business network, togetherness and mutual concern has
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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.
To enhance social capital in cluster, government can facilitate access to
inance and market, and product quality improvement. he system within
the decentalized government needs to be strengthened in order to be able to
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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.

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