Competitiveness of Export-Based Small and Medium Industries (IKM): Case Study of Creative in DKI Jakarta

Abstrak: Ministry of Industry assesses that the processing industry is still consistently contributing the most to the achievement of export value national. There are manufacturing industry sectors that have achieved low scores on the contribution of export value. Namely the apparel industry, wood industry, and industrial furniture. There are obstacles and problems for the three industries to increase export value. The problem is the low competitiveness of the three industries in exporting. This study aims to analyze and see the condition of the competitiveness of the Small and Medium Creative Industry in the KI Jakarta based on exports from the supply-side analysis. This research is qualitative research using interview and survey methods. The samples of this research were Furniture / Furniture IKM, Batik IKM, and Handicraft IKM which succeeded in contributing the export contribution value to IKM. The results of this study indicate that the conditions of the three creative SMIs in Jakarta have different capabilities and strategies in contributing to export value. Based on the results of the SWOT and SPACE matrix analysis, a special strategy is needed to increase competitiveness. Among them, the right strategies are Furniture IKM and Handicraft IKM located in the quadrant size “aggressive” which indicates that the Furniture IKM in DKI Jakarta is in a very good position in using its internal strength. Therefore, the strategies suitable for use by IKM Furniture in DKI Jakarta include market penetration strategy, market development, product development, backward integration, forward integration, horizontal integration, or diversification. Meanwhile, IKM Batik is in the quadrant position “Conservative” which indicates that IKM Batik is in a low or weak competitive position and must improve the company's strategic position to have strong competitiveness.


INTRODUCTION
Exports an important measure to determine how much economic growth in a country is. As well as supporting domestic producers to compete in international markets (Agustina, 2014). Also, exports are a source of foreign exchange that can be used to finance imports and state debt, Sasono (2013). According to Sukirno (2002), the benefits and urgency of export activities are; Expanding the Market for Indonesian products, Expanding Employment for People, Accelerating Economic Growth, and Economic Development.
In this case, following the government's long-term plan in Indonesia's vision for 2045, by the National Development Planning Agency on sustainable economic development, it is estimated that in 2045 Indonesia will become the world's 10 largest exporting country with a market share of 2.0% of world exports of goods and services. The government's efforts are currently being made to boost export value through optimization of Small and Medium Industries. Because the Small and Medium Industry (IKM) has a strategic role in the national economy. Based on data from the Ministry of Industry, 2019 the IKM sector was able to absorb a workforce of 15.53 million people in 2015 to 17.9 million in 2018, an increase of 17.4%. To increase its strategic role, the Ministry of Industry emphasized that the empowerment of IKM is currently directed to have long and medium-term goals.
Namely, directing SMIs to be able to penetrate international markets and be globally competitive. One of the industries that still consistently makes a major contribution to export achievements in the manufacturing industry. Exports of processing industrial products were able to penetrate up to the US $ 126.57 billion or contributed 75.5% of Indonesia's total exports which touched the figure of US $ 167.53 billion throughout 2018.This is the reason for the ministry of industry, making the processing industry an export priority sector. Indonesia today. Five sectors have contributed most to the achievement of the export value of the processing industry throughout 2019, as well as having a positive impact on the national balance of payments, namely the Based on the data above, there is a processing industry sector that has achieved low scores on the contribution of export value. Namely the apparel industry, wood industry, and industrial furniture. There are obstacles and problems for the three industries to increase export value. The first problem is the imbalance between Indonesia's natural resource potential and export production (Kompas, 2018). The second problem that becomes the biggest obstacle for IKM is the low competitiveness of industrial exports in Indonesia. Competitiveness according to (Nikensari, 2018) is the ability of companies, industries, regions, countries or regions to produce relatively high and sustainable income and employment factors to face international competition. Competitiveness is a determinant of the success of the export of goods.
According to (Megasari, 2014) competitiveness is the level of a country's ability to produce goods or services that are under the international market and at the same time the ability to create sustainable welfare for the country's colors. According to the World Economic Forum, currently, the competitiveness of Indonesian products at the international level ranks 41 out of 137 countries surveyed. At the level of ASEAN countries, Indonesia is in fourth place after Singapore, Malaysia, and Thailand. Increasing the competitiveness of IKMs must be carried out amidst globalization and the high level of competition makes IKMs have to be able to face global challenges. As well as increasing productivity, such as increasing product and service innovation, developing human resources and This is very necessary to increase the selling value, to compete with foreign products and be able to boost Indonesia's industrial centers. Low competitiveness is triggered by (Supriyadi, 2010) triggered by the low productivity of IKM in Indonesia. Matters related to the analysis of competitiveness in the international arena are divided into two sides, namely in terms of supply and demand. According to (Megasari, 2014) IKM must have an analysis of competitiveness which can be used as a basis for determining policies related to the owner's efforts in facing ongoing business competition. According to (Porter, 1999) competitiveness is identified with productivity where the level of output produced for each unit of input is used. Increased productivity includes increasing the number of physical inputs (capital and labor), increasing the quality of the inputs used and improving technology (total factor productivity).
According to (Lantu, 2013) industrial competitiveness is a phenomenon at the micro-level of companies, so the development of the national industry must be preceded by a comprehensive study of the industrial sector as a measurement basis. The large number of IKM in DKI Jakarta are still struggling to export and with their limitations, causing low productivity in increasing competitiveness, so that strategic efforts to increase competitiveness are treated in various ways. One of them is viewed from the supply side, including Productivity, Internationalization, Export Coverage, Import Dependence. In this study, researchers wanted to see the level of supply-side competitiveness of creative small and medium industries towards exports by conducting case studies in the small and medium industries of batik, furniture and handicrafts in DKI Jakarta. The internal environment consists of factors that are within the company's control, such as marketing and distribution, human resources, production management (operations), finance and accounting, and research and development. This internal environmental analysis is needed to identify the company's internal strengths and weaknesses (Lukiastuti and Hamdani, 2011: 43).
According to (David, 2009) external environmental analysis aims to develop a limited list of opportunities that can benefit a company and the threats that must be avoided. The external environment consists of factors beyond control that influence a company's choice of direction and actions, which in turn also affect its organizational structure and internal processes (Pearce & Robinson, 2013: 92). The Internal Factor Evaluation Matrix (IFE Matrix) is a strategy formulation tool that summarizes and evaluates the main strengths and weaknesses in the functional areas of the business, and also serves as a basis for identifying and evaluating the relationships between these areas (David, 2009). The External Factor Evaluation Matrix (EFE Matrix) is a tool for summarizing and evaluating economic, social, cultural, demographic, environmental, political, government, legal, technological, and competition information (David,2)

Type of Research This type of research is qualitative research2.2 Research Population
Small and medium industry entrepreneurs regarding the components of supply-side competitiveness.

Data Collection Methods and Techniques
The research method used in this research is a survey method with a descriptive analysis approach. Sources of data obtained from this study include Primary data, namely data obtained

Research Location and Time
This research was conducted in the DKI Jakarta area. This location was chosen by researchers because DKI Jakarta is apart from being an industrial center on the island of Java. The research time lasted for three months, from February 2020 to April 2020 2.5 Data Analysis Techniques Data analysis techniques performed; Analyzing internal factors of entrepreneurs in the industry, SWOT matrix analysis is used to develop four types of alternative strategies, namely SO (strengths -opportunities), WO strategy (weaknesses -opportunities), ST strategy (strengthsthreats), and WT strategies (weaknesses-threats), and the SPACE matrix used to determine organizational conditions using the Cartesian diagram model which consists of two dimensions and four quadrants with the same size scale (Aswara, 2017).

RESULTS AND DISCUSSION
Researchers took 20 samples from the total sample of Creative IKM in DKI Jakarta which is related. These 20 IKMs have successfully exported. Which is a list of names for furniture, batik and handicrafts IKM which are registered on the website of the Ministry of Industry? Image of DKI Jakarta IKM Furniture Area Mapping Characteristics supply-side competitiveness. Secondary Data, namely data obtained from the Ministry of Industry, the Ministry of Trade, the Central Bureau of Statistics and Customs and from Bank Indonesia and related export agencies. Data collection techniques used; observation techniques, interview techniques, literature techniques, and questionnaire techniques. Data analysis techniques performed; Analyzing internal factors of entrepreneurs in the industry, SWOT matrix analysis is used to develop four types of alternative strategies, namely SO (strengths -opportunities), WO strategy (weaknesses -opportunities), ST strategy (strengths -threats), and WT strategies (weaknesses-threats), and the SPACE matrix used to determine organizational conditions using the Cartesian diagram model which consists of two dimensions and four quadrants with the same size scale (Aswara, 2017).

Source: data processed by researchers, 2020
The figure of Characteristics of Mapping IKM Batik Areas in DKI Jakarta that carry out export Jakarta which is managed by the DKI Jakarta Provincial Government. IKM Exports for the DKI Jakarta furniture industry which currently has reached four continents, namely; Europe, America, Asia and Australia. The main market share is the Asia Pacific region, such as Japan, the Philippines, Thailand. DKI Jakarta continues to increase its export market expansion to various countries. The furniture industry export activities in Jakarta Capital City are dominated by PT Nagase Import-export Indonesia, and PT Funisia Perkasa. Types of items that are a priority for export products are bedroom, drawer, wardrobe, table, and kitchen set. To determine the right strategy to develop competitiveness. Then internal and external analysis must be carried out.  Environmental analysis of external and internal factors next can identify strengths, weaknesses, opportunities, and threats which can be presented in the Table, SWOT Matrix WT Strategy 1. Improving cooperation patterns with producers in other countries through promotion. 2. Increase the number of workers who are experienced in furniture production. 3. Take advantage of exports to countries that need furniture industrial products more.

Source: analysis results and processed by researchers, 2020
The next analysis is the SPACE matrix analysis. SPACE Matric dimensions, namely the internal dimensions consisting of financial strength (FS) and competitive advantage (CA) and the external dimensions consisting of environmental stability (ES) and industrial-strength (IS.

Source: images processed by researchers
That the vector direction of SME furniture competitiveness is located in the "aggressive" quadrant-the upper right quadrant of the SPACE Matrix, which indicates that IKM Furniture in DKI Jakarta is in a very good position in using its internal strength. Therefore, suitable strategies for IKM Furniture in Jakarta to use include: market penetration strategy, market development, product development, backward integration, forward integration, horizontal integration or diversification.

b. Competitiveness condition of DKI Jakarta Batik IKM Jakarta's
The batik exports through these two companies have penetrated various countries abroad, namely: European countries, Britain, the United States, Australia, Canada, Japan, Switzerland, Norway, Russia and countries in Asia. The batik industry's export activities in Jakarta are dominated by PT Batik IP Wayang Indonesia. PT Batik Wayang Indonesia is a PT that produces accessories, clothing and souvenirs made from batik motifs. And PT Delapan Satu, the exported products include batik cloth, batik silk clothing and souvenir accessories. Based on data from the internal analysis of the condition of the batik industry in DKI Jakarta, it shows that the batik industry in DKI Jakarta has the following characteristics: