THE VIABILITY OF INDUSTRY IN INDUSTRIAL CLUSTER:
STILL HOPES FOR GROWTH
by Sri Indah Nikensari
Globalization and competitiveness are realities that must be faced by small and medium industry today. Government in the implementation process of the industrial development of Small and Medium Enterprises (SMEs), should see this reality and be a decisive consideration in any policy to be issued, as well as a paradigm that must be faced by any country in implementing industrialization process. Industry cluster in Indonesia is one of the policies adopted by the government in promoting small and medium industries. Survival and the success of an industrial cluster is dependent in part on whether the industry in the cluster have the power to live.
This study aims to analyze the internal and external factors that affect the viability of industry, in order to get a model study of how to improve the viability of industry in the industrial cluster. These factors are age of maturity, product diversity, macroeconomic stability that affected the business climate, and government regulation. Population of research consists of entrepreneurs in the garment and metal centers in Small and Medium Industry “PIK Pulogadung” , East Jakarta, Indonesia. Regression model was chosen to measure the influence of independent variables affecting the viability of the industry in the cluster.
The results showed that all independent variables significantly affect the viability of industry in the cluster, unless government regulation variable. The study revealed that 61% of variation data viability of industry is explained by independent variables, indicated by R2 .
Government regulation was not affected significantly in this study, needs to get more attention. We know that operational of industrial cluster was managed by the local government cluster. In this cluster, government regulation is not significant, due to the lack of facilitation of production / promotion.