THE VIABILITY OF INDUSTRY IN INDUSTRIAL CLUSTER:

STILL HOPES FOR GROWTH

by Sri Indah Nikensari

ABSTRACT

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.

Keyword: SMEs, Cluster industry, Industry Viability

Effects of Changes in Energy Pricing Policy 

to Gross Domestic Product (GDP) of Industry Sector 

in Indonesia: a Computable General Equilibrium Analysis Model

by Sri Indah Nikensari

         Policy of reducing the amount of fuel and electricity subsidy in the 2001 budgeting by the Indonesian government have consequences on the increase in fuel prices and electricity. Although the price of fuel and electricity have always experienced an increase from year to year, but the increase of the price in 2001 was mainly caused by a decrease in the amount of subsidies in the state budget, as the budget since 1997/1998 to fiscal year 2000, the number of fuel subsidy continues to increase due to rising procurement costs. Upon the recommendation of the IMF, in connection with the disbursement of relief packages and donor countries who are members of the Indonesian CG1, fuel and electricity subsidies recommended immediately removed so that there is efficiency in the state budget. Plans removal of fuel subsidy and the amount of electricity in the state budget is planned in stages and will expire in 2004. Reduction in the amount of subsidy brings a very broad multiplier effects on the economy, including the GDP. This is demonstrated by the simulation results with the model INDECGE with base year 1998, which states that in the short term the increase in energy prices still have a positive impact on the increase in Sector’s GDP and Expenditure’s GDP with percentage decreased, but in the long term increase in energy prices will provide negative impact on the GDP of all sectors, except for the sector remaining subsidies, with the remarks that the current economic conditions there was no improvement of the condition of the base year 1998. In addition to Government Consumption, there is a positive impact of the fuel subsidy reduction on all the variables such as GDP Household Consumption Expenditure, Gross Fixed Capital Formation (GFCF), Stock Inventory, Exports and Imports.

2002

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PEMIKIRAN ISLAM ABAD PERTENGAHAN (MEDIEVAL ISLAMIC THOUGHT)