Luqman Hanif Fafurida

66Luqman Hanif & Fafurida, Development Strategy of Smallstill simple and it is still lack of capital. Threesmall industries are even found finishedproducing and move to produce anotherprocessed food, whereas thirteen smallindustries still keep surviving and producingbut most are based on the order.Viewing such conditions, it requiresthe appropriate strategic planning for thedevelopment and the sustainability of thesmall industry of tamarillo processed typicalfood in Kejajar District. The industrydevelopment process is also necessary toimplement in integrated way and related toeach other among the micro, small, medium,and big industries (Tambunan, 2003) inWiyadi (2015: 78). This aims at making thewhole components of industries be able togrow and develop together. Besides, it isexpected that in the long term it can createthe new market opportunity either in thedomestic or international level, increase thejob opportunity, create the added value, andincrease the industry competitiveness(Wiyadi, 2015: 78).The development of typical food smallindustry has a very good prospect because it issupported by some factors as follows: 1) thepopularity of various typical food product of atourism area will be one attraction for thetourism destination, 2) the promising marketopportunity will make the number of touristsvisiting Dieng Plateau grows higher everyyear, 3) the potential resource of tamarillo inWonosobo has not been utilized optimally, 4)tamarillo is useful for preventing the cancerfrom the anthocyanin contained in the fruit.Along with the effort to increase thepeople’s economy around the tourism areaand with the role of typical food smallindustry as the supporting tourism sector, thegovernment’s support both through its policiesand programs is very required. The appropriateindustrial development strategy is when thetamarillo processed small industry in KejajarDistrict is able to utilize its strength to overcomethe weakness and to be able to take theopportunity and to avoid the threat.Therefore, this research aims atformulating the development strategy of thesmall industry of tamarillo processed typicalfood as the supporting sector for tourism sectorin Kejajar District and at analyzing the positionand development strategy of tamarillo processedproduct as the typical food of Dieng Plateautourism area.RESULTS AND DISCUSSIONThe small industry actors of tamarilloprocessed typical food in Kejajar District areincluded in the productive age group of 27 – 51years old.The majority of the small industry actorsare dominated by the age group of 42 – 46 yearsold with the percentage of 38.46%. The smallindustry is dominated by the age group of 3 – 5years old with the percentage of 61.54%.Based on the education level graduated, themajority of the small industry actors of tamarilloprocessed typical food in Kejajar District isdominated by the Elementary School educationlevel with the percentage of 61.54%.Based on the grouping of MSME types,30.77% of the small industry employs 6 – 7workers, 15.38% employs 8 – 9 workers, 15.38%employ 10 – 11 workers, and 7.69% or only onesmall industry employs 12 – 13 workers. Thestatus of business ownership on the smallindustry in Kejajar District between the privateand group business is almost equal, in which53.85% is the industry with the group status of

JEJAK Journal of Economics and Policy Vol 10 (2) (2018): 62-77business ownership and 46.15% is that withthe family status of business ownership.Based on the analysis result ofinternal-external environment of the smallindustry of tamarillo processed typical food inKejajar District, there are some strategicfactors in the form of strength and weaknessand also in the form of opportunity andthreat. Afterwards, the weighting and ratingare conducted in each strategic factor to findthe average weighting value and the averagerating. Based on the weighted value (theaverage weight x the average rating) fromeach strategic factor, it can find the mainstrength, weakness, opportunity, and threatof the tamarillo processed typical food smallindustry in Kejajar District. The analysis resultof IFE and EFE matrix of the small industry oftamarillo processed typical food can be seenin table 3 and table 4 as follows. There are67some differences between the result of thisresearch and that of the previous ones, whichsimilarly perform a research.Dewi (2006: 122) stated that the main strength ofthe carica processed small industry inMojotengah District is that the product has animage as the typical food of Wonosobo Regency.It is in accordance with the main raw material ofcarica that notably is the specific fruit fromDieng Plateau.The research result of Permadi (2015: 42)stated that the main strength of carica processedsmall industry in Wonosobo Regency is that theindustry location is near the market. Besides, theinterview with the tourists indicate that 75%respondents know about carica processedproduct as the typical food of Dieng Plateau andhave ever consumed it, while only 25%respondents know about tamarillo processedproduct.Table 3. IFE Matrix of Small Industry of Tamarillo Processed Typical Food in Kejajar DistrictInternal Strategic rengthsSkilled and reliable local workers0.0874.000.34823Good enough task coordination between owner and workersSpecialization of work in production0.0730.0893.674.000.2680.35645Quality of product in accordance with consumers’ tasteProduct having license from Bureau of Health of llo fruit has a lot of gic location of small industryAmount of weighted value of strengthsW1WeaknessesIneffective promotion activities0.0871.000.08723No written contract with partner of tradeIncomplete labeling0.0670.0961.331.330.0890.1284Limitation of capital0.0791.670.1325Availability of bottle package difficult enough to findAmount of weighted value of weaknesses0.0781.670.1300.566Total of IFESource: Primary data, processed1.0002.808

68Luqman Hanif & Fafurida, Development Strategy of SmallOn the other side, the raw material usedby the small industry in this research is notthe specific fruit of Dieng Plateau. Tamarillois not only found in Dieng Plateau, but canalso be found in Temanggung and Magelang.While Bogor and Medan are the regions thathavepreviouslyconductedtheindustrialization of tamarillo. Inspite of this,tamarillo processed product in the smallindustry in Kejajar District has various typesof processed product and can be theattraction for Dieng Plateau tourism. Besides,the quality of product guaranteed by thelicense from the Bureau of Health ofWonosobo Regency is the main strength fordeveloping the business.According to Prasetyo (2008: 10), thelimited capital is the main problem for thesmall industry, but not always be the firstproblem. Despite the small industry haslimited capital, if the production is sold out inthe market and most of the benefit can beused as the rotating capital, automatically thelimited capital problem can be handled.However, besides having limited capital, thesmall industry of tamarillo processed typicalfood in Kejajar District still has low market sharedue to the ineffective marketing activities. Thefollowing will explain the problem linkage facedby the small industry of tamarillo processedtypical food and also the strategy offered infigure 2.On the other side, the raw material used bythe small industry in this research is not thespecific fruit of Dieng Plateau. Tamarillo is notonly found in Dieng Plateau, but can also befound in Temanggung and Magelang. WhileBogor and Medan are the regions that havepreviously conducted the industrialization oftamarillo. Inspite of this, tamarillo processedproduct in the small industry in Kejajar Districthas various types of processed product and canbe the attraction for Dieng Plateau tourism.Besides, the quality of product guaranteed by thelicense from the Bureau of Health of WonosoboRegency is the main strength for developing thebusiness.Figure 2. Circle of Problems of Small Industry of Tamarillo Processed in Kejajar District andStrategy OfferedSource: Primary data

JEJAK Journal of Economics and Policy Vol 10 (2) (2018): 61-77According to Prasetyo (2008: 10), thelimited capital is the main problem for thesmall industry, but not always be the firstproblem. Despite the small industry has limitedcapital, if the production is sold out in themarket and most of the benefit can be used asthe rotating capital, automatically the limitedcapital problem can be handled. However,besides having limited capital, the smallindustry of tamarillo processed typical food inKejajar District still has low market share dueto the ineffective marketing activities. Thefollowing will explain the problem linkagefaced by the small industry of tamarilloprocessed typical food and also the strategyoffered in figure 2. The circle of problems canbe cut through the spearhead of a business that69is marketing. According to Manalu (2008) inPuspitasari et.al., (2013:173) the strategy ofmarketing by performing the promotionpolicies will affect the volume of sale and in themarketing strategy, it needs to concern theselecting the appropriate media in accordancewith the product. Therefore, the integrationforward by utilizing the informationtechnology of internet as the media ofmarketing (E-Commerce) is considered to bemore appropriate for the condition of smallindustry today due to the more affordable cost.In performing the strategy, it needs tounderline that besides conducted intensivelyand continuously, promotion also has to payattention on the market share culture to beaddressed.Table 4. EFE Matrix of Small Industry of Tamarillo Processed Typical Food in KejajarDistrictExternal Strategic FactorsNo12345OpportunitiesSupporting economy conditionIncreasing number of tourists visiting DiengTourists’ habit in bringing typical food of a region as giftDelivering job training and guidance by related bureauCooperation with related institutions on promoting localtypical food product6Easier access to capital loan7More development of technology offering productionactivity and effective marketingAmount of weighted value of opportunitiesTThreats1Fluctuation of main raw material2Farmers’ low interest in planting tamarillo3Game prices of raw materials by middlemen4Tamarillo processed substitution product5Small obstacle to enter small industryAmount of weighted value of threatsTotal of EFESource: Primary data, 70.2320.3600.1600.1260.1020.9803.060

70Luqman Hanif & Fafurida, Development Strategy of SmallSecond, establishing a cooperation with theBureau of Tourism and Culture of WonosoboRegency by giving ‘welcome food’ to thetourists visiting the tourism object andpromoting the product via the bureau’swebsite, as stated by Kuncoro et.al (1997)quoted from Kuncoro (2014: 422) aboutpartnership in accordance with the potencyand characteristic of the region. The conceptof partnership strategy with the tourism rolebased in MSMEs can be conducted as the stepof modernization and elimination of the smallindustry’s weakness that is marketing.Both strategies will imply in theincreasing market share of tamarilloprocessed product as the typical food of DiengPlateau tourism area that ends in theincreasing sale so that the income and thecapital will increase.The local economy condition inWonosobo Regency is the external factorgreatly supporting the small industrydevelopment of tamarillo processed typicalfood in Kejajar District. Moreover, the smallindustry located in Dieng Plateau Area makesthe tourism climate also greatly affect thesmall industry sustainability. As stated byWTTC (2016: 11) that the income of food saleas the result of direct purchase from thetourists is one direct impact of tourismactivity. Therefore, the better local economyaccompanied by increase in people’spurchasing power is a condition that shouldbe maintained and even improved.The local economy developmentthrough industrialization of tamarillo is onerespond of the local community to thetamarillo resource in Wonosobo area, whichis still potential and has not been optimallyutilized yet. It is in accordance with theconcept of local development by someresearches as quoted by Kuncoro (2014: 293)among others are “Resource Based Industry” byWhite (1990) in Kuncoro (2014: 295) and “Ruralled Strategy of Growth” by Mellor & Lele (1973)and Mellor (1976); (1989); (1996) that is the ruralstrategy of growth based on the local resourcesowned, in which the local resources owned is theagricultural products, therefore, dynamizing theagricultural sector through its relation andstrength on the industrial sector may create themore harmonic local development, as thedevelopment model of “Agricultural andStructural Transformation Model” by Johnson &Kilby (1975) and “Agricultural Demand – ledIndustrialization” by Adelman (1984).As the time goes by, the demand oftamarillo processed typical food product keepsincreasing and popular to the outside of the area.However, today the demand of tamarillo in freshfruit is higher than its processed product,whereas from the upstream side, the farmers’interest in planting the tamarillo is still low. Tominimize the threat, the main strategy that canbe performed by the small industry is byintegrating to the back and establishing acooperation that is beneficial to each other.Besides that strategy, through theagricultural extension, the government takes therole as facilitator to grow the farmers’consciousness on the land use by concerning thesustainable economy. It does not mean that itdecreases the planting of agricultural commoditythat needs the intensive land management likepotatoes, but more on growing the farmers’consciousness on planting the hard root plant inthe middle or close to the planted plant. Besidesits function as conservation plant, tamarilloplant also has the high sale value with lowertreatment cost than the potatoes.

JEJAK Journal of Economics and Policy Vol 10 (2) (2018): 62-77Both strategies aim at increasing thefarmers’ interest in planting the tamarillo andalso have the final purpose as thestrengthening effort on the upstream side insupplying the market demand on tamarillofruit that becomes higher so that the pricestability can be reached.The total of weighted value of IFEmatrix is 2.808 that is included in theweighted value for the strength factoramounted 2.242 and for the weakness factoramounted 0.566. This indicates that theinternal position of the small industry is inaverage category. So it can be concluded thatin developing a business, the small industry oftamarillo processed typical food in KejajarDistrict is able to utilize the strength tohandle the existing weakness well.While the total of weighted value ofEFE matrix is 3.060 that is included in theweighted value for the opportunity factoramounted 2.080 and for the threat factoramounted 0.980. This indicates that theexternal position of the small industry is inthe high category, so it can be concluded thatin developing a business, the small industry isable to well respond the existing opportunityand threat. In other words, the industrialstrategy effectively takes the benefit of theexisting opportunity and minimizes thepossible risk from the external threat.Figure 3. IE MatrixSource : Primary data, processed71The analysis of IE matrix arranged in a way ofplotting the total of weighted value from IFEmatrix (2.808) in the x axis and EFE (3.060) in they axis finds that the position of the small industryof tamarillo processed typical food in KejajarDistrict is in quadrant II, which has the averageinternal ability and the high external ability aspresented in figure 3.In such conditions, the small industry oftamarillo processed typical food in KejajarDistrict still pursues the growth in benefit, sale,market share, and other main purpose, and facesthe competitiveness with the more competitivesimilar industries. Therefore, it would be betterif the development strategy of small industry iscontrolled by the concentrated strategy throughhorizontal integration.Based on the analysis of SWOT matrix, itmay present some alternatives of developmentstrategy of the small industry of tamarilloprocessed typical food in Kejajar District as thesupporting factor of tourism sector in thefollowing table 5.It is the formulation of developmentstrategy of the small industry of tamarilloprocessed typical food in Kejajar District as thesupporting factor for tourism sector in DiengPlateau. Based on the analysis result of IE matrix,it indicates that position of the small industry isin quadrant II (concentrated strategy throughhorizontal integration) and is the alternativestrategy offered by the SWOT matrix, so the beststrategy to apply is establishing the cooperationwith the actors of the similar small industries andthe Bureau of Tourism and Culture in WonosoboRegency. The strategic implementation can beconducted with the following steps.The first is establishing an association ofthe actors of tamarillo processed small industryin Kejajar District aiming at increasing the jointproduct marketing activities and the widermarket share mastering.

72Luqman Hanif & Fafurida., Development Strategy of SmallTable 5 .SWOT MatrixInternal FactorsExternal FactorsOpportunities - OSupporting economy conditionIncreasing number of touristvisiting DiengTourists’ habit to bring typical foodof a region as giftJob training and guidance fromrelated bureausCooperationwithrelatedinstitutions on promoting typicalfood product of tourism regionEasier access to capital loanMore development of technologyoffering more effective productionactivity and marketingThreatsFluctuation of main raw materialsFarmers’ low interest to planttamarilloGame prices of raw materials bymiddlemenTamarillo processed substitutionproductSmall obstacle to enter smallindustryStrength - SSkilled and reliable localworkersGoodtaskcoordinationbetween owner and workersSpecialization of work inproductionQualityofproductinaccordance with costumers’tasteProducts has license fromBureau of Health of WonosoboRegencyTamarillo fruit has a lot ofnutritionsStrategic location of smallindustryStrategy of S–OFollowingtrainingsfromrelated bureaus and optimizingexisting distribution channel tomarket product(S1, S2, S3, O4, O5, O7)Increasing market share byutilizinginformationtechnology development topromote product(S4, S5, O1, O2, O3, O7)Establishing cooperation withrelated institutions like giving‘welcome food’ to touristsvisiting tourism object(S6, S7, O1, O2, O3, O5, O7)Strategy of S–TIncre

The Ansoff Matrix analysis indicates that the position of tamarillo processed product is seen as the new typical food in Kejajar District, so, the main strategy for the small industry is market development strategy to increase the market share and to create the brand image to the tourists.