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Abstract
In this study the business development of small and medium businesses (SMBs) in the
creative industry products in support of regional economic improvement of the gross regional
domestic product (GRDP) in Bandung. Business creative industries in the city are mostly Small
and Medium Industries (SMI), the development of creative industry has become an important
issue in scrutinizing economic growth in Indonesia. In exploring the role played by SMEs and to
find out more sub-sectors of the creative industries have become a pillar of economic growth in
the creative industries in Bandung, here are some of the potential business areas that recently
began growing rapidly in the area of Bandung which has a significant contribution to the
formation West Java provincial economy with one of the SME sector and creative industries.
Micro, small and medium enterprises (SMEs) which significantly contribute to the gross
regional domestic product (GRDP) each year is quite significant, which on average is in the
range of above 7% per year. The contribution and role of SMEs in the region of Bandung from
the creative industries is significant in moving the economy in the area of Bandung in West Java
in particular and the region in general. With the value of gross regional domestic product
(GRDP), Bandung is the largest, reaching 10.64%, and subsequently followed by Regency
Bandung at 5.98%, followed by the West Bandung regency by 2, 27%, and last Cimahi by 1 ,
67%. Overall contribution of gross regional domestic product (GRDP) regional West Java
Bandung to the GRDP amounted to 20.56%, which is quite significant figure, reaching the
amount of one-fifth GRDP of West Java.
Keywords: creative economy, creative industry, SMEs and the GRDP
JEL Classification: M13, M48
I. Introduction
I.1. Background of Problems
In the normal course of business units in the city of Bandung creative industries constitute
the majority of Small and Medium Industries (SMI), the development of creative industry has
become an important issue in scrutinizing economic growth an Indonesia. Some fields are
enough to attract attention as like the creative industry in the culinary sector, services, fashion,
and creative products such as woven, embroidered and others. By looking at these facts, this
study aims to explore creative industries in the sector and its implications for the strengthening
of the local economy, it is also to provide input on the development of creative industries
generally in West Java and particularly in Bandung area.
ISBN: 978-602-73852-0-7
Making Bandung as a creative city in Indonesia is certainly not new thing for the people in
this country. The amount of natural resources that are stored and high creativity of the human
resources that are in the city, making Bandung as a barometer of the growth of creative industries
at the national level. Not surprisingly wide range of predicates are now emerging from the
community, ranging from the big city known as a center for the development of fashion, the
center of artistic creation and culture, hawker centers and cuisine, as well as Paris Van Java now
becomes one of the icons of travel destination in Bandung. Concerning of Bandung, closely
related to a wide choice of food or culinary, tourism, distribution, and other correlates with the
development of creative industries. Meanwhile, according to the Kompas daily at the time the
contribution of creative industry in Indonesia reached 7.6%, while 2014 is expected increasing
to 8.1% ( Kompas, 2011)
Taking into consideration the above circumstances that micro, small, and medium enterprises (SMEs) play a very important role in the growth of economic development for SMEs
which can absorb the most labor than large businesses. In Indonesia Micro, small and medium
enterprises (SMEs) are some of the largest contributor to the economy, in addition to the SMEs
in Indonesia are often associated with issues of economic and social problems in the country
such as high levels of poverty, the magnitude of unemployment, unequal distribution of income,
the development process unevenly distributed between urban and rural areas, as well as the
problems of urbanization. The development of SMEs is expected to provide a significant positive
contribution to mitigation efforts such problems. As the amount of information on the
development of micro, small and medium enterprises (SMEs) in Indonesia can be seen in table
1.1 below.
table 1.1
The progress of Micro, Small and Medium Enterprises (SMEs)
in Indonesia in 2010-2013
Year
Number of SMEs
2010
53.823.732
2011
55.206.444
2012
56.534.592
2013
57,895,721
Source: bps.go.id 2013 (data processing)
From table 1.1 we can be see that every year the number of SMEs increased. In 2010 the
number of SMEs in Indonesia amounted to 53,823,732 units of the business and in 2013 the
number in-creased to 57,895,721 SME business units. Here are some of the advantages
possessed by SMEs in Indonesia, namely:
1. Innovation in technology that have easily happened in product development.
2. Relationship human intimacy of the smaller companies.
3. Ability to create employment opportunities or quite a lot to labor absorption.
4. Flexibility and ability to adapt to changing market conditions faster than large-scale
ISBN: 978-602-73852-0-7
Usaha Mikro
Usaha Kecil
Usaha Menengah
2010
2011
2012
2013
8.616.254
8.626.671
9.042.519
9.218.276
106.592
116.062
115.749
116.036
7.408
8.181
8.235
8.417
Usaha
Besar
1.566
3.728
1.853
1.908
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Tahun 2011
17.629,5
93.285,6
10.727,2
17.773.447,0
1.551.788,6
67.896.022,7
596.302,4
572.056,2
909.294,5
252.880,8
Tahun 2012
18.889,3
99.792,0
10.898,6
20.176.373,9
1.611,491,5
70.120.777,1
612.306,3
588.034,5
913.803,0
253.521,7
Tahun 2013
19.932,2
104.258,7
11.405,4
21.723.601,0
1.612.590,7
76.788.615,1
639.438,5
593.039,6
934.263,7
259.318,5
1.750.281,5
1.107.831,9
1.755.826,3
1.125.528,3
1.447.760,2
73.299,0
11.359.651,2
110.144.802,7
1.509.450,1
74.665,0
11.816.125,0
118.968.031,8
11
12
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Based on the above table it can be seen that the proportion of exports of creative economy
has increased from year to year, which in 2011 amounted to 105,190,164.0 trillion (100%) to
110,144,802.7 trillion (105.1%) in 2012, there were increase of 5.1%. While in the year 2013 up
to 118,968,031.8 trillion (113.2%) there were increase of 8.1% when compared to 2011.
Central Statistics Agency (BPS) in 2014 showed West Java province was ranked as the
second in the number and types of SMEs per village / villages with a total of 16 405 units. Food
and beverage industry occupied the first position with the number of 4,023, followed by the
processing industry of wood (3987), industrial matting (2266), industrial pottery / ceramics
(1828), as well as convection and nonwovens industry (1779). All types of creative industries
mentioned above are produced in West Java in general, included Bandung area particulary.
They are Bandung city , Bandung regency, Cimahi and West Bandung District that
produces the products mentioned above. Furthermore, to see the magnitude of the contribution of
SMEs to the GDRP in West Java can be declared in the following table.
Year
2010
2011
2012
2013
Table 4.2
Comparison Contributions SMEs to GDRP of West Java
Contribution to GRDP
Growth in GRDP
West Java
Total ( Rp/ trillion )
Percentage (%)
771,59
6,06
860,98
6,22
946,86
7,31
1.070,18
9,66
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Table 4.3
Total Business Unit, Small and Medium Industry In West Java
According to Four Regency / City Year 2010 - 2012
Regency/City/
Provincial
2010
2011
Kota Bandung
12,269
12,273
Kab. bandung
5,030
5,052
Kota Cimahi
1,211
1,236
K.Bandung Barat
9,763
9,801
Jawa Barat
198,478
199,537
Source: BAPPEDA West Java (2012) the data is processed.
2012
12,283
5,052
1,236
9,801
199,723
Based on Table 4.3 showed that Bandung city has the largest number of SMEs, and further
followed by the districts of Bandung, Cimahi and Bandung Barat districts that have large
contribution to the regional gross domestic product in West Java. SME performance West Java is
able to contribute to the LPE (Economic Growth Rate) of 8.04 percent its contribution to the
GRDP around Rp 345.187 trillion (diskumkm.jabarprov.go.id).
Tabel 4.4
Creative industries contribution to National
Gross Domestic Product (GDP)
Public Services
167.544.819.489
Creative industry
104.787.209.313
Transportation and Communications
124.399.000.000
Trade , Hotels and Restaurants
259.272.101.124
Building
112.762.200.000
Processing industry
479.928.098.413
Agriculture, Livestock , Forestry , and Fisheries 261.296.800.000
Electricity , Gas , and Water
12.263.600.000
Mining and excavation
168.729.900.000
Finance , Real Estate and Business Services
155.633.748.390
Source : BPS , data is processed
( 9,07%)
( 5,67%)
(6,74%)
(14,04%)
(6,11%)
(25,99%)
(14,15%)
(0,66%)
(9,14%)
(8,43%)
Furthermore, the amounted of donations of regional gross domestic product (GDP) value
for Bandung area that consist of 4 regencies/ cities in West Java, in 2010-2012 with the
calculation including oil & gas as and without oil &Gas can be expressed in the following table.
ISBN: 978-602-73852-0-7
Tabel 4.5
The value of GDP at Current Market Prices
By Regency / City in West Java Year 2010-2012
(Trillion rupiah)
1
2
3
4
Bandung
Bandung Barat
Kota Bandung
Kota Cimahi
Jawa Barat
Source: BAPPEDA West
Java 2012) the data is
processed West Java 2012) the
data is processed.
*) Figures Repairs
**) Preliminary figures
1) Has the oil and gas sector
Based on table 4.5 it can be stated that the value of GDP, Bandung is the largest, reaching
16.02%, and further followed by Bandung District 11.00%, followed by the West Bandung
regency by 10, 57%, and the last Cimahi city of 10.00%. Overall contribution to the GRDP
Bandung territory , West Java amounted to 21.06%. Which the numbers are significant, reaching
the amount of one-fifth of the GDP of West Java.
GDRP growth in supporting the economy in Bandung area can be expressed as a
percentage. Calculation of growth are as follows:
Note:
Sector GRDP sector GDP value it = i in year t
Total PDRBt = value of total GRDP in year t
a. Bandung district
r(t-1,t)=PDRBt PDRBt-1 x 100%
PDRBt-1
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Thus, the average economic growth from the year 2010 - 2012 is 10.57%.
e. Bandung city
r(t-1,t)=PDRBt PDRBt-1 x 100%
= 95,61 82,00 x 100% = 17.01%
82,00
r(t-1,t)= 111,12 95,61 x 100%
95,61
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10
= 16,02%
f. Average of Bandung city
17,01 % + 16,02 % = 16,52 %
2
The average of economic growth from 2010 - 2012 is 16.52%
g. District of Cimahi.
r(t-1,t)=PDRBt PDRBt-1 x 100%
= 14,16 12,85 x 100% = 10.01%
12,85
r(t-1,t)= 15,54 14,16 x 100%
14,16
= 9,99%
h. Average of District Cimahi
10,01 % + 9,99 % = 10,00 %
2
Thus, the average of economic growth from the year 2010 - 2012 is 10.00%
Based on the above calculation, it can be said the GDRP contribution to the GDRP in
Bandung, is quite significant in supporting economic growth in West Java. In addition, there are
several other reasons that underlie businesses or small industries continue to be developed in
West Java, Bandung Region in particular and Indonesia in general.
V. CONCLUSIONS AND SUGGESTIONS
Based on the results of the discussion that has been done before in previous chapter, it
can be concluded that present below, and suggestions are referred in this study as follows:
5.1. Conclusion
1.Small micro and medium enterprises (SMEs) which significantly contribute to the regional
gross domestic regional product (GDRP) each year is quite significant, which on average in the
range of above 7% per year. The largest contribution was obtained in 2013, reaching 9.66%
when compared to previous years. When expressed in monetary value reached 1070.18 trillion.
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2. The creative industries have been able to make a contribution to the Gross Domestic Regional
Product (GDRP) significantly with the average a significant contribution in each year during the
study period, that was 2010 -2013 period.
3. Contribution and the roles of SMEs in the region of Bandung from the creative industries are
significant in economy growth in Bandung area particulary in West Java.
4.The value of gross domestic regional product (GDRP), Bandung are the largest, reaching
10.64%, and subsequently followed by Bandung regency at 5.98%, followed by the West
Bandung regency by 2, 27%, and the last is Cimahi 1.67%.
5. Overall contribution of gross domestic regional product (GDRP) Bandung regional West
Java to the GDP amounted to 20.56%. Which the numbers are significant, reaching the amount
of one-fifth of the GDRP of West Java.
5.2. Suggestion
1. The creative industry is an integral part of the creative economy. Be aware that the creative
economy, which focuses on the creation of goods and services by relying on the expertise, talent
and creativity as intellectual property, is the hope for the Indonesian economy to rise, compete
and achieve excellence in the global economy, including West Java, especially in Bandung area.
2. Development of Indonesian creative economy is not only emphasizes on the development of
creative industries of 14 national groups, but also on the development of a variety of factors
significant role in the creative economy, such as human resources, raw materials based on
natural resources, technology, institutional arrangements and financial institutions which became
a component in the model of development that will be able to increase its contribution to the
improvement of the gross domestic regional product (GDRP) in Bandung, West Java
particularly and the economy of nation in general.
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