Analysis of the Competitiveness of Micro Enterprises in Dealing in
2016 Asian Economic Community
Ikaputera Waspada
Universitas Pendidikan Indonesia, Setiabudi 229, Bandung, Indonesia
Keywords: Competitiveness, AEC, SMEs, Capital management.
Abstract: Sentra Cibaduyut footwear industry faces problems of competitiveness of capital management and market
structure is not optimal in the Asean Economic Community. Government as the policy holder should be able
to provide capital infrastructure management assistance to make the footwear industry Cibaduyut
competitiveness in the AEC. Therefore, on the occasion of this study used qualitative research by distributing
questionnaires and interviews with 75 entrepreneur. The results showed industrial competitiveness Footwear
AEC Cibaduyut ready in 2016 for its own products, working capital, production, infrastructure and an increase
in assistance to face the AEC 2016. These results contribute to the Department of Cooperatives and SMEs in
West Java and tried as optimum for entrepreneurs, walking footwear industry manager Cibaduyut face AEC
The implementation of AEC 2016 focuses on 12
priority sectors, comprising seven sectors of goods
(agriculture, electronic equipment, automotive,
fishery, rubber-based industries, wood-based
industries and textiles) and five service sectors (air
transport, health services, Logistics, and the
information technology industry or e-ASEAN). How
description of competitiveness footwear industry.
Based on data released by Word Economic Forum
2013, Indonesia is only ranked 50th away from
Malaysia which has a better competitiveness in the
25th rank, even Singapore is ranked 2nd.
Competitiveness creates some improvements both
for the economy and for others. Indonesia must
immediately prepare itself to face the AEC
agreement. If this condition cannot be overcome it
will be booming for Indonesia. In addition to labour
and capital that are the measure of productivity. The
ACFTA policy also affects SMEs in the field of
technology. The owners of SMEs choose to sell some
modern production machines in addition to
production capital due to reduced sales and turnover
decreased. Based on existing problems How
description of competitiveness footwear industry
seen from the Capital Management in facing Asean
Economic Community 2016?
Objects in this study are enterpreneurs the center of
footwear industry Cibaduyut Bandung. Qualitative
research with sampling technique used purposive
sampling and snowball sampling. The number of
samples of this study 75 enterpreneurs. The
entrepreneur in question is a craftsman who owns a
shop. Data obtained by interview and secondary data.
Then the data collection is done by natural setting
(natural condition), primary data source, and more
data collection techniques on participant observation,
in-depth interview and documentation.
3.1 Research Result
Large capital factor will create a lot of production
result, so that production can fulfil consumer demand
which will be converted to result of sale / profit. The
capital source of Cibaduyut footwear SMEs every
year has increased. The increase is due to the
government funding program. Like the People's Love
Credit (KCR) program that is managed by the Office
of Cooperatives and SMEs of West Java Province.
According to Sudaryanto, Ragimun and Rahma Rina
Waspada, I.
Analysis of the Competitiveness of Micro Enterprises in Dealing in 2016 Asian Economic Community.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 326-329
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
Wijayanti, Bank Indonesia (BI) noted that micro and
small and medium enterprise (MSME) credit
distribution is still very low below 10% from January
to May 2011. The central bank continues to direct
banks to boost the productive sector credit Prevent the
economy "overheating" aka overheating.
Table 1: Investment Value in Cibaduyut Footwear Industry
Investment(Thousands of IDR)
14,620,000 -
14.669.123 100%
23,970,675 163%
Source: Report on the Installation of Small and Medium-Scale
Industries Development of Bandung Footwear / Fireplace 2009
Although the increase in investment/capital in
2009 is quite large at Rp 23,970,675,000, - compared
to the previous year which only amounted to Rp
14,669,123,000, The condition of the 2007
investment growth until 2009 was 163%. This leads
to an increase in production. That year as an indicator
of one year before the 2008 economic crisis and one
after. On the other hand, the products of production
are decreasing every year. Even the results of its
production every year have decreased. For more
details please note table 2 below:
Table 2: Products per Year Produced by Cibaduyut Shoes
Year of Product
Per Year (PCS)
4,952,780 1,09%
4.091.20 0.82%
Source: Report on the Installation of Small and Medium-Scale
Industries Development of Bandung Footwear / Fireplace 2009
The big investment, the company will have more
power in producing goods or in making marketing
strategy. This is very necessary cooperation between
the craftsmen, and entrepreneurs and the government
to continue to improve the quality of work and the
potential of footwear industry center Cibaduyut.
Investors can invest their capital in Cibaduyut
footwear industry effectively. Nevertheless
production continued to decline, in 2009 reached -
0.82%. This is felt to continue to decline even as
investment increases. This phenomenon of investors
can invest their capital in the footwear industry
Cibaduyut with effective but decreased production. If
we look from the standpoint of Diamond Porter's
theory then this is one of the weaknesses of
competitiveness that enter the production factor.
Research entrepreneurs Cibaduyut footwear
industry center about the competence of
entrepreneurs in the readiness of capital on the
competitiveness of SMEs in the city of Bandung. The
ability of a company to survive in the competition in
an industry illustrates how the competencies of the
entrepreneur. The results of this study can be new
information in developing knowledge in economics
especially in starting and running a business with the
readiness of capital in the face of competitiveness.
3.2 Infrastructure (Facilities and
Infrastructure Company)
The research of entrepreneurs of footwear industry
center Cibaduyut. About competence of
entrepreneurs in the use of Infrastructure is the next
indicator to know the competitiveness of the
company. In the footwear industry center Cibaduyut
there is no data that can indicate the readiness of
infrastructure, but as a reference there is the latest data
as follows:
Table 3: Infrastructure at Cibaduyut Footwear Industry
Center 2012
Showroom / outlet / take
Trade center
Grocery and support stores
Shoelast industry
Manuf of equipment/spare parts
Packaging industry
Rubber sole industry
Source: Technical Service Unit (UPT) Cibaduyut Footwear
Industry, 2013
The data in Table 3. Above is data released back
by UPT Persepatuan Cibaduyut which since the last 5
years there has been no data collection again.
Researchers in this case have not been able to ensure
that the number of existing infrastructure in the
footwear industry center Cibaduyut need to be re-
identified as an effort to improve the infrastructure of
Cibadyut region meaning global.
3.3 Discussion
The results of research and hypothesis seeing an
almost uniform answer compared to previous answers
indicates that there is variation in degree of readiness
among footwear entrepreneurs in Cibaduyut.
However, the variation can be said to be better
because there is a large portion of entrepreneurs who
are ready to face the AEC 2016 seen from the existing
infrastructure. Surely this is an obligation between
employers and the government to facilitate the
provision of easy access to capital if SMEs want
Cibaduyut footwear competing in the AEC 2016.
Analysis of the Competitiveness of Micro Enterprises in Dealing in 2016 Asian Economic Community
a. Cibaduyut Footwear Industry Competitiveness
From Government (Government)
Porter's Diamond Theory, Porter also adds the
Government's involvement to encourage
readiness to face the competitiveness of a
company. In this study, the researchers provide
information on the extent to which the role of
government in the development of Cibaduyut
footwear industry center in AEC 2016. A total
of 18.75 percent of 75 entrepreneurs answered
in the AEC 2016 is very helpful program
development. Looking at these conditions
would encourage the Government pro-active to
provide assistance information product strategy
values and support the sustainable market ACE
2016. The development of entrepreneurs in
UMKM Cibaduyut footwear must be able to
manage global market information. The results
of interviews with employers, including:
1) Government is proactive in developing
business managed by entrepreneurs of
Cibaduyut footwear industry center.
Whereas in the center of IKM Cibaduyut
footwear that already exist Technical
Implementation Unit (UPT) which has a
strategic task of development, facilitate the
development of footwear entrepreneurs
face AEC 2016.
2) The government is expected to increase the
active coordination among entrepreneurs
as a strategic value of entrepreneur
development. Ongoing discussions are
held between the Government and
entrepreneurs, is expected to improve the
communication of business development
is not limited to local values, effective
entrepreneur regeneration but global
market developments.
b. Competitiveness of Cibaduyut Footwear
Industry in Facing ASEAN Economic
Community 2016
The ASEAN Economic Community (AEC) is an
agreement that must be accepted by all
Indonesians, especially micro-economic actors.
SMEs Cibaduyut footwear is one of the
industrial centers that have the potential to more
utilize the agreement. Some opportunities are
found, including:
1) There are efforts to reduce the
unpreparedness of Cibaduyut footwear
entrepreneurs in the face of AEC 2016.
2) Opportunities Cibaduyut entrepreneurs in
dealing with AEC 2016 has a strategic
value of SMEs development in West Java.
The above opportunities immediately inform the
AEC 2016 agreement has been ongoing and
entrepreneurs continue to improve themselves.
Therefore the efforts have been made:
a. Cibaduyut footwear entrepreneurs have been
trying to find out, either through seminars or the
internet, including continuing to discuss around
the environment of Cibaduyut footwear industry
b. There is guidance on how to analyze the
company, be it the strengths, weaknesses,
opportunities and challenges of the company, so
that will be known unpreparedness and the
opportunity to then be ready.
c. Improvement of Government advisory
assistance to the importance of AEC 2016 that
supports the strategic business agreement in
AEC 2016 area becomes an opportunity to
create a more competitive global market for the
managers of Cibaduyut footwear industry center
and increase local market commitment.
d. Indonesia seeks to align with other countries in
the world economic setting that has led to the era
of information and globalization. One of them is
within the scope of Southeast Asian countries.
Micro, Small and Medium Enterprises (MSME)
development strategy is one of the most appropriate
strategies to be implemented in Cibaduyut's existing
footwear SMEs. On the other hand SMEs Cibaduyut
footwear should get a lot of optimal assistance to
improve its competitiveness against the competition
with a variety of foreign products that go into the
country. The low competitiveness of SMEs
Cibaduyut footwear become a strategic factor of
MSME existence in the global business competition.
Based on the results of research Consisting of an
increase in the availability of capital (163%) that has
been done found, as follows: Factor Condition
consisting of capital availability and infrastructure
UMKM Cibaduyut footwear has a high
competitiveness in the face of AEC 2016;
Government which consists of government
development program of ASEAN Economic
Community 2016 UMKM Cibaduyut footwear has
competitiveness in face of AEC 2016; And
Opportunity of Cibaduyut footwear SMEs in facing
ASEAN Economic Community 2016 which consist
of preparedness and opportunity of company ready to
face competitiveness in winning AEC 2016. Finally
with Diamond Porter's theory on average, UMKM
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
Cibaduyut footwear has a high competitiveness and
won the ASEAN Economics Community 2016.
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Technical Service Unit (UPT) of Cibaduyut Footwear
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Empowerment Facing Asean Free Market
Analysis of the Competitiveness of Micro Enterprises in Dealing in 2016 Asian Economic Community