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the development of micro and small industry of wood
lathe in Tanggung Village. This is because the
capacity and capability of human resources in the
micro and small industries of wood lathe is still not
good enough. In addition, the facilities and
infrastructure supporting this village are also not well
organized, for example the unavailability of outbound
locations and homestay for the visitors.
The readiness of supporting technology also
hasn’t spread evenly yet among some micro and small
industry craftsmen in Tanggung Village. The wood
lathe craftsmen are still not ready when visited by
tourists, so it needs a continuous synergy between
government and business actors in preparing this
tourism village in Blitar City. The government is
expected to be able to encourage the movement and
development of micro and small business sectors with
the distribution of technology as well as sustaining
aspects of product promotion.
Starting in 2011, the implementation of micro and
small industry’s empowerment in Tanggung Village
is collaborated with the PNPM Tourism program
which aims to revive and develop the tourism village
in Tanggung Village which had been dead and
undeveloped before. In this case there is a
coordination between the community of Tanggung
Village, Department of Cooperatives and SMEs
Regional, Department of Communication,
Informatics and Tourism Regional, and the
Department of Industry and Commerce of Blitar City
in preparing everything needed to develop the tourism
village again. Among them is the preparation of
educational tour packages, outbound locations and
homestay around Tanggung Village for the tourists
who want to visit the city of Blitar. In addition, they
also prepare the mental readiness of the community
in Tanggung Village in running the tourism village.
Currently the Tanggung Village Tourism Village has
become a member of the East Java Tourism Village
Association (ASIDEWI).
With the program conducted by the Department of
Industry and Commerce it can help the owners of
industry and the craftsmen in improving the
production quality of micro and small industries of
wood lathe in Tanggung Village.
5.1 Empowerment of Micro and Small
Industry Wood Lathe
The implementation of micro and small industry
empowerment of wood lathes in Tanggung Village by
the Department of Industry and Commerce of Blitar
City consists of four aspects:
1. Capital
The main problem most often faced by micro and
small industry entrepreneurs in wood lathe in general
is the lack of capital to develop a business. The
majority of micro and small-scale industrial
entrepreneurs in the Tanggung village use their own
capital to maintain and run the production process.
The capital factor is a determining element for the
success, continuation, and development of a business.
Without the availability of sufficient capital, any
effort will obviously not work well in accordance
with the objectives expected and will not go
according to what was planned together. However, at
present most of the micro and small industry
craftsmen in wood lathe have difficulty in obtaining
loans or soft loans from banks to develop and improve
their businesses, because they are not able to pay the
amount of collateral or bank loans in the form of cars
or land and building certificates.
The regional government cooperates with SMEs
in providing soft credit for micro and small industry
owners, but many soft credit funds such as these are
misused for purposes beyond the management of their
industries. Then there are many micro and small
industry owners who claim lack of capital but the
reality differs. Therefore, at this time if you are going
to borrow money or ask for soft loans for capital
purposes, you must include the industrial
administration data or the industry's financial
bookkeeping. If there is no accounting evidence, the
loan application is not accepted. Due to these
provisions, many SME owners submit training on
production management and financial management at
the Regional Office of Industry and Trade in the City
of Blitar.
2. Materials
Regarding raw material assistance, the Office of
Industry and Trade does not provide raw material
assistance directly but acts only as a facilitator or
becomes a bridge with the Blitar City Forestry
Service in facilitating the craftsmen to bring in raw
materials from outside the Blitar City area. If there is
already a letter of recommendation or permit from the
Forestry Office, it is expected that when bringing in
the amount of mahogany wood which is not small in
number, it is not suspected as an element of illegal
logging.
The availability of raw materials for the
implementation of production will be a driving factor
for the development of micro and small industries.
Raw materials are very important components in the
production process of an item, as without the
availability of sufficient raw materials, the production
process will be hampered. The main raw material in
making this wood lathe is mahogany. The availability
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