Abstract

This study aims to improve business management of partner business UD.  Batik "Lestari Arts".  The Government of Indonesia has prepared a number of policies to protect and prepare micro, small and medium-sized businesses to produce high-quality products that have high competitiveness.  Tuban is one of the towns in East Java that has an MSME named UD Batik "Lestari Arts" that produces superior products in the form of gedog batik.  The Regional Superior Product Development Program, partnering with UD.  Batik "Lestari Arts", resulted in improvements on two main focuses of partner business management, namely on business resources and the use of science and technology in running a business.  This program is ongoing and continuing through the activities of mentoring, monitoring and evaluating results after two years of partnership.

Introduction

The birth of the ASEAN free trade agreement, popularly called the Asean Economic Community (AEC), cannot be separated from the formation of world trade organization cooperation that has an influence on cooperation or trade agreements in various regions. The presence of the AEC has very broad consequences on the business world, especially Micro, Small and Medium Enterprises (MSMEs) in various countries including Indonesia. The Government of Indonesia has prepared a number of government policies to protect and prepare micro, small and medium businesses to produce high-quality products, which have high competitiveness so that they can compete with products produced by micro, small and medium businesses from other countries, including other ASEAN members.

Public policy is constitutional binding on the strategic level or outline made by the public authority. Public policy must be able to accommodate a variety of different interests. Public policy must also be able to aggregate these various interests in a policy product that is priority, urgent and directed, and leads to efforts to organize broader interests [1]. The problems often faced by MSMEs are the ability to access technology, market access and the development of quality human resources. This problem was also faced by UD Batik "Lestari Arts" as MSMEs which produces Batik.

Batik is one of Indonesia's unique cultures. The process of making batik is specifically by scratching wax on the fabric, and then the processing is done in a certain way that has its own peculiarities. Indonesian batik, as a whole of techniques, technology, and the development of related motifs and culture, has been designated as a Humanitarian Heritage for Oral and Non-material Culture (Masterpieces of the Oral and Intangible Heritage of Humanity) since 2 October 2009 by UNESCO (Kompas.com, 2017).

The batik craft profession at MSMEs in Indonesia is usually divided into two professional details, namely batik fabric makers and batik fabric processors into finished materials such as clothes and various handicrafts. Tuban Regency is one of the regencies in East Java Province which is on the northern coast line (Pantura) of Java Island with an area of ​​1,904.70 km² and has a beach length of 65 km [2]. In the economic field, Tuban has business potential with high economic value. One of the superior potentials of handicrafts in Tuban which is the potential livelihood of Tuban residents is Gedog handmade batik and weaving that are superior products inherited from the previous generation to the next generation. Gedog weaving is a handicraft that has a distinctive pattern or motif. Characteristics of Gedog batik and weaving can be seen from the motifs and coloring that have coastal pattern and its display of a variety plants and flowers [3].

UD. Batik "Lestari Arts", led by Mrs. Sri Lestari, produced a production of handmade batik with materials from primis and gedog weaving with a coloring system from natural materials and chemicals. The business activities in UD Batik "Lestari Arts" are still carried out conventionally, the management of existing human resources is only running as it is, the operational management activities and access to technology are not on a top priority. The Regional Superior Product Development Program (PPPUD) has priority to help UD Batik "Lestari Arst" as a partner to improve the operational management of batik business.

The solution provided for partners to be able to compete at the national and international level is conveyed through several activities such as preparing to build a gallery or exhibition hall, preparing employee attributes and cashier applications. The design of gallery or showroom and also the attributes or uniforms of employees have been communicated with partners, as well as a prototype cashier application and dashboard for management have been tested and run well. This program certainly runs continuously with the activities of mentoring, monitoring and evaluation of the implementation carried out by partners. All of the solutions that have been offered are to build marketing that can ultimately increase sales that have an impact on increasing income of the partners.

Methods

This program is implemented in an effort to solve the problems faced by partners. Several stages have been passed, starting from the study of public policy studies on MSMEs, identification of MSMEs partners, SWOT analysis and the analysis of problem solving and decision making and finally the mentoring, monitoring and evaluation stage Figure 1.

Figure 1.Research stages

Result and Discussion

In this section, the results and discussion for each stage of the research methodology will be presented, namely the results of the government policy study stage on MSME empowerment, MSME identification stage, SWOT analysis stage, problem solving and decision making analysis stage and finally the mentoring, monitoring and evaluation stage.

The Study of government policies for empowering MSMEs

The policy that has been taken by the government is in the form of a number of laws and regulations, which protect, prepare and guarantee the smooth and development of our MSMEs legally to face the Asean Economic Community (AEC). Theoretical thinking framework and assistance models or patterns that can be used to carry out physical activities and certain thoughts in terms of government policies as public policies are decisions / actions taken to empower Micro, Small and Medium Enterprises (MSMEs) through a number of laws and regulations.

Principles and Objectives of Empowerment of MSMEs based [5] on Chapter II Article 4 and Article 5 of Law No.20 of 2008 concerning MSMEs empowerment are as follows:

a. The principle of UMKM empowerment is carried out for

1) fostering the independence, togetherness and entrepreneurship of UMKM to work on their own initiative;

2) Creating a transparent, accountable and fair public policy;

3) Developing some regional-based and market-oriented businesses in accordance with the competence of MSMEs;

4) Increasing the competitiveness of MSMEs;

5) Implementation, planning, management and control in an integrated manner.

b. The purpose of empowering MSMEs are

1). Achieving a balanced, developing and fair national economic structure;

2).Growing and developing UMKM capability into a strong and independent business;

3). Enhancing the role of MSMEs in regional development, job creation, income distribution, economic growth, and poverty alleviation

MSME identification

Tuban has not only captivating natural potential but also business potential that has high economic value. One of the superior potentials of crafts in Tuban which is the potential livelihood of Tuban residents is written batik and Gedog weaving which are superior products inherited from previous generation to the next generation. Characteristics of batik and Gedog weaving can be seen from the motifs and coloring that are patterned coastal and the display of a variety plants and flowers. The MSME that becomes partners is UD Batik "Lestari Arts" which is located at Dsn. Luwuk Ds.Kedungrejo Kec. Kerek Tuban, East Java. The identification results of UD Batik Lestari Arts can be seen in Table 1.

SWOT Analysis

The next stage is to convey the results of the SWOT analysis from UD. Batik "Lestari Arts" :

Strenght

1. It has a high artistic value
2. It is an authentic Indonesian cultural heritage
3. The raw materials are very easy to get, such as natural colors from the surrounding area.
4. It has economical price
5. There are many local and foreign enthusiasts that are interested.
6. Not all regions have excellent batik.
7. It has a motif that is typical of the coastal area of ​​Tuban
8. It is the product that is always sought after as a handy craft

Weakness

1. Lack of product marketing so that the product is still not widely known.
2. Many errors happen in processing / producing activities
3. The production location is too far from the local community, so that production and marketing cannot be done well.
4. Lack of design innovation.
5. For an order in large quantities of one specific design, batik designs have different designs and colors.
6. The use of manual tools.
7. There is no waste disposal yet.
8. Limited use of information technology

Opportunities

1. Not all regions / cities can produce batik.
2. Raw materials are abundant to be utilized well.
3. Batik products are currently booming.
4. Gedog batik is well known on a national and international scale.
5. It has a typical characteristic and uniqueness.

Threats

1. Lack of information about the existence of batik gedog which is a superior product in Tuban.
2. Unattractive design and coloring that attract only a few costumers.
3. There is nothing special on the packaging. It is usually just the common one.
4. Consumers tend to choose batik products that are easily found.

The analysis stage of problem solving and decision making

From the results of the analysis in the previous stage, it is found that important factors for MSMEs that needs more attention are: 1. Resource factors (6 M: man, material, money, machine, method and market) 2. Factors of science and technology 3. Cultural factors, 4. Factors of capital power 5. Weaknesses in accessing markets. At this stage of research, 2 main factors were resolved, namely 1) resources consisting of man, material, and method; and 2) Factors of science and technology. The explanation of the problem solving that has been done is as follows:

1. Humans; various training has been conducted to improve human resource capabilities, both training in design and coloring techniques and waste management training.
2. Material; the development of galleries or exhibition space is required to expand marketing and sales. The design of the exhibition space has been arranged as shown in figure 2 below. In order to build a sense of belonging and loyalty from employees, the existence / use of business attributes is needed. One of them is a uniform that is used to support exhibition activities.
3. Method; at this stage, the steps to improve operational management functions has been done by producing a design in the form of a Standard Operational Procedure (SOP) for four activities namely production, finance, labor, sales / marketing.

Figure 2.The design of the exhibition space

Figure 3.The cash register application prototype

This application in Figure 2 and Figure 3 is used by administrative officers / customer service / cashiers. This application simplifies and speeds up service for customers, helping the officers to calculate the results of shopping for each customer. The application can be connected with input devices that can read the numbers in the barcode or QR code. Data captured in each transaction can show the results of the recapitulation in the dashboard application shown in Figure 4.

Figure 4.The dashboard application

In the dashboard application some data processing results are displayed to be the information needed by the owner of UD Batik "Lestari Arts". The information displayed includes the recapitulation of total orders, total income, type of collection, total customers, highest transaction (based on day or time), average length of service to customers, favorite products by type, and the products with the highest order at the specified time period. With this application, the owner can monitor developments. It can also be a device that helps in making decisions.

Mentoring, monitoring, and evaluation.

The final stage is to arrange a program together with partners for the process of mentoring, monitoring and evaluation. The schedule is arranged according to the agreement between researchers and partners.

Conclusion

The Regional Superior Product Development Program partnering with UD. Batik "Lestari Arts" was successfully carried out in Tuban, East Java, Indonesia. This program resulted in improvements to the two main focuses of partner business management, namely 1) resources consisting of man, material, method and 2) Factors of science and technology. This program is ongoing through mentoring, monitoring and evaluation of the results after two years of partnership.

Acknowledgements

The implementation of the Regional Superior Product Development Program (PPUD) is fully supported by the Directorate of Research and Community Service, Deputy for Research and Development Strengthening, the Ministry of Technology Research / National Research and Innovation Agency, in accordance with the Contract for Implementation of Community Service Program No: 105/SP2H/PPM/DRPM/2020, March 16, 2020.

References

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