A Case Study of Ceramic, Tempeh Chips, and Sanitair Enterprises in Malang City Indonesia

Abstract

The first goal of Millennium Development Goals (MDGs) was to eradicate extreme poverty and hunger. Based on the data from Indonesian Statistical Agency (BPS-Indonesia), the number of poverty in Indonesia since the last decade has been decreasing gradually. In 2012, the national poverty percentage had declined to 11.66 percent from 13.33 percent in 2010. Poverty is one of the main policy agenda of Indonesia government, Since the president of Yudhoyono (SBY), the government has decided four clusters to eradicate the poverty, namely: family based social assistance program, community empowerment, empowerment of small and micro enterprises, and pro poor program.

This research aims to describe, and analyze  the strategy of poverty eradication in Indonesia through the empowerment of SMEs. This study used the descriptive research with qualitative approach. For the data collection the researcher conducted fieldwork and used triangulation technique, of multiple data source of evidence namely, documentations, observations, studied literatures and interviewed with relevant subjects such as SMEs business owners, local government officials and other related actors.

The findings of this research shows that local government, higher education institution, and bank have significant contribution in empowering SMEs. Local government of Malang City, Higher education, and Bank have a synergy to enhance the SMEs in Malang. The synergy has mutual benefit among SMEs actors and all stakeholders.