SPATIAL PATTERNS ANALYSIS OF SMALL AND MEDIUM INDUSTRY CENTERS FOR FOOD AND BEVERAGE BUSINESSES IN INDRAMAYU REGENCY

• Main Author: Nur Safihyah, Ayu
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63254
• Institution: Institut Teknologi Bandung

The manufacturing sector in Indramayu Regency has a major influence on the regional economy, which contributes 42% to the Gross Regional Domestic Product (GRDP). On the other hand, there is an opportunity for the industrial development plan of the Tambourine Golden Triangle and the potential for developing the Industrial Growth Center Area (WPPI) in Indramayu Regency will provide an additional 20,000 hectares of Industrial Designated Area (KPI). The development of these industrial activities will not only have an impact on large industries, but also Small and Medium Industries (IKM). Meanwhile, the absorption of labor in the IKM sector is greater than that of large industries. Based on the sector, IKM food and beverage business dominates in Indramayu Regency. Therefore, this study aims to analyze the pattern of spatial concentration and strategy for developing IKM centers for food and beverage businesses in Indramayu Regency. In this study, the data used were collected using the secondary data method. Regression analysis was used to identify factors that influence the presence of IKM center locations and spatial autocorrelation analysis of the Global Moran Index and Hotspot Analysis was carried out to determine the spatial concentration pattern of IKM food and beverage business centers. The results of the analysis show that there are three factors that influence the existence of food and beverage business IKM centers, namely accessibility, regulation, and utility with odd ratio values of 3,505, 2,742, and 1,080, respectively. Meanwhile, the spatial concentration pattern formed from the food and beverage business IKM centers in Indramayu Regency is spatially centered with an index value of 0.049. This study provides recommendations to increase the supporting factors for industrial activities in order to attract SMIs to spatially group together so that they can obtain greater profits and improve the regional economy.