Partnership Analysis of Two Wheel and Four or More Automotive Industry MSMEs in Indonesia

Abstract

The objectives of this study are: (1) to analyze the development and contribution of micro small and medium enterprises (MSMEs) partnerships in the Automotive Industry sector in Indonesia; (2) analyze the pattern and principle of partnership of MSMEs in the Automotive Industry in Indonesia; (3) analyzing the support of the central and local governments for the automotive industry partnership in Indonesia; (4) explore the placement of MSMEs in the National Industrial Estate and (5) develop a strategy for developing and expanding the partnership of MSMEs in the automotive industry in Indonesia. The methodology used is descriptive exploratory and SWOT analysis. The results of the study: (1) inductive statistics give the results that there are 1,474 Number of 2-wheel and 4-wheeled 2-wheeled automotive MSMEs with 2 wheels as many as 659 and 815 4 wheels in Indonesia, West Java by 66%, Banten by 14%, East Java 9%, DKI Jakarta 5%, Central Java 4%, and Riau Islands 1% and other provinces below 1%; (2) partnership patterns and principles in the form of agreements/contracts/supply chains of automotive partnership cooperation between MSMEs and large automotive companies; (3) government support regulations to form a special village center for MSMEs, Link & Match partnerships, People's Business Credit Programs, provide direct cash funds to MSMEs during the COVID-19 epidemic; (4) MSMEs have not yet been placed in Industrial Areas mandated by Law Number 40 of 2007 and Government Regulation Number 142 of 2015 and (5) the position and strategy of MSMEs is an aggressive maintenance strategy and a selective maintenance strategy.