Design of a small and medium industry cluster in cilegon city with supply chain system approach

Abstract

Future industrial development strategies, derived from current ideas, that is industrial development through a cluster approach. Cilegon city is a city with many petrochemical industries and other, it should be a potential that can give a positive impact for the welfare of Cilegon city community, the researchers want to design the cluster of the petrochemical derivative of IKM with supply chain system approach. The objective of the research is to design the development of a petrochemical derivative cluster of IKM in Cilegon, to determine the factors that influence the development of SMEs clusters, and to design improvement scenarios in the development of SMEs clusters with dynamic system simulations. Based on the results of SMEs cluster design, the stakeholders in the design are government, big companies, and business actors. Types of products to be produced are plastic packaging, plastic bottles, and plastic bags. The location of the right cluster of IKM development is located in Grogol sub-district. Raw materials used by petrochemical derivatives can be obtained from factories producing polyethylene in Grogol sub-district such as PT Lotte Chemical Titan. Factors that have the significant effect on SMEs cluster development are the factors of government support and local business power factor. The simulation result shows that the second alternative proposal is considered reliable enough to face the fluctuating market demand. From the simulation results obtained the average production of 228,513,6914 psc, the average production stock 821,742.4 and the average sales of 200,000 psc.