MODEL DEVELOPMENT OF A SUPERIOR SMALL MEDIUM INDUSTRY IN BADUNG DISTRICT

The role of the government in national industrial development is strengthened by the compilation of a systematic, comprehensive and futuristic national industrial development plan in the form of the 2015-2035 National Industrial Development Master Plan, hereinafter referred to as RIPIN 2015-2035 as stipulated in Government Regulation Number 14 of 2015.

Industry in Badung Regency is dominated by Small and Medium Industries (IKM). Problems experienced by SMIs in Badung Regency are; (1) quality of human resources, (2) access to the use of technology in market information and production processes; (3) The business climate is not conducive; (4) capital problems related to limited capital, knowledge of sources of capital, collateral value that is not in accordance with capital requirements, and difficulties in meeting credit requirements; (5) Difficulties in obtaining raw materials (specifically for Textile and Silver Products IKM).

The empowerment of SMIs in Badung Regency is very necessary to be carried out by taking into account the problems experienced comprehensively, optimally and sustainably through the development of a conducive climate, providing business opportunities, support, protection and business development to the fullest, so as to be able to increase the position, role and potential of SMIs in realize economic growth, equity and increase people's income, job creation and poverty alleviation. Empowerment of SMIs that are right on target is done by determining in advance the Regional Competitive IKM in Badung Regency.

This study was structured with the aim of determining the superior SMIs of each Sub-district in Badung Regency: (1) determining the leading IKM in Badung Regency; (2) Identifying the Determining Variables of Leading IKM Development in Badung Regency; (3) Formulating the Leading IKM Development Strategy in Badung Regency; (4) Determine the Determination of the Performance of Leading SMIs in Badung Regency. Data were analyzed by Location Qoutient, External Factors Summary Matrix and External Factors Summary Matrix, and Inferential Analysis, which uses variance based or component based approaches with Partial Least Square (PLS).