TRTF International Symposium Proceeding 2018

Strategy in Developing the Tenun Ikat in Kediri City East Province

DR. Nekky Rahmiyati, MM, Dra. Sri Andayani, MM, Lecturer in Economics Lecturer in Faculty of Social and Faculty of 17 Agustus 1945 University Political Sciences of 17 Agustus 1945 (UNTAG), University (UNTAG), Surabaya

ABSTRACT Kediri City in Province has a centre of ‘tenun ikat’ crafts INTRODUCTION that has already been in existence since the year 1980s. The tenun An economic development is a process causing the income per capita of citizen in a certain community increases in a long term, ikat cloth, as one of the cultural heritages, becomes the icon of Kediri City community and at the same time also becomes the accompanied by the change in important characteristics of the said regional product of excellence. The problems of research are as community, namely the changes in technology, in people’s mindset follows: 1) How is the potential, strength, constraint, opportunity and also in institution. Meanwhile, the globalization and regional and threat of the ‘tenun ikat’ compound in Bandar Kidul, Kediri? autonomy bring quite logical consequences that the level of 2) How is the strategy in developing the ‘tenun ikat’ compound in competition is getting sharper and sharper, either in regional, national or international levels. Kediri City?. The aims of this Research are as follows: 1) To know the potential, strength, constraint, opportunity and threat to the The regional products of excellence produced by the Small and ‘tenun ikat’ compound in Bandar Kidul, Kediri City. 2) To make Medium Scaled Enterprises are potentially able to be developed the plan in preparing the development strategy for ‘tenun ikat’ by utilizing the resources owned by regions, either in the forms of village in Bandar Kidul, Kediri City. Meanwhile, the outputs of this natural resources, human resources or the local culture. They also Research are as follows: 1) The mapping of the potential, strength, create the income for community and for government, expected to constraint, opportunity and threat to the ‘tenun ikat’ compound in become the economic power for region and for local community, Bandar Kidul, Kediri City. 2) The findings of the strategy and the as the potential products having the competitiveness, selling power follow-up plan for the ‘tenun ikat’ compound in Kediri City. and able to enter into the global markets. This is in conformity This research applies the descriptive qualitative method, supported with the Regulation of Home Affairs Minister Number 9 the Year by the qualitative data and analyzed qualitatively by using the 2014 on Guidelines in Developing the Regional Products of SWOT analysis. The Results of this Research are as follows: The Excellence. The Kediri City has the centre of ‘tenun ikat’ crafts commitment on strength is to implement the good and sufficiently already been in existence since the year 1980s. . At present, there are many tenun ikat crafters having their production continuously opened business management system to renewal. Weakness: Less availability of raw materials in Kediri; limitedness of manpower on Jalan Agus Salim Gang VIII, Bandar Kidul village, Sub-District with technical skill; export market, institution, waste treatment and of Mojoroto, Kediri City. The tenun ikat is an Indonesian woven work safety. Opportunities: The demand for product is relatively fabric in the form of cloth and dipped into a natural dye. The loom applied is called “ATBM” (Non-Machined Loom). stable and even increasing, the manpower willing to be trained is available. Media of promotion is quite a lot. Threats: There are The policy of Kediri City Administration on the use of work- quite a lot of competitors’ products; the family management puts clothes in the form of traditional woven fabric is one of the efforts the business continuity in worrying situation, lack of consumers’ of the Kediri City Administration to conserve the ‘tenun ikat’ as interest in hand-made / traditional products, manpower hijacking to the specific traditional cloth of the Kediri City whose existence other regions with the lure of bigger compensation, the high trend seemingly is beginning to sink. This policy is expected able to lift- in hijacking the ‘tenun ikat’ design model by other regions. up the prestige of ‘tenun ikat ‘ which has ever dimmed and the tenun ikat cloth as the cultural heritage becomes the icon of the Finally, based on these SWOT – Strength, Weakness, Opportunity and Threat, the strategy is analyzed. community of Kediri City and at the same times becomes the regional product of excellence. Keywords Problems of Research: “Strength, Weakness, Opportunity and Threat” Based on the aforesaid background, the problems can be identified as follows:

1. How are the potential, strength, constraint, opportunity and threat to the tenun ikat compound ?

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TRTF International Symposium Proceeding 2018

2. How is the development strategy of the tenun ikat The Motifs of Beras Tumpah (Spilled Rice), the compound in Kediri City? Motifs of Daud, Kawung, Pokemon, Prawan Aims of Research: Kalimantan (the Kalimantan Virgin), the Motifs of Sakuntala, Butterfly, Orchid, Rose, and 1. To know the potential, strength, constraint, opportunity and threat to the tenun ikat compound. Parang Rusak Motif. Drawing 1. Motif of Tenun Ikat 2. To know the strategy in developing the tenun ikat compound. RESULTS AND DISCUSSION Outputs of this Research: SWOT ANALYSIS, IDENTIFICATION OF INTERNAL AND EXTERNAL FACTORS OF TENUN IKAT COMPOUND IN 1. The mapping of the potential, strength, constraint, BADAR KIDUL, KEDIRI. opportunity and threat to the tenun ikat compound. Based on the results of characteristic identification and interview 2. The finding of strategy and the follow-up plan for the tenun as well as the field observation, the internal and external factors of ikat compound in Kediri City. tenun ikat crafts existence can be identified. The identification result is as shown on the table-1: LITERATURE REVIEW Table 1. Matrix of internal strategic factors 1. Industrial Strategy: FACTOR IDENTIFICATION Strategy is a long-term goal of a company as well as the A Weight Strength Factors Weight Rating empowerment and allocation of all important resources to x Rating achieve the said goal (Chandler, 1962: 13 in Rangkuti, 2002:4). Good understanding concerning with the concept 1. Lots of raw materials 0.05 4 0.2 of strategy and other pertinent concepts is very crucial in are available at the local determining the success of strategy to be prepared. Those market / easily concepts are as follows: obtainable and located not too far. a. Distinctive Competence: is an action conducted by a company in order to be able to perform it much 2. The Human Resource 0.05 4 0.2 better than that by its competitors. This Distinctive experiences and skills of Competence covers skill of the manpower and the Owner hereditarily ability of the resources. are good enough. b. Competitive Advantage: is a specific activity 3. The Applied Manual 0.075 4 0.3 developed by a company in order to be able to Technology is available perform it much better than that by its competitors. and easily obtainable. The strategy applied in order to gain excellence in 4. It has labor intensive 0.05 3 0.15 competition covers the cost leadership, differential nature, so that it and focus. becomes the means of 2. Industrial Strategy Through Stages of SWOT Analysis livelihood. The idea of SWOT Analysis is the strategic planning 5. The product marketing 0.1 4 0.4 method used to evaluate the strength, weakness, to other cities tends to opportunity, and threat in a project or in a business increase. speculation. The SWOT Analysis can be implemented by 6. Majority of them join 0.05 3 0.15 means of analyzing and selecting various subjects the Joint Venture Group influencing its four factors, then implementing them at the (JVG). SWOT Matrix Drawing, in which its application is how the strength can take the advantage from the available 7. Easily obtainable access 0.1 4 0.2 opportunities. Further is how the can deal with the existing to capital threat, and the final is how to overcome the weakness able 8. Business management is 0.05 3 0.15 to make the threat to be real or to make a new threat sufficiently opened; encountered by a company, namely the new government vision and mission are regulations harming the businessmen very much. clear. Total Score 1.75

B. Weakness Factors: Weight Rating Weight x Rating

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TRTF International Symposium Proceeding 2018

1. Raw material still has 0.01 1 0.1 to be purchased and Table-2. Matrix of external strategic factors even parts of them are imported, and not yet FACTOR IDENTIFICATION been able to be produced by the tenun A Opportunity Factors Weight Rating Weight ikat joint-venture x groups themselves in Rating Kediri City. 2. Application of 0.1 1 0.1 1. Product demand is 0.05 4 0.2 technology is still relatively stable and very limited to ATBM even it tends (Non-Machined increasing. Loom) so that Its selling price is 2. Sufficient number of 0.05 4 0.2 relatively inferior to available manpo-wer that of tenun (woven are willing to be fabrics) manufactured trained. by using machines. 3. There are quite lot of 0.075 4 0.3 3. Though there are 0.1 2 0.2 Promotion Media such sufficient numbers of as Expo/Exhibition, manpower, but only Online Busi-ness, few of them have the Visit, Comparative designing skill and Study, and Touring diversification of Visit, etc. tenun ikat products. 4. The limitedness in 0.1 1 0.1 4. Services for 0.05 3 0.15 export marketing, and transportation, if doing the export, it communi-cation, goods is still through the distribution and third party. delivery are quite easy 5. The Institution of 0.01 1 0.1 and available. Joint-Venture Group (JVG) is still very 5. Access to financial 0.05 3 0.15 weak and tends to institutions is quite a stand alone, lot; the JVG cooperates considering the fact with Bank of that some of them are , so that it not yet the members facilitates the banking of JVG of Tenun Ikat access. Kediri. 6. The social environment 0.05 4 0.2 6. Waste treatment still 0.05 3 0.15 of surrounding needs attention community is very 7. Production certainty 0.05 3 0.15 conducive, even tends is still limited. The to become the majority are to fulfill workers.. the orders. 7. The programs of 0.05 3 0.15 8. The work safety of 0.025 4 0.1 related government employees still needs (Kediri City to be improved, for Administration) example through supports very much Manpower Social and facilitates Insurance. existence of this tenun Total Score 1.00 ikat business in Bandar, cooperates with various Universities for

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TRTF International Symposium Proceeding 2018

training and mentoring Source: The Processed Primary Data. programs. 8. The manpower 0.05 3 0.15 CONCEPT OF STRATEGY IN DEVELOPING TENUN protection / insurance IKAT IN BANDAR KIDUL, KEDIRI is available through By virtue of the aforesaid data, a strategy can be made by BPJS and Manpower synchronizing the Strength (S) and the Opportunity (O), known as insurance. the S-O Strategy. Then, synchronizing the Weakness (W) and Opportunity (O), known as W-O Strategy, and synchronizing the Total Score 1.50 Strength (S) and the Threat (T) known as the ST-Strategy. The S- O Strategy is intended as an effort to maximize each element of strength owned in order to sieze every element of the available opportunities as optimally as possible. Meanwhile, the W-O Strategy is intended as an effort to improve each element of weaknesses in order to be able to be to utilized as optimally as

possible each element of the available opportunities. Whereas the S-T Strategy is intended as an effort to maximize each element of B Threat Factors Weight Rating Weight strength in order to counteract and subdue each element of x challenges as optimally as possible. Rating

1. Competitor products / 0.15 1 0.175 similar products either from domestic or Table-3. Strategy based on SWOT analysis overseas are in sufficient big amount and their Strength Strength (S) Weakness (W) prices are relatively (S) cheap because they use machines. 1. Business Management 1. Raw material continues still has to be 2. Hereditary/continuing 0.175 1 0.175 hereditarily. purchased and Family Manage-ment is even parts of 2. Vision and Mission of them are im- still relatively dominant, Business are clear. so that if its continuity is ported, and not not well maintained on 3. Numbers of male and yet capable of shift of generation, it female workers are producing will bring worry to the sufficiently available. themselves. business continuity. 4. Manpower absorbing. 2.The use of technology is 3. Exchange Rate of 0.175 1 0.175 5. Cooperating with very limited to Rupiah fluctuates very Gove-rnment and ATBM (Non- much and it gives Private Machined influence to the raw Loom). material. 6. Though the production is done 3. Manpower with 4. Decreasing interest of 0.15 1 0.15 by ATBM, but design skill and consumers in hand-made remains committed product diversi- / traditional products. to make innovation. fication is very limited. 5. Many efforts of 0.15 1 0.15 4. Limitedness in manpower hijacking to Export other regions with the marketing. lure of bigger compensation. 5. j Institution is still very weak 6. The tendency of 0.15 1 0.15 and tends to hijacking the tenun ikat stand alone. design model by other regions is sufficiently 6. Waste treatment high. still needs attention. Total Score 0.950

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TRTF International Symposium Proceeding 2018

7. Production capacity is still limited, mostly Challenge /Threat Strategy S-T Strategy W-T to fulfill the (T) orders. a. Competitor 1. Product 1. Innovating the 8.The Manpower products or innovation is ATBM (Non- social Insurance similar ones adjusted to Machined is low. either from the tastes of Loom). domestic or consumers 2. The use of overseas are and fashion. many and ATBM and 2. Improving the Woven Opportunity (O) Strategy S-O) Strategy W-O relatively cheap because they ability of Fabrics use machine. Family Machines. 1. Demand for 1. Increasing the 1. Making a Manage- 3. Work Uniforms product is produ-ction cooperation b. Hereditary / ment for the relatively stable by innovating with the raw continu-ing next business worn at the and tends the ATBM. material Family continuity. Government increasing. suppliers. Manage-ment is and Private 2. Setting-up an 3. Motivation the Agency. 2. Many manpower educa-tion 2. Motivating still dominant so that if its growth of are willing to be institution, business- Small & 4. It becomes a trained. voca-tional men to be continuity is not compul-sory. well maintained Medium school or the raw Scaled 5. Government 3. Many Promotion courses in material in the shift of Me-dia are genera-tion it Enterprises assis-tance in woven providers. to be the raw Patent, Tra-de available and fabrics. will worry the the tour visit. 3. Improving business material Mark, providers. 3. Cooperation Marketing continuity. Business 4. Services in with the Strategy, Permit, etc. transport-ation, c. Exchange Rate of 4. Motivation the Banking especially growth of 6. Improving the communication Institution Export. Ru piah and goods fluctuates very Small & ability of shall be Medium manpower for distribu-tion and maintained 4. Improving much and delivery. existence of Scaled the Design well and influences the JVG (Joint- raw materials. Enterprises and Motif. 5. Lots of access to increased. operating in Ventu-re 7. Business the financial 4. Cooperation Group), so d. Decreasing Woven Fabric Loom. Partnership is institutions, with the that it leads interest of the business groups Consumers to increased. travel and to the 5. Improving the and cooperating goods Centre. the hand-made with Bank of /tradi-tional Manpo wer delivery Insurance Indonesia, so bureaus. 5. Serious products. that it facilitates handling on and Wages to to get the 5. Improving Waste e. Many efforts to avoid the banking access. develop-ment Treatment. hijack manpower hijacking. and manpower to 6. Social 6. Paying mentoring other regions environment of attention to with lure of 6. To get the with Patent for the surrounding Government the bigger compensation. Product com-munity are and the Manpower very con-ducive. Design and related Social Insurance. f. High tendency of model. 7 . Related Programs Private hijacking the of Government Sectors. design model of (Kediri City 6. Cooperation tenun ikat by other regions Administration) with supports very Universities much and to impro-ve facilitates the Management CONCLUSION existence of and Tenun Ikat Production Based on SWOT Analysis and discussion on Strategy on Tenun Bandar. Technology ikat Business in Bandar Kidul, Kediri, as stated above, it can be concluded as follows:

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TRTF International Symposium Proceeding 2018

1. The existence of the Tenun Ikat Industry in Bandar Kidul has developed relatively in a long time and managed hereditarily, mostly is under a Family Management, so that the improvement in business management ability needs to be increased.

2. The existence of the Tenun Ikat Crafts Industry in Bandar Kidul has not yet been able to be declared as the “Centre”, because the amount of businessmen who has developed the Tenun Ikat Small & Medium Scaled Enterprises are less than 20 (twenty) persons, so that it needs to be developed to be the Industrial centre.

3. Development of tenun ikat crafts fluctuates but at present it tends to undergo the increase in sales in many cities in Indonesia, so that it needs a better promotion.

4. Export market is carried out by using the third party, so that a breakthrough is required by means of design innovation, strengthening the business network, and also better product quality.

5. Most production only uses the ATBM manual technology, and this becomes the excellence o tenun ikat, so that it shall be well maintained.

6. Numbers of manpower and the availability of manpower, either male or female are lots enough, but those who have the skills in design and the skill in making the innovative motif are very limited, so that a training in design is required. BIBLIOGRAPHY Hadi Sabari Yunus, 2010, “Metodologi Penelitian Wilayah Kontemporer” (Methodology of Contemporary Regional Reseach), : Pustaka Pelajar. Mudrajat Kuncoro, 2005, “Strategi Bagaimana Meraih Keunggulan Kompetitif” (Strategy on How to Grab the Competitive Excellence), Erlangga, . Permendagri (Regulation of Home Affairs Minister) Number 9, the year 2014, on “Pedoman Pengembangan Produk Unggulan Daerah” (Guidelines in Developing the Regional Product of Excellence) Porter, Michael E., 2008, Competitive Advantage ( Menciptakan dan Mempertahankan Kinerja Unggulan = Creating and Maintaining the Performance of Excellence), Kharisma Publishing Group. Rangkuti, Freddy, 2002, Analisis SWOT, Teknik Membedah Kasus Bisnis (SWOT Analyisis, Techniques in Dissecting the Business Cases), PT Gramedia Pustaka Utama, Jakarta. ………………….…., 2002, “Riset Pemasaran” (Marketing Research), Gramedia Pustaka utama, Jakarta. ……………….……., 2009, “Strategi Promosi yang Kreatif dan Analisis Kasus Integrated Marketing Communication” (Creative Promotion Strategy and Analysis on the Case of Integrated Marketing Communication), PT Gramedia Pustaka Utama, Jakarta.

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