Development of Micro, Small and Medium Enterprises Rattan Woven Crafts in Central Kalimantan, Indonesia

This study discusses the development of small and medium micro enterprises (MSMEs) in Central Kalimantan with rattan woven craft industries being used as samples to represent other MSME sectors. The purpose of this study is to describe the improvement in the performance and strategy of the MSME group covering various aspects such as job training, capital support, equipment/technology assistance, and access to information and communication. The findings of this study indicate that the development of MSMEs carried out by regional governments in Central Kalimantan has gone in the right direction, with several factors still making improvements possible. Support in the form of training should be conducted regularly and scheduled with the topic of continuous training and productive participants. Aid in the form of equipment requires periodic evaluations, such as a reward-punishment system for business groups that have received various support to ensure the support provided is on target. Another strategy is to form the centre of the MSME industry in the Capital of the Province, to facilitate the access of tourists who just want to visit looking for typical Central Kalimantan souvenirs. The easiest way to do this now is to implement a movement of love for standard Central Kalimantan handicraft products to be displayed in various offices, offices, and government agencies as well as different infrastructure and public facilities.


INTRODUCTION
The dynamics of socio-cultural change and global changes have a very broad influence on the policies of the government of the Republic of Indonesia. The aforementioned influences in general are demands on improving the quality of human resources (HR) that have competitive ability and comparative ability to realize the achievement of national development goals and fulfill the demands of global competition in all fields, including in the economic sector which aims to improve people's welfare (Baharuddin, 2015). Many aspects need to be developed or updated in the economic field, for example through the development of craft industries and Micro, Small and Medium Enterprises (MSMEs). The development of MSMEs and cooperatives has great and strategic potential in increasing national economic activities, including providing domestic goods and services (Irawan, 2015). Small businesses are one of the pillars of economic development that is directly fostered and protected by the government. Small businesses have the potential to develop so they are able to plunge into the global economy. The existence of business resilience and independence, the people's economy has prospects in the free market competition in the future if serious guidance is carried out by the central and regional governments (Wardani, 2017).

Micro, Small and Medium Enterprises have a very
important role in the Indonesian economy, playing a very potential role in increasing new supply and competition, developing technology, creating new markets, increasing employment opportunities and production output. The MSME-based economy is better because this business absorbs a lot of labor, relatively small capital. Apart from that, MSMEs are also able to

DEVELOPMENT OF MICRO, SMALL AND MEDIUM ENTERPRISES RATTAN WOVEN CRAFTS IN CENTRAL KALIMANTAN, INDONESIA
increase creativity for people who want to have more income, while also being able to become a characteristic of an area's identity from its production (Gunartin, 2017).
In the dynamics of economic development in Indonesia MSMEs are always described as a sector that has a very important role, because most of the population is low educated and lives in business activities both in the traditional and modern sectors (Hapsari et al., 2014).
There are several strong reasons why MSMEs need to be developed in Indonesia, including: 1. Small businesses absorb a lot of labor, with the development of MSMEs that will have a positive impact on increasing the number of workers and reducing the number of poverty.
2. Equity in the distribution of development, the location of many MSMEs in rural areas and using local natural resources.
3. Equity in income distribution, MSMEs are very competitive with market patterns, there is no monopoly and easy to enter (Setyanto et al., 2015;Nirwana et al., 2017).
In addition, there are several reasons why MSMEs are able to survive, namely because they have different strengths than other types of businesses. The power in question is as follows: 1. Employment provider 2. New sources of entrepreneurship 3. Has a unique market segment 4. Carry out simple and flexible management of market changes 5. Utilizing natural resources around 6. Has the potential to develop (Sulastri, 2016).
The government in this case continues to maintain the business climate so that MSMEs continue to survive.
Surviving does not mean not doing development.
Empowerment is always carried out by the central government, regional governments, communities, and the business world as a form of strengthening MSME business. Business people usually hunt which institutions are able to provide assistance in the form of business capital loans. Therefore, they looked at cooperatives, because currently many government programs are rolled out through this cooperative institution (Putra, 2015).
But all of that does not necessarily run smoothly, the problem is certainly there, the problem faced does not mean that it cannot be overcome by these business people, only need to work with the government so that it can be overcome. This is also in accordance with the direction of fiscal 2014, which is one of the goals to meet the MSMEs towards a better direction. The government also realizes the importance of MSMEs, not only as one of the important sources of employment and income, which in turn means one of the important sources of poverty reduction, but also as a source of GDP growth (Mokalu, 2016).
The populist-based handicraft industry is one of the potential assets in the context of regional economic to get money quickly so that they sell raw rattan which is relatively much lower in price than well-produced rattan products (Kartini et al., 2019;Maimunah, 2017;Wahdah & Amalia, 2016).

METHODS
The approach method used is qualitative, namely the researchers describe the data obtained from the centers of rattan handicrafts in MSMEs in Central Kalimantan. The focus of the research is the performance of rattan handicraft UMKM centers sourced from the aspects of training, capital, equipment, and access to information and communication in each group of rattan craft centers. Data collected and analyzed include training on MSME work, data on working capital support, data on technology/equipment assistance, and data on information access and communication (Wardani, 2017).
Research begins with the management of permits with related agencies, followed by gathering information from predetermined informants, and ending with an analysis of the data collected. The approach used in this study is to gather information from rattan handicraft business actors on managerial aspects in the rattan handicraft industry (Masturi, 2010). The choice of sample itself is based on various considerations such as track record, production capacity, turnover, number of employees, continuity of production, and recommendations from relevant government offices. providing training, providing production equipment such as sewing machines, and participating in various exhibitions at the regional, national, and even international levels. The types of rattan woven handicraft products produced in Central Kalimantan are presented in Figure   1, where the sample data collection process is shown in Figure 2.

Figure 2. Interview with rattan handicraft business players
All groups of craftsmen who were used as resource persons were given several questions related to aspects that affect the quantity and quality of the production process of rattan woven crafts made, including some technical matters that influence the course of the production process. The interview session was divided into 2 sessions, namely interviews with the group leaders of craftsmen and representatives of members from each group. Through the results of the interviews obtained some information which is then collected and sorted as shown in Tables 1 and 2  -Generally the training programs gave a good response from the craftsmen, where the craftsmen admitted that they really needed the training to improve the skills of each group of craftsmen.
-Even so, some craftsmen claimed to be dissatisfied with the training activities given because the time was relatively short so it was not too useful for craftsmen, especially from a group of craftsmen who had quite a large number of employees. -In addition, the craftsmen also hoped that the training activities would be accompanied by coaching activities as a follow-up to the training activities. 4 If ever, do you see any changes and improvements in rattan craftsmen in your business unit?
-The business group leaders agreed that the training directly had a positive impact on improving the quality and quantity of products made by rattan craftsmen. -Not only that, the striking change is from the motivation of each craftsman who wants to change to become more advanced so that the products produced can be sold at higher prices. -The main motivation for these changes is to improve welfare to increase the economy of his family. -These changes unfortunately do not always run the same in every business group where there are always 1 or 2 people who are not significantly motivated and only consider the training to be just a filler of leisure time. 5 If there is no or only a slight change and improvement in the rattan craftsman, what is the cause? -There are some craftsmen who have not undergone too many changes in terms of increasing the quality and quantity of production, even though there are not many craftsmen. -There are several factors that are suspected to be the cause of resistance from the craftsmen, one of the main factors is that the training carried out is incidental and not regularly scheduled, so that the craftsmen consider this to be not serious in increasing production. -The rest did not find significant problems in the implementation of the training activities, especially in terms of technical implementation. 6 What are the forms of -On average each business group receives 2 types of coaching and mentoring Electronic copy available at: https://ssrn.com/abstract=3402782 coaching and assistance?
activities during the training process, namely coaching in the production process and in marketing matters.
-Guidance in the production process is carried out in two stages, namely the provision of assistance in the form of production equipment such as sewing machines, and the implementation of training on how to use sewing machines to produce rattan handicrafts.  -The craftsmen who were speakers were confident enough to state that the handicraft products they produced had good quality and could satisfy the order giver. -One indicator of their belief is that until now they have never received a complaint because the product produced is not in accordance with what was ordered, some even claimed to have been given tips as a bonus because the products produced exceeded the expectations of the order giver. -Generally the craftsmen say they are worried that they will make the order giver not satisfied if the product produced is not qualified, which can affect the perceptions of the order giver on the professionalism of the work of their business group. -Assistance in the form of capital support is generally unknown to the craftsmen, because the capital assistance is given directly to the group leader so that only a few members of the craftsman know that they have received capital assistance from other parties. -For assistance in the form of equipment support, most craftsmen know if they get help, because assistance is generally provided in the form of equipment / assets in the form of sewing machines that are directly used by craftsmen.
-Sources of assistance in the form of equipment obtained vary, some from government institutions such as Bank Indonesia and from the regional government through related agencies.
-For support in the form of access to information and communication, it is given in the form of invitations to participate in various exhibition activities at the local and national levels.
-Support for access to information that has been obtained from the Cooperative Office of each region as well as from PLUT Central Kalimantan. 5 If it has ever been done, how is the response or impact on you on the job training program of the local government or related agencies, for training in your business unit? Please explain from: -Frequency of job training -Capital support -Technology assistance -Access to information and communication -The number and frequency of job training obtained from each craftsman varies greatly because the self-selected speakers are a combination of senior and junior employees. -On average, all craftsmen who became speakers and have received training have received training 4 to 5 times since they first became craftsmen. -As mentioned earlier, assistance in the form of capital support was not known by the craftsmen, because the capital assistance was given directly to the group leader so that only a handful of craftsmen knew that they had received capital assistance from other parties. -The thing that is known by craftsmen is that their business groups have received capital support from other parties, without knowing the nominal assistance received. -Assistance in the form of equipment received is sewing machines whose numbers vary between business groups, where there are those who obtain in large quantities but there are also business groups that have not received any equipment assistance.
-Information and communication access assistance is mainly given by the local Cooperative and UMKM Office in the form of information as well as invitations to participate in various exhibitions and special events for other MSME actors.
-In addition, information is also obtained from other institutions related to MSMEs such as PLUT Central Kalimantan and those from fellow rattan craftsmen. 6 If ever, do you see any changes and improvements in yourself in producing rattan crafts in your business unit -Generally most craftsmen say that they see a significant change in their respective craftsmen after obtaining various supports from other parties. -The majority said that the increase occurred in terms of quality because the craftsmen who had received design training and support in the form of sewing machines could complete the production process faster so that the products produced became more numerous. -Other changes occur in terms of quality where the craft products they produce become smoother and not easily damaged, so the selling price of their products also increases. 7 If there are no or only a few changes and improvements in yourself, what is the cause?
-There are some craftsmen who claim that they have not experienced a significant increase after obtaining these various supports, especially senior craftsmen who are accustomed to producing without the help of modern equipment such as sewing machines.
-Generally senior craftsmen stated that they chose not to use the help of modern equipment because they believed that the use of sewing machines would cause the products they made to be subtle and they trusted the results of their work with their hands.
-In addition, senior craftsmen chose not to develop the designs and models they made to maintain the design of ancestral heritage that had been maintained for generations. -Another reason why they do not develop designs and models is because they are generally difficult to follow the development of designs that require the skill of using sewing machines and other modern equipment, so that the resulting design tends to be monotonous. 8 If you are not maximally creating and innovating the product, it is not timely to complete the work on demand and product quality is not in accordance with market demand standards, are you sanctioned?
-On average, the craftsmen who were the speakers said that there was no agreement to impose sanctions from group leaders if there were defects in the products they produced or their workmanship exceeded the specified time. -Some craftsmen say that there is a warning given by the group leader if the product they produce has defects or other disadvantages Electronic copy available at: https://ssrn.com/abstract=3402782 -Even so, they realize that workmanship that is careless and not quality or workmanship exceeding the target time can cause the customers' trust to decrease, so it is feared that in the future they will not get more orders.
The results of the interviews that have been collected are then analyzed according to the SWOT analysis to find out what strategies can be done to develop micro, small and medium enterprises based on rattan woven crafts in Central Kalimantan. The results of the analysis will then become the starting point in the preparation of the brief policy which will be a recommendation for the Central Kalimantan Regional Government for business, micro, small and medium business development especially for rattan handicraft products.
The following is a SWOT analysis that has been carried out for the results of interviews with both agency representatives related to each region, group leaders and representatives of group members from each craftsman, as shown in Table 3. Through the results of the SWOT analysis that has been carried out, a cross-sectional analysis is prepared by paying attention to the points that are interconnected.  Table 4. Capital support Basically, the craftsmen did not complain about the problem of capital support because the arrival of orders was always accompanied by advances that could meet the needs for raw materials. In other words, real capital assistance is not a major issue in the development of the rattan handicraft industry. In addition to the fact that there are quite a lot of raw materials and relatively cheap prices, generally each business group already has the equipment needed to make the product so that the capital needed is mainly only used to procure rattan raw materials and other complementary materials. 3 Equipment and technology assistance It must be acknowledged in terms of the availability of production process supporting equipment from the business group, it is still not fulfilling both in terms of quantity and quality of existing equipment. The fulfillment of these equipment needs has actually been sought by the Regional Government through the related agencies from each district / city. However, the provision of such assistance is often not balanced with the control of the aid provider, so that assistance has been provided as if there is no control, it only stops until the provision of assistance. Even though ideally, the assistance was also accompanied by a monitoring mechanism that allows the assistance to be optimized by each business group and not misdirected. 4 Access to information and communication The exhibition in Central Kalimantan has actually been done quite often, especially with regard to exhibitions of typical Central Kalimantan handicraft products such as rattan woven crafts themselves.
However, the exhibitions held in Central Kalimantan are still quite rare, less than 10 times a year. Even so, the exhibition was mostly held in big cities such as Palangka Raya, Sampit, Pangkalan Bun, and Kuala Kapuas, so that craftsmen from the regions tended to have less access to exhibit their work in events that were quite far away. However, there are other alternatives for artisans to showcase their work without the need to take part in exhibitions. Among other things by displaying his work in government offices, especially in locations that are easily visible to government guests. As such, this will be an attractive promotion for typical Central Kalimantan works for travelers.
The implications of this study besides providing a Furthermore, the support of various parties involved, especially the Regional Government through related agencies, plays an important role in the development of the industry. One concrete example is the provision of training to improve the skills of handicraft business players to improve the quality of the products and the quantity of products produced. The training activities should not be carried out only occasionally but are scheduled periodically so that business people can optimize the skills acquired. The training is also expected to foster enthusiasm to produce innovations from various products produced so that they can compete with various other handicraft products. In addition, assistance in the form of production equipment such as sewing machines can also be carried out, especially for business groups that have the potential to be developed because they have a large turnover but the asset value is not too high.
Nevertheless, it is necessary to implement a monitoring and evaluation mechanism for various assistance provided so that the various forms of support are not misdirected. As has happened, there are business groups that have received assistance in the form of sewing machines in sufficient quantities with the hope that the business group's turnover can increase. In fact, the business group actually experienced a sharp decline in turnover. Therefore, for business groups that experience a decline after being given such assistance, they should be given a "punishment" in the form of withdrawal of equipment assistance provided or excluded in the provision of further assistance. Access to information and communication provided by the Regional Government by involving several business groups in various exhibition activities has also been carried out intensively to market processed products that have been made to various parties. It would be good for the exhibition to not only involve local and central government parties but also involve various other business groups that are equally engaged in the MSME sector but with different types of products to attract community interests. Finally, all the efforts that have been made by the Central Kalimantan Regional Government in advancing the MSME group, especially those engaged in the rattan handicraft industry, have shown satisfactory results. Nevertheless, there is always room for change in a better direction, especially to advance the creative industry sector in Central Electronic copy available at: https://ssrn.com/abstract=3402782