Local Economic Empowerment Model: Small and Medium Industry (IKM) in the Industry Service of Buton Regency

Rahmawati Rahmawati; Wa Ode Sunarti; Asmiddin Asmiddin

doi:10.55927/ijsmr.v4i6.61

Authors

Rahmawati Rahmawati Dayanu Ikhsanuddin Baubau University
Wa Ode Sunarti Dayanu Ikhsanuddin Baubau University
Asmiddin Asmiddin Dayanu Ikhsanuddin Baubau University

DOI:

https://doi.org/10.55927/ijsmr.v4i6.61

Keywords:

Local Economic Empowerment, SMEs, Ginanjar Kartasasmita, MIPEL Model, Buton Regency

Abstract

This qualitative case study analyzes the local economic empowerment strategy of SMEs by the Buton Regency Industry Office using Ginanjar Kartasasmita's theory through the pillars of activation, empowerment, and protection. The agency's interventions successfully triggered an increase in production and business unit value through the Koholimombono Center, packaging mechanization training, and free legal facilitation "IKM IDAMAN". However, its effectiveness was hampered by inter-district logistics costs, low digital literacy due to the generation gap, and the vulnerability of downstream markets. As an operational solution, this study formulated the Regional Economic Empowerment Integration Model (MIPEL). This model proposes the establishment of sub-district logistics satellites, on-site digital assistance, and mandatory regulations for modern retailers to absorb SME product quotas for the sustainable independence of regional industries.

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