Women^s Group Participation on Local Economic and Business Performance (Case Study in Batang District, Central Java, Indonesia) Siti Jahroha), Intan Adhitya Rosmasarib) , Achmad Fadillahc) and Alfa Chasanahd)
1School of Business, IPB University, Bogor, Indonesia
a) Corresponding author: sitijahroh[at]gmail.com
b)intan.rosmasari[at]gmail.com
c)achmadfadillah[at]apps.ipb.ac.id
d)alfac[at]apps.ipb.ac.id
Abstract
Since the decentralization, local economy has played important roles with each region expected to focus on its potencies and comparative advantages in developing the region. In addition to on-farm activities in an agricultural sector, agricultural processing industries have attracted increasing attention. Batang District is one of the regions in Central Java Province, Indonesia in which emping melinjo (Gnetum gnemon) or melinjo chips processing industry has occupied the highest proportion in terms of numbers of agricultural processing business in the region. The majority of the business actors are women, some of whom joined a women^s group. This study aims to (1) clarify the uniqueness of business process and management of women^s group, (2) analyze the business performance of melinjo chips processing run by women^s group compared to the conventional one, and (3) compile the lessons learned of women^s group management in order to strengthen the local economy. The methods used in this study are regression analysis and cost return analysis. A questionnaire survey was conducted to 30 persons of women^s group members and another 30 persons of non-women^s group members in Batang District in May 2018. The result showed that local economy (melinjo chips business) run by women^s group members significantly had greater performance than that run by non-women^s group members (conventional way). Based on regression result and cost and return analysis, women^s group was able to gain higher profit compared to non-women^s group. The effect of women^s participation in the melinjo processing industry is that women directly participate actively to support local economic improvement and local business activities of the women^s group in order to run well.
Keywords: local economy, agricultural processing, emping melinjo
