Dewi Auditiya Marizka, Yandra Arkeman, M. Syamsul Maarif


After the economic crisis in 1997, the growth of Big and Medium Scale Industries (MBI)
have been slowing down. The perspective of business returns to SME’s. Meanwhile, the problems
of rubber SME’s products, some of them, have been known as slow technology innovation, slow
output growth (productivity) and lack of working capital. To maintain the competition in the
market, rubber SME’s products must accompany some strategies, in order to survive in the
market and having a bargaining position. This paper just made a recommendation of a model to
optimize the growth of rubber SME’s products. The spread and diffusion of MBI as a leader to
rubber SME’s products as follower can be done by making some assumptions which must be done
by both parties. By doing this, rubber SME’sproducts could enhance their function in the economy
and thus, They will have a secure market to support the economy and sustainability of economic
growth. To increase the parameters of productivity can be implemented in some ways. The growth
of investment, return of capital, working hours, and the growth of human resources quality can be
maintain as the engine of growth for rubber SME’s products. To perform this, They could do
through raised of the saving, lower inflation and real costs through government’s policy.The
development of industry should not be imposed only through MBI. The participation of rubber
SME’s products should be in the perspective of the government. As it has been mentioned above,
the sustainability growth of rubber SME’sproducts must be integrated with the growth of MBI.
The government should realize that most of Indonesia population works in this sector, therefore
the growth of this sector will be the locomotive engine of people’s economy.

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