Determinant of MSMEs Performance and its Impact on Province GRDP in Indonesia

Abstract

The purpose of this study was to determine (1) the simultaneous and partial influence of soybean price, consumption of tofu tempeh, the exchange rate of the rupiah against the US dollar, and interest rates factors on MSMEs income, (2) dominant factors on tofu tempeh MSMEs income and (3) the effect of tofu tempeh MSMEs income on the Province GRDP. This research is a quantitative study with a purposive method of determining research areas and a quarterly time series secondary data analysis method from 2009-2019 using OLS Multiple Regression. The analysis shows that all variables simultaneously have a significant effect on MSME income. Partially, the variables that have a significant positive effect on the income of tofu tempeh MSME are soybean prices, consumption of tofu tempeh and the exchange rate, while interest rates have a negative effect. The coefficient of determination of 96% with the magnitude of the determinant partially from the largest in the sequence is the consumption of tofu tempeh, soybean prices, exchange rates, and interest rates, there is no dominant factor. MSMEs income proxy with recursive income has a significant positive effect on Provincial GRDP with a determinant coefficient of 55%. The research findings are that MSMEs are resistant to fluctuations in exchange rates and contribute greatly to the GDRP.Contribution/Originality: The paper's primary contribution is finding that MSMEs are resistant to macroeconomic determinants of fluctuations. INTRODUCTIONThe availability among foods from soybean is a determinant of food security in Indonesia (Susilastuti, 2017).Soybean is a legume crop with a high protein content (Akibode and Maredia, 2012). Tofu and tempeh are processed foods made from soybeans that have good nutritional and economic potential in Indonesia. According to Sarwono and Saragih (2003) the nutritional and protein content of tofu tempeh is equivalent to animal meat with a high proportion of protein. It was stated by Ambara et al. (2017) that tofu and tempeh are popular foods because they are affordable for various levels of society.The market potential of tofu tempeh food processing products grows MSMEs tofu tempeh is increasing.According to the Department of Industrial and Energy of Jakarta (2014) there are 7,221 MSMEs units in the Special Capital Province of Jakarta. 45% of the total number of MSMEs units in Jakarta Province are tofu tempeh MSMEs. This shows that the majority of MSMEs in the Province of Jakarta are dominated by tofu tempeh MSMEs. In addition, the number of labor at tofu tempeh MSMEs in the Jakarta Province was 8,499 people or 40%

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