KINERJA DAN KESIAPAN INDUSTRI KECIL DAN MENENGAH (IKM) PEMROSESAN MAKANAN DI INDONESIA DAN MALAYSIA MENGHADAPI TANTANGAN GLOBALISASI
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Small and medium scale industries’ (SMI) includes more than 95 percent in the industrial processing sector in Indonesia and more than 85 percent in the industrial processing sector in Malaysia. They have contributed to significantly to economic development for each country. In 1997, the SMI in Indonesia recorded as 42.3 million or 99.90 percent of the total industries are able to absorb workforce as many as 79 million people or 99.40 percent of the total workforce in this sector, contribute to the gross domestic product (GDP) of 56.70 percent, and 19.90 percent or Rp 75.80 trillion of the total export. But the SMI in Malaysia contribution to the processing sector of 17.47 per cent of total output, 19.13 percent of the added value, and 12.27 percent of the total workforce in this sector be merged. The most SMI is the food processing. The SMI companies in the food processing industry are estimated to be still contributing to economic development in the future. In the same time the entrepreneurs face many challenges to maintain their competitiveness. The purpose of this paper is to analyze the performance and development of the food processing in small and medium scale industry in Indonesia and Malaysia. Specifically this paper to analyze 1) the performance and challenge faced by the food processing SMI, 2) the extent to which firms face readiness era of globalization, and 3) some policy implications for developing the food processing industry in Malaysia and Indonesia.