Efficiency and Economic Scale of the Batik Industry in Tarakan City
DOI:
https://doi.org/10.30872/jinv.v20i4.2431Keywords:
Efficiency, Batik industry, Input, Output, economies of scaleAbstract
This research aims to measure, analyze the efficiency and economic scale of Asian Batik, D'Erte Batik, Semandate Batik and Julak Batik. The data used is primary data from interviews. Based on the results of data processing using EMS, the efficiency of cotton batik is only produced by Batik D'Erte and Satin Batik by Batik Asia is 100% efficiency each. For Cotton Batik produced by Asian Batik, Semandat Batik, and Julak Batik were inefficient by 98.16%, 35.47%, and 28.00%. Meanwhile, satin batik produced by Batik D'Erte, Batik Semandat, and Julak Batik were inefficient by 77.09%, 14.16%, and 21.43%. Each batik producer that is inefficient in its batik production has an intensity value ranging from 0.05 to 1.23. For cotton batik, the largest difference is the input from Julak Batik of Rp. 11,150,846 and satin batik, the largest difference is also in Julak Batik with an input difference of Rp. 9,632,727 and output of Rp. 200,000. The value of the regression coefficient of the production activities of the four producers is 1.340362, which is increasing return to scale, meaning that the production activities carried out by batik producers are at an increased rate of increase in yield or if an addition is made to capital, raw materials or labor in production, it will increase output by 1.34%.
References
Ariyani, Tiya Putri, Malik Cahyadin. 2020. Measurement of the Efficiency Level of Small and Medium Enterprises in Surakarta Residency in 2015-2016. Journal of Economic and Business Research, Volume 5 Number 1.
Central Statistics Agency (BPS). Accessed from http://www.bps.go.id/, January and February 2022.
Battese,G.E dan Collie, TJ. 1992. Frontier Production Functions, Technical Efficiency and Panel Data: With Application to Paddy Farmers in India. The Journal of Productivity Analysis, 3, 153-169.
Collie, T,J, et al. 1998. An Introduction to ERfficiency and Productivity Analysis. Boston: Kluwer Academic Publishers.
Coelli, T. (2007). A Guide to Frontier 4.1: A Computer Program for Stochastic Frontier Production and Cost Function Estimation. Armidale: Centre for Productivity Analysis (CEPA).
Filardo, Andrew, et al. (2017). Application of Envelopment Analysis Data in Measuring the Efficiency of Toyota Brand Vehicle Product Retailers. ITS Journal of Science and Art, Volume 6 Number 1.
Insukindro, Nopirin, Makhfatih, A., Ciptono, S.M., 2000. "Final Report on the Measurement of Relative Efficiency of Pegadaian Branch Office Services", Management Research and Development (PPM), Faculty of Economics, Gadjah Mada University, Yogyakarta.
Koopmans, T.C. 1951. An Analysis of Production is a Eficient Combination of Activities, “In T,C. Koopmans, ed,. Activity Analysis of Produstion and Allocation, Cowles Commission for Research in Economics, Monograph No 13, New York: Wiley
Kumbakar, Subal. C dan Lovell, C.A. 2000. Stochastic Frontier Analysis. Published by The Press Syndicate of The University of Cambridge.
Krismayanti, Anak Agung, I Gusti Bagus Indrajaya. 2021. Analysis of Economic Scale and Efficiency in the Mosaic Glass Craft Industry in Tegallalang Village, Gianyar Regency. E-Journal of Development Economics, Volume 10 No.4. Thing. 899-1330.
Lestari, Etty Puji, 2007, "Disparity of Technical Efficiency Between Sub-Sectors in the Manufacturing Industry in Indonesia, Application of Data Envelopment Analysis" Journal of Organization and Management of the Institute for Research and Community Service (LPPM) Open University.
Lestari, Etty Puji, Isnina WSU. Analysis of the Performance of the Manufacturing Industry in Indonesia. Journal Of Research In Economics And Management, Volume 17, No. 1, January – June 2017.
Nadia, Hidayati Deyshma, et al. 2015. Comparative Analysis of Efficiency I of Guarantee Insurance Cooperation at Bank BRI Syariah KCI Citarum Bandung Using the Data Envelopment Analysis (DEA) Method. Proceedings of Sharia Economic Law. Volume 1 Number 2. August 2015.
Permatasari, Maya Fauziah, Anton Agus Setyawan. 2019. Measurement of MSME Performance Efficiency Using the Data Envelopment Analysis (DEA) Method. Proceedings of the Master of Management Business Seminar (SAMBIS) UMS.
R. Lely, Malik Cahyadin. 2017. Efficiency of Micro and Small Industries in Indonesia with Data Envelopment Analysis (DEA) Approach. Proceedings of the 6th National Seminar UNS SME's Summit & Awards 2017 "Increasing the Competitiveness of Creative Economy-Based MSMEs in the Era of the ASEAN Economic Community".
Rahmatika, et al. Measurement of Performance Efficiency of Garment Industry Commodities in Agam Regency Using Envelopment Analysis (DEA) Data. UNP Journal of Mathematics, Volume 2 Number 1, 2019.
Sa'diyah, Nur Halimatu. 2016. Efficiency Analysis Using the Data Envelopment Analysis (DEA) Method (Case at PT. Indonesia Toray Sinthetic). Science Journal of Management and Business. Volume 9 Number 1. December 2016.
Sugiyono. 2014. Educational Research Methods Quantitative, Qualitative, and R&D Approaches. Bandung: Alfabeta
Sukirno, Sadono. 2013. Macroeconomics: An Introduction Theory. PT. King Grafindo Persada. Jakarta.
Sukayanti, Pande Made. Ni Nyoman Yuliarmi. 2021. Analysis of Economic Scale and Factors Affecting Production in the Furniture Industry in Gianyar Regency. E-Journal of Development Economics, Volume 10 No.4. Thing. 1331-1359.
Wilanda, Putu Taranitha Putri, Surya Dewi Rustariyuni. 2019. Analysis of Efficiency and Economic Scale in the Bamboo Weaving Handicraft Industry, Susut District, Bangli Regency. Journal of Development Economics, University of Lampung Vol. 8 No. 1.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Charitin Devi, Ariani, Rudi Ansar
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
