Synergy among local government, higher education institution, and bank in poverty reduction strategy through empowering Small and Medium sized Enterprises (SMEs) a case study of ceramic, tempeh chips, and sanitair enterprises in Malang City Indonesia

Abstract

      The first goal of Millennium  Development Goals  (MDGs) was to eradicate extreme poverty and  hunger. Based on the data from Indonesian Statistical Agency (BPS- Indonesia), the number of poverty in Indonesia since the last decade has been decreasing gradually. In 2012, the national poverty percentage had declined to 11.66 percent  from 13.33 percent in 2010. Poverty is one of the main policy agenda of Indonesia government, Since the of Yudhoyono (SBY), the government has decided four clusters to eradicate the poverty, namely: family based social assistance program, community empowerment, empowerment of small and micro enterprises, and pro poor program.       This research aims to describe, and analyze the strategy of poverty eradication in  Indonesia through the empowerment of SMEs. This study used the descriptive research with  qualitative approach. For the data collection the researcher conducted fieldwork and used  triangulation technique, of multiple data source of evidence namely documentations,  observations, studied literatures and interviewed with relevant subjects such as SMEs business  owners, local government officials and other related actors.       The findings of this research shows that local government, higher education institution, and bank have significant contribution in empowering SMEs. Local government of Malang City, Higher education, and Bank have a synergy to enhance the SMEs in Malang. The synergy has mutual benefit among SMEs actors and all stakeholders.