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