Keywords

Creative Economy, Government Strategy, Community Empowerment, Leather Craft, Local Industry

Introduction

According to Rasyid (2002), Druhu (2003), the function of government is to implement management through regulation, development, community empowerment and service to the community. To achieve the welfare of the people with social justice, the government must carry out the development altogether with the community through the development of various resources owned by each region by empowering the people in any fieds such as agricultural, industrial, tourism, cultural and other natural potentials. in order to carry out the function of community empowerment, Dian Eka Rahmawati and Dwi Woro Astuti (2019) stated that the political role could be seen from the efforts to strengthen the capacity and articulation of community interests to increase community bargaining to influence village government policies while the non-political role could be seen from the efforts of the NGO Spedagi along with the local community to carry out physical development, economic empowerment, and social empowerment that lead to sustainability by utilizing the local potential.

Income per capita of people in Tanggulangin, the central area of the leather craft local industry in Sidoarjo, is still low, no more than 700,000 Rupiah a month per capita or under 3 million rupiah a month per capita. Therefore, both the government and the community must continue to inovate through the development of creative industries of leather craft in order to improve the welfare of the people to fullfil the needs of living.

The purpose of this study is to know the strategy the government, especially The People Empowering on the empowering people to develop of creative economy, particularly in Tanggulangin Sidoarjo. Some experts, Lawrence Pratchett et al. (2009), argued that factor refers to the extent to which participants have developed skills linked to empowerment (e.g. confidence, social networks, specialist policy knowledge and whether they have increased their sense of internal political efficacy (the perception that they can influence their local place and services).

Literature Review

The Principal of Community Empowerment

According to Mardikanto (2014), "community empowerment is a development process that makes the community takes the initiative to start the process of social activities in improving the situation and the condition of oneself". Furthermore Mardikanto stated about the purpose of community empowerment, they are 1). Better Institution; 2). Better Business; 3). Better Income; 4). Better Environment; 5). Better Living and 6). Better Community.

Najiati et al (2005: 54) stated that community empowerment is influenced by four principles: 1) the principle of equality, 2) the principle of participation, 3) the principle of self-reliance or independence and 4) the principle of sustainability. Soerjono Soekanto (1987) said the following are several phases of empowerment activities: 1). Preparation phase; 2). Assessment Phase "Assessment"; 3). Alternative Planning Phase of Programs or Activities; 4). Action Plan Formalization phase; 5). Program or activity Implementation Phase; 6). Evaluation Phase; 7). Termination Phase.

Furthermore, the government's role in community empowerment according to Maryani and Rocellyn (2018) is that the role and function of the government in determining policies and programs for community empowerment determine the successful implementation of community empowerment. In this connection the implementation of community empowerment needs to be placed in the right direction which is aimed at increasing capacity building that provides access and improving people's economy through economic development, strengthening human resource capacity, developing infrastructure and technology, development of community and institutional development institutions, and information system development. According to Mardikanto (2014), there are four necessary development in community empowerment, human, business, environmental and institutional development. Phil Bartle (2008) revealed that strength of a community is based on sixteen factors of strength. These are described and shown to belong to the six dimensions of culture, and therefore part of the Human Factor approach which considers the whole person.In line with this, Gillian Doyle (2016) also agrees with Mardikanto, He said that in business development, the effects of changing technology are another priority.While Xavier Greffe (2016) discuss it more deeply that three examples are given (artistic markets, artistic skills, and macro-cultural policy) that demonstrate how cultural economics and creative economics should merge for their mutual benefit.According to Tubagus Fiki Chikara Satari & Nabila As’ad (2018) in their study reveal that Mapping data regarding actors in creative economics is necessary in determining the policy of strategy to develop the creative economy in order to improve the community welfare.

The Principal of Economic Development or Creative Industry

Mohammad Ali (2018) states development is every effort that is carried out in a planned manner to carry out changes that have the main objective to improve and raise the standard of living, welfare, and human quality. Rogers and Shoemaker (2018) Dissaynake (2018) argued that development is a type of social change containing new ideas introduced in a social system that aims to generate income per capita and a better level of life by using more sophisticated production methods and more targeted social organization. According to Joko Untoro (2018), development is economic growth followed by changes in economic structure and patterns of economic activity or efforts to increase income per capita. Then Benny Hoed (2018) said “development can be interpreted every systematic effort that is carried out to break away from backwardness, and efforts to improve and improve the welfare of the community”.

According to the United Nations Conference on Trade and Development (UNCTAD), the creative economy is a developing economic concept based on creative assets that have the potential to produce economic growth and development. It can be said that the concept of creative economy places more emphasis on creativity, ideas, and human knowledge as the main assets in driving the economy.

According to Andri Irawan (2015), the creative economy can be an answer to the challenges in the welfare of society as well as can reduce the unemployment rate. The creative economy will provide more value both to the production process and to its human resources. That is why the creative economy system is believed to answer the challenges of the various problems that exist today and will shift the existing systems such as communication, agricultural, industrial economics etc. While UNESCO (2016) states that one of the most rapidly growing sectors of the world economy and a highly transformative one in terms of income generation, job creation and export earnings. Valerija Kontrimienė dan Borisas Melnikas (2017), the trends reflecting the place of the sector of creative industries in the economy of the modern world, including the tendencies indicating changes in the export of the products created in this sector. The article considers the issues of developing creative industries and reveals priorities of future research.

Martinaitytė (2015), also said that the high weight factors are: i) private expenditures for culture and ii) creativity index. These factors have a strong correlation coefficient also. Th e increasing these factors in Lithuania and Estonia are long-run objectives because of linkage to an educational system. Factors with medium infl uence are: government expenditures for culture, number of patents, and employment rate in R&D and tolerance index. Low weight infl uence factors are: employment in Creative Industries (CI), export of CI sector’s production, government expenditures for R&D and inhabitants with high education.Furthermore, André Mangion (2013) stated that the highest ranking policies are VAT exemption on Training and other tax initiatives, along with Malta Arts Fund and Malta Arts Scholarships.While Peter Dreier (1886) argued that the primary strategy recommended for overcoming the obstacle is to help community organizations take advantage of intermediary organizations such as organizing networks and training centers that have emerged during the past several decades.

The Relation of Government Rule with the Community Empowerment and Economics or Crative Industry

Bagus Udiansyah Permana, Darsono Wisadirana, Mardiyono (2014), stated that: 1) community empowerment in the ATBM craft was carried out by optimizing local human resources with five empowerment strategy and approach (enabling, strengthening, protecting, supporting, and maintaining). 2) Driving factors: local human resources have high creativity, empowering ATBM craft has the potential to improve the economy of the poor crafters of ATBM, the government support through the anual event of Superior Products can increase marketing access. According to Bahaman Abu Samah and Mohammad Badsar (2013), application of present conceptual lens is beneficial to various group that are directly or indirectly involved in the planning, execution and evaluation of ICT projects as well as enhancing individual empowerment in rural community. Furthermore, Pao-Chi SUNG2 (2007) revealed the government shall play a more active role in community empowerment: the community empowerment with a core concept of “Communitarianism” shall take up the role and responsibilities of a “strong nation” when facing the foreseeable strong democracy so as to respond to the long-term demand of the society.In line with other experts, Jue Wang (2018) showed the result of his research that Innovation activities in Singapore are largely policy drivenand dominated by big players, while in Hong Kong industry innovation is less active but the local industry has adynamic innovation base contributed by smallfirms. Using a difference-in-differences analysis of USPTO patentsfiled by Singapore and Hong Kong, wefind evidence for the effectiveness of government intervention on en-hancing the technological significance and scope of innovation. Thefindings could shed light on the implicationof government involvement in innovation.

Method

This study was designed by using qualitative descriptive research methods that describe the state of subjects and objects of research at the present time, and inductive data analysis. This is in line with what was stated by research methodology experts, Nawawi (2004) argued that "descriptive design can be interpreted as a problem-solving procedure that is investigated by describing the state of subjects and objects of research at the present time based on the facts that appear or as they are". While Sugiyono (2006) states, that: "Qualitative research methods are methods used to examine the condition of natural objects, and the researchers are as a key instrument. Data collection techniques are carried out by triangulation, by using a variety of different data sources for similar data collection. The results of qualitative research emphasize meaning rather than generalization.

The focus of this research is a community empowerment strategy in the field of leather craft creative industry as the following: a. The cause of the leather craft creative industry business has not been able to develop significantly in Tanggulangin, Sidoarjo; and b. The right strategy is implemented by the Community Empowerment Office of Sidoarjo to empower the community in leather craft creative industries. The Informants in this study are: 1) Head of Sidoarjo Community Empowerment Office; 2). Head of Sidoarjo Industry and Trade Office; 3). Head of Tanggulangin District; 4). Entrepreneurs of leather craft local industry; 5). 15 craftsmen. Data collection techniques in this study are: 1. interviews, 2. documentation, and 3. observations. Miles and Huberman cited by Sugiyono (2006) argued that "activities in qualitative data analysis are carried out interactively and continue until completion, so that the data is already saturated. Activities in data analysis are: 1). data reduction, 2). display data, and 3). conclusion drawing / verification ".

It is considered that SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is the most appropriate analysis tool for the entire data, both qualitative and quantitative to find policies, strategies, and efforts to empower the community in leather craft creative industry.

Table 1 Swot – Ifas – Efas Interaction Matrics
IFAS	Strength (S)	Weaknesses (W)
EFAS	Determine each of the 4-10 internal strength factors	Determine each of the 4-10 internal weakness factors
Opportunities (O) Determine each of the 4-10 factors of external opportunity	Strategi SO (Comparative Advantage) Strategies that use strength to take advantage of opportunities (aggressive strategy)	Strategi WO (Investment/Divestment) Strategies to minimize weaknesses to take advantage of opportunities (turn-around strategy)
Threats (T) Determine each of the 4-10 external challenge factors	Strategi ST (Mobilization) Strategies that use strength to overcome challenges (diversification strategy)	Strategi WT (Damage Control) Strategies that minimize weaknesses and avoid challenges (defensive strategy)
Source: Kearns in Salusu (2008), Darmakusuma (2010), Rangkuti (2006)

a) IFAS= Internal Factor Analysis System
b) EFAS= External Factor Analysis System
c) SO Strategy= strategy using strength to take an advantage or take the opportunities
d) ST Strategy = strategy using strength to overcome some threat.
e) WO Strategy = strategy minimaizing the weakness to take the opportunities.
f) WT Strategy= strategy minimaizing the weakness to keep some threat away

Result and Analysis

The following are the causes of the leather craft creative industry business can not be able to develop significantly in Tanggulangin Sidoarjo:

Human Development

According to leather craft entrepreneurs, traders and craftsmen, counseling from the government, especially the Village Empowerment Office and P3A, the human development in this business is still low, because the budget allocation is not only for the guidance of craftsmen and entrepreneurs in Tanggulangin District, but also for all sub-districts in Sidoarjo Regency. It makes they faced so many problems that can not be overcame quickly. As the result, the energy that should be used to improve the ability to innovate becomes less. That is why the output is not able to compete with the same industry, both from within the country such as West Java, especially Garut and Bogor, and from other country, such as China.

Business development

Especially in improving the ability of craftsmen to produce good quality products and models as the development of community demands that are dynamically growing is not optimal. The lack of budget allocated as a stimulant to improve skills to produce superior products, especially the handicraft model is remain low if compared to the same product from West Java that has market demand models. Besides production and labor, the limited capital problem also influence the success of entrepreneurs to innovate, they work to gain profits only and unable to get capital reserves to be able to increase investment that will accelerate business growth. Workshops to improve business administration, especially financial administration is also rarely done, the employees increase their knowledge and skills otodidactly only as said by the Chairperson of the Cooperative who accommodates and provides employment opportunities to job seekers in Tanggulangin. It is strengthened by the interviews with the Head of the Development and Economic Section of Tanggulangin District, he said that guidance from the government especially from Tanggulangin District to craftsmen and entrepreneurs or traders, is not conducted routinely, because of the limited budget.

Environment Development

Especially in handling industrial waste, leather craft industry waste, is still very low. However, there are also some entrepreneurs who produce goods outside of Tanggulangin, then the damage to the physical environment has not disturbed the community around the leather craft industry business center in Tanggulangin. The social environment is also quite good, because the climate of trading business among the entrepreneurs, traders and craftsmen is fair, they respect each other. This is influenced by the persistence of mutual cooperation and a sense of family among members of the community who have taken root since the time of their ancestors.

Institutional Development

Particularlly associations and cooperatives in Tanggulangin have been formed, including cooperatives of Entrepreneurs, traders and craftsmen. However, it has not been developed as it is expected, because there are many entrepreneurs, traders and craftsmen who are not members of cooperatives or members of the association. There is an agreement of all people involved in the business to have a choice to be a member or not as they already has their own customers. They think developing their business by increasing their capital is not necessary yet, their life is just to meet the needs of a decent daily life.

The Most Appropriate Strategy for the Community Empowerment Office to Empower the Community in the Leather Craft Small-Scale Industry in Tanggulangin, Sidoarjo

The Possession of Strengths and Weakness Factors

Strength:

Strong and stable organizational structure; Ample budget is available; Supporting regulations are available; Apparatus compliance with the rules; A conducive work culture; the use of computer applications to support the smooth work already available.

Weaknesses:

The ability of the apparatus remains low, especially in the IT; there is no understanding of job description; Apparatus responsiveness to the demands of society and the desires of the community are low; limited Internet access; lack of administrative support equipment.

Factors of Opportunities and Threats Faced by Community Empowerment Office and P3A Services to Empower People in the Leather Craft Creative Economy Sector in Tanggulangin, Sidoarjo

Opportunity:

Opportunity to obtain certain allocation funds from the Central Government are still very open; Giving performance allowance to be able to reach 100% is very open to the employee welfare in order to motivate their work; There is an increase of budget allocation in HRD as the opportunity of the development of apparatus capacity; The performance of the internal supervisory party greatly affected the performance of the apparatus in each office including in the Community Empowerment Office and P3A Service.

Threats:

Coordination with all stakeholders in developing the difficulty industry in Tanggulangin is not optimal; the number of interventions from some parties who are not responsible in determining priority programs; Budget allocations must be distributed fairly and in balance to increase community empowerment, not only for Tanggulangin District.

The Best Strategy to be applied by The Community Empowerment Office

The results of the data processing of the results of interviews with informants and document review can be seen Table 2, Table 3, Table 4 and Figure 1 below:

Table 2  Internal Factor Matrics
No.	Aspect	Quality	Rating	Quality x Rating	Comment
	Strength
1.	Strong and stable organizational structure	0,15	3,2	0,48	Keep it up
2.	Adequate budget is available	0,12	4	0,48	Use it effectively
3.	Supporting Regulations are available	0,12	3,8	0,456	empower it
4.	Apparatus Compliance to the regulations	0,06	3	0,18	Optimalize
5.	Condussive work climate	0,04	2,8	0,112	Optimalize
6.	The use of computer applications to support the smooth work already available	0,08	2,6	0,208	Optimalize
Total				2,024
Weakness
1.	The ability of the apparatus is still low, especially in IT	0,1	4	0,4	Improve the competency
2.	No understanding of job description	0,07	3,6	0,252	Improve the competency
3.	Apparatus responsiveness to the demands of society and the desires of the community is still lacking	0,08	3,6	0,288	improve a condussive working climate
4.	Limited internet access	0,06	3	0,18	provide internet access
5.	lack of administration supporting tools	0,07	3	0,21	add supporting equipment
Total				1,387
Source: Analysis Result

Table 3 External Factor Matrics
No.	Aspect	Quality	Rating	Quality x Rating	Comment
Opportunity
1.	Opportunities to obtain special allocation funds from the Central Government are still very open	0,1	3	0,03	Prepare reliable financial planning personnel who are able to make proposals for the Central Government to absorb DAK
2.	The provision of performance allowances to reach 100% is very open to employee welfare in order to motivate work	0.1	3	0,03	Optimize the performance of all employees
3.	Opportunities to increase the capacity of the apparatus have increased budget allocations in the BKD	0,1	3	0,03	Design a workshop to improve the competency of the apparatus
4.	The performance of the internal supervisory party greatly affected the performance of the apparatus in each OPD including in the PM and P3A Service	0,1	3	0,03	Enforce rewards and Punishman for all employees
Total				1.2
Threat
1.	Do some coordination with all stakeholders in developing the difficulty industry in Tanggulangin District is still not optimal	0.12	2.4	0.288	Improve the coordination
2.	The number of interventions from parties who are not responsible in determining priority programs	0.15	3.4	0.51	Increase the cooperation with these irresponsible parties in order to understand the success of the administration of government that will be able to improve the welfare of the community
3.	Budget allocations must be distributed fairly and in balance to increase community empowerment, not only for Tanggulangin District	0.15	3.2	0.48	Strengthen the capacity of managers, so as to be able to determine program priorities
4.	Too many and often changing regulations causing difficulties in implementing the regulations	0.15	2.4	0.36	Strengthen the capacity of the apparatus
Total				1.638
Source: Analysis Result

Table 4 Matrics Of Ifas And Efas
	Strength:	Weakness
Internal Factors	Strong and stable organizational structure	The ability of the apparatus is still low, especially in IT
	Available adequate budget	Understanding of each employee's job description is low
	Supporting regulations are available	Apparatus responsiveness to the demands of society and the desires of the community is low
	Apparatus compliance with the rules	Internet access is still limited
	Condussive work climate	Administrative support equipment is not sufficient
	The use of computer applications to support the work is already available
External Factors
Opportunity	SO Strategy	WO Strategy
Opportunities to obtain special allocation funds from the Central Government are still very open	Enhancing a condussive working climate to obtain and manage DAK from the Central Government properly	Establishing cooperations with related parties to reduce various weaknesses in fostering entrepreneurs and craftsmen who are able to empower the community and encourage the emergence of a creative economy.
The provision of performance benefits to reach 100% is very open to the employee welfare in order to motivate their work	Increase budget efficiency to improve the performance and the welfare of theemployee
There is budget allocations in the HRD as the opportunities to increase the capacity of the apparatus	Improving the capacity of the apparatus with the available budget
The performance of the internal supervisory party is greatly affected the performance of the apparatus in each Community Empowerment Office including in the Community Empowerment and P3A Service.	(4) make a cooperations with related parties to improve the quality of guidance to the entrepreneurs and craftsmen of leather craft industry
Threats	ST Strategy	WT Strategy
The low skills of craftsmen, especially in the production model of leather craft industry	Assisting the apparatus and craftsmen and entrepreneurs in improving their skills in producing and managing business in leather craft industry	Do some coordination with various parties engaged in the leather craft creative economy business
The number of leather craft industries in various regions as business competitors and foreign countries that already have domestic market of their production	Do some consolidations with related parties in guiding and improving the quality of craftsmen in order to produce high quality production as other regions or countries productions
Too many parties involved
Lack of coordination among relevant parties in empowering the community in the economic / leather craft industry sector
Source: Analysis Result

From above SWOT Matrics, it can be conclude that the following are the strategies can be implemented:

SO Srategy:

1. Enhancing a conducive working climate to obtain and manag DAK from the Central Government properly
2. Increase budget efficiency to improve performance and employee welfare directly
3. Increasing the capacity of the apparatus with the available budget
4. Do some cooperation with related parties to improve the quality of guidance for the entrepreneurs and craftsmen in leather craft industry.

ST Strategy:

1. Assisting the apparatus and craftsmen and entrepreneurs in improving their skills in producing and managing business in leather craft industry
2. Consolidating with related parties in guiding and improving the quality of craftsmen in order to produce high quality production as other regions or countries productions.

WO Strategy:

Doing coordination with all parties that have the same business in leather craft industry

WT Strategy:

Doing coordination with all parties that have the same business in leather craft industry

Conclusion

The causes of creative industry businesses in leather craft that have not been able to develop significantly in Tanggulangin, Sidoarjo is four community developments which are dimensions of community empowerment as stated by Mardikanto that are less applied in implementing the empowerment of creative industry communities, due to various limitations possessed by the PMD Office and P3A Sidoarjo Regency. The most appropriate strategy applied by the Community Empowerment Office to empower the community in leather craft local industries in Tanggulangin, Sidoarjo is the SO Strategy which is utilizing opportunities to increase strength.

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