The Efforts of Community Economic Empowerment in Local Economic Development in Food and Beverage Manufacture Industry in Batu City [Upaya Pemberdayaan Ekonomi Masyarakat Dalam Pengembangan Ekonomi Lokal pada Industri Pengolahan Makanan dan Minuman di Kota Batu]

Abstract

This research aims to determine: 1) characteristics of the food and beverage processing industries; 2) the magnitude of the influence of labor, raw materials and capital variables on the production value of food and beverage industries in Batu City, East Java; 3) Formulating effort of community economic empowerment in local economic development. This research is a quantitative descriptive research which gives general description of the subject matter in numbers or data which analyzed, classified and presented in description. The population of this study is all food and beverage processing industries entrepreneurs in Kota Batu amounting to 210 business units taken 52 business units as research samples. Data collection using interview, questionnaire, and documentation. Using multiple linear regression with dependent variable is production value (Y) and independent variables are Labor (X1), Raw Material (X2), Capital (X3). This research also uses qualitative descriptive analysis. The results showed that food and beverage processing industries in Batu City use a labor force of at most 2-8 people with high school education level. Gender is predominantly female and age 24-27 years old from Batu City and marketing of product in local area. Labor, raw materials and capital have a significant effect on production value. Effort of Community Economic Empowerment in Local Economic Development to be considered include: Target Group, Location, Synergy and Policy Focus, Sustainable Development, Governance, and Process Management.