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Production and Financial Management Remain Key Challenges for Yogyakarta Bakpia MSMEs

Traditional culinary micro, small, and medium enterprises (MSMEs) continue to play a major role in Indonesia’s local economy, especially in Yogyakarta’s famous bakpia industry. A 2026 study by Erry Setiawan, Eka Agustin Lian Syaharani, and Lailatul Qodriyah from Mayjen Sungkono University Mojokerto found that the long-term success of bakpia businesses depends not only on product taste, but also on strong production management, human resource organization, and professional financial administration.

The study, published in the Indonesian Journal of Society Development (IJSD), examined how Bakpia Wong Yogyakarta manages its daily operations. The findings are important because they reflect a common reality among traditional food MSMEs across Indonesia: many businesses operate effectively in practice, but still lack formal management systems that support sustainable growth.

Bakpia Industry Supports Tourism and Local Economy

Bakpia has become one of Yogyakarta’s most recognized culinary products and a symbol of the city’s tourism economy. Domestic and international visitors often purchase bakpia as a mandatory souvenir when visiting the Special Region of Yogyakarta.

This strong market demand creates major opportunities for local MSMEs. However, increasing competition means business owners can no longer rely only on flavor and tradition. They must also maintain product consistency, manage employees efficiently, and ensure healthy financial operations.

Bakpia Wong Yogyakarta was selected as the research object because it represents a growing traditional food MSME with strong market potential and clear managerial development opportunities.

According to the researchers from Mayjen Sungkono University Mojokerto, strengthening internal management is essential if traditional culinary businesses want to remain competitive in a modern market.

Research Conducted Directly at Business Location

The field study was conducted on November 30, 2025, at Bakpia Wong Yogyakarta, located on Jalan HOS Cokroaminoto No. 149, Tegalrejo, Yogyakarta City.

The researchers used a descriptive qualitative approach. Data were collected through direct observation, interviews with company staff, management presentations, group discussions, and documentation of daily operational activities.

This method allowed the research team to observe how management theories are applied in real business conditions, especially in the context of small and medium-sized food enterprises.

Production Runs Well, but Written SOPs Are Still Missing

The study found that production management at Bakpia Wong is functioning relatively well. Daily production planning is based on market demand, labor availability, and production capacity.

Quality control is also implemented consistently to maintain taste standards and product quality. This is especially important because bakpia is highly dependent on customer satisfaction and repeat purchases.

In addition to traditional baked bakpia, the company has expanded its product line to include steamed bakpia, pies, and other bakery products. Product innovation and packaging redesign are part of a broader rebranding strategy aimed at attracting younger and more modern consumers.

However, researchers noted that complete written Standard Operating Procedures (SOPs) are still not available. This creates risks for consistency, especially as the business grows and hires more employees.

Human Resource Management Still Informal

In terms of human resource management, job distribution exists but remains largely informal. Employee responsibilities are mostly assigned based on work experience rather than formal organizational structure.

Even so, the company has successfully introduced important workplace values such as discipline, teamwork, communication, cleanliness, integrity, and continuous improvement.

These values help build a productive and professional work culture.

The researchers argue that a clearer organizational structure would improve work efficiency and support future business expansion.

Financial Management Is the Most Critical Issue

The most significant finding appears in financial management. Although financial recording is already practiced, bookkeeping remains simple and not fully structured.

The main issue is the lack of clear separation between business finances and the owner’s personal finances.

This problem is common among many MSMEs in Indonesia. Without proper financial separation, business owners often struggle to calculate real profits, manage operational costs, and plan future investments.

The researchers identified financial administration improvement as the most urgent step for long-term business sustainability.

As Erry Setiawan from Mayjen Sungkono University Mojokerto explains, strong financial discipline is not optional for growing MSMEs—it is the foundation for survival and expansion.

Digital Strategy Strengthens Competitiveness

Bakpia Wong has also started adopting digital business strategies as part of the creative economy movement. Sales channels have expanded through e-commerce platforms, delivery services, and active promotion on social media platforms such as Instagram and TikTok.

This approach helps the company reach wider markets while strengthening its brand identity as a modern and high-quality Yogyakarta souvenir business.

The researchers emphasize that combining product innovation, digital marketing, and stronger internal management creates the most effective formula for MSME competitiveness.

Benefits for Businesses and Higher Education

The study offers practical value not only for business owners but also for universities and students.

For MSMEs, the findings provide a useful roadmap for improving written SOPs, employee training systems, financial bookkeeping, and digital marketing strategies.

For universities, partnerships with MSMEs create valuable field learning opportunities where students can connect classroom knowledge with real business operations.

For students, direct fieldwork strengthens professional readiness by exposing them to the realities of business management beyond textbooks.

The researchers note that internship-based research serves as an important bridge between academic learning and industry needs.

Author Profile

Erry Setiawan is an academic and researcher at Mayjen Sungkono University Mojokerto, specializing in operational management, MSME development, and business strategy.

Eka Agustin Lian Syaharani is a researcher from Mayjen Sungkono University Mojokerto with expertise in human resource management and business administration.

Lailatul Qodriyah is also affiliated with Mayjen Sungkono University Mojokerto and focuses on small business management and creative economy development.

Together, the three researchers highlight the importance of professionalizing MSME management so traditional businesses can thrive in the digital economy.

Source

Setiawan, Erry., Syaharani, Eka Agustin Lian., & Qodriyah, Lailatul. (2026).
Analysis of the Application of Production Management, Human Resources, and Finance in Bakpia Wong Yogyakarta MSMEs.
Indonesian Journal of Society Development (IJSD), Volume 5, Number 2, Pages 155–160.
DOIhttps://doi.org/10.55927/ijsd.v5i2.17
URLhttps://journalijsd.my.id/index.php/ijsd/index