Baubau — Strengthening local economies through small and medium industries (SMEs) has become a key focus in regional development in Buton Regency. A scientific article written by Rahmawati, Wa Ode Sunarti, and Asmiddin from Dayanu Ikhsanuddin Baubau University reveals how the Buton Regency Industry Office has developed a strategy to empower SMEs and improve their competitiveness. Published in the International Journal of Scientific Multidisciplinary Research (IJSMR) in 2026, the study introduces a new model called MIPEL, or the Local Economic Empowerment Integration Model, designed to support sustainable industrial independence.
The study was conducted in 2026 using a qualitative case study approach at the Buton Regency Industry Office and the Koholimombono SME Center in Wabula District. It focused on evaluating how the government implements three key pillars of economic empowerment: creating a business climate, strengthening business capacity, and protecting local products legally. The findings are important because Buton has strong agro-maritime potential but still faces major structural barriers.
Rahmawati and the research team found that Buton currently has 1,956 SME units employing 3,463 local workers. Total investment in this sector has reached Rp13.12 billion, with a monthly production contribution of Rp8.12 billion. These figures confirm that SMEs have become the backbone of the local economy, especially in generating employment and stabilizing community income.
One of the government’s main initiatives is the Koholimombono SME Center, a shared production facility where key local commodities such as smoked fish, processed cashews, and traditional woven fabrics are developed into higher-value products. According to Rahmawati from Dayanu Ikhsanuddin Baubau University, this center plays a vital role in creating a stronger and more organized industrial ecosystem.
However, the study also highlights serious challenges. Centralizing industrial facilities in one location has increased logistics costs for business owners in other districts. Transporting raw materials and finished products has become more expensive, especially due to Buton’s archipelagic geography. Without systematic solutions, these barriers may weaken economic efficiency.
In terms of capacity building, the Industry Office has provided technical training on product hygiene, packaging mechanization, and digital business systems. These programs aim to improve product quality for modern markets. Yet, the biggest challenge remains low digital literacy, especially among older business owners who are still reliant on conventional methods and cash transactions.
The protection pillar is implemented through the “IKM IDAMAN” program, which facilitates halal certification, BPOM distribution permits, and intellectual property rights free of charge. This program creates more opportunities for local products to enter formal markets. Still, the study warns that legal certification alone is not enough. Without guaranteed market access, compliance costs may become an additional burden for small businesses.
To address these issues, the researchers formulated MIPEL as an integrated solution. The model proposes three major strategies: district-based logistics satellites to reduce transportation costs, on-site digital mentoring to bridge technology gaps, and regional regulations requiring modern retailers, village-owned enterprises, and government institutions to absorb at least 30 percent of certified local SME products.
The authors argue that MIPEL is more than a technical model. It is a long-term strategy to create an industrial ecosystem that is independent, adaptive, and sustainable. If implemented consistently, it could strengthen Buton’s SMEs against national and global market competition while preserving local wisdom within industrial modernization.
The implications of this study extend beyond Buton. Other island regions in Indonesia can adopt MIPEL as a policy reference for strengthening local economic empowerment. By combining physical infrastructure, human resource development, and market protection, regional SME development can become more sustainable and equitable across Indonesia.
0 Komentar