Modernization of the Kediri Banana Chips Industry: Integration of Mechanization Technology and Digital Financial Reporting Accountability to Achieve Sustainable Business Independence

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FORMOSA NEWS - Malang - Kediri Banana Chips Industry Boosts Production Capacity via Technological Modernization and Digital Accounting. A team of researchers from State Polytechnic of Malang (Polinema) has successfully modernized a micro, small, and medium enterprise (MSME) producing banana chips in Kediri City, East Java. Led by Atik Tri Andari alongside co-authors Salim Subarkah, Wiwiek Kusumaning Asmoro, Veri Hardinansyah Dja'far, Wiwik Mukholafatul Farida, and Hanifah Puspita Sari, the project integrated electric mechanization technology with cloud-based financial accounting software. Published in July 2026 in the Asian Journal of Community Services (AJCS), the study demonstrates how combining automated processing tools with digital bookkeeping doubles daily production capacity while securing financial accountability for local businesses.

Enhancing Efficiency and Governance in Local Enterprises
Banana chips represent an iconic culinary specialty in Kediri City and Regency, serving as a popular souvenir alongside traditional items such as tahu takwa (yellow tofu) and getuk pisang. Despite high market demand for traditional and modern flavor variants such as melted chocolate, spicy orange, and coffee many small producers remain constrained by traditional manufacturing and management practices. A prime example is Callista Banana Chips, an MSME founded in 2014 in Mojoroto, Kediri City, by Tri Yuli Astuti. Prior to technological intervention, Callista Banana Chips operated entirely through manual labor. Processing just 5 kilograms of raw bananas required approximately 7 hours of manual work 4 hours for peeling and 3 hours for slicing. This manual bottleneck capped daily production at 5 kilograms per 8-hour workday, while hand-slicing caused inconsistent slice thickness, affecting frying quality. Furthermore, the business lacked structured financial record-keeping. Personal finances were mixed with operational funds, and physical receipts were rarely summarized into standard accounting journals. The absence of formal income statements or balance sheets made business growth unmeasurable and created administrative barriers when seeking external funding from financial institutions.

Integrating Mechanization and Cloud Accounting Systems
To solve both production and administrative bottlenecks, the State Polytechnic of Malang team implemented a structured, participatory methodology involving four key phases:

• Problem Analysis and Planning: State Polytechnic of Malang researchers conducted field surveys, interviews, and focus group discussions (FGDs) with the business owner to define machine specifications and financial goals.
  
• Machine Design and Fabrication: The team designed and built an automated peeling and slicing machine powered by a 0.18 kW (1/4 HP, 1400 RPM) single-phase induction electric motor.
  
• Digital Financial Training: State Polytechnic of Malang experts delivered training on basic account classification, transaction journaling, and the setup of Accurate Online, a cloud-based financial application tailored for manufacturing MSMEs.
  
• Implementation and Mentoring: Researchers installed the equipment at the Mojoroto production site, conducted operational trials, and provided ongoing mentoring to ensure proper data entry and machine maintenance.
  

Key Findings: Doubled Output and Real-Time Financial Visibility
The integration of appropriate technology and digital reporting yielded immediate operational and financial improvements for Callista Banana Chips:

• Production Capacity: Daily raw material processing expanded from 5 kilograms to 10 kilograms per day, marking a 100% increase in output capacity.
  
• Time and Quality Optimization: Automated slicing drastically reduced preparation hours while yielding uniform slice thickness, ensuring consistent crispness and doneness during frying.
  
• Separation of Business Funds: The business owner successfully separated personal expenses from operational revenues using standardized chart of accounts.
  
• Real-Time Financial Reporting: Implementing Accurate Online enabled cloud-based tracking of sales, raw material purchases, and inventory levels accessible directly via smartphone.
  

Real-World Impact on Community Development and Policy
The findings underscore how targeted technological interventions empower small manufacturing businesses to achieve long-term sustainability. For small business owners, combining mechanical efficiency with transparent accounting opens direct pathways to bank loans and broader commercial distribution. For local policymakers and educational institutions, the study provides a practical model for community partnership programs. Rather than offering isolated equipment donations, university-led programs that combine hardware innovation with digital management training foster self-reliant local economies.

Author Profiles
Atik Tri Andari, S.E., M.S.A. (Corresponding Author): Lecturer at State Polytechnic of Malang (PSDKU Polinema Kediri) specializing in Public Sector Accounting, Accounting Information Systems, and MSME Financial Governance.
Salim Subarkah, S.T., M.T.: Lecturer at State Polytechnic of Malang with expertise in Mechanical Engineering and Appropriate Technology Development.
Wiewiek Kusumaning Asmoro, S.E., M.M.: Lecturer at State Polytechnic of Malang specializing in Financial Management and Entrepreneurship.
Veri Hardinansyah Dja'far, S.E., M.S.A.: Lecturer at State Polytechnic of Malang with expertise in Management Accounting and Auditing.
Wiwik Mukholafatul Farida, S.Pd., M.Pd.: Lecturer at State Polytechnic of Malang specializing in Community Empowerment and Educational Development.
Hanifah Puspita Sari, S.E., M.S.A.: Lecturer at State Polytechnic of Malang with expertise in Digital Financial Reporting and Small Business Accounting.

Source
Atik Tri Andari, Salim Subarkah, Wiwiek Kusumaning Asmoro, Veri Hardinansyah Dja'far, Wiwik Mukholafatul Farida, dan Hanifah Puspita Sari. Modernization of the Kediri Banana Chips Industry: Integration of Mechanization Technology and Digital Financial Reporting Accountability to Achieve Sustainable Business Independence. Asian Journal of Community Services (AJCS), Vol. 5, No. 6, 2026, Hal. 457–476.
DOI : https://doi.org/10.55927/ajcs.v5i7.49
URL: https://journalajcs.my.id/index.php/ajcs