A Cluster Model for Increasing Performance of Small and Medium-Scale Enterprises (A Case Study in Bogor, Indonesia)

Small Medium Enterprises (SME) is one of economic fundament in Indonesia. Their endurance has already known since Monetary Crisis in 1998. But, most of them have not managed well. Many problems occurs on them, such as restricted resources in human resources, assets, capital and others. For increasing their performance, they need supports from others stakeholders. The better performance of them, the higher profit they will get. For larger, it will awake the economic based on community in Indonesia and give more progress. Based on those reasons, the purpose of this research is to increase the performance of SME’s in Kecamatan Cibinong, Kabupaten Bogor by Cluster Model. This model built a place as the center of industiesy (Kecamatan Cibinong). The center (Kecamatan Cibinong) consists of three area productions: SME of “Kerupuk Mie”, SME of Bambu Hitam Meubeul, and SME Traditional Cake (Dodol, Wajik, Bugis). Ishikawa diagram was used to identify problems occurs on each of SME. This research’s result shows that marketing is the most difficult problem of them. The solution of that problem is building a cluster with Digital Marketing Center (DMC) in the center of cluster (Kecamatan Cibinong).