MEASURING COMPETITIVENESS: PROSPECTS OF THE MANUFACTURING INDUSTRY IN PURBALINGGA

Abstract

Purbalingga is an appealing regency for the establishment of various industries, such as the production of exhausts, eyelashes, and hairstyles. Despite its recognition as a hub for a variety of industrial commodities, Purbalingga's quality of human resource development is relatively low, and the poverty rate remains high. In contrast, in areas where industrialization is progressing, poverty tends to decrease and human resource capacity is improved. The objective of this investigation is to investigate the industrialization process in the Purbalingga Regency and to determine methods for expediting it. This study employs quantitative analysis with the Location Quotient method and qualitative analysis with the SWOT method to address this issue. The LQ analysis results suggest that Purbalingga's industry is exhibiting early deindustrialization, which is a slowdown in industrial growth in comparison to other sectors such as trade and services. The threat of deindustrialization is further exacerbated by the high competition from neighboring areas, such as Banyumas and Cilacap, which already have a more established industrial structure, and the low realization of new investment. The SWOT analysis results underscore the fact that Purbalingga continues to possess fundamental assets in the form of a tradition of home industries and an export product base (exhausts, eyelashes). Wide-open opportunities for industrial revival are presented by product diversification, downstream agro-industry, and the development of new industrial areas that are integrated with regional supply chains. Purbalingga must promptly resolve structural deficiencies, such as the absence of large-scale industries, restricted capital access, substandard industrial human resources, and dependence on raw materials imported from outside the region. Therefore, Purbalingga requires an industrial strengthening strategy that should be implemented in two main dimensions. The initial objective is to promote the modernization and expansion of prominent sectors by means of digitalization initiatives. The second objective is to enhance the resilience of the micro-industrial sector by modernizing production and marketing, substituting local raw materials, and providing inclusive financing.