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Abstract

The policy of Indonesia in developing Micro, Small and Medium Enterprises (MSMEs) is designed by the government to grow and develop businesses, especially for economically weak communities in order to create jobs, utilize resources, and increase income for the community. In 2017, MSMEs contribute 57.60% to the Gross Domestic Product (PBD) and employ around 97% of the entire national workforce. However, the development of the policy has not been evenly distributed through all of the city and regency in Indonesia.  Based on preliminary research (Ermanovida, 2016-2019) in Ogan Ilir Regency, there were many problems related to policies and community empowerment which resulted in ineffective OI government policy strategy. One of the handicraft MSMEs that provides the greatest input for PAD in Ogan lir Regency is songket cloth. By using a combined quantitative and qualitative research design, it is known that the ineffectiveness of this strategy is due to the ineffectiveness of the strategic elements of policy and the lack of understanding of the apparatus towards policy objects that have technological  variations  and the closeness of traditional network relations in the production and marketing of  songket cloth.

Keywords

strategy reformulation; technology variations; network relations; stakeholders

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