ANALISIS STRUKTUR DAN PERILAKU PASAR MENGGUNAKAN INDEKS HHI PADA INDUSTRI SKALA MIKRO DI PROVINSI JAWA TENGAH TAHUN 2023
Published 2025-12-03
Keywords
- Micro-Scale Industries; Market Structure; Market Behavior; Herfindahl-Hirschman Index (HHI); Industry Concentration; Central Java
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Abstract
The research analyzed the market structure and behavior of Micro-Scale Industries (MSI) in Central Java Province in 2023 using the Herfindahl-Hirschman Index (HHI). The calculation yielded an HHI value of 1,920.81, which places the market structure in the category of moderate concentration, primarily driven by the dominance of three sectorsfood (KBLI 10), wearing apparel (KBLI 14), and wood and rattan weaving (KBLI 16) which together account for more than 70% of total micro-enterprise units. This structure dictates the market behavior of micro-entrepreneurs, who mostly act as price takers and engage in intensive price-based competition, prioritizing cost efficiency and increasing production volume over radical innovation. Key implications include high sectoral dependence, scale disparities among sub-sectors, and uneven resource allocation for non-dominant sectors, ultimately making the MSI highly vulnerable to external shocks and sectoral policies. Therefore, the main policy recommendation is to implement business diversification, enhance competitiveness, and provide support for smaller sectors to foster a more balanced and sustainable MSI growth.
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