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MSME Socio-Economic Analysis in the Context of
Development of the Muaro Jambi Temple Area
Zulfanetti Zulfanetti1 * , Heriberta Heriberta 2, Etik Umiyati 3
1,2,3Lecturer in Faculty of Economics and Business, Jambi University, Indonesia
*Corresponding author’s email:zulfa_netti@unja.ac.id
ABSTRACT
The aims of this study are to analyze: 1). the socio-economic conditions; 2). the factors that influence MSMEs in the
development of the Muaro Jambi Temple area. This study used primary data with descriptive and quantitative methods with
multiple regression analysis tools. The results showed that the type of business of MSMEs in the Muaro Jambi Temple area
was known to be 21 respondents with the type of culinary business or selling food and beverages, the average length of
business was 7 years, the average working hours were 269 hours. Simultaneously the variables of operating capital, labor,
length of business, hours of work, education, age and gender affect the income of MSME players in the context of
developing the Muaro Jambi area. Partially operating capital, working hours and education variables have a positive and
significant effect on MSMEs income in the context of developing the Muaro Jambi Temple area.
Keywords: Socio-Economic, MSMEs ,Income, Area Development, Muaro Jambi Temple.
1. INTRODUCTION
Tourism plays an important role in global and national
economic and community development, especially in
increasing income and creating jobs. Globally, the tourism
industry in 2018 generated 10.4% of the Gross Domestic
Product (GDP) and absorbed 10.0% of the workforce
worldwide [1] [2]. According to (UNWTO [3] the number
of international tourist visits has increased from year to
year. In 2018 the number of international tourist arrivals
worldwide reached 1.4 billion. The year also marked the
seventh consecutive year that tourism export growth (+
4%) outstripped merchandise export growth (+ 3%). Based
on this rapid growth rate, it is predicted that international
arrivals will reach 1.8 billion by 2030.
Nationally, the tourism sector plays an increasingly
important role, as reflected in its development and
contribution through regional income, foreign exchange
earnings, regional development, absorption of investment
and employment as well as business development in
various parts of Indonesia. Nationally, the contribution of
the tourism sector to GDP amounted to Rp. 946, 09 trillion
or reached 9% in 2014. The tourism industry's contribution
to foreign exchange amounted to Rp. 120 trillion and as
much as 11 million people to the absorption of labor in
2014. The tourism sector has encouraged and attracted the
development of other sectors such as hotels and
restaurants, the handicraft industry, transportation and
other related service sectors. The tourism sector also
creates a multiplier effect on accelerating economic growth
and providing wider employment opportunities if tourism
is developed through sustainable promotion. The
government plans a tourism development program that is
carried out with various strategies such as developing
tourist markets, developing tourism images, developing
tourism marketing partnerships, and developing tourism
promotions. All of these strategies are carried out in order
to achieve the tourism growth target. The target of tourism
development is the increase in local businesses in the
tourism business and the increasing number of certified
local workers [4].
Jambi province has a famous area of tourist
destinations; the temple complex Muaro located in
the village of Muara Jambi, District Muaro Sebo, Muaro
Jambi, the Archeological Site is a temple complex Hindu-
Buddhist broadest in Indonesia are likely relics of the
kingdom of Srivijaya and the Malay Kingdom. This temple
has an area of about 12 square km with a length of more
than 7 km and its area reaches 260 hectares. The Muaro
Jambi Temple Complex contains a total of 61 temple
buildings, most of which are still in the form of mounds of
earth (menapo) that have not been excavated (occupied).
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As one of the largest cultural tourism destinations in
Jambi Province, especially Muaro Jambi Regency, the
increase in visitors is not so significant from year to year,
both from local and foreign tourists, the management of
this area has not been optimal as a tourist area both in
spatial and non-spatial terms. The spatial side includes
infrastructure, transportation, accommodation and
supporting facilities for tourist areas, while the non-spatial
side includes the provision of lodging facilities, souvenir
shops, restaurants, regional arts, promotional media and
other aspects related to tourism development. While this
area has great potential to be developed with the aim of
increasing regional income and the income of rural
communities around the area. This condition is obviously
the responsibility of stakeholders, local government and
community leaders associated with the development of the
Muaro Jambi Temple tourism area.
The economy of the local
community will develop with the development of tourist
destinations, people can open household businesses,
culinary delights, manufacture souvenirs, rent bicycles,
open parking services, homestays, tour guides and others.
Community household businesses (MSEs) are an
important component to be developed, because one of the
sustainable tourism developments is to empower and
improve the welfare of local communities. Observation of
individual characteristics, business potential, and
improvement of the quality of the resulting product is very
necessary.
According to Timothy in Sulistyadi et al [5]
community-based tourism is related to the benefits
obtained and assistance planning efforts that protect local
communities and other interested groups, who supervise
social processes to create prosperity. Meanwhile,
according to Murphy [6], it emphasizes a strategy that is
focused on identifying the goals of local communities and
their desire and ability to absorb the benefits of
tourism. Each community should be encouraged to identify
their own goals and direct tourism to increase the needs of
local communities. Community-based tourism creates a
more sustainable tourism industry that focuses on local
communities in tourism planning, maintenance and
development [7]. If the tourism strategy is to be sustainable
then community development and empowerment must be
developed as the main objective of the partnership. Not
only in relation to the public, or through public
participation, but as a form of local
community development [8]. There are many potential
benefits when people living or working in a tourist
destination are involved in tourism planning as it increases
the legitimacy of members of the political
community. This means that community members have a
greater influence on decisions that affect their lives [9].
The local community as the party that receives tourists,
needs to be involved in the process of developing tourism,
so that success is guaranteed. The failure of regional
tourism development that does not involve the general
public is due to lack of planning and does not understand
environmental conditions, both economic, political and
social. By not involving the local community,
it will hamper the development of tourism. In this way,
community involvement plays a very important role in
tourism development. The role of local communities can
create a conducive situation for tourists so as to provide a
sense of comfort for tourists.
The various roles of local communities according to
Wardiyanto [10] in the development of tourism in
their area are to become tour guides. As hosts, local people,
as those who know and understand their area well and
deeply, can become tour guides who come; Become a
tourism business actor to fulfill the basic needs of tourists
who come for a vacation. Local people can establish
tourism service businesses such as accommodation,
transportation, food services, etc. This can support the
progress of tourism and can increase the income of the
surrounding community; Actualizing past cultures Daily
activities and cultural arts activities, both ongoing and past
cultures that were carried out by their ancestors and now
no longer exist in the community. It can be an
attraction area and developing Community Tourism
Institutions can play a role in developing an institution
aimed at supporting tourism in their area. The
implementation can be done alone or in collaboration with
the government or related parties. The development of this
institution is intended for the formation of tourism
awareness groups and tourism villages. In developing a
tourist village, the community can offer the potential of
their own design and what is around it to be offered to
tourists who come. Many things can be developed by the
community so that it can become a tourist attraction.
The problems that will be analyzed in this study are
(1) analyzing the socio-economic conditions and (2)
analyzing the factors that influence MSMEs in the
development of the Muaro Jambi Temple area.
2. METHOD
The type of data used in this study is primary data
obtained directly from the object of research and collected
using a questionnaire. In answering the problem of the
research used an analysis on the descriptive quantitative
data, using multiple linear regression analysis as follows:
Y = β 0 + β 1 X 1 + β 2 X 2 + β 3 X 3 + β 4 X 4 + β 5 X 5 +
β 6 X 6 + β 7 X 7 + e i
Note:
Y = Income of MSME Players (Rupiah)
β 0 = Constant.
β 1 , β 2 ,…, β7 = Regression Coefficient
X 1 = Operating Capital (Rupiah)
X 2 = Labor (Person)
X 3 = Length of Business (Years)
X 4 = Hours of Work (Hours)
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X 5 = Education (Years)
X 6 = Age (Years)
X 7 = Gender
e i = Standard Error
3. RESULTS AND DISCUSSION
3.1. The Socio-Economic Conditions of MSMEs
Table 1. Demographic Analysis of Respondents
Description
Respondent Profile
Age
Number
Percentage
20-24
8
16.0 %
25-29
6
12.0 %
30-34
9
18.0 %
35-39
8
16.0 %
40-44
6
12.0 %
45-49
4
8.0 %
50-54
5
10.0 %
55-59
3
6.0 %
≥ 60
1
2.0 %
Education
No school
3
6.0 %
SD
12
24.0 %
Junior High School
11
22.0 %
High school
17
34.0 %
D3
2
4.0 %
S1
5
10.0 %
Gender
Male
24
48.0 %
Women
26
52.0 %
Marital status
Single
10
20.0%
Married
40
80.0%
Source: Research Results in 2020 (Data processed)
Based on table 1, the average age of MSME
industry players is 37 years, 34.0% high school education , 52.0% women and 48.0% men , and as
much as 80.0% are married.
Table 2. Business Analysis of Respondents
Description
Respondent Profile
Type of business
Number
Percentage
Motorized transportation service
providers
5
10.0%
Culinary / selling food and drinks
21
42.0 %
Photography services
1
2.0 %
Bike rental
9
18.0 %
Selling souvenirs
4
8.0 %
Tour guide
5
10.0 %
Homestay / lodging
4
8.0 %
Rental mat
1
2.0 %
Length of Business
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1990-1995
1
2.0%
1996-2001
1
2.0%
2002-2007
4
8.0%
2008-2013
18
36.0%
2014-2019
Working hours
150-200
10
20.0%
201-251
11
22.0%
252-302
20
40.0%
303-353
2
4.0%
354-404
5
10.0%
405-455
1
2.0%
≥ 456
1
2.0%
Business Ownership
One's own
49
98.0%
Family owned
1
2.0%
Source of Initial Capital
One's own
44
88.0%
Bank
4
8.0%
Family loan
2
4.0%
Sources of Operational Capital
One's own
47
94.0%
Bank
2
4.0%
Family loan
1
2.0%
Source: Research Results in 2019 (Data processed)
Based on table 2, the types of businesses of
MSMEs in the Muaro Jambi Temple area, it is
known that 42.0% with the type of culinary business /
selling food and beverages, the average length of
business is 7 years, the average working hours are 269
hours, as much as 98.0 %. As many as 88.0% of
them used their own capital as initial
capital and 94.0% used their own capital as operating
capital.
3.2. Analysis of Factors Affecting MSMEs in the
Context of Development of the Muaro Jambi Temple
Area
Table 3. Estimation Results of Factors Affecting MSMEs
Variable
Coefficient
Std. Error
t-Statistic
Prob.
C
-4114981.
1030246.
-3.994174
0.0003
X1
0.079067
0.011968
6.606336
0.0000
X2
-187801.0
112088.9
-1.675466
0.1013
X3
-36841.35
29320.77
-1.256493
0.2159
X4
19228.43
1985,415
9.684843
0.0000
X5
84092.35
47693.67
1.763177
0.0851
X6
7266,600
17604.01
0.412781
0.6819
X7
368026.7
290458.9
1.267053
0.2121
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R-squared
0.876109
Mean dependent var
2062300.
Adjusted R-squared
0.855461
SD dependent var
2398205.
SE of regression
911757.5
Akaike info criterion
30.42978
Sum squared reside
3.49E + 13
Schwarz criterion
30,73571
Log likelihood
-752,7446
Hannan-Quinn criter.
30,54628
F-statistic
42.42971
Durbin-Watson stat
1.600057
Prob (F-statistic)
0.000000
From table 3, the operational capital variable
regression coefficient can be seen that the t value
is 6.606336 with the probability of working capital
variables of 0.0000 or less than the value α = 0.10
(0.0000 < 0.10), then H 0 is rejected and H a
is accepted. From these results, it can be concluded
that the operating capital variable individually has a
significant influence on the income of MSMEs.
The regression coefficient of the labor variable can
be seen that the t value is -1.675466 with
the probability of the labor variable being 0.1013 or
greater than the value of α = 0.10 (0.1013 > 0.10), then
H 0 is accepted and H a is rejected. From these results,
it can be concluded that the individual labor variable
has no significant effect on the income of MSMEs.
The regression coefficient for the length of
business of the business can be seen that the value of t
count is -1.256493 with the probability of the variable
length of business of 0.2159 or greater than the value
of α = 0.10 (0.2159 > 0.10), then H 0 is accepted and
H a is rejected. From these results, it can be concluded
that the variable length of business individually has no
significant effect on the income of MSMEs.
The regression coefficient of working hours
variable can be seen that the t value is 9.684843 with
a variable probability of working hours of 0.0000 or
less than the value of α = 0.10 (0.0000 <0.10), then H 0
is rejected and H a is accepted. From these results, it
can be concluded that the individual working hours
variable
The regression coefficient of the education
variable can be seen that the t value is 1.763177 with
the probability of the education variable
being 0.0851 or less than the value of α = 0.10
(0.0851 ˃ 0.10), then H 0 is rejected and H a
is accepted. From these results, it can be concluded
that the individual education variables have a
significant effect on MSME income.
The regression coefficient for the age variable can
be seen that the t value is 0.412781 with
the probability of the age variable being 0.6819 or
greater than the value of α = 0.10 (0.6819 ˃ 0.10), then
H 0 is accepted and H a is rejected. From these results,
it can be concluded that the age variable individually
has no significant effect on the income of MSMEs.
The regression coefficient for the gender variable
can be seen that the t value is 1.267053 with
the probability of the gender variable of 0.2121 or
greater than the value of α = 0.10 (0.2121 ˃ 0.10), then
H0 is accepted and Ha is rejected. From these results, it
can be concluded that the gender variable individually
has an insignificant effect on the income of MSMEs.
The influence of the independent variable
(operating capital, labor, old business, hours of work,
education, age and sex) on the dependent variable
(revenue SMEs) are indicated by a large coefficient of
determination R 2. R-squared figures obtained
by 0.876109 or 87, 61 % so it can be stated to have a
strong correlation to the closeness of revenue
SMEs. This explains that the influence of variables of
operating capital, labor, length of work, working
hours, education, age and gender on MSME income
is 87.61% while the remaining 12.39% is influenced
by other variables not included in this research model.
4. CONCLUSION
The profile of MSME players is that the average
age of MSME industry players is 37 years, 34.0% high
school education, 52.0% women and 48.0% men, and
as much as 80.0% married. MSMEs in the Muaro
Jambi Temple area, it is known that as many as
42.0% with the type of culinary business / selling food
and beverages, the average length of business is 7
years, the average working hours are 269 hours, as
many as 98.0% are self-owned businesses, as many as
88, 0% used their own capital as initial
capital and 94.0% used their own capital as operating
capital.
The factors that influence the income of MSME
players in the Muaro Jambi Temple area are jointly
influenced by the variables of working capital, labor,
length of business, working hours, education, age and
gender. While partially the operating capital, working
hours and education variables have a significant effect
on the income of MSME players in the Muaro Jambi
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Temple area. Meanwhile, the variables of labor, length
of business, age and type of business did not have a
significant effect on MSME actors in the Muaro Jambi
Temple area.
ACKNOWLEDGMENT
The researchers would like to thank all those who
have helped carry out this research, especially to the
Rector of the University, the Dean of the Faculty of
Economics and Business and the Chairperson of
LPPM Jambi University for their trust in researchers
to carry out this research and
researchers. funding support. Letter of Agreement on
Business and Economic Group Research Scheme
Faculty of Economics, Jambi University, 2020 Fiscal
Year Number: 321 / UN21.18 / PG / SPK / 2020 dated
April 20, 2020 We appreciate Micro, Small and
Medium Businesses in the tourist area of Muaro Jambi
Temple who respondents.
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