Priority Determination System Analysis of Small and Medium
Industries using AHP at the Department of Labor
Rini Agustina
1
, Eddy Sutadji
2
, Purnomo Purnomo
2
, Dodit Suprianto
3
and Khairul Anam
1
1
Faculty of Science & Teknology, Universitas Kanjuruhan Malang, Malang, Indonesia
2
Faculty of Engineering, University of Malang, Malang, Indonesia
3
Department of Informatics, Polytechnic of Malang, Malang, Indonesia
Keywords: Analytic Hierarchy Process (AHP), Likert Scale, the Ministry of Industry and Labor.
Abstract: Small and medium industries are now subject to considerable development considered by the government in
addition is very useful in terms of improving people's income, is also capable of creating creativity in line
with efforts to preserve and develop local cultural elements. The increasing number of small and medium
enterprises resulted in industrial entrepreneurs must be able to think to grow their business. One concern of
the Ministry of Industry and Labor is to provide support and training for small and medium industries. The
provision of assistance to focus on all the small and medium industries, ranging from data collection to
determine the criteria of small and medium industries that must comply with the provisions of the Ministry
of Industry and Labor. Therefore, Ministry of Industry and Employment requires data processing techniques
that conform to the standards and criteria to determine which industry a priority to be assisted and trained in
each budget period. The system was developed using by AHP method. The analysis of the system is measured
using a Likert Scale as a follow up of the development of decision support systems that have been carried out.
The results of the analysis of system implementation Prioritizing Small and Medium Industries obtained
through the yield of the questionnaire which has been given to the application, namely Small and medium-
sized industry that showed that 85% said it was agreed to use this system.
1 INTRODUCTION
The existence of small and medium enterprises is
very beneficial in terms of increasing incomes. It is
also capable of creating creativity in line with efforts
to preserve and develop local cultural elements.
According to economist Akerklof and Romer (1993),
the discovery of great ideas coincided with the
discovery of millions of small ideas that keep the
economy growing. Romer also found a poor country
because people do not have access to the ideas used
in the national industry to generate economic value.
The structure of the world economy also experienced
a rapid transformation along with economic growth,
the former based on natural resources (SDA) now
based on human resources, from the agricultural era
to the industrial age and the information. Toffler
(1980). According Howkins (2001), the new
economy has emerged around the creative industries
controlled by the laws of intellectual property such as
patents, copyright, trademark, royalties and design.
Martinbiancho et al. (2007) states that the creative
economy is a development concept based on creative
assets potentially boost economic growth. Today
there are many people who expand their business to
the small and medium industry sector. The increasing
number of enterprises engaged in the industry has
resulted in employers must be able to think to grow
their business.
Ministry of Industry and Labor has the function of
1) As a center for coaching and counselling, including
raw materials and marketing assistance; 2. As the
complementary equipment are not used together for
the region to improve the product; 3. As a workplace
for a number of small industrial entrepreneurs.
Syahruddin (2002). The existence of the centers of
industrial growth is expected to yield more
production coupled with increased production quality
into production with a high selling power.
One of the concerns of the Ministry of Industry
and Labor is to provide support and training for small
and medium industries. Provision of assistance
386
Agustina, R., Sutadji, E., Purnomo, P., Suprianto, D. and Anam, K.
Priority Determination System Analysis of Small and Medium Industries using AHP at the Department of Labor.
In Proceedings of the Annual Conference on Social Sciences and Humanities (ANCOSH 2018) - Revitalization of Local Wisdom in Global and Competitive Era, pages 386-388
ISBN: 978-989-758-343-8
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

provided by the Ministry of Industry and Labor to
focus on all the small and medium industries included
in the collection of data from the Department of
Industry and Labor, and small industries that meet the
criteria set by the Ministry of Industry and Labor for
assistance and exercise. Such assistance can be
distributed evenly to all small and medium industries
in the region. Therefore, the Ministry of Industry and
Employment require information in accordance with
the criteria for determining the industry will be
assisted and trained.
As a follow up of the development of a decision
support system that has been done, need to be
analyzed in an attempt to control and review the
usefulness of the system, whether it is appropriate or
need to be improved based on the same criteria.
2 METHODS
The importance of the role of small industry in
developing the national economy is shown by the
enactment of the Law of the Republic of Indonesia
number 20 of 2008 on Micro, Small and Medium
Enterprises. In this Act stipulated that the
empowerment of Micro, Small and Medium
Enterprises have to be comprehensive, and
continually optimized through the development of a
favorable climate, the provision of business
opportunities, support, protection and development of
broad, so as to improve the position, role and potential
of Enterprises micro, Small and Medium Enterprises
in realizing economic growth, equity and
improvement of people's income, job creation, and
poverty alleviation.
Subsequently, followed by Government
Regulation No. 32 of 1998 on the fostering and
development of small businesses. The essence of this
rule is the recognition and efforts to empower them.
This was revealed by the PP. small businesses are an
integral part of the national economy which have a
position, potential and strategic and important role in
realizing the national economic development.
Hasibuan (2001) argues that development is an
attempt to improve the ability to fit the needs of work.
Application systems are designed using the
analytic hierarchy process (AHP) in determining the
matrix of key performance indicators. Saaty (2001).
Application of system analysis was performed using
a Likert scale (Bertram, 2010).
Data analysis was performed in order to
determine the extent to which the quality of the
system, whether it meets expectations or not. For it is
in beta testing conducted research on the respondent
or potential users of the system by collecting data
using questionnaires. The analysis used was Likert
Scale, in increasing, items that do not clearly show
the relationship with the studied attitude can still be
put into the scale. Likert scale is easier to make and
have a relatively high reliability. Likert scale can
display the items expressed in several alternative
responses (SS = strongly agree, S = agree, KS =
disagree, TS = disagree).
In this study, the test application using a
questionnaire. The data obtained by 30 respondents
who have tested the system prioritizing with AHP.
Questionnaire for users consists of 10 questions and
the use of alternative answers 1 through 4.
Data from the questionnaire, and then look for the
percentage of each answer by using the formula:
Y = P / Q × 100%
(1)
Information:
Y Result of calculation =
P = Number of scales answers
Q = the highest value is multiplied by the number
of respondents
So that calculation can be translated back to the
results of the response scale required interpretation
criteria as follows:
0-20% = Strongly Disagree
20-40% = Disagree
40-60% = Doubtful
60-80% = Agree
80-100% = Strongly Agree
Here is the calculation of the percentage of
answers to the questionnaire results obtained from the
30 respondents who have been tested in this study.
Table 1: Instrument Questionnaire Questions.
No
Aspect
Instrument
No
Problem
1
Software
Application is easy to
use
1
Instructions on the
application clear and
easily understandable
2
Applications run
smoothly
3
Applications provide
accurate
recommendations
4
2
Visual
communications
Showing output
corresponding
application navigation
5
User Interface design
attractive and
communicative
applications
6
3
Evaluation
Applications are in
accordance with the
7
Priority Determination System Analysis of Small and Medium Industries using AHP at the Department of Labor
387

provisions of the labor
department
Application selection
prioritization help
small and medium-
sized industrial
proposals
8
This application helps
prioritize by giving the
best recommendations
of proposals
9
This application is
eligible to be used in
any assessment of the
proposals
10
3 ITEM ANALYSIS QUESTIONS
Table 2: Results of Analysis Calculation Item.
No Problem
SS
S
KS
TS
Total
%
1
13
15
2
0
101
84%
2
14
12
4
0
100
83%
3
12
15
0
3
96
80%
4
12
16
2
0
100
83%
5
17
11
0
2
103
86%
6
14
16
0
0
104
87%
7
10
18
2
0
98
82%
8
15
15
0
0
105
88%
9
13
17
0
0
103
86%
10
17
10
3
0
104
87%
Average
85%
Based on the analysis prioritization system design
of small and medium industry development is very
helpful by 85% in determining assistance and budget
allocations in accordance with the priorities set by the
government.
4 CONCLUSIONS
Based on the description of the discussion it can be
concluded that:
 decision support systems to determine the
development of small and medium industries
can help local governments to identify
beneficiaries and training to benefit the
recipient to the ultimate criterion, it concurs
with research conducted Rahma and Dana
(2012) which states that the solution given by a
system developed by AHP quite accurate and
closer to the human ability to make decisions.
 The result of the application of systems
analysis Prioritizing Small and Medium
Industry Development in the Department of
Labor can run as expected, it can be known
through the yield of the questionnaire that was
given to the visitors showed that 85% said it
was agreed to use this system. Similar research
has also been conducted researches by Lelono
(2016) who tested the old system with a new
system using AHP to do the filtering as much
as 7 families or 19% who actually deserve help
and 81% were declared unfit to get help from
36 KK,
Suggestion development can be done using
another method that DSS, such as SAW, TOPSIS, and
Certainty Factor.
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