Marketing Based Product and Accounting Bookkeeping of Silver Industry in Sukawati Gianyar

I Gede Nyoman Carlos W. Mada¹, Putu Yudha Asteria Putri², I Gusti Ayu Ratih Permata Dewi³

^1,2,3 Warmadewa University

ABSTRACT: Jewelry and silver handicrafts in Indonesia are unique in their carved motifs, including floral or leaf motifs as well as motifs characteristic of empires and kingdoms which have their own philosophical meaning, this indicates the high level of expertise and thoroughness of silver craftsmen in Indonesia. In terms of business management, silversmiths still do not fully implement management principles. Governance starting from making product designs, financial management and the entire HR (employee) work process is carried out by the owner as well as the manager. For this reason, partner assistance is carried out in the hope of helping the preservation of the silver industry in Bali.

INTRODUCTION

Micro, Small and Medium Enterprises (MSMEs) in Indonesia have contributed greatly to the recovery of the nation’s economic conditions after the 1997 economic crisis (Ernani Hadiyati et al., 2018) . The contribution of SMEs to Gross Domestic Product (GDP) is an indicator of the importance of SMEs in increasing economic growth in Indonesia (E Hadiyati, 2011) . This is according to BPS data explaining that the contribution of MSMEs in 2007 to 2012 showed an average increase in MSME GDP by 18.33%/year. Meanwhile, Large Enterprises (UB) contribute less to the development of GDP than MSMEs, with an average percentage of growth of 15.75% per year. Labor absorption data in 2012 MSMEs were able to absorb 97.16% of the total Industrial workforce in Indonesia or 107.66 million, the remaining or 2.84% of the workforce was absorbed by the Large Business sector (BPS, 2017). Not only that, Indonesian MSMEs contributed to absorbing 119.6 million or 96.92% of the total workforce in Indonesian business units. This workforce absorption increased by 2.21% from 2018 (Arief Nuur Rasyid & Azis, 2017) . The large contribution of MSMEs is because the majority of Indonesian business units are donated by MSMEs. As many as 64.2 million or 99.99% of Indonesian business units are MSMEs. In detail, 63.4 million are Micro Enterprises (UMi), 783.1 thousand are Small Enterprises (UK), and 60.7 thousand are Medium Enterprises (UM).

The silver industry in Indonesia benefits from a long history and a solid infrastructure for supplying raw materials. Jewelry and silver handicrafts in Indonesia are unique in their carved motifs, including floral or leaf motifs as well as motifs characteristic of empires and kingdoms which have their own philosophical meaning, this indicates the high level of expertise and thoroughness of silver craftsmen in Indonesia.

Gianyar is one area that is famous for various silver businesses. Singapadu, Sukawati as one of the handicraft centers is the name of a village in Gianyar District and Regency. Geographically, Singapadu Village is a lowland village. The distance from Denpasar to Singapadu village is 21 km. The types and types of products produced by the artisans in Singapadu Village are diverse. In the Sukawati area, in general, the majority of the population earn a livelihood from metal crafts and painting, as well as farming and gardening as part-time jobs. It is said that the majority is because more than 50% of the population relies on metal crafts, especially silver handicraft products in the form of religious ceremonial equipment such as bowls, sangku, wanci, pagut umbrellas, and others.

One of the silver craftsmen is in Singapadu Village, Gianyar Regency. He produces various forms of silver handicrafts and is his main source of income. The forms and types of silver handicrafts produced by partners are very diverse, including: earrings, pendants, brooches, bracelets, necklaces, candle holders, tissue holders, and various forms of souvenirs to meet tourism needs, both domestic and foreign. . These silver handicraft products are designed by combining elements of traditional motifs that already existed, by absorbing modern design elements, resulting in a variety of creative and innovative products, which have their own characteristics, so that they can compete in the market, both locally and nationally. , as well as globally. The ability to organize art elements such as line, plane, color, texture, space, and principles of arrangement such as: composition, proportion, unity, contrast, rhythm, and balance, is very much needed in making designs. Innovative designs have a creative basis in observing social, cultural, economic phenomena from society, so that they have cultural characteristics or identity (Buiga, 2013) . In this regard, partners continue to make various efforts to develop new creative and innovative designs to meet the needs of a very competitive market.

However, with the current situation, the Covid-19 pandemic seems to have dealt a heavy blow to the tourism sector. So that many businesses in this sector hibernate for a while, waiting for conditions to improve (Nanang & Viana, 2020) . This silver craft is one of the businesses that is surviving, trying hard to move the wheels of the economy amid tourism which is starting to be sluggish and quiet. In fact, when viewed from the results of the product, silver is very interesting, this of course still has a very broad market potential. Market expansion and market penetration strategies will affect sales turnover and business performance that can support business sustainability.

Silver handicraft SMEs belonging to partners still face several dominant obstacles in efforts to improve their performance including: In terms of business management, partner businesses still have not fully implemented management principles. Governance starting from product design, financial management and the entire HR (employee) work process is carried out by the owner as well as the manager. Too much workload will disrupt management or corporate governance (Putra et al., 2020) . All decisions that will be taken depend on the owner or manager. In this case, if a phenomenon occurs where the owner or manager travels or falls ill, business effectiveness will be disrupted (Ajimat​ et al., 2020) . In addition, as the owner or business manager ages, a decrease in productivity will occur and of course have an impact on the existence of the company (Armiyati, 2014) .

The marketing system used with the traditional system. Silver craftsmen still use the old habits practiced by SMEs in the industrial center area, which is very dependent on investors/middlemen who come from several areas of their marketing areas. Partners do not yet have their own market share, orders that are executed generally come from craft investors who have market access and foreign property market links. Partners prefer to be art shop workers, where most of their products are marketed in special outlets for silver handicrafts. Management accounting records are also not kept by partners, so partners do not know exactly how much the cost of goods and selling prices should be for each product. Product marketing is not market oriented but only depends on orders from investors/middlemen. The investor/middleman will determine the design and method of payment to be made in the sale and purchase transaction. Partners in this case do not have the ability to bargain when the middleman has fixed the price and the payment system. Therefore, the middlemen receive a larger percentage of profits than their partners, because so far the middlemen are free to play with prices. In addition, another important problem is the limited HR skills in accessing business information related to business development from partners. So far, partners can only get information about their business strategy through colleagues, middlemen or wholesalers who have been considered business partners.

In this situation of very tight competition, partners have never utilized technology-based information regarding the trend of silver handicraft models in accordance with market needs or consumer demand. Especially now that opportunities should be taken advantage of after implementing government policies in dealing with the Asian market (AEC) (Kumar & Raheja, 2012) .

In accordance with the description of the problem, the problems faced by partners to date include not having the ability in product marketing governance, not having knowledge of information technology-based marketing, not implementing information technology-based marketing and mobile marketing and partner management not being carried out effectively. professional because it is managed in a family manner. Likewise with regard to bookkeeping such as diaries, cash books, production cost calculations, profit or loss calculations are not yet available properly. With regard to HR management, it is still unclear where the division of work is not clear from one to another. For this reason, through this PKM activity, it is hoped that some of the main problems faced by PKM partners will find the right solution so that they can improve their business performance.

Partner Problems

Based on the results of observations on partners, there are several problems that become obstacles including:

• Do not yet have the ability in product marketing governance
• Do not have knowledge of information technology-based marketing.
• Have not implemented information technology-based marketing and mobile marketing.
• Do not have bookkeeping such as diaries, cash books, calculation of production costs, calculation of profits or losses.
• Some tools have expired

METHOD

Type of Expertise Required

Based on the identification of problems faced by partners and the solutions offered, the method of implementing the activity is to provide assistance related to product marketing governance, starting with the creation of an organizational structure that provides opportunities to be responsive to changes and challenges. The preparation of this organizational structure is applied with a job description of each unit formed, after which an SOP is made to support each activity in both the production and marketing sectors . This is done with the hope that partners have a clear picture of the results of their operations and know the basic price of their products. Making promotional facilities via social media so that it is expected to support product marketing from partners. Assistance and training in operating and updating social media owned so that it is hoped that the latest information about products and companies can be conveyed. Procurement of several damaged equipment that can support the production process from partners

RESULTS AND DISCUSSION

Prior to the mentoring training on marketing governance of silver handicraft products, the partners distributed the silver handicrafts they produced to the middlemen. This causes the income generated by partners is not optimal. In fact, if silver art products can be marketed independently, not only to middlemen, it will generate added value and high selling value. In addition, by marketing their silver art products, partners can also open up job opportunities for relatives who live in the same village as employees. So far, partners only have a few employees because they only distribute their products to middlemen depending on the number of orders that have been determined by the middlemen beforehand.

The implementation of this PKM is very beneficial for partners, because with the implementation of this PKM, we on the PKM team help to solve problems that are felt by partners, what we do during mentoring is assisting and assisting in making simple bookkeeping and financial reports. Assisting and providing management accounting training, providing training on the implementation of corporate governance, especially with regard to determining production and marketing strategies , creating social media and e-commerce to assist in product marketing and providing assistance in its use, and providing assistance in the form of tools for partners to use support its operational activities

During the first time offering craftsmen as us, he was very responsive and contributed to this service, because he is the owner as well as the main craftsman in this business, he made all his efforts self-taught in advancing his business. However, there are some drawbacks that we try to help so that partners can achieve more success, for this reason partners really feel that this can be beneficial for them.

CONCLUSION

When training on making financial reports and cost of production, partners have difficulty understanding them. Because so far partners have not done bookkeeping at all. The standard is only if there is more money, then it is said to be profitable. Partners do not take into account operational costs which also include electricity, water, and so on. In addition, when providing solutions related to social media, partners also experience difficulties using technology. His social media is limited to WhatsApp to reply to middlemen’s messages, but does not use other social media to support his business activities.

Partners and several of their colleagues were very enthusiastic about listening to our explanations. Some residents who are also silver craftsmen also actually get in trouble if they only rely on middlemen. However, if corporate governance is carried out properly, not only with middlemen, craftsmen can sell their products and produce more.

In seeking to improve welfare for MSMEs, especially silver craftsmen, various counseling and assistance are carried out. Starting from calculating the cost of production so that you can set and mark up prices to get a profit, then provide assistance regarding more attractive packaging. Usually packaging is the main thing that is seen by consumers besides the shape and type of handicrafts. Because attractive packaging will attract consumers to buy. If there is already an offline market share , assistance is needed in terms of online sales for handicraft products can also be marketed online so that it is possible to be marketed outside the city of production.

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