Development model for creative industry in Indonesia: A case from leather craft cluster in Magetan district by using system dynamic approach

This study has a purpose of modeling the industrial leather craft cluster development by dynamics system approach. The construction of the model based on a research study by Afonso, Monteiro, & Thompson (2012) that adopted in Concept of Creative Industry Development Planning in Indonesia with Quad Helix Model Approach for analyzing how the role and actors can influence the development of the industry. The actors of this approach are Government, Business, Academic, and Civil Society. System Dynamics Approach is a way to analyze parts of the system that have interactions and emerges for specific goals. This study also takes insights from the diamond model of cluster development by Porter (1998). Small Medium Enterprises (SMEs) Production influenced by the amount of Desired Production and Capacity Planning. The most business unit in the cluster industry has the form Home Industry or SMEs that have small to medium business scale. The simulation is run in 3 scenarios and compared with base scenario. Thus, we found that labor availability and labor productivity are the primary dynamics source of the situation to develop the cluster.