Development of Small And Medium Scale Food Industry: A Strategic Plan to Swift the Rural Economics Growth In Aceh

Abstract

The management of rural area in Indonesia involves a complex array of interactions among factors including the domains of agriculture, community development, environment conservation, and food security program, and economy as general. The main problem stays on debate is the gap of economic growth between rural and urban area. Most of ' countries attempt to boost development in rural area to narrow the gap through providing public infrastructure, education, health services and relocate industry far away from the city. One of industrial sector important in the rural area is food industry because of its relationship to generate the positive economic growth, reduce imbalance of population density (re-urbanization) and more stability of the region. Providing infrastructure and facilities in rural area will reduce the cost of production of the enterprise from that region and thereby make the industries more competitive. This paper is a review of literature attempts to analyze the importance to assist and support small scale food processing industries as strategic planning to develop rural area. Particularly, this paper aims to explore the benefit of strengthen the rural area development in view of social economic structural change, income distribution and technology spillover in food processing industries.