The influence of government and MUI mediations towards marketing strategy of Warteg and its impact on developing MSMEs in Jakarta, Indonesia

Abstract

Warteg’s growth in Jakarta is massive, but now Warteg is facing the challenge of remaining in the national economic development. So, research needs to be done on this. The study uses Mixed methods, namely with statistical and descriptive-qualitative analysis. The result of the research shows that there is significant influence from Jakarta Government mediation and MUI’s Fatwa toward Warteg Marketing Strategy which impact on MSMEs development in Jakarta both partially and simultaneously. The Jakarta Government Cooperative & Small and Medium Enterprises Office has strengthened MSMEs in the face of food business competition, utilization of HR, managerial aspects, and network development. The professionalism of MSMEs actors is enhanced by entrepreneurship training and skills. Enhancing managerial capabilities of MSMEs actors by counseling appropriate technology, financial management training, and production. Developing MSMEs networks through counseling and expanding markets. Collaboration with State/Regional Owned Enterprises in Jakarta and cross-sectoral agencies. Include MSMEs in the promotion event.

Keywords:

• Government and MUI mediation
• food marketing strategy
• informal sector development

PUBLIC INTEREST STATEMENT

Indonesia has various types of culinary from various regions, among these products is a traditional Tegal restaurant known as Warung Tegal (Warteg). Warteg is a form of micro business that is related to the nature of regionalism. Every business in product form has the aim to survive and grow. These aims could be achieved through the efforts to maintain and increase business profits. This can be done, if the business can maintain and increase the sales of the products. An accurate marketing strategy is needed through the utilization of opportunities in increasing sales, so that the company’s position in the market could be maintained or improved. Therefore, this research entitled “The Influence of Government and MUI Mediations Towards Marketing Strategy of Warteg and Its Impact on Developing MSMEs in Jakarta” is expected to be a reference in helping businesses introduce and market traditional foods typical of Tegal City, Central Java Province up to foreign countries, especially ASEAN countries.

1. Introduction

The informal sector in Indonesia is massive and becomes a challenge for the development of an open market economy. Every business engaged in the field of products has goals to survive and grow. These objectives can be achieved through efforts to maintain and increase the profit of a business. This can be done, if the business can maintain and increase sales of products they produce (De Farias, 2010). This can be done by applying proper marketing strategies through the utilization of opportunities in increasing sales so that the position of the company in the market can be maintained or improved (Atuahene-Gima, 1996).

Indonesia has various types of culinary originating from different regions. Among these products are the typical traditional Tegal food known as Warung Tegal (Warteg) (Ayodya, 2010). Warteg is a form of micro-business that is related to the nature of regionalism. The owner of this business comes from an area called Tegal (Juanda, 2004). We further explained that Warteg not only as a means to meet the needs of eating and drinking but also as the container of seeking public information tells simply everything, from trivial to politics. On the other hand, this business is not only privately owned but jointly among families alternately (Asytuti, 2015). Warteg, which has spread to various corners in Indonesia and also in Jakarta, is one type of food stalls are widely known by the community, especially inherent in the middle to lower class society.

Dishes that are served are generally not specific, consisting of a variety of vegetables and side menus (Juanda, 2004). The results of initial field observations of research indicate that Warteg entrepreneurs in Jakarta who are successful and able to develop their business usually have two or more Warteg. However, the reality in the world of competition in big cities such as Jakarta is so dynamic that it encourages the growth of similar businesses, such as Warung Jakarta (Warjak), which is currently looking for opportunities and its business share. The shape of the building is an expression of the culture it carries. However, competition against modern (western) restaurants poses a threat to its existence and at the same time diminishes its distinctive characteristics, and fades its distinctive characteristic (Arsil et al., 2016).

The food business actors in Jakarta must try to meet the expectations, needs, and motives of the consumers. To understand consumer motives when buying local food, we can use the Means-End Chain (MEC) analysis method (Arsil, 2016). Warteg entrepreneurs in Jakarta must be keen to take advantage of existing business opportunities, and be able to identify the demands of individuals, communities, and especially customers in various matters, such as food, taste, appearance, and price (Usman, Perdamenta, & Safriana, 2014). The products produced by Warteg entrepreneurs in Jakarta are sure very diverse. Food entrepreneurs certainly want to maintain the existence of their business to be able to achieve the level of cold growth, by presenting various marketing strategies up to foreign countries (Day, 1994).

In other words, there is an increase in the quantity and quality of Warteg food products and food business people in Jakarta, so the results of observations indicate that the level of competition is increasing from year to year. Therefore, the marketing strategy is crucial and urgent for the entrepreneurs, because marketing strategy is a way to achieve goals for business expansion including to overseas (Im & Workman, 2004). Product marketing strategy is a series of grand designs that describe how a business is to achieve the goal so that in running the business, one must develop it through marketing strategy (Hooley, Piercy, & Nicoulaud, 2008). Similarly, the marketing goal of Warteg’s business understands the character of its customers well, so that the resulting food products match the tastes of its customers.

Furthermore, Ayodya (2010) explains that in the first purchase, usually, the owners of Warteg make payments in cash, but after they become regular customers to suppliers or agents, the owners of Warteg can make a repayment (debt); goods shipped first, payment will be made on next shipment. Warteg Traders and suppliers or agents do not write the purchase agreement, but only by oral or using notes on a piece of paper or memorandum, and the transaction is conducted by mutual trust. However, the problem arises when either party act unfairly or deny the payment agreement of the debt bondage system. The goal of product marketing is to attract new customers by promising a better view (Im & Workman, 2004).

On the other hand, the small and medium enterprises (MSMEs) sector plays a significant role in building people’s economy in Jakarta. This especially matters when it is associated with the economic empowerment of the community in Jakarta, and the amount of labor that is able to be absorbed by the MSMEs. MSME sector has been promoted and made as the economic development agenda of Indonesia (Marijan, 2011). MSME’s toughness was evident during the economic crisis of 1998. During 1997–2006, the number of MSME-scale companies reached 99% of the total business units in Indonesia. MSME have a significant role in the economy since the past until now. Although many other businesses grow, micro and small businesses are not affected (Lores, 2014).

The empowerment of MSME become very strategic because of its great potential in mobilizing the economic activities of the community and at the same time become the source of income of some people of Indonesia (Hutagalung, 2012). In addition to having a strategic meaning for development in Jakarta, MSME also serves as a means to state the results of development that has been achieved (Lumbanraja, 2017). So many large, medium, and small retail businesses that are emerging rapidly and quickly make the business space competition so tight. The “50% Discount” strategy is one of the sales strategies that some retail restaurants run (Hatane, 2007). Therefore, Warteg entrepreneurs in Jakarta already have a community or association which is called “Cooperative Warung Tegal” and abbreviated Kowarteg at the end of December 1981. This association aims to establish cooperation and mutual help members. (Wulandari et al., 2016).

Thus, Kowarteg is a community that can be used as one of the aspiration reservoir as well as for the merchants of MSME that are economy-based people (Hastiyanto, 2010). Currently, there are approximately 500,000 Tegal residents lived in Jakarta and recorded more than 40 thousand people work as a trader Warteg with 25 thousand members of existing cooperatives. This amount does not include Tegal people who work as a seller of vegetables, traders, sellers of chicken porridge, ketoprak, martabak, drivers, and other services. (Muksin, 2016). Kowarteg in Jakarta has done many things, among others, to seek legal assistance for its members, to offer themselves to the police to help to patrol in their respective neighborhoods since most Warteg are open 24 hours (Alamsyah, 2008).

Until now, Warteg merchants are only used as consumer consumptive objects that only serve as processors and end marketing, which lacks value for MSME, especially Warteg traders in Jakarta (Ali, 2017). Further explained, the assets and magnitude of potential Warteg traders in Jakarta was not accompanied by capacity-based economic empowerment. The existence of Kowarteg is also implementing the cooperative work program in the fulfillment of basic needs of Warteg traders, namely rice, to Kowarteg members in Jakarta (Bismala, 2014).

Warteg has become one of the favorite eating places in almost all corners of Jakarta. However, lately, many entrepreneurs who complain about Warteg decreased turnover (Ayodya, 2010) (Haul & Ketchen, 2001). It is possible because the quality of their Warteg decreased because the quality of food and cleanliness of the stalls are less awake. Such conditions immediately used to establish Warung Jakarta (Warjak) inspired by Warteg. Warjak concept is similar like Warteg but packed through the concept of a franchise. Warjak directly applies the partnership system, and now there are about 53 partners who are preparing the opening of outlets. The striking difference with Warteg can be seen from the menu offered (Baker, Thomson, Engelken, & Huntley, 2004). The menu at Warjak is more hygienic and varied. Further explained, Warjak is using a centralized kitchen, so that the cleanliness and uniformity of the taste are maintained. In this era of increasingly tight competition, both at national and regional (ASEAN) and even global level, Kowarteg Jakarta has also expanded its market share with its marketing strategy (Barkah, 2017).

The marketing activities of a product conducted by various businesses must always be market-oriented. One component that should be concerned by the entrepreneur regarding market-oriented marketing is the analysis of market structure and behavior (Kok, Hillebrand, & Biemans, 2003). Indonesia has many kinds of traditional foods that ready to compete in the market, but are less controlled. Moreover, with the entry of various types of modern fast food, traditional food seems to have no position in the market competition (Susilawati, 2017). Kowarteg must know the capabilities (advantages and disadvantages), in order to understand the needs of customers. These include all aspects of local food products including financial conditions, managerial capabilities, production capabilities, development capabilities, technological capabilities, reputation, and marketing capabilities (Arsil, 2016).

The marketing part of a product, on the one hand, faces exciting and frightening challenges, because of the growing demands of highly mobile dynamic consumer behavior (Yohanna, 2014). Besides, these local businesses are now facing the challenges of global competition and the challenges of technological development, as there are now many online purchases and delivery products (Gronroos, 1982). Related to this, Kowarteg Jakarta has decided to open a branch in Malaysia, precisely in Kuala Lumpur, Johor, and Penang. The existence of Warteg in Malaysia is increasingly showing that MSME culinary Indonesia can compete with MSME from other countries. The reasons for opening the Warteg branch in Malaysia are that Warteg has been well known in Indonesia, has a strong brand, has a legal body (Kowarteg), and a relatively high population of Indonesians in Malaysia. All of the above makes the opening of branches in Malaysia to be reasonable, in addition to making the permission of business becomes easier (Dube & Renaghan, 2000).

In such a tight, competitive condition, the quality of service must be considered and prioritized in order to compete with other competitors and dominate the market (Gadrey, Gallouj, & Weinstein, 1995). The government has helped open the link by being a mediator of the Malaysian Government. Mediation is a process of interaction between one party and another assisted by a third party so that the parties involved can find a solution that they agree on their own (Nurbaiti, 2008). Mediation, in this case, the assisted process from the Government of Indonesia so that Warteg can have a license to opens its branch to Malaysia, but the effort must still maintain a cautious attitude. The presence of Warteg in Malaysia certainly adds to the competition of MSME in Malaysia to become tighter, but the Malaysian Government still try to make culinary business (MSME) in Malaysia still survive.

The same applies when the government becomes a mediator of MUI to provide halal certification for food products (Warteg). Besides, the research findings by Quoquab et al. (2016) shows satisfaction as a partial mediator between service quality and service loyalty. The findings of this study will develop options that enable policymakers, managers, and marketers to devise better and more effective strategies for implementing loyalty programs and preventing customers from leaving their product.

2. Method

This research uses a Mixed Methods approach, namely the approach which uses a strategy that involves collecting data either simultaneously or sequentially to understand the research problem fully. This method is action-oriented by using both quantitative and qualitative methods in the process of conducting a similar study. Combined research in this method is a procedure for data collection, data analysis, with the use of a sequential combination, which is using quantitative methods first and then being analyzed qualitatively, so that we will obtain a deeper understanding of the main problem.

2.1. Model testing and hypotheses

Testing model or model fit test in this research is measured by a coefficient of determination, that is the quantity used to measure model feasibility (lack of fit test). The coefficient of determination here is the R² quantity. The coefficient of determination is used to determine the proportion of variance of dependent variable which is explained by independent variable together or verbally. R² measures the proportion (part) or percentage of total variation in Y as described by the regression model. R² lies between 0 and 1, i.e. if R² = 1 means a perfect fit. If R² = 0 means there is no relationship between the dependent variable and the independent variable. The higher the value of R², the better the regression model. In the multiple regression, the coefficient of determination R² cannot be compared, because the coefficient of determination R² will increase in proportion to the addition of an independent variable (Sugiyono, 2015).

Based on the theoretical foundation explained, the variables tested are Jakarta Government Mediation Variables (X₁), MUI Mediation Mediation Variables (X₂), Variable of Warteg Marketing Strategy (X₃), and Impact of Development of MSME (Kowarteg) Jakarta (X₄). The pattern of relationships reflected in this study is expressed in the hypothesis that “There is an influence of Jakarta Government Mediation and Jakarta MUI Mediation against Marketing Strategy of Warteg and the Impact for the Development of MSME (Kowarteg) DKI Jakarta.”

2.2. Types and data sources

The type of data used in this study is primary data and secondary data. Primary and secondary data sources were obtained from the Government of Jakarta, which was collected by a questionnaire instrument. Furthermore, the data types, data sources, and data collection of this research are described in Table 1 as follows.

Table 1. Data types, data sources, and data collection

Number	Variable	Data Type	Data Source	Data Collection
1	Mediation of The Government of Jakarta	Interval Scale Data	Department of Cooperatives and SME of Jakarta	Questionnaire Instrument
2	Mediation of Indonesian Council of Ulama Jakarta	Interval Scale Data	Indonesian Council of Ulama Jakarta	Questionnaire Instrument
3	Warteg Marketing Strategy	Interval Scale Data	Department of Cooperatives and SME of Jakarta	Questionnaire Instrument
4	Development of MSME in Jakarta	Interval Scale Data	Department of Cooperatives and SME of Jakarta	Questionnaire Instrument

Source: Primary Data, December 2017 (Processed)

2.3. Population and sample

In this research, the population is the Employees of the Department of Cooperatives & Small Medium Enterprises of Jakarta and the employees of the Indonesian Council of Ulama Jakarta, which amounts to 88 people. In the implementation of this research, primary data is collected through a questionnaire or questionnaire containing the dimensions of research variables given to the entire study population. The entire population is then used as sample research or method census. The next process is to use descriptive methods with qualitative design, i.e. research done by understanding, observing, and capturing the empirical reality/phenomena, and using the natural setting, with the intention of interpreting the phenomenon that occurs.

The next step is to construct a detailed research subject view (emotional perspective) with a natural setting, on the context of an entity, a detailed description, and a holistic and complex picture. Informant’s determination was done purposively with 12 informants. Informant composition consists of employees of Department of Cooperatives and SME of Jakarta as many as three people; 3 employees of Indonesian Council of Ulama Jakarta; and from employees of Koperasi Warung Tegal (Kowarteg) Jakarta as many as six people. The instruments of data collection are a. interview (in-depth interview) to 8 people; b. observation (participant-observation); c. Focus Group Discussion (FGD) with four people; and D. triangulation (verstehen) (Creswell, 2015) (Kadarisman, 2010).

2.4. Operational definitions and variable measurement

Operational definitions and measurement of research variables are made to ease understanding and clarify the understanding of research variables, variable indicators, and way of measuring it. Operational definitions of this research variable are as follows:

1. Mediation of Jakarta Government is a process of third-party participation, namely Jakarta Government as an advisor in solving a problem. Thus the dimensions include: 1) problem-solving/dispute resolution process; 2) the parties involved in the dispute; 3) the advisory party.

2. Mediation of Indonesian Council of Ulama Jakarta is a process of involvement of a third party that is MUI of Jakarta as an adviser in settling a problem/disputes of muslimin in Jakarta. Thus the dimensions include: 1) guiding the process of settling the problems/disputes of the Muslims in Jakarta; 2) there are problems/disputes between two or more parties in Jakarta; 3) fostering the parties involved in the problems/disputes of the Muslims in Jakarta; 4) nurturing the Muslims in Jakarta.

3. Marketing Strategy of Warteg is a comprehensive, integrated, and basic marketing plan that provides guidance on activities to be undertaken in achieving Kowarteg’s goals. The plan includes advertising, promotional programs, sales, product programs, and distribution.

4. The development of MSME (Warteg Cooperative) of Jakarta has caused both positive and negative consequences that serve as a means to state the results of development that has been achieved by a micro business ie productive business owned by individual and/or individual business entity that fulfill the criteria of micro business as regulated in Law no. 20 Year 2008; Small Business is a stand-alone productive economic enterprise conducted by an individual or a business entity which is not a subsidiary or a branch of a company owned, controlled, or becomes part of the direct or indirect business of a medium-sized or large-scale business that meets the criteria of a small-scale business as referred to in Law no. 20 Year 2008; and Medium Enterprises are stand-alone productive economic enterprises, carried out by an individual or business entity that is not a subsidiary or a branch of a company owned, controlled, or becomes part directly or indirectly with a small business or a large business with a net worth or the result of annual sale as regulated in Law no. 20 Year 2008.

Furthermore, each variable that already has an operational definition is measured to generate data in the form of intervals consisting of 5 (five) alternative answers, as follows. a. Scale 1: strongly disagree with the value of weight 1; b. Scale 2: disagree with the value of weight 2; c. Scale 3: quite agree with weight value 3; d. Scale 4: agree with weight value 4; and e. Scale 5: Strongly agree with the value of weight 5. There is also instruction characteristics of research variables (dimensions and indicators) in this study are as follows (Table 2).

Table 2. Characteristic description of research variables

Variable	Dimension	Indicator	Scale
Government of Jakarta Mediation	Problem/disputes solving process.	Ability to identify problems; Ability to formulate problems.	Interval
	Parties involved in the dispute.	Ability to control; Ability to influence.	Interval
	Advisor	Able to help; Able to be a companion; Able to be a defender.	Interval
Mediation of Indonesian Council of Ulama Jakarta	Guiding the process of solving the problems/disputes of the Muslims.	Understand the meaning of Islamic transformation and reform in the socio-political order; Identification of Contemporary Basic Issues and Its Implications for the Realization of Conceptions of the Ummah.	Interval
	There is a problem/dispute between two or more parties.	Attitudes of the disputes between two parties.	Interval
	Guiding those who involved in the problem/disputes of the Muslims.	Able to solve in a Win-Win Solution way.	Interval
	Protect the Muslims.	Able to give advice and fatwa about religion and society to the government.	Interval
	Building relationships and cooperation among organizations, Islamic organizations, and intellectuals.	Able to hold consultation and information on a reciprocal basis.	Interval
Warteg Marketing Strategy	Warteg’s overall marketing plan	Able to make Warteg marketing strategic planning.	Interval
	Integrated plan of Warteg marketing	Able to prepare an integrated Warteg marketing program.	Interval
	Provide Warteg marketing guidelines.	Able to direct, coordinate and supervise or control the marketing activities of Warteg.	Interval
	Activities in achieving Kowarteg’s goals through advertising.	Able to manage effective Warteg advertising activities.	Interval
	Activities in achieving Kowarteg’s goals through promotion programs.	Able to understand the most effective way of to promote Warteg.	Interval
	Activities in achieving Kowarteg’s goals through sales.	Able to carry out Warteg’s business activities optimally.	Interval
	Activities in achieving Kowarteg’s goals through product programs.	Able to create strong warteg branding.	Interval
	Activities in achieving Kowarteg’s goals through distribution.	Able to simplify Warteg distribution chain.	Interval
Impact of Development of MSME (Kowarteg) of Jakarta	Strong influence that has an impact on what has been achieved by micro business.	MSME (Kowarteg) is expected to compete healthily with big market.	Interval
	Strong influence that has an impact on what has been achieved by small business.	Able to empower MSME (Kowarteg) to the future economy.	Interval
	Strong influence that has an impact on what has been achieved by medium enterprises.	Able to build Kowarteg’s empowerment to face of the strong.	Interval

Source: Primary Data, December 2017 (Processed)

Operational definitions and measurements of this research are made to ease understanding and clarifying the understanding of research variables, their dimensions and indicators as well as how they are measured. Each variable is then operationalized, and the measurement used will produce data in the form of intervals consisting of 5 (five) alternative answers. Jakarta Government Mediation Variables and Jakarta MUI Mediation Variables (Variable Independent) obtained from the total score of employee statement obtained from questionnaire filling. Warteg Marketing Strategy (Variable Dependent) and Impact of MSME (Kowarteg) Development of Jakarta is obtained from total score obtained from the questionnaire.

2.5. Data analysis method

Data analysis used to measure the influence of Jakarta Government Mediation and MUI Jakarta Mediation as an independent variable to Warteg Marketing Strategy as a dependent variable is multiple regression analysis. Path analysis technique is the development of correlation that is broken down into several interpretations resulting from it. Method of data analysis conducted in this research is descriptive analysis. This approach is used in order to describe the four variables of research statistically. The purpose of this data analysis method is to simplify the existing data into a more readable and easier-to-interpret in accordance with the purpose of the study.

The discussion is done from two aspects namely regression and correlation, either simple, double, partial or semi-partial. Based on this correlation, it is seen how strong the attachment exists between the variables through the path of the relationship between them, not concluding that there is causal among the variables without reliable additional information. Path Analysis Model used in this research is structural equation 1(1) ${\mathrm{X}}_3={\mathrm{X}}_1{\mathrm{X}}_2+\mathrm{e}1$(1) and structural equation 2(2) ${\mathrm{X}}_4={\mathrm{X}}_1+{\mathrm{X}}_4{\mathrm{X}}_2+{\mathrm{X}}_4{\mathrm{X}}_3+\mathrm{e}2$(2) as follows.

(1) ${\mathrm{X}}_3={\mathrm{X}}_1{\mathrm{X}}_2+\mathrm{e}1$(1)

X₁ is Mediation of Jakarta Government, X₂ is Mediation MUI of DKI Jakarta, and X₃ is Warteg Marketing Strategy.

(2) ${\mathrm{X}}_4={\mathrm{X}}_1+{\mathrm{X}}_4{\mathrm{X}}_2+{\mathrm{X}}_4{\mathrm{X}}_3+\mathrm{e}2$(2)

that X₁ is the Mediation of Jakarta Government, X₂ Mediation of Indonesian Council of Ulama Jakarta, X₃ is Warteg Marketing Strategy, and X₄ is the Impact of MSME (Kowarteg) Development of Jakarta.

In addition, the researchers also conducted data analysis by providing interpretation of the data obtained; data from observation, interviews, FGD, and triangulation. In summary, the stages of data analysis are as follows. 1) Collecting information through interviews of key informants that are compatible with the research, then direct observation to the field to support the research conducted in order to obtain the expected data source. 2) Data reduction is the selection process, focusing on simplification, and the transformation of rough data arising from field notes during research.

The purpose of the transcript data (data transformation) is to choose which information is considered appropriate and not in accordance with the problems that become the research focus in the field. 3) Presentation of data (data display) is a collection of information activities in the form of narrative text, network graphics, tables, and charts aimed at sharpening the understanding of research on the selected information and then presented in the table or explanation description. 4) The final stage is conclusing drawing/verification, which searches for the meaning of explanatory patterns, possible configurations, cause and effect paths, and propositions. Drawing conclusions are done carefully by verifying a review of records in the field so that the data can be tested for validity (Moleong, 2014).

3. Results

In this study, the data analysis is descriptive analysis to describe the four variables of the study statistically. The purpose of this method is to simplify existing data in a more readable form and easy to interpret in accordance with research objectives.

3.1. Data normality testing

Normality testing in this study was conducted through Kolmogrorov-Simirnov (K-s) test using SPSS-19 for windows to make the calculation easier. As Ghozali (2009) points out that the normality test aims to test if the residual variable regression model has a normal distribution, the statistical test becomes invalid. Based on the calculation, then the value of Kosmogorov Smirnov Z-Asymp. Sig. (2-tailed) is smaller than 0.05. This means that the research variable data obtained from the sample of this study has a normal distribution.

3.2. Heteroscedasticity testing

Heteroscedasticity test aims to test whether in the regression model there is a variance inequality of the residual one observation to another observation. Heteroscedasticity test results indicate that Heteroskedastisitas on the regression model does not occur in this variable, so the regression model is feasible to be used in predicting Warteg Marketing Strategy based on the input of independent variable that is Jakarta Government Mediation and Indonesian Council of Ulama Jakarta Fatwa.

3.3. Multicollinearity testing

Multicollinearity test aims to test whether the regression model found the correlation between independent variables (independent). To get a functional regression model, there should be no correlation between independent variables. The following can be seen the results of multicollinearity testing of research variables with the help of statistical calculations SPSS 19 program for windows (Table 3). The data in Table 3 shows that the magnitude of the correlation between independent variables is below the correlation value of 95%, so it can be said there is no multicollinearity in the independent variables of this study.

Table 3. Multicollinearity Test

Model	MUI Fatwa	Government Mediation
Correlations Fatwa of Indonesian Council of Ulama Jakarta	1.000	−.643
Government of Jakarta Mediation	-.643	1.000
Covariances Fatwa of Indonesian Council of Ulama Jakarta	.004	−.003
Government of Jakarta Mediation	-.003	.003

Source: Primary Data, December 2017 (Processed).

Meanwhile, the calculation of Tolerance value is less than 0.10. This means there is no correlation between independent variables, as can be seen in Table 4 as follows:

Table 4. Tolerance values

Model	Collinearity Statistics	VIP
	Tolerance
Government of Jakarta Mediation	.289	3.461
Fatwa of Indonesian Council of Ulama Jakarta	.289	3.461

Source: Dependent Variable: Fatwa of Indonesian Council of Ulama DKI Jakarta, December.

Next, the data of Table 4 shows that the Variance Inflation Factor (VIF) also show values smaller than 10. This indicates that the independent variables in this study do not have multicollinearity in the regression model in the three independent variables under study.

3.4. Linearity regression test

Linearity test aims to determine whether two variables have a significant linear relationship or not. This test is used as a prerequisite in correlation analysis or linear regression. Tests on SPSS use Test for Linearity with a significance level of 0.05. Two variables are said to have a linear relationship when the significance (Linearity) is less than 0.05. Based on a linearity test using SPSS 19 for windows on the Government of Jakarta Mediation Variables, it can be seen in Table 5 as follows:

Table 5. Linearity test of government of DKI Jakarta mediation

	Sum of Squares	Df	Mean Square	F	Sig
Fatwa of Indonesian Council Between Groups of Ulama Jakarta (Combined)	3781.665	26	145.449	19.104	.000
Government of Jakarta Mediation	3540.980	1	3540.980	465.102	.000
Linearity	240.686	25	9.627	1.265	226
Deviation from Linearity	464.414	61
Within Groups	4246.080	87
Total			7.613

Source: Primary Data, December 2017 (Processed).

Based on Data in Table 5, the value of F 465.102 has a significance level of less than 0.05. Thus, the specification of DKI Jakarta Government Mediation variable model used in this research is linear. Furthermore, the linearity test on MUI Jakarta Fatwa variable can be seen in Table 6 as follows:

Table 6. The linearity test of Fatwa of MUI DKI Jakarta

	Sum of Squares	Df	Mean Square	F	Sig.
Fatwa of Indonesian Council Between Groups (Combined) of Ulama Jakarta Linearity	3258.163	24	135.757	8.657	.000
Linearity	2844.171	1	2844.171	181.374	.000
Deviation from Linearity	413.992	23	18.000	1.148	.324
Within Groups	987.917	63	15.681
Total	4246.080	87

Source: Primary Data, December 2017 (Processed).

3.5. Correlation analysis

Correlation is an analysis technique that belongs to one of the measurement techniques associations/relations (measures of association). An association measurement is a general term referring to a group of techniques in bivariate statistics that are used to measure the strength of the relationship between two variables. The following is the calculation result of correlation of DKI Jakarta Government Mediation with Indonesian Council of Ulama Jakarta Fatwa using SPSS 19 for windows (Table 7).

Based on Table 7 data, it can be shown that the correlation value of Jakarta Government Mediation with MUI Jakarta Fatwa is 0.913 with a significance level less than 0.05. Thus, both variables have a positive relationship which is very significant and unidirectional. That is, if the Jakarta Government Mediation variable is higher in this study, MUI Jakarta Fatwa will increase. Furthermore, for the correlation test of MUI Jakarta Fatwa Variables with Jakarta Government Mediation, it can be explained that all regression equations are less than 0.05. Thus, all regression equations are significant. Furthermore, in stage 1 the structural equation is X₃ = p X₃X₁ + p X₃X₂ + e₁, that X₁ is the Mediation of Jakarta Government, X₂ Indonesian Council of Ulama Fatwa of Jakarta, and X₃ Warteg Marketing Strategy. To calculate the regression equation is as follows.

(1) ${\mathrm{X}}_3=p{\mathrm{X}}_3{\mathrm{X}}_1+p{\mathrm{X}}_3{\mathrm{X}}_2+{\mathrm{e}}_1$(1)

(1) ${\mathrm{X}}_3=0,772+0,167+\sqrt{1}-8,38$(1)

For the direct influence of Warteg Marketing Strategy, each one month variable of Jakarta Government Mediation variation will be followed by the increase of Warteg Marketing Strategy by 0.772 or 7.72%. Meanwhile, for each increase of Jakarta MUI Fatwa, 1 unit will be followed by the increase of Government Mediation of 0.167 or 1.6%. For a whole, the effects formed from substructural 2 are shown through structural equations 2(2) ${\mathrm{X}}_4={\mathrm{X}}_1+{\mathrm{X}}_4{\mathrm{X}}_2+{\mathrm{X}}_4{\mathrm{X}}_3+\mathrm{e}2$(2) , that is:

(2) ${\mathrm{X}}_4=p{\mathrm{X}}_4{\mathrm{X}}_1+p{\mathrm{X}}_4{\mathrm{X}}_2+p{\mathrm{X}}_4{\mathrm{X}}_3+{\mathrm{e}}_2$(2)

(2) ${\mathrm{X}}_4=0,549+0,570+0,165+\sqrt{1}+0,856$(2)

For the direct impact on the development of MSMEs in Jakarta, the increase 1 unit of DKI Jakarta Government Mediation variable will be followed by an increase of MSME Development by 0.549, or 5.4%. Furthermore, every increase of Jakarta MUI Fatwa will be followed by an increase of MSME Development by 0.570 or 5.7%. Each increase of 1 unit of Warteg Marketing Strategy will be followed by Warteg Marketing Strategy of 0.165 or 1.65%.

3.6. Path analysis

It is known that this research is entitled “The Influence of Government and Indonesian Council of Ulama Mediation Towards Marketing Strategy of Tegal Restaurant (Warteg) and Its Impact on Developing Micro Small and Medium Enterprises (MSME) In Jakarta”. Thus, the hypothesis testing is to know how much influence of Jakarta Government Mediation and Jakarta MUI Fatwa against Warteg Marketing Strategy. Thus, the Variable of UMKM Development in Jakarta in this research is used as Intervening Variable.

The calculation to test the influence of Intervening Variables is done through Path Analysis method to find out how significant direct and indirect influence of Jakarta Government Mediation towards Warteg Marketing Strategy. More detailed design of the research diagram can be seen in Figure 1.

Figure 1. Diagram Design.

Furthermore, from Figure 1 it can be seen that:

1. Influence of Jakarta Government Mediation (X₁) toward Warteg Marketing Strategy Warteg (X₃) equal to 0,772 or 7,72%.

2. The influence of MUI Fatwa of Jakarta (X₂) on Warteg Marketing Strategy (X₃) equal to 0,167 or 1,6%.

3. The Influence of Jakarta Government Mediation (X₁) to the Development of MSME in Jakarta (X₄) is 0.549 or 5.4%.

4. The influence of Jakarta MUI Fatwa (X₂) on the development of MSME in Jakarta (X₄) is 0,570 or 5.70%.

5. The Influence of Warteg Marketing Strategy X₄) is 0,165 or 1,6%.

6. Influence of Jakarta Government Mediation (X₁), Indonesian Council of Ulama Fatwa of Jakarta (X₂), Warteg Marketing Strategy (X₃) cumulatively to MSME Development Strategy in Jakarta (X₄) 1,694.

3.7. Model testing

Model fit test or model testing is usually measured by the coefficient of determination. The result of regression analysis is a coefficient for each independent variable. This coefficient is calculated with two goals simultaneously, that is minimizing the deviation between the actual value and as the estimated value of the dependent variable based on the existing data. The calculation result of determination coefficient of Jakarta Government Mediation and Jakarta MUI Fatwa in this research can be seen in Table 7 as follows.

Table 7. Coefficient of determination value

Model	R	R Square	Adjusted R Square	Std. Error of The Estimate
1	.918^2	.842	.836	3.809

Adjusted R. Square = 0,838, thus.

KD = r² x 100%.

KD = 0, 838 x 100%.

KD = 83,8%.

Based on SPSS 19 output data for windows in Table 7, it can be shown that the value of Adjusted R Square (R2) is 0.838. This means that the value of the coefficient of determination of Government Mediation variable on Warteg Marketing Strategy and Jakarta MUI Fatwa against Warteg Marketing Strategy in this research explains that the Variable Development of UMKM in Jakarta equal to 85.6%. While the rest of 14.4% is a variation of other causes that are not included in the model. The value of the coefficient of determination is between zero and 1, and a large adjusted value means the independent variable is able to explain the variation and the dependent variable.

3.8. Hypothesis testing variant analysis (F-count value)

Anova test results or F-test according to Ghozali (2009) is a simultaneous influence test used to determine whether the Independent variables simultaneously affect the dependent variable. More F-test tests can be seen in Table 8. According to the data, it is known that anova test or F- test which yields F-count value is 172.811 with a degree of significance 0.00 with a degree of freedom (df) of 3 and residual 87. That means the probability of significance is much less than 0.05, so this regression model can be used to predict the Warteg Marketing Strategy variables. Thus, the results of the F-test of this study indicate that the hypothesis of this research is “The Influence of Government and Indonesian Council of Ulama (MUI) Mediation Towards Marketing Strategy of Tegal Restaurant (Warteg) and Its Impact on Developing Micro Small and Medium Enterprises (MSME) In Jakarta” is acceptable. This shows that Jakarta Government Mediation, Indonesian Council of Ulama Jakarta Fatwa, and Warteg Marketing Strategy jointly/cumulatively have an influence on the Variable Development of MSME in Jakarta.

Table 8. Analysis of variance (Anova) and F-count value

Model	Sum of Squares	Df	Mean Square	F	Sig.
Regression	10,611.385	3	3537.128	172.811	.000^2
Residual	17,119.331	84	20.468
Total	12,330.716	87

Source: Primary Data, December 2017 (Processed)

3.9. Individual parameter significance analysis (test T statistics)

Based on the result of the calculation of the significance test of individual parameters (t-statistical test) the research variables are as follows (Table 9). From the calculations presented in Table 9, it is known that Jakarta Government Mediation, Fatwa of Indonesian Council of Ulama Jakarta, and Warteg Marketing Strategy which are included in the regression significantly influence the Development Variables of MSME in Jakarta. Thus Ho in this research is partially accepted. Next, based on the calculation of the Beta value (Standardized Coefficients), it can be summarized as follows: The probability value (Sig) of each research variable is smaller than 0.05, so H0 in this study is acceptable.

Table 9. T Test Result Statistics

Model	Coefficientsa
	Unstandardized Coeffisients	Std.Error	Standardized Coeffisien	T	Sig.
	B		Beta
1 (Constant)	5.365	1.522		3.524	.001
Jakarta Government Mediation.	.503	.052	.772	9.627	.000
Fatwa of Indonesian Council of Ulama Jakarta	.133	.063	.167	2.088	.040

Source: Primary Data, December 2017 (Processed)

From the calculations presented in Table 10, it is known that Jakarta Government Mediation, Fatwa of Indonesian Council of Ulama Jakarta, and Warteg Marketing Strategy included in the regression significantly influence the Variables of MSME Development in Jakarta. Thus, Ho in this research is partially accepted. Next, based on the calculation of the Beta value (Standardized Coefficients) can be summarized as follows. A probability value (Sig) of each research variable is smaller than 0.05, so Ho in this study is acceptable. This indicates that there are significant partial influences from the X₁ Variable of Jakarta Government Mediation, X₂ Variable of Fatwa of Indonesian Council of Ulama Jakarta, X₃ Variable of Warteg Marketing Strategy, toward X₄ Variable of Development of MSME in Jakarta.

Table 10. Dependent Variable: Warteg Marketing Strategy

Model	Unstandardized Coeffisients	Std.Error	Standardized Coeffisien	T	Sig.
	B		Beta
1 (Constant)	1.841	2.625	.549	.701	.005
Jakarta Government Mediation.	.609	.122	.570	5.009	.000
Fatwa of Indonesian Council of Ulama Jakarta	.768 .282	.105 .175	.165	7.329 1.611	.000 .001

Source: Primary Data, December 2017 (Processed)

Further data analysis was conducted descriptively by conducting in-depth interviews with informants Office of Cooperatives Jakarta and Indonesian Council of Ulama Jakarta related to Jakarta Government Mediation and Indonesian Council of Ulama Jakarta Mediation; Warteg marketing strategy; and the impact of the development of MSME (Kowarteg) of Jakarta. In conducting guidance to MSME such as Warteg’s business with its Kowarteg in Jakarta area, it was found that Jakarta Government especially the Office of Cooperatives Jakarta has made institutional policy to provide a conducive climate for MSME operation. For that, there are several principles that must be considered in the empowerment of MSME, namely: a. fair competition policy with the reduction of market distortion; b. economic policies that allow MSME to reduce costs that are not related to the production process; and c. policies of partnership growth with the principle of mutual need, strengthening, and mutual benefit.

Furthermore, the informants explained that there has been strengthening support which includes improving the quality of cooperative human resources and MSME; increased technological mastery; improvement of information ruler; increase in capital ownership; increased market domination, organizational optimization and management; provision of business premises; and reserve areas of business. The Government of DKI Jakarta can empower MSME through the creation of appropriate regulations. Empowerment is intended to make MSME as a robust and independent business in the national economy. In the process of empowering it, government, business, and society are involved. In this case, the government should create a conducive business climate and conduct guidance and development in the form of guidance and other assistance.

The statement was supported by FGD results which confirmed that in Jakarta there are still many MSMEs, including Warteg food culinary business, which still faces environmental constraints that are not conducive to trying. For example, difficult permits or bribery that burdens MSME business. If this is done, it means the government helps MSME out of the internal constraints. Described that this activity is in accordance with the program of the President of the Republic of Indonesia is Nawacita, the most promising sector never collapsed or bankrupt, ie MSME sector. Therefore, it is necessary to improve the quality of products and the results of MSME such as the Warteg. The result of the triangulation process shows that in achieving the target of the creation of 200,000 small and medium entrepreneurs in Jakarta, the Governor Regulation is now being prepared on entrepreneurship. The goal is that the needs of MSME perpetrators can be accommodated entirely.

One of the benefits gained from the Governor Regulation that is being completed by the Governor of Jakarta is the ease of licensing, especially for the perpetrators of MSME who are members of the OK OCE program. Related to this, from the observations it was suggested that the OCE Program is an abbreviation of One District One of Entrepreneurship. One of the flagship programs of the Governor and Vice Governor of Jakarta, Anies-Sandi in the Jakarta Governor Election, is how to make new entrepreneurs in Jakarta to be a benchmark in other areas. Do not let the citizens of Jakarta not becoming masters in the area itself. The observation result shows that the Government of Jakarta on 31 December 2017, has also held a Grand Entrepreneurship Training organized by Productive Generation of East Jakarta at Robbani Building.

The OCE OK Program is aimed at transforming and taking sides to lower-class entrepreneurs (MSME), and new entrepreneurs. The focus of the program is targeted at 5 (five) terms, first, the provision of capital and business assistance. Second, training by successful entrepreneurs, namely the development of human resources through mentoring. This is based on experience that before mentoring, 8 out of 10 entrepreneurs failed, but after mentoring, 8 businessmen turned successful. Third, innovation warranties work with the private sector. Fourth, the graduate of Vocational High School can work directly. Fifth, special credit for mothers, because the special program of mothers is considered more successful than the fathers. The mothers are smarter in managing the business, including the return of loan capital, even to develop the business.

The thing that needs to be deeply elaborated is that the Government of Jakarta also encourages MSME and Small and Medium Industry (SMI) in utilizing the internet for the promotion and marketing of products through the available Internet master place and integrated capital access platform. In the future, the scope of traders is limited to street vendors, because sidewalks and parks that are often used as a place to sell will be returned to its function. So it is necessary to develop MSME and SMI to provide opportunities and solutions facilitate transactions in selling their products (MSME Go online). This online MSME activity is to help MSME/SMI perpetrators built in the Jakarta area can be more competitive with the competition faced both from within the country itself and from foreign parties. This is all to make it easier for them to enter the digital age at this time.

Several studies show a close relationship between MSME empowerment and regional economic growth. According to Schmitz (Ananda, 2003), MSME is able to grow faster than big business when given the opportunity. In Japan, Germany, Sweden, and Italy small business electronics are able to make inventions, innovations, and can make efficiency. Schmitz believes that small and medium enterprises will dominate and foster the economic development of a nation, provided they are able to improve their efficiency and competitiveness. In an effort to empower MSME, the Government of Jakarta make the rules of funding policy in addition to the development of partnerships. For example, increasing the profit or sale of parties involved in the partnership; gain a better knowledge of the market; increase the number of new customers or suppliers; helping to improve product development; and improve the production process. There are several concepts that are often used in connection with partnerships, namely the terms partnerships, business networking, and strategic alliances.

In addition, for MSME, skill factor owners or business managers such as Warteg is a determining factor. Therefore, HR development approach becomes very strategic. By improving the quality of human resource skills, it is hoped that various obstacles faced by MSME can be overcome. Improving the quality of human resources is done through the improvement of management skills and entrepreneurship. This involves two aspects of HR that are generally more effective through learning by doing approach. For MSME entrepreneurs, it is easier to learn through direct practice than to learn complex theories, especially concerning entrepreneurship. So, these regulations are set in order to help MSME to grow healthier. The Government has established rules and policies to: a. expand funding sources; b. improve access to financing sources; and c. provide ease of funding.

In this aspect of funding, the Government of Jakarta provides various credit schemes for cooperatives and small businesses, including Farmer Loan, Loan for Village Business Loan, Primary Loan for Cooperatives Member, Small Business Loan, and Business Feasibility Loan. Business Feasibility Loan focuses more on the potential or feasibility of the business and not the collateral that is usually used as a requirement by the bank in lending to try. In addition, the Government of Jakarta also seeks to realize the desire for Jakarta to be a city where the morality of its citizens is akhlakul karimah, so it needs to be built from the process of education and coaching. Related to halal certificate, it is claimed to be needed by food products (including Warteg) and franchise to guarantee consumer protection.

The Governor of Jakarta has issued a regulation namely Governor Regulation Number 158 of 2013 on the Procedures of Certification of Halal and non Halal Restaurant, which is the completeness of halal label from Indonesian Council of Ulama Jakarta for Warteg business. The regulation of the Governor initiated the certification of the halal restaurant in Jakarta. The Government of Jakarta has been cooperating with Indonesian Council of Ulama Jakarta since 9 December 2013, and this is legal protection of cooperation between the Government of Jakarta with Indonesian Council of Ulama Jakarta. Fatwa Commission of Indonesian Council of Ulama Jakarta, has conducted the activities of “Ijtima Ulama”. This is because the Quranic explanation is not forever firm and detailed (tafsili), but most of it outlines (ijmali), so it needs further explanation from the Apostle.

As one who is empowered to explain a thing on the one hand and face the evolving social realities on the other, the Apostle sometimes has to use a common sense called ijtihad in the application of Islamic law including to Warteg food products. As the dynamics of the times change, the source requires an analyst (ijtihad), although historically it has been closed down which later the modernist ulama reopens and is done by the ulamas across the globe (including Indonesia) with various approaches and methods. The process of ijtihad is not limited to emerging issues, but ijtihad has other interests related to the Islamic legal treasury by doing a review of existing problems based on the present conditions and the human needs to choose which ones are strongest and relevant, by realizing the goals of Islamic law and human welfare.

The purpose of the discovery of the law must be understood by the Mujtahid in order to develop legal thought in Islam in general and answer contemporary legal issues whose case is not explicitly regulated by the Qur’an and Hadith, especially in all branches of the muamalah field, which has no legal provisions. Therefore, with the various methods applied, it is hoped that they will be able to find laws in solving various problems that arise in different social and territorial circumstances. Because of this fact, Indonesia as a country whose population consists of several tribes and the majority of Islam is inspired to answer the challenges that exist for the achievement of a mix of cultures, religions and pluralistic traditions, while entering the era of modern development, without wasting Islamic values. The Indonesian Council of Ulama Jakarta has always been asked for fatwas related to the turmoil that occurred in the people of Jakarta before the fatwa, Indonesian Council of Ulama Jakarta through Fatwa Commission through study and research on the issues discussed and conducting FGD as an effort to puncture the subject and answer fatwa requested.

4. Discussion

The results of research conducted at the Government of DKI Jakarta indicate that Warteg Marketing Strategy can be improved through efforts to increase the Variable Mediation of Jakarta Government and The fatwa of the Indonesian Council of Ulama Jakarta. The increase in Warteg Marketing Strategy will have an impact on increasing the development of MSME in Jakarta. Therefore, Jakarta Government Mediation and Fatwa of The Indonesian Council of Ulama Jakarta need to be developed and improved in order to improve Warteg Marketing strategy, so that in the end there will be an increase of MSME development in Jakarta optimally.

Based on data display from the output of SPSS 19 for windows in Table 4, it can be seen that Adjusted R Square (R²) is 83.8%. This means that the determination coefficient value of Jakarta Government Mediation, Fatwa of The Indonesian Council of Ulama Jakarta, and Warteg Marketing Strategy in this research can explain the variation of Development Variable of MSME by 70,3% while the rest of 29.7% is a variation of other causes that are not included in the model. As stated by Ghozali (2009) that the value of the coefficient of determination is between 0 and 1, and a large R Square value means the independent variable can explain the variation of the dependent variable. Anova test or F-test produces an F-count value of 172.811 with a significance level of 0.000 with a degree of freedom (df) of 3 and residual 87.

This means that the significance of probability significance is much smaller than 0.05, so this regression model can be used to predict the Variable Development of MSME in Jakarta. Thus, the results of the F-test of this study indicate that this hypothesis, “The influence of Jakarta Government Mediation and Fatwa of The Indonesian Council of Ulama Jakarta on Warteg Marketing Strategy to improve the development of MSME in Jakarta is acceptable. This means that the Jakarta Government Mediation and Fatwa of The Indonesian Council of Ulama Jakarta both have an influence on Warteg Marketing Strategy in improving the development of MSME in Jakarta. The result of the test of significance of individual parameters (t-statistical test) of this research variables is known that Jakarta Government Mediation Mediation, Fatwa of The Indonesian Council of Ulama Jakarta, and Warteg Marketing Strategy, including in the regression significantly influence the Development Variables of MSME in Jakarta. Thus Ho’s research is partially acceptable.

Related to the development of MSME, especially is Warteg food business in Jakarta, it is explained that the Jakarta Government can use MSME for poverty alleviation. Therefore, Jakarta Government, through the rights to establish regulation, is able to empower the MSME. The empowerment of MSME is intended to make MSME, including Warteg business, to be a tough and independent business in national and even international economy. In the process, the empowerment is involving the Jakarta Government, the business community, and the community. In this case, the Jakarta Government should create a conducive business climate and conduct leadership and development in the form of guidance and assistance. In this case, Jakarta Government can encourage the Bank in assessing MSME should not only consider from its collateral but also the feasibility of business.

Jakarta Government can encourage MSME to build partnerships with the big business in the spirit of mutual benefit. Jakarta Government should be able to make socialization and awareness of the various elements involved in the business world in their respective areas. Of course, the Jakarta Government should prepare a dialogue forum between small entrepreneurs, such as Warteg, and prominent people in a business. The quality of MSME in Jakarta is low on average, so the Jakarta Government, in this case, can conduct training to improve the ability of MSME entrepreneurs. Thus, the approach of human resource development in Jakarta will be prioritized in an effort to socialize and cultivate entrepreneurship, especially in the framework of MSME development.

5. Conclusion

Based on the result on structural equation 1(1) ${\mathrm{X}}_3={\mathrm{X}}_1{\mathrm{X}}_2+\mathrm{e}1$(1) and structural equation 2(2) ${\mathrm{X}}_4={\mathrm{X}}_1+{\mathrm{X}}_4{\mathrm{X}}_2+{\mathrm{X}}_4{\mathrm{X}}_3+\mathrm{e}2$(2) on research variable, it can be seen that:

1. Influence of Jakarta Government Mediation (X₁) to Fatwa of The Indonesian Council of Ulama Jakarta (X₃) equal to 0.772 or 7.72%.

2. Influence of Fatwa of The Indonesian Council of Ulama Jakarta (X₂) on Warteg Marketing Strategy (X₃) of 0.167 or 1.67%.

3. The Effect of Jakarta Government Mediation (X₁) on the Development of MSME in Jakarta (X₄) is 0.549 or 5.49%.

4. Influence of the Fatwa of The Indonesian Council of Ulama Jakarta (X₂) on the Development of MSME in Jakarta (X₄) of 0.570 or 5.70%.

5. The Influence of Warteg Marketing Strategy (X₃) on MSME Development in Jakarta (X₄) equal to 0.165 or 1.65%.

6. Influence of Jakarta Government Mediation (X₁), Fatwa of The Indonesian Council of Ulama Jakarta (X₂), Warteg Marketing Strategy (X₃), cumulatively or jointly to the development of MSME in Jakarta (X₄) of 1.694.

Therefore, there is a significant influence of Jakarta Government Mediation and Fatwa of The Indonesian Council of Ulama Jakarta against Warteg Marketing Strategy which impact on MSME development in Jakarta, both partially and simultaneously. Thus, the results of this study can answer the hypothesis or the provisional estimation of this study. In addition, Jakarta Government has strengthened MSME including Warteg food business in order to face the competition of food business in Jakarta, even at the international level which is implemented through the Office of Cooperatives & Small and Medium Enterprises of Jakarta as the executor of governance technical affairs in the field of people’s economy. These efforts include the use of personnel, managerial aspects, and network development.

In addition to improving the professionalism of SMEs, the Office of Cooperatives and SME Jakarta provides entrepreneurship training and technical training to enhance the skills of MSME. To improve the managerial capability of MSME players, the Office of Cooperatives and SME Jakarta conducts counseling related to appropriate technology, financial management training, and production management. In developing the network for MSME, the Office of Cooperatives and SME Jakarta provides counseling on how to expand the business network and market. The Office of cooperatives and SME Jakarta also cooperates with State Own Enterprises in Jakarta, Province Owned Enterprises, cross-sectoral agencies, and engage MSME players in promotion and exhibition events at local and national as well as international level. In addition, network development efforts are also carried out.

The findings in the field indicate that all the guidance done by the Office of Cooperatives and SME Jakarta, whether the training, counseling, or providing assistance adjusted to the needs of MSME itself, but the number of participants who received training and assistance is still limited. In addition, the selection of themes and the delivery of materials in training to improve the professionalism of MSME, including Warteg’s business, is quite effective so that the results are applied in business activities. The findings in the field also revealed that in the era of the current ASEAN Economic Community, socialization is important, but there are still limited socialization time conducted by the Office of Cooperatives and SME Jakarta, especially during the training. Thus, there are still many MSME players, especially Warteg in Jakarta who do not know the information.

Additional information

Funding

The author received no direct funding for this research.

Notes on contributors

Muh. Kadarisman

Muh. Kadarisman was born in Kulon Progo, Yogyakarta, Indonesia on 25 January 1959. His latest education was Social Science Doctoral degree in Universitas Padjajaran, Bandung, Indonesia. He is a lecturer in Faculty of Social and Political Sciences, University of Muhammadiyah Jakarta, under the supervision of Ministry of Research, Technology and Higher Education. He is also teaching in some private and public universities which are in Terbuka University, Trisakti University and Politeknik Ilmu Statistik Badan Pusat Statistik. He is currently holding a position as Vice Rector in Peradaban University, Central Java Province. Besides, he is also standing as a public consultant in some government institution in Indonesia.