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BUSINESS DEVELOPMENT STRATEGY FOR DODOL BETAWI NYAK MAI SETU BABAKAN

How to cite this article:

Wahyuningtias, Dianka., Adiati, Maria Pia., & Levyta, Farah. (2018). Business Development Strategy for Dodol Betawi Nyak Mai Setu Babaka. Presented at The 5th International Conference on Management, Hospitality & Tourism and Accounting 2018 (IMHA 2018). 3-4 September 2018. Bina Nusantara University. To be published in Pertanika Journal of Social Science and Humanities (JSSH)- Scopus Indexed

BUSINESS DEVELOPMENT STRATEGY FOR DODOL BETAWI NYAK MAI SETU BABAKAN

Dianka Wahyuningtias, Maria Pia Adiati, Farah Levyta

Universitas Bina Nusantara, Faculty of Economic and Communication Hotel Management Departement, Jln. KH Syahdan No.9 Kemanggisan Palmerah, Jakarta 11480, Indonesia

Phone Number +62-21 5345830  Fax : +62-21 530-0244

Email : dwahyuningtias@binus.edu

Abstract

Dodol Nyak Mai is a small-scale enterprise (UMKM) located in Kampung Betawi Setu Babakan, South Jakarta. This enterprise produces dodol betawi, a traditional confection of Betawi, Indonesia. UMKM have an important contribution to the national economy, especially in terms of business sustainability. A few issues looked by frequently business occupied with the field of sustenance, for example, tight as rivalry, a little benefit, diminished deals, and so on. Therefore, an appropriate technique for solving the issue is required. By making new marketing strategies more effective, a SWOT analysis can be used to determine the right strategy in the marketing field. This analysis is used to identify strengths, weaknesses, opportunities and threats that will be faced by the company. By looking at and developing their strengths, companies can determine the marketing strategy based on the strengths and opportunities. From the results of SWOT analysis, there are four proposed strategies that can be used by the first companies that is SO Strategy (Strengths-Opportunities), WO (Weakness-Opportunities) Strategy, ST Strategy (Strengths-Threats) and WT Strategy (Weakness-Threats)

Keywords: Dodol Betawi, Setu Babakan, SWOT Analysis, UMKM

INTRODUCTION

In 2012, the total number of UMKM in Indonesia had reached 99.99% of the total business units in Indonesia based on data from the Ministry of Cooperatives and Micro Enterprises. The UMKM absorb 97.16% of all workers in Indonesia. UMKM also accounted for 59.08 percent of Gross Domestic Product (GDP) income, and through tax payments, amounting to Rp 4,869,568,100,000,000, – (Koperasi, 2015). From the above data, it can be concluded that UMKM is one of the main foundations supporting the Indonesian economy. The empowerment of UMKM is important to overcome the problems experienced by these micro, small and medium enterprises. Based on the results of the conducted survey (Edy Suandi Hamid, 2011), there are several problems faced by UMKM in Jakarta, among others: (1) marketing; (2) capital and funding; (3) innovation and utilization of information technology; (4) raw material usage; (5) production equipment; (6) employment absorption and empowerment; (7) business development plan; and (8) readiness to face external environmental challenges. Related to various problems faced by UMKM, a strategy is needed to overcome them. In order to empower the UMKM, it is recommended that various policies and strategies include: (1) various training in product development that is more varied and quality oriented based on local resources; (2) government support for the development of production processes with revitalization of more modern machinery and equipment; (3) development of highly competitive products with local characteristics; (4) credit policy by banks with cheaper interest and simpler process; (5) improving the quality of physical and non-physical infrastructure to reduce distribution costs; and (6) policy support for promotion of export to domestic market with more modern and case of the development of UMKM food business, also relies heavily on the market interest in the products it produces varied media. Enterprises in the Food Industry can grow by increasing production capacity in the form of additional machine capacity, the addition to human resources.  Dodol Betawi Nyak Mai is one of the traditional foods located in Jakarta on Jl. Moh. Kahfi II, RT.12 / RW.8, Srengseng Sawah, Jagakarsa, South Jakarta City, Special Capital Region of Jakarta 12630, Indonesia. Dodol Betawi Nyak Mai is engaged in traditional foods. Dodol Betawi Nyak Mai was founded in 1980 in Jakarta, “Nyak Mai” itself was the first person known as a dodol maker in Setu Babakan. At first alm Nyak Mai only make dodol when certain events only, such as idul fitri, celebration and only make in small portions. This is due to alm. Nyak Mai wants to help her parents. Then the relatives and neighbors loved the taste of dodol made by the alm. Nyak Mai. There are some problems that are faced by Dodol Betawi Nyak Mai, which is the problem of business profits are getting thinning. The owner said that in the past, the raw material from the manufacture of dodol products is much cheaper than the price of dodol products that can be offered on the market. As time goes by, the price of raw material for lunkhead production increases, but the market price increases for dodol products are much lower. This is a problem for Mr. Udin as the successor of Dodol Betawi Nyak Mai business, because the profit of sales is too small and the longer the smaller. Based on the above phenomena, the researcher wanted to formulate the right strategy to develop the business of Dodol Betawi Nyak Mai by analyzing the internal and external environment situation of Dodol Betawi Nyak Mai, and also the Strength, Weakness, Opportunity and Threat (SWOT) Dodol Betawi Nyak Mai.

LITERATURE REVIEW

Strategy

A SWOT analysis recognizes and focuses on internal and external attributes that are useful and beneficial to accomplishing the goal of a company (A. G. Lupu, 2016). Companies need those matrices that are in accordance with all sizes and types of corporate organizations so that they can be used to assist in identifying, evaluating and choosing the most appropriate strategies. In order to elevate the strengths of the society’s economy and income of the people there for the strategy target is needed. (V. Romanyuk, 2016).  Strategy is needed to be able to determine the strengths and weaknesses of the company which can be used to become the leading company in the competition. To become effective the strategic management is significantly needed to elevate the strength factor in the competition (V. Romanyuk, Strategic planning features of subsurface management in Kemerovo Oblast, 2016).  TOWS matrix was used to improve another of resources management strategies. (A. D. P. Fitri, 2017)

External Factor Evaluation and Internal Factor Evaluation

The SWOT analysis aims to analyze and evaluate business processes during corporate strategic planning. Focus on internal and external factors that will be used in achieving company’s goals. (A. G. Lupu, 2016) External forces influence the type of product developed, the characteristics of the market segmentation and positioning strategy, the type of services offered, and the business choices that they want to acquire or sell.

       Internal analysis is an attempt to determine the organizational capability in operations and achieve performance. Determination of internal strategic factors can be done by comparing and evaluating the past performance of the company, key competitors of the company, and industry.

The internal strengths and weaknesses, external threats and opportunities can be summarized into; the SO strategy, the ST strategy, the WO strategy and the WT strategy. (Zhikanga, 2017) Aspects analyzed include aspects of operations management, marketing, finance, production, research and development, human resources, and management information systems.

MATERIALS AND METHODS

This research was conducted at Dodol Nyak Mai production house in the Jakarta on Jl. Moh. Kahfi II, RT.12 / RW.8, Srengseng Sawah, Jagakarsa. The time of study began in February 2018 until April 2018. The method used is descriptive method. With this method can be determined external and internal strategic factors, alternative strategies, up to strategy priorities. The required data consists of primary data. Primary data is data obtained through interviews, discussions and Focus Group Discussions (FGD) activities to particular respondents. Secondary data is data obtained from internal source company, literature study, print and electronic media, and other information related to the research topic (Sugiyono, 2014)

Data collection and technique

The data collection in this research is conducted by using several techniques. Primary data obtained from the observation and this activity is done by interviewing and filling out questionnaires by internal respondents of the company and external respondent’s companies (experts). Secondary data were obtained from various sources: companies, related institutions, the internet, and other literature studies related to this study.

      Primary data were obtained using interviews, questionnaires and forum group discussions. Primary data collection techniques using purposive sampling technique is intentional sampling of some respondents who have been determined based on position, position, knowledge, and other factors that indicate the competence of respondents to the research topic. There are selected 6 people as respondents. Three respondents from Dodol Nyak Mai and three external respondents selected based on expert competence.

Analytical analyses include:

  1. Internal Factor Evaluation Analysis.
  2. External Factor Evaluation Analysis.
  3. SWOT Analysis.

RESULTS AND DISCUSSIONS

Profile and History Company Dodol Betawi Nyak Mai is a business engaged in the field of traditional snack production. Based on a short interview conducted by researchers on the owner of Dodol Betawi Nyak Mai, namely Mr. Udin, Dodol Betawi Nyak Mai was founded in 1980 by Nyak Mai ago. Effort Dodol Betawi Nyak Mai bemula from making dodol when certain events only, such as idul fitri, celebration and only make in small portions. This is due to alm. Nyak Mai wants to help her parents. Then the relatives and neighbors loved the taste of dodol made by the alm. Nyak Mai. Actually, Dodol Nyak Mai is not for sale by the public. Then when the Setu Babakan area was opened by the Jakarta government as a Betawi area, visitors came to visit the area. Because of promising economic factors, coupled with the taste of Dodol Nyak Mai, make him want to try his luck selling. In addition, the profits at the time were considerable. In addition to its raw material prices, market prices for dodol betawi products are still far above the price of raw materials. This is supported by UPK (Activity Management Unit) Setu Babakan. As for how UPK helps promote Dodol Nyak Mai that is given place for bazaar, assist in management of education of dodol (Dodol Nyak Mai as education place of making of Betawi dodol), and others. The vision of Dodol Betawi Nyak Mai is to develop into a big player in the dodol industry of betawi, while its mission is to meet the needs of tourists will by typical by Jakarta. The values adopted by Dodol Betawi Nyak Mai in their efforts are, safety, cleanliness, honesty, and justice. Long term plan of Dodol Betawi Nyak Mai is to expand the marketing of its products by looking for channels to be entrusted to the products. As for the short-term plan Dodol Betawi Nyak Mai want to innovate the product. How to Dodol Betawi Nyak Mai in measuring the performance of his business is to see the turnover or sales monthly business Dodol Betawi Nyak Mai. The business and production venue of Dodol Betawi Nyak Mai is located on Jl. Moh. Kahfi II, RT.12 / RW.8, Srengseng Sawah, Jagakarsa, South Jakarta City, Special Capital Region of Jakarta 12630, Indonesia. Location Dodol Nyak Mai is not on the roadside but must enter through the Gang. Kramat Bamboo about 100 meters to get where Dodol Nyak Mai. The number of business place’s Dodol Betawi nyak Mai there are 2 and the place of production is still one, that is only in Jakarta alone. As for the form of business, Dodol Betawi Nyak Mai is a business that is included in the category of home industry. Rumah Dodol Nyak Mai is a selling place that has a kitchen for cooking dodol with a capacity of 1 stove. However, when the Lebaran came, Dodol Nyak Mai operated 6 stoves. Even sometimes only 4 stoves only. This is because the employees who operate the manufacture of dodol is reduced. It could be because workers work elsewhere or are returning home. There are also workers who work at Dodol Nyak Mai has the expertise in making dodol (not just anyone can work to make dodol in place Dodol Nyak Mai). 1 stove operated 4-6 people. It is conditioned by the number of dodols made and the existing employees. Dodol making up to 6 stoves was done at Udin’s office, not far from Udin’s house. The turnover of Dodol Betawi Nyak Mai is approximately Rp 600,000,000 per year. In the daily operation of Dodol Betawi Nyak Mai business, Pak Udin runs and supervises the business directly, Pak Udin is very concerned about the cleanliness and hygiene of his products. The products produced by Dodol Betawi Nyak Mai are also made from high quality and guaranteed raw materials. Pak Udin already has a system that regulates the schedule of their production activities, such as the production day schedule. This is done so that their business products are of excellent quality and do not expire. In addition, Mr. Udin is also very concerned about their relationship with the suppliers. This is done to ensure the smooth sales and marketing of the product Dodol Betawi Nyak Mai. Table 1 shows SWOT matriks of Dodol Betawi Nyak Mai

External Environmental Analysis

  1. Competition Between Company Competitors

Dodol Betawi Nyak Mai has many direct competitors in the business dodol Betawi. But according to Mr. Udin, there is one competitor who has strong competitiveness, because it has a good quality and taste of the product, which is dodol Betawi Hb Toha. Dodol Betawi Hb Toha is an old player in Betawi dodol making industry, established in 1965. HB Toha is also the main reference for Dodol Betawi Nyak Mai to determine the price or in product innovation, such as packaging, taste choice, and others. In addition to dodol Betawi HB Toha there are also competitors in the industry, such as: Dodol Betawi Mother Mariyam, Mpok Nini, Hj Mamas, etc., which poses a threat to the business Dodol Betawi Nyak Mai.

  1. Potential Entry of New Competitors

According to informants, consumers from Dodol Betawi Nyak Mai loyal to Dodol Betawi Nyak Mai, so when there is a new competitor who entered, then it does not make sales Dodol Betawi Nyak Mai decreased sharply. In relation to the ease of entering and competing into the industry of dodol betawi, the speakers revealed that it could be easy or difficult. Easy because the capital requirements required to start a business dodol Betawi not too big. Also, the ease to get distribution channels for raw materials for new competitors, can be difficult can be easy. The difficulty is that taste and quality will determine the success or failure to start a business in this field.

  1. Potential of Product Development Substitute for product of dodol betawi is high.

This is because the type of product for the field of traditional food is very much, so it is easy to replace it between one another, for example is a pletok beer product. According to the sources, the quality of the replacement product compared to the Dodol Betawi Nyak Mai product is good. In addition, the price level of replacement products is different. These things make it easy for customers to switch to replacement products.

  1. The Bargaining Power of Suppliers at the Dodol Betawi Nyak Mai business is quite high.

This is because, according to the source, the relationship between Dodol Betawi Nyak Mai and suppliers are mutual need and have established long-term trading cooperation. Dodol Betawi Nyak Mai has 3 suppliers, of which other suppliers are only a reserve, when the main supplier is out of stock of goods needed by Dodol Betawi Nyak Mai. The influence of suppliers is great for suppliers’ bargaining power, since there are only 4 suppliers for the production process of Dodol Betawi Nyak Mai, it signifies that the dependence of Dodol Betawi Nyak Mai on its suppliers is high. While the bargaining power of suppliers for Dodol Betawi Nyak Mai is if the raw material price is high, then the profit of Dodol Betawi Nyak Mai sales will be very thin. This is because the price level for dodol betawi on the market is very sensitive. The way Dodol Betawi Nyak Mai does in facing the bargaining power of suppliers is by fostering good relationships with suppliers by way of, establishing trust between one another, subscribing / often purchasing at the supplier. It can also be a way for Dodol Betawi Nyak Mai to bargain the price of raw materials.

  1. Consumer bargaining power

The influence of consumer bargaining power on the business of Dodol Betawi Nyak Mai is quite high, this is because the number of sellers of similar products in the industry a lot. The impact of consumer bargaining power on Dodol Betawi Nyak Mai Business is, the market price of dodol betawi product can go down. This results in sales profit being thinned out. Efforts made Dodol Betawi Nyak Mai to face the bargaining power of consumers is to improve product quality from Dodol Betawi Nyak Mai so that consumers feel satisfied. External Environment Discussion The strategy adopted by the organization will succeed when they have a competitive advantage over the strategy of a rival company. In this case Dodol Betawi Nyak Mai has competitive advantages such as having the quality and taste of the above-average products, compared with other products.

Internal Environment Analysis

  1. Human Resource Management In managing human resources at the Dodol Betawi Nyak Mai business, the owners conduct their own training for their employees, to improve their performance. At the beginning of the training, the owner teaches and accompanies the material directly to the employees. Once the employee can work on his own, the owner begins to give his or her employees the responsibility to work on their own product creation process. The material in the training is about the steps of work, the amount of raw materials needed in the production process, and the cleanliness. As for the process of recruiting new employees for the business Dodol Betawi Nyak Mai when required, the owner recruited directly from the household assistant.
  2. Production. The production process of Dodol Betawi Nyak Mai business was done directly by the two owners, Mr. Udin, and also their six employees. The production process is done at the business house of Dodol Betawi Nyak Mai, which is not far from the home of the owner. Nyak Mai has a production standard taught by the owner to its employees in the production process. How to Dodol Betawi Nyak Mai in the procurement of raw materials is to order to the supplier, will demand the raw material, then the owner took it and directly manage it at the production site Dodol Betawi Nyak Mai.
  1. Marketing

How Dodol Betawi Nyak Mai in marketing its products so far are, by visiting the shops, then offer products Dodol Betawi Nyak Mai to be entrusted in the store. In addition, the products are also offered through the relationships owned by the owner of Dodol Betawi Nyak Mai. The party responsible for the marketing of Dodol Betawi Nyak Mai is the owner of Dodol Betawi Nyak Mai own business, Pak Udin. For the range of consumers targeted by Dodol Betawi Nyak Mai, the source explained that, because the price of dodol betawi products is still very affordable by the community

  1. Finance

So far, the finances of Dodol Betawi Nyak Mai are managed by Mr. Udin. Dodol Betawi Nyak Mai has not made any financial accounting or bookkeeping in managing its business. All income received by the owner, directly into the pockets of the owner, making it difficult to distinguish, which is business cash, and which is the owner’s own personal cash. From the mixed cash, the owner uses it to meet the needs of production costs. Financial factors often change the existing strategy and change the implementation plan, but Dodol Betawi Nyak Mai does not have investment planning yet. Components in the company’s internal environment such as marketing and price levels can be one way for Dodol Betawi Nyak Mai to improve the company’s current unfavorable profits, according to a study in the Journal of Pricing and Marketing Analysis to Increase Profitability of Small-Scale Business with Dynamic Systems (Case Study: Dwi Jaya Abadi Tanggulangin Sidoarjo) managed to increase profit by 13.4% in the structure scenario. Alternative Strategy Based on the results of the SWOT analysis above, the formulation of the strategy for Dodol Betawi Nyak Mai business is more directed to product development, market development, and savings. The author formulates some of these strategies based on David’s (2011) theory which contains about the conditions condition of the strategy that becomes effective when applied within the company. Product development is a strategy that seeks to increase sales by improvising current products or services or developing new things. Product development usually requires great research and development

Figure 1. Front View Dodol Nyak Mai Outlet

Figure 2. Process of Dodol Making       Figure 3. Dodol Product

Table 1. SWOT Matriks

Strenght (S)

S.1. Dodol Betawi Nyak Mai has an above average quality, taste, and hygiene

S.2. It has a clear production standard

S.3. It has a name, because it has long played in this industry

Weakness (W)

W1. Efficiency of Nyak Mai Betawi lunkhead product is still weak. Although there are production standards, but in practice there is no accurate record

W.2. Marketing is still weak, only marketed around the setu babakan only

W.3. Do not have an opening in managing business finance

Oppotunity (O)

O.1. Good service supplier quality.

O.2.Places, techniques,and marketing methods are still many that have not been done (such as marketing via social media).

O.3. The market potential is good (market is still wide).

SO, Strategy

– Increase production capacity to maximize the supply of raw materials enough products to perform the production process and expand marketing

(S.1., O.1 .3.).

– Expanding marketing by putting the product in, more distributor

(S.1., S.2., O.3).

WO Strategy

– Improve production efficiency by training employees to

process products efficiently and effectively, in accordance with standard

production, in order to maximize the already well-established supply (W.1., O.1.).

– Improve business marketing Dodol Betawi NYAK MAI with

new ways, such as marketing through social media, distributing flyers

(W.2., O.2.).

Threat (T)

T.1. The number of competitors in that industry same, very much.

T.2. The price of raw material of the product is expensive.

Q.3.Bargaining power the consumer

high.

T.2.Bargaining power

that supplier

high

Strategy ST

– Maintain good relationships with suppliers with regular/loyal subscription

with the supplier (S.1., T.1.).

– Improve product quality,with product innovation, etc., to win the competition and satisfy the consumer (S.1., S.2., T.1., T.3.).

WT Strategy

– Innovate products to win in competition also to be more efficient (W.1., T.1.).

-Holding bookkeeping/financial calculation of Nyak Mai’s business to improve production efficiency in the face of expensive product raw material prices

(W.1., W.2., T.2.).

CONCLUSIONS

Conclusion Based on the analysis and discussion of the internal and external environment of Dodol Betawi Nyak Mai business, SWOT matrix and also the preparation of alternative strategies for the development of food business Dodol Betawi Nyak Mai, it can be concluded that: The external conditions of the business Dodol Betawi Nyak Mai is, Dodol Betawi Nyak Mai has the quality and taste of the above-average products, In addition Dodol Betawi Nyak Mai trying to suppress the price while maintaining the goodness of the quality of its products. The level of competition in the dodol industry is high betawi. The price of replacement products for various dodol betawi. The bargaining power of suppliers will increase as suppliers are on a large scale and have fewer amounts of buyers. The number of buyers from Dodol Betawi Nyak Mai product is a lot, because the target range of consumers from Dodol Betawi Nyak Mai is great. In the internal condition of Dodol Betawi Nyak Mai business is, Dodol Betawi Nyak Mai has direct training to improve employee’s ability in doing business production process. Total production of Dodol Betawi Nyak Mai which depend on order from distributors.

The production of Dodol Betawi Nyak Mai was made based on incoming order therefore they have no stock available.  Dodol Betawi Nyak Mai did the production of several orders on that day, after which it was immediately sent all, so no more products in the storage. The existence of standard production on the business DODOL BETAWI NYAK MAI, and the quality of product Betawi Nyak Mai Dodol better than other brands, both in terms of taste and packaging (good packaging also supports product hygiene). The consumer target of Dodol Betawi Nyak Mai products includes everyone. How to Dodol Betawi Nyak Mai to market their products is to visit directly potential stores and then offer products, product innovation planning, to support the marketing of products Dodol Betawi Nyak Mai. Dodol Betawi Nyak Mai sets the price of the product based on the price of the product of the main competitor. Dodol Betawi Nyak Mai does not yet have a proper financial system.

The business finances and personal property of the owner are mixed. Components in the company’s internal environment such as marketing and price levels can be one way for Dodol Betawi Nyak Mai to improve the company’s current unfavorable profits. This is also based on research in the journal Price and Marketing Analysis to Increase Profitability of Small-Scale Business with Skin System Dynamic (Case Study: Dwi Jaya Abadi Tanggulangin Sidoarjo).

Based on the results of SWOT analysis on the environmental aspect the right strategies to be applied to Dodol Betawi Nyak Mai business are product development strategy, market development, and savings with the practical actions described in this thesis. Product development is a strategy to increase sales by using product innovation and different raw materials.

 Market development is a strategy for introducing a current product or service into a new area. Saving is a strategy of re-categorizing all the costs and depreciation of assets to reverse the decline in sales and profits. To develop the business of Dodol Betawi Nyak Mai, product development strategies can be implemented, such as observing what products are demanded, spreading questionnaires to consumers, identifying the products they want, conducting research, market development including distributing brochures, advertising them, or in a relatively cheap and up-to-date way using an online shop, and savings such as: running accounting on the performance of their business to prevent leakage of funds that could have been prevented, and also separate between business finances and personal property. This is because the real conditions of Dodol Betawi Nyak Mai’s efforts to support these three strategies. In addition,

Dodol Betawi Nyak Mai should pay attention to the performance of the four business functions on the business, such as: improving the performance of human resources, improving the capability and efficiency of business production, improving the function of business marketing, and functioning financial function.

REFERENCES

D. P. Fitri, H. B. (2017). Resources Management Strategy For Mud Crabs (Scylla spp.)In Pemalang Regency. IOP SCIENCE, vol. 55, 1 – 6 .

G. Lupu, A. D. (2016). SWOT analysis of the renewable energy sources in Romania. IOP SCIENCE, vol. 147, 1-10.

Edy Suandi Hamid, Y. S. (2011). Strategi Pengembangan Usaha Mikro dan Menengah. Jurnal Ekonomi Pembangunan, 45-55.

Koperasi, D. (2015, Maret 18). Kementerian Koperasi dan Usaha Kecil dan Menengah Republik Indonesia. Retrieved from Perkembangan Data Usaha Mikro, Kecil, Menengah (UMKM) dan Usaha Besar (UB): www.depkop.go.id

Sugiyono. (2014). Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfabeta.

Romanyuk, A. G. (2016). Strategic planning features of subsurface management in Kemerovo Oblast. IOP SCIENCE, vol. 43, 1-4 .

Zhikanga, L. (2017). Research on Development Strategy of Automobile Reverse Logistics Based on SWOT Analysis. Procedia Engineering, vol. 174, 324-330.


Published at : Updated
Written By
Rachel Dyah Wiastuti
SCC Hospitality | Bina Nusantara University

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