Abstract

This study aims to determine the location of the concentration of industry in East Java and determines the development strategy of small industry in East Java. In this study using quantitative descriptive analysis tools and Analytical Hierarchy Process (AHP). Based on the results of this research is that the location of concentration of small industries in East Java, contained in four district/city namely: Tulungagung, Malang, Blitar and Bondowoso. In the determination of strategy of development of small industries in order of priority to consider the overall criteria (training, financing, partnerships, technology) we concluded the first priority of increased promotion, differentiation of products, improving the quality of human resources and the expansion of the market.

Keywords: Analytical Hierarchy Process, Industrial Development Strategy, Small Industry, Spatial Concentration