International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 06 Issue 01 January 2023 DOI: 10.47191/ijcsrr/V6-i1-84, Impact Factor: 5.995 IJCSRR @ 2023 www.ijcsrr.org 769 * Corresponding Author: Intan Putri Permatasari Volume 06 Issue 01 January 2023 Available at: ijcsrr.org Page No. 769-776 A Study of Export Barrier in Garut Leather Tannery Industry Intan Putri Permatasari 1 , Dina Dellyana 2 1 MBA Student, Sekolah Bisnis dan Manajemen, Institut Teknologi Bandung, Indonesia 2 Assistant Professor, Sekolah Bisnis dan Manajemen, Institut Teknologi Bandung, Indonesia ABSTRACT: The economic development of a country currently cannot be separated from the condition of global economy. Economic relations between country is an influencing factor for the development of both country involved. Therefore, export activity of an industry is very important for the development of a country's economy. Based on data obtained through the Ministry of Trade of the Republic of Indonesia, export distribution in the form of footwear is 86%, leather finished goods are 13%, and leather is 1%. According to these data, it can be seen that the contribution of the leather tanning industry which is included in Leather Goods is very small in the total export distribution of leather. Meanwhile, by carrying out export activities, the leather industry will benefitted because it will open access to new customers who will have the potential to increase revenue and long-term growth. The data for this research was collected through 52 factory owners in this industry. After the data has been collected, an exploratory factor analysis was conducted to see how many factors become the barrier of exporting in Garut leather tannery industry. The result of this research is there are three factors that become the barrier to do export in Garut leather tannery industry, namely functional, international and governmental barriers. Meanwhile the result of descriptive analysis shows that Garut leather tannery industry perceive high cost of capital to finance exports, difficulties in organizing promotional activities abroad, and lack of financial resources to conduct market research in overseas markets as the barrier to do export activities. The findings suggest that the government should support both the knowledge and infrastructure regarding export for all the business owners in Garut leather tannery industry, meanwhile the business owners should also be active in searching for business opportunities in international market. For future studies, it was suggested to consider management’s entrepreneurship capabilities as a factor that can hinder exports. KEYWORDS: Barriers, Export, Factor Analysis, Leather Industry. I. INTRODUCTION Leather industry plays and important role in the economy of Indonesia, where according to The Ministry of Industry (Kemenperin) the performance of this industry was in the top three in the manufacturing sector. The Ministry of Industry (Kemenperin) also stated that the leather, finished leather goods and footwear industry grew positively by 13.12 percent in the second quarter of 2022. [1] Besides being in the top three in the manufacturing sector, the tannery business actors in Garut itself consist of MSMEs, where MSMEs itself is one of the most important pillars in the economy of Indonesia. Based on a press release issued by the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, the number of MSMEs currently reaches 64.2 million, with a contribution to GDP of 60.51% or Rp.9,580 trillion in 2021. In addition, the leather industry is one of the industries that has the most workers among the sub-sectors of the manufacturing industry, which is 444,526 thousand people in 2020.[2] Table 1. Number of Workers in Large and Medium Industries Description Number of workers in large and medium industries by sub-sector (KBLI 2020) 2018 2019 2020 TOTAL 6.123.185 6.241.121 5.902.367