Small-Medium Industries, which should be Labeled First-Rate?

Having the first-rate is a privilege since it means it will be the priority above all. The common practice of the government to define the first-rate small-medium industries is by projecting the value-added of excess primary product which can be converted into industrial products. In fact, this way does not bring significant improvement to the perceived first-rate industries. Thus, this paper aims to propose a more appropriate way in defining the first-rate of industry sector from existing industries instead of projection of value-added of primary product. Using Free Disposal Hull (FDH) Analysis consists of six indicators as the output and one indicator as the input, the first-rates of small-medium industries in Nusa Tenggara Barat Province are determined. The result is, only three regions where the perceived first-rate industry are verified by the FDH analysis namely for Lombok Barat region, Lombok Tengah region, Lombok Timur region. Three other regions, namely Sumbawa Barat region, Kabupaten Bima region, and Kota Bima regions even show the opposite result, where the perceived first-rate industries are actually the exception in the FDH analysis result.