ANALISIS EFISIENSI PRODUKSI INDUSTRI KECIL DAN MENENGAH (IKM) KERAJINAN MEBEL BAMBU DI KABUPATEN SLEMAN(Kasus: Sentra Kerajinan Bambu Dusun Sendari, Kelurahan Tirtoadi, Kecamatan Mlati, Kabupaten Sleman)

Bamboo handicraft industry has penetrated the world market share. To develop the production of bamboo crafts, Sleman Regent issued a letter and assigned Sleman as Sentra Bamboo Sembada because bamboo is one of leading commodites in Sleman Regency. One of the villages of bamboo craft center in Sleman is Sendari Hamlet, Tirtoadi, Mlati, Sleman which focused on manufacturing of bamboo furniture. The purpose of this study is to analyze technical, price, and economy efficiency of production factors that used on Small and Medium Industries (SMIs) bamboo furniture in the Sleman district in Hamlet Sendari, Mlati, Sleman. The independent variables used in this study is the variable capital, labor, raw materials and auxiliary materials. The model used to describe the relationship between inputs is the Cobb-Douglas production function. The data used in this study are primary and secondary data which collected through interview and documentation. The data was analyzed with OLS method on Eviews version 8. The results showed that the variable of labor and raw material are positive and significant influence the production, while the variable of capital and auxiliary material are not significant influence theproduction. The technical efficiency is 0,95, the price efficiency (allocative) is -0,03, and the economic efficiency is -0,03. The results show that SMI bamboo furniture is not efficient on technical, price, and economy efficiency. Return to Scale value is 0,78, shows that the small and medium industries are in decreasing returns to scale (DRS) condition.