1. INTRODUCTION
1.1. Background
The rapid development of communication and information technology in recent
decades has provided changes in form of social, culture and economic relations to
among the communities in the world. These so called globalization changes are
characterized by the ability of overcoming the space and time where human being
to communicate or sending data each other easily and cheaply. The ease of these
communication barriers has caused international economic activities become
faster as the whole continents were just as wide as the computer monitor.
Furthermore, the development of information technology have enable very large
amount of data and information organized in the web, which allow people to make
decisions more accurately and timely. This rapid development of information and
communication technology is a revolution to the social and economic interaction
among the history of human kind as some preferred to call as the new economy.
Economic crisis has taught us a lesson that the flawed structure of economic in
Indonesia relied on big scales enterprises that have never capable to absorb the
large labor force in Indonesia have end up an economic disaster. The structure of
economic comprise of only few big scale enterprises and millions of micro
enterprises that is unable to grow and become a formal small and medium
enterprise (SME) due to the economic and policy barrier. It is already too late
when the government realized that the largest employments were actually
provided by the informal sector of the SME. Study by USAID and other
institution indicated that the majority of SME in Indonesia consist of SME
without format status, due to the barriers created by the bureaucracy and illogical
policy of the government.
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