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.  

VI    1