In 1994 total SME in Indonesia are more than 33 million business units
constituting 99,8 percent of the total business units existing in Indonesia.
Unfortunately, those total small and medium enterprises contribution only 38,9
percent to the gross domestic product (GDP).
Table 2.7. Development of Total Small Enterprise in 1992 and 1996
SECTOR
1992 1996
Total Small Enterprises
Agriculture
21,298,843
22,533,931
Mining, Digging, Gas And Water
104,242 204,903
Manufacture Industry
2,484,948
2,747,670
Trade / Housing
5,825,602
9,433,849
Food /Hotel/Service
3,729,265
3,974,909
Total
33,442,900
38,895,262
Total Medium Enterprises
Agriculture
1,247
1,690
Mining, Digging, Gas and Water
128
800
Manufacture Industry
5,221
10,945
Trade / Housing
8,251
13,302
Food /Hotel/Service
1,546
14,436
Total
16,393
41,173
Source: Department of Industry and Trade R.I
In term of the role of the SME in the export performance contribution of the SME
in the export value of non oil and gas were only 11,1 percent, this much smaller in
term of the entire export performances (include oil gas exports) to only 6,2
percent. This figure is much lower compared to the SME contribution in other
Asian countries, such as Taiwan (65%), China (50%), Thailand (50%), Vietnam
(20%), Hong Kong (17%), and Singapore (17%) (Sanjaya, AAB, 1998).
2.4 Implementation of the Regional Autonomy Bill
Economic development in Indonesia for the last 50 years has not achieved the
objective to increase welfare of the people. As the government finally realized that
central planning have fail to provide better economic condition, the government
convert the central planning policy to the decentralization planning policy by
VI 8