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