3. 3. Perceptions of SME Exporters Toward Regional Autonomy  

The implementation of the Regional Autonomy Bill (act No. 22 and 25, 1999) on 

January 2001, have created contradictive opinion in the society. First, is the 

optimistic view that regional autonomy will serve as a development tools to 

achieve prosperity in the regions and the other, is the pessimistic views on the 

ability of the human resources in the region to undertake such responsibility 

without adequate experiences. Implementation of a new act would generally the 

hand over significant impact the social, political and economy environment. 

Especially, since the act (UU No 22 and 25 Year 1999) objectives were to transfer 

authority and fiscal matter from the central government to the regional 

government. 

The regional autonomy bill have enables the regional government (Pemda) with a 

wider authority to develop regional regulation (PERDA) to dig out fund resources 

to support the regional budget. After almost two year prior to the implementation 

of the act, there are significant tendency that the business communities were 

unhappy with the current changes to the business environments in the region. 

Local taxes and levies were among the problems that the business have to faced in 

running their business, there are also growing concern due to the uncertainty on 

which level of government agency has the authority of providing services to 

obtain business permit. 

This part of the study will discuss the perception of the SME exporters on what 

has happen to their business environment since the implementation of the regional 

autonomy bill. 

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