Impact of Regional Autonomy Toward Business Climate

The emerge new PERDA in almost every region directly or indirectly, in the 

assumption will affect the flow of business activities in the region, but 

nevertheless the majority of the SME exporter surveyed (65 percent) indicated 

that these new PERDA did not contributed any impact to toward the flow of their 

business.  The other 33 percent of the SME exporters indicated that the business 

flow were affected by the new PERDA, while 2 percent claimed they do not know 

(see Chart 3.3.1.)         

Figure 3.3.1. Impact of New PERDA on Business Climate

Yes there are 

impact on business

33%

No impact on 

No knowledge

business

2%

65%

From the figure above we noted that SME exporter were excluded from the group 

of entrepreneur that is suffering as the result of this OTDA. The only possible 

reason for this is that since the economic crisis occurred in 1997 and the fall of 

rupiah, almost every region in Indonesia was encourage to boost export activities 

in the regions.  

Business Climate

In the context of business climate, majority (77 percent) of the SME 

exporters respondent indicated that the implementation OTDA have not caused 

significant changes to the business climate. Nevertheless, 16 percent SME 

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