Figure 3.3.4. Business Climate in 8 Cities Prior 

Implementation of OTDA

Makassar

Denpasar

Surabaya

Yogyakarta

Getting better

Bandung

Getting worse

Jakarta

Lampung

Medan

0%

10%

20%

30%

40%

50%

Business Activities Prior to The Implementation of OTDA 

Lack of effort by the regional and central government on issues concerning the 

implementation of OTDA is clearly marked by approximately 25 percent of the 

SMEs who did not understand about OTDA. Furthermore, 32 percent SME 

exporters indicate that they do not faced any problem related to OTDA. 

However, 20 percent noted that they experience increased cost of business prior 

to OTDA, 18 percent indicated that they are facing problem due to the 

uncertainty between adapting the central government regulation or the regional 

government regulation concerning to their business activities. Finally, 

approximately 6 percent SMEs were having problems due to local government 

discrimination on the protection of the local business (see figure 3.3.5.). 

VI    30