Figure 3.3.9. Perception of SME Expoters on Propensity Of Local 

Bureaucracy Prior To The Implementation Of OTDA

Makassar

Do not

Denpasar

understand

Surabaya

Focused on

Yogyakarta

increase of PAD

Bandung

Focused on

Jakarta

better business

climate

Lampung

Medan

0%

20%

40%

60%

80%

100%

 Main Causes of The Unconducive Business Climate  

The adequately high answer of the SME exporters (36 percent) that they have no 

knowledge of the main issue associated to the business climate conduciveness, 

were also an indication that maybe there are no significant changes to the business 

climate for SME exporters, compared to the non exporters SME. Despite the 

above answer reason, figure 3.3.10 showed, the SME exporters indicated that lack 

of infrastructure and facilities (19 percent) were the main caused to the level of 

business climate. Furthermore, 17 percent SME noted that the local government is 

not capable to undertake OTDA; 16 percent SME noted that the local government 

were against business; and, 12 percent indicated that the central government were 

reluctant to transfer the authority to the local government. 

VI    35