the business climate is getting better, which and mostly indicated by 

the SME Jakarta and Makassar.  

11. Majority of the SME exporters surveyed  (65 percent) indicated that 

the new regional regulation (Perda) had no direct impact to their 

business activities and only 33 percent indicated that the Perda is 

affecting their business activities. This situation is highly contradiction 

to the common result of the survey conducted by other agency, 

however, this condition is probably due to the fact that currently 

regional governments are increasing their effort to increase regional 

export by removing barrier on export activities.  

12. The SME trader (trading company) and the bigger turnover in SME 

exporters mostly indicated that since the implementation of the 

regional autonomy bill, the cost of business have significantly increase 

due to the new PERDA, issued by the regional government. Especially 

for the exporters with bigger turnover and as a major concern of this 

issue were indicated by the SME exporters in Bandar Lampung. In 

contrast, the foreign SME exporters were having new problems due to 

the uncertainty from the local government, either to implement the new 

PERDA or to implement the old regulation from central government, 

and this problem was also indicated by the SME exporters from  

Medan and Makassar. 

13. The adequately low level of understanding of the SME exporters about 

the new autonomy bill is clearly justify base on the 46 percent 

response by the SME saying  they have no idea  when ask whether the 

regional government were more focus on increase of regional earning 

(PAD) instead of more focus on the establishment of conducive 

business climate. Nevertheless, 40 percent of the SME exporters 

indicated that the regional government were more focus on increase of 

regional earning (PAD), compared to only 14 percent who indicated 

that they are more focus on increase of regional earning (PAD). 

VI    5