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Small and Medium Enterprise

In: Business and Management

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CLUSTERING STRATEGY IN SME DEVELOPMENT : An Integral Development Supports

By: Noer Soetrisno

Presented at : 2004 APEC INFORMATIZATION POLICY FORUM FOR SMALL AND MEDIUM ENTERPRISES July, 15-16, 2004

SMEs in Economic Development
1. There is no Regional or Global Consensus on SME The Coverage of SME definition are Commonly Associated With : - SMI (Manufacturing Industry) - SMI + Services (Selected) - All Sectors Except Agriculture - All Sectors Include Agriculture

2. Variable to Measure SME - No of employee (Industry) - Assets (Fixed Asset, Asset other than lands building) - Sales

3. The Role of SME in Economic Development - Contributor to Value added (Growth) :
About 57% of GDP

- Provider of Employment :
Contribute to 99.5% of total employment

- Potential Contributor to Export :
Share about 16-21% of total export

- Flexibility and Resilience to Shocks : continue to survive during the crisis, micro and small enterprises more resilience, but medium enterprises are not fully recovered from the crisis up to 2003

•SME Cluster Development in Indonesia
- Cluster development approach has been adopted since 1970’s

* Small industry zone * Export processing zone * Agglomeration of SME activities - At present exist about 9800 units of Small Industry Cluster : * 78% Low technology group * Productivity / worker : • Low technology IDR 970 Thousand (100) • Medium technology IDR 2 Million (212) • High technology IDR 8.24 Million (849)

Government Policies on Informatization
Providing free access on public information through E-Government; Promoting business information system and B2B cooperation through E-Business.

Regulations on Informatization
Presidential Instruction No.6/2001 concerning Development and Utilization of ICT in Indonesia; Presidential Instruction No.3/2003 concerning National Policy and Strategy for E-Government...

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