Building SME Competitiveness Advantage in ASEAN Economic Community Era

Abstract

Commencement of the ASEAN Economic Community SMEs can conduct a hope in the future, at least it can be seen from several aspects. To realize these expectations, the most important role of government is to create a conducive business climate through policies. This study aimed to understand the conditions of SMEs so that leads to a portrait of regulation that is expected to build a competitive advantage of SMEs in the Era of the ASEAN Economic Community. This study uses a desk study and survey. Desk studies conducted to review the legal product in the form of legislation both at the center (the Act) as well as at the regional level (Perda). Legal products reviewed were the regulations related to SMEs. The research findings show that only large-scale efforts are always prioritized while micro-enterprises and cooperatives no longer get the attention it deserves. In some cases, government measures are often just turn off the micro-enterprises and cooperatives. As a result, the policy line taken for the protection of cooperatives and SMEs are often ambiguous and ultimately less work effectively to help the people's economy that is essential for eradicating poverty.

Keywords: SME, regulation, competitiveness