THE POLICY OF REPUBLIC OF INDONESIA IN EMPOWERING LOCAL SMALL AND MEDIUM ENTERPRISES (SMES) TO FACE THE ASEAN ECONOMIC COMMUNITY (AEC) 2015 THROUGH THE PROMOTION OF SMEWG (2010-2015)

Abstract

SMEs play important role in economic development of countries in Southeast Asia region, especially in the realization of the ASEAN economic integration through the establishment of The ASEAN Economic Community 2015, which is expected to create a single market and production base by having a competitive economic region with equal economic development. For this reason, SMEs in Indonesia need to be prepared to be able to compete with other ASEAN member states and able to gain optimum opportunities from this regional economic integration. This thesis is produced from a research conducted to recognize opportunities and challenges from the AEC itself. This thesis tries to determine how Indonesia as one of ASEAN member states prepare its local SMEs in facing the AEC with the existence of ASEAN body which is SME Working Group that produced Strategic Action Plan for SME Development to empower SMEs in ASEAN in facing the AEC. This research uses a qualitative and descriptive method, with which resources collected through observation and document analysis. The findings reveal that Indonesia government in preparing its local SMEs facing the AEC 2015 is in line with SMEWG initiatives which showing the cooperation among ASEAN member states in order to achieve their common interest from having the economic integration in the region.