THE ROLE OF EAST JAVA PROVINCIAL GOVERNMENT IN DEVELOPING ITS SMALL MEDIUM ENTERPRISES TO ENGAGE IN THE ASEAN ECONOMIC COMMUNITY (2014-2017)

Abstract

Small Medium Enterprises has recorded as the important contributors to the economy of developing countries. SMEs are the backbone of the Indonesian economy including East Java. East Java SMEs cover almost 99% of the portion of business. Due to the globalized era, there is the need for the government to put attention to the SMEs sector and develop it. Meanwhile, economic integration is one of an inevitable thing to face. In the ASEAN region, the ASEAN economic integration namely the ASEAN economic community started since 2015 and required a proactive contribution by the ASEAN Member States including their province within. Utilizing the qualitative research method, this research has find out the role of East Java Provincial Government to develop its SMEs for ASEAN Economic Community through some strategies. This research concludes that the most essential strategies namely the Jatimnomics which has focused on the production, financing and marketing of SMEs and other supporting strategy has significant impact to East Java SMEs development, East Java economy and the engagement in the ASEAN Economic Community.