1. Small and Medium Micro Enterprises in Indonesia:
a. Capital Access
Capital credit provided by the Government is difficult to obtain by small businesses.
In one side small businessman with limited capital difficult to develop. Small
traders are difficult to fulfill orders from large entrepreneurs because it is difficult
in terms of capital. In addition, small businesses find it difficult to meet the
administration and other banking and security requirements that connect them with
banks. On the other hand, the system and banking situation that has not recovered
in Indonesia do not provide flexibility so that small businesses can access capital.
It is, supported also by the guarantee agency and the service institution is less
developed and coordinated.
b. Access information technology
Information technology is one of the important roles. Most small and mediumsized micro enterprises in Indonesia are still faced with constraints in limited
information and access capabilities to technology sources. In addition, there is
also weak access to information. The lack of information known by small and
medium-sized micro enterprises, slightly
influences the competition of
products or services of small and medium business units with other products
in terms of quality. The effect of this is that it has no products and services
as a result of small and medium-sized businesses to penetrate the export market.
However,on the other hand, there are also products or services that have the
potential to fight in the international market because it has no path or access
to the market, in the end only circulating in the domestic market.
c. Market access
The problem that still
needs to be noticed by the government is the ability
of small and medium micro enterprises to access the wider market. The small
and medium micro businesses in the country still do not have complete and
detailed information because most of the small and medium micro enterprises
still do not utilize information technology facilities such as the internet, whereas
the internet is one of the most effective ways in marketing small and medium
micro business products.
d. Products
Indonesia's small and medium micro enterprises are still weak tehadap an
innovation, especially product innovation. Infact, innovation is the key to
winning the competition. For the food sector for example, the packaging of food
products from Malaysia is much better and in the design is more attractive
than our products. It can be proven that in supermarkets are found malaysian
products certified international quality, while our small and medium micro
business products appear as they are.
Based on data from the Ministry of Cooperatives and Small and Medium
Enterprises in 2011, micro enterprises 98.82%, small 1.09%, medium enterprises
0.08%, and businesses by only 0.01%. Meanwhile, the sector contributes to
gross domestic product (GDP). Micro enterprises 29.74%, small 10.46%,
medium enterprises 14.53% and large businesses reached 45.27%. This shows
that the performance of small and medium-sized micro enterprises has not been
as expected.
Although the small and medium-sized micro enterprise sector reached 99.99%,
its contribution to the national economy was only 54.73%. This condition can
not be separated from the national competitiveness. The World Economic Forum
(WEF) ranked Indonesia's global competitiveness index at number 50 in 2012.
Compared to Asean members, Singapore ranks 2nd, Malaysia (25th), and Brunei
Darusalam (25th). One of the causes is minimal innovation. The World
Intelectual Property Organization (WIPO) listed Indonesia's global innovation
index at 100 out of 141 countries, previously at 99th and 125th. This position
is below Malaysia (32), Brunei (53), and Thailand (57).
e. Partnership
Cooperation between companies in Indonesia, in this case between small and
medium
micro enterprises
and UB,
known
as
Partnership
(GovernmentRegulation No. 44 of 1997 on partnerships). The partnership must
be accompanied by the development of UB to small and medium enterprises
that pay attention to the principle of mutual need, mutual strengthening, and
mutual benefit, partnership is a business strategy carried out by two or more
parties in a certain period of time to achieve mutual benefit with the principle of
mutual need and raising.
The pattern of partnership between small and medium enterprises and large
businesses in Indonesia that has been standardized, according to Law No. 9 of
1995 on Small and Pp Enterprises No., 44 Year 1997 on partnerships, consists
of 5 (five) patterns, namely:(1) Plasma Core, (2) Subcontracting,(3) General
Trade, (4) Agency,and (5) Franchising.
Partnerships with large businesses are so important for the development of small
and medium-sized micro enterprises. The key to the success of small and mediumsized businesses in crosses in both the domestic and global markets is to build
partnerships with large companies. With small and medium micro business
partnerships can export through large companies that are already exporters.
In addition, partnership is one solution to overcome the gap between small
and medium enterprises and large businesses. Thus, it can be concluded that
the growth of small and medium enterprises in Indonesia is inseparable from
its function as a partner of UB related in a pattern of businesspartnerships.
The benefits that can be obtained for small and medium enterprises and UB that
conduct partnerships include
(1) increase productivity,(2) efficiency,(3)
quality assurance, and continuity,(4) reduce the risk of loss,(5) provide a fairly
high social benerift, and (6) increase economic resilience nationally. This benefit
can be achieved throughout the partnership based on the principle of mutual
strengthening, need,and benefit.
The success of business partnerships is largely determined by
compliance
among partners in carrying out their business ethics. The actors directly involved
in the partnership must have the basics of business ethics understood and
embraced together as a starting point in running the partnership. In addition, the
success of business partnerships depends on the similarity of values, norms,
attitudes, and behaviors that run such partnerships.
f. Human Resources
Human resources small and medium micro enterprises Mostly have low
educators . Thus, improving the quality of human resources of small and
medium micro enterprises, becomes its own challenge. Various skills exercises,
management,and other technical trainings as needed oenting held periodic. In
the short term, human resources are strengthened with integrated mentoring.
In the long term, human resource improvement is done through early corporate
education. Formal education at various levels is given entrepreneurial content.
The award for best innovation work attracts young people to innovate to start
a business. The above efforts are expected to improve the competitiveness of
small and medium-sized micro enterprises. However, there are important and
fundamental issues that need to be resolved immediately by the government,
namely poorinfrastructure, limited energy supply, business licensing process, and
tax policy that become a barrier to business growth.
g. Must Immediately Reform Business Licensing
Business licenses in our country are still convoluted. In 2012, the World Bank
ranked the ease of doing business in Indonesia at 128 out of 185 countries. In
Singapore, the permit to set up a business only takes 3 days, while in Indonesia
it takes 45 days.