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Policy Discussion SeriesSupporting Strategy for the Indonesian MSME Development
Tulus Tambunan2& Jeongseok Song3
Abstract
Micro, small and medium enterprises (MSMEs) provide employment opportunities for individual economic agents with limited skills and capital in particular for developing countries. Therefore, developing MSMEs has long been regarded as one of important economic tasks developing economies. Indonesia is one of those countries which demand for a system enhancing MSMEs since they have historically been the main player in domestic economic activities in terms of employment and income source in the economy. Despite a deep necessity for MSMEs development, existing policies still have more room for their goal to sustainable growth of MSMEs. With regard to the reality, This paper suggests more effective and efficient policies and strategies to develop Indonesian MSMEs. For the purpose, it reviews and shares some experiences of Korean MSMEs. For the last three decades, Korea has achieved rapid economic growth with large enterprises (LEs) as well as MSMEs as the main engine.. Also, this paper introduces Korean experience about LEs and MSMEs linkages that contributed to the MSME development, and suggests some lessons from the experience for Indonesian SME promotion.
Key words: LEs, MSMEs, Indonesia, Korea, policy