Small and medium enterprises (SME) development policy based on economic society in east Java

SMEs have a great role in the national economy, as well as in employment absorption and distribution results, through the law No. 5 of 1999 government give the limit on SME for small businesses is a business that: a. Owns 200 million assets, excluding land and office building, b. Annual sales proceeds at most 1 billion, c. Owned by Indonesian citizens. With these limits, it is expected that the role of government and society needs to give great attention to encourage its development. Development of SME through business empowerment approach, need to pay attention to social and cultural aspects of each region The existence of regulations both in the form of laws and government regulations relating to SME in terms of production and banking side, will spur the role of SME in the economy. For the government, licensing is necessary to maintain public order and provide protection to the public.