The Indonesian economy fluctuates annually and so far has been driven by economic growth due to government policies that concentrate on micro-small-medium enterprises (SMEs). The effect of this growth can be said to be very broad ranging from employment, social welfare and improvement of regional domestic product. This study was conducted in order to gain insights into the internal factors that exist in small and medium micro enterprises, external factors that exist in small and medium micro enterprises and the strategies that should be applied to small and medium micro enterprises. The role of the Government in the development of SMEs is very important. This role could be achieved by economic friendly policies that are implemented and executed by the steakholders. Strategic planning is done from top-down policies which requires active role of government supports.
KeywordsStrategy development, MSMEs (Micro, Small and Medium Enterprises), AEC (ASEAN Economic Community)