OPTIMALISASI PERAN LEMBAGA INTERMEDIASI DALAM MEMBANGUN KEUNGGULAN BERSAING UMKM DI ERA PERDAGANGAN BEBAS DAN OTONOMI DAERAH

This paper is trying to illustrate the role of Intermediary Organisations as initiators and facilitators to overcome challenges and barriers to SMEs in the era of regional autonomy and free trade. Small and medium sized enterprises (SMEs) are a key engine of growth for Indonesia’s economy. Related with the globalization of economy and the liberalization of trade, Government must be seriously support the capacity building in local SMEs. Despite the important role of SMEs in economy, the inherent characteristics of SMEs can be advantages or obstacles. Various programs strengthening the competitiveness of SMEs that have been implemented by the Government has not been applied effectively. One major cause is the lack of information channels between the Government and SMEs. Intermediation Organisations, as initiators and facilitators has a strategic role in improving the competitiveness of SMEs