The Policy of SME-Based Development Toward east Java Social Economy

SME has a great role in the national economy, as well as in employment absorption and distribution of the development 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 (net) assets, excluding land and office building, b. Annual sales proceeds (revenue) at most 1 billion, c. Owned by Indonesian citizens, d. Stand-alone, not a subsidiary or company branch.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, considering small and medium enterprises, in general,growfrom the community directly. Keywords: SME,Government, Policy,Economics,Societ