Pustaka Ilmiah Universitas Padjadjaran

Abstrak

Terms of Reference SMEs In The Borderless Era, Shaping Opportunity In The Global Value Chain

Background : 1. Small Medium Enterprises (SMEs) in Southeast Asia have an important role for the process of economic integration in ASEAN and the wider region. According to ERIA, in the book of ASEAN SME Policy Index 2014, about 95%-99% of business units established in ASEAN are SMEs. This large number of SMEs makes involvement of SMEs in the process of economic integration into ASEAN Economic Community (AEC) 2015 becomes very important. Weak competitiveness of SMEs compared to large business unit in global value chain is a major challenge that must be resolved by governments. In this case, trade facilitation to realize internationalization of SMEs in the global value chain is a policy that is no longer an option but a necessity. 2. SMEs in Southeast Asia also play an important role for the economic growth of countries in the region. In accordance with the COMCEC study on “Promoting the SMEs Exports in the OIC Member Countries” (June 2013), SMEs in Indonesia reached 99% of the total companies in the country in 2009. This number is able to provide employment to more than 90%. Its contribution to the GDP of Indonesia has also exceeded 55% in 2008-2009. Meanwhile in Malaysia, the number of SMEs reached 97.3%, or approximately 645.137 SMEs units of the total 662.939 business units that run in the country in 2012. Contributions to the economy amounted to 32.5% of Malaysia’s total GDP in 2011. 3. Those facts show the important contribution and role of SMEs in the economies of the Southeast Asia region. The success of SMEs in the global market can be a determining factor in creating a more integrated AEC 2015. 4. The points above led Indonesia to organise a COMCEC OIC sponsored workshop on internationalization of SMEs in the Global Value Chain. The workshop, on “SMEs in the Borderless Era, Shaping Opportunity in the Global Value Chain, was proposed by the Ministry of Trade, Republic of Indonesia on the Project No. 2013-INDTRADE-088 and was announced as final listed project under COMCEC Project Cycle Management.