There is much literature regarding Small Medium-Sized enterprises in Indonesia. The definition comes from the National Statistics Bureau of Indonesia (SMEs BPS-Statistics Indonesia) and is based on government regulation Number 20/2008 about micro, small, and medium-sized enterprises. The National Statistics Bureau of Indonesia defines SMEs based on the number of employees in the organization. For a small-sized enterprise, the number of employees is around 5 to 19 persons and for medium-sized enterprises, around 20 – 99 persons.
According to government regulation Number 20/2008, about micro, small, and medium-sized enterprises, SMEs can be categorized into two criteria, first from net assets and second from annual sales. Micro-sized enterprises have net assets of around IDR 0 to IDR 50.000.000, this number is excluded land and building, and they have maximum annual sales of around IDR 300.000.000. Small-sized enterprises have net assets of around IDR 50.000.000 to IDR 500.000.000, this number is excluded land and building, and they have annual sales of around IDR 300.000.000 to IDR 2.500.000.000. Medium-sized enterprises have net assets of around IDR 500.000.000 to IDR 10.000.000.000, this number is excluded land and building, and they have annual sales of around IDR 2.500.000.000 to IDR 50.000.000.000.
There is an update of SME's criteria regarding government regulation Number 7/2021. SMEs can be categorized into two criteria, first from the capital and second from annual sales. Micro-sized enterprises have maximum net capital of around IDR 1.000.000.000 and they have maximum annual sales of around IDR 2.000.000.000. Small-sized enterprises have net capital of around IDR 1.000.000.000 to IDR 5.000.000.000 and they have annual sales of around IDR 2.000.000.000 to IDR 15.000.000.000. Medium-sized enterprises have net capital of around IDR 5.000.000.000 to 10.000.000.000 and they have annual sales of around IDR 15.000.000.000 to 50.000.000.000
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