Marketing and Government Policy on MSMEs in Indonesian: A Theoretical Framework and Empirical Study

Marketing is the fundamental challenge faced by Small Medium Enterprises (MSMEs) to succeed. The most dominant issues SMEs have to deal with are: market and product competition, institution and market information access that supports marketing. To minimise the marketing problems, the government role as a policy maker isrequired, such as Act no. 20 year 2008 about MSMEs and the formation of Cooperation Ministry and MicroSmall Medium Enterprises with marketing deputy. The government programme on small enterprise developmentand empowerment through strategical marketing planning formulation covers: export market expansion anddevelopment, marketing infrastructure development, marketing partnership expansion with established enterprises, product marketing network development and product promotion development. Government intervention in marketing is anticipated to conduce improving MSMEs performance that contributes to the national economic growth through PDB growth, employment, and non-oil export.