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Small and medium enterprise (SME/UKM) has strategic role in national economic development, because of their role in the economic growth and employee recruitment as well as their role in developmental product distribution. During the economic crisis happened in this state a few years ago that affected to the collapse of many big scale firms, Small and Medium Enterprise (SME/UKM) proved tougher in facing the crisis. Based on the experience faced by Indonesia during the crisis, the private sector development should be focused more on UKM, especially these sectors are often abandoned just because their products are in a small scale and are not able to compete with other business unit. Keywords : Small and Medium Enterprise, strategic role, national economic development
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