ABSTRACT
Micro enterprise is one of the informal sectors in Indonesia that has a strategic position in the Indonesian economy. The enterprises absorb 99.8 percent of the country’s employment and account for more than 95 percent of all the firms in Indonesia. The enterprises encounter many obstacles, such as lack of capital, skills, and technology, which result in their low competitiveness level. To solve the problem, the government has issued a number of policies, but none of these has been effective in improving the enterprises’ capacity and productivity. One of the problems is the failure of the market-based approach in addressing the unique characteristics of micro enterprises in Indonesia. Regarding this, the paper highlights the implementation of Technology for the Region Program in some villages of West and East Java. The program has applied the social enterprises approach that combines the market-based and social welfare aspects of micro enterprises. The paper will use in-depth interview with the owners of micro enterprises, and show how the program benefits the micro enterprises and what lessons could be learned from the program.
