Small and Medium Enterprises (SMEs) in Indonesia occupy a strategic position in the map of the development of the Indonesian economy. SMEs in Indonesia are the basis of the economy that have been growing among the people who have the prospective to be upgraded as the backbone of the national economy. These SMEs have been recognised as the appliances through which the growth objectives of developing countries can be accomplished, and they are potential resources of employment and income in most of developing countries. It is estimated that SMEs employ approximately 22% of the adult population in developing countries (Daniels & Fisseha, 1992; Robson & Gallagher, 1995). SMEs play an important role in the economy, at least 99.9% of all activity in Indonesia has been dominated by SMEs. Thus SMEs have very high contribution to creating employment opportunities and income sources (Renstra Kementrian KUKM, 2010). Based on the development of micro, small and medium enterprises issued by the Ministry of Cooperatives and SMEs, SMEs business unit grew by 2.01%, labor absorbed by SMEs increased 3.32%, GDP at current prices increased 15.81%, while the total non-oil exports rose 8.01% SME per year. Overall, development of SMEs in Indonesia has an increasing trend (see table 4.1).