Abstract:

Indonesian SMEs have put low prices as a competitive advantage. However, they have lack of environmentally-friendly business practices. In addition, the government role in encouraging the SMEs business sustainability was not evident in Indonesia. This research was aimed to explore the government role at the business sustainability and develop an approach to develop the government involvement. Using in-depth interview and focus group discussion, this research has found that there is role-overlap among government agencies. In addition, the government programs were not in accordance with the SMEs’ needs which change frequently. The programs were repetitive and uneven. Therefore, an alliance-network is necessary to implement. The alliance needs accessible also update information technology and communication informing about programs for SMEs, not merely from government bodies but also other stakeholders. The technology is also influential to encourage professionalism of the public service. In addition, incentives, however, are necessary as the government's efforts in eliminating resource gaps among SMEs.