Microfinance Industry in Indonesia : Challenge and Oppourtunity on Asean Economic Community

The emerging of MSMEs in Indonesia is deliberated significantly among the Asean Economic Community. In accordance with the objective of AEC, the purpose of this paper is to examine the influence of the microfinance industry on the development of MSMEs, as one item in the AEC Agreement. The literature review reveal that on the microfinance industry has a significant influence on the development of MSMEs, on the other hand both of AEC and the policy of Indonesia Goverment argued as the factor affecting the growth of the microfinance industry as a strategic industry in the development of MSMEs.