To compete in regional and global markets, the SMEs should be competitive. They have at least competitive and comparative products. Consequently, the development of SMEs should head for two directions, i.e. improving the quality of SME as well as its quantity. If the development can be done, SME can serve as a mainstay in the enhancement and the development of Indonesia's economy. SME as economic pioneer in the development of the national economy in the future is a very appropriate and wise choice. Nevertheless, it must be equipped with an appropriate development strategy to avoid disharmony or discontinuity. Inaccurate and negligent provisioning toward SMEs to compete in regional, national and international markets will cause the helplessness of SMEs facing the global competition. In addition, the cause of the decreasing production is caused by the shellacking of the SME product with the flood of Chinese products in Indonesian market. These products are competitor's commodities of Indonesian SMEs such as ceramic, apparel, footwear (shoes/slippers), furniture, and craft products [1].