15 Airlangga Journal of Innovation Management, Vol.2, No.1, June 2021 Vol. 2 No.1 Juni 2021 e-ISSN: 2722-5062 DOI：10.20473/ajim.vvii.26567 SUCCESSION PLANNING IN MICRO AND SMALL FAMILY BUSINESS (CASE: MICRO AND SMALL FAMILY BUSINESS IN EAST JAKARTA) Sakti Hendra Pramudya ³ University of Pécs, BINUS University Corresponding email: sakti.pramudya@binus.ac.id ABSTRACT Family business studies are gaining a foothold in Indonesia as more studies on Indonesian family business have been emerging in numerous scientific journals. The family business organization is the most commonly found type of business all over the world. Nonetheless, the family business survival rate is considered low. The low survival rate of the family business, according to several studies, is also related to the issue of management succession, a delicate situation that they need to face. This study will focus on identifying the level of the importance of succession planning for family business owners, especially those belonging to the micro and small business category. The study involved one-hundred micro and small family business owners in East Jakarta as respondents of the survey. This study would be focused on identifying the ground rules that are created by incumbents during succession planning. The findings will be presented in the pie charts that reflect the results of the descriptive statistics of the study. This study has revealed that the majority of the respondents in the sample don't have an appropriate plan of succession. Nevertheless, they believe that succession is an important issue but this issue is not necessarily to be addressed at the moment. The result also exhibits that majority of respondents favoring their child as future successor. Lastly, the homosocial reproduction phenomenon also could be identified from the survey as the majority of respondents define a good successor as someone who has a vision that in line with the predecessor’s vision. Keywords: Succession, Planning, Family, Business, Jakarta 1. Introduction Previous research has demonstrated that family businesses assume a noteworthy part in boosting GDP providing employment opportunity as experienced by Indonesia (Ghee, Ibrahim & Halim, 2015). Family businesses have contributed to 25% of Indonesian GDP and almost 95% of Indonesian businesses are managed by families (PricewaterhouseCoopers, 2014). Performance of large Indonesian family business could be considered as moderately strong. The presence of family-owned businesses in LQ45 (top performing companies in stock market) is significantly high as depicted in Table 1.