International Journal of Research and Review Vol.7; Issue: 7; July 2020 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 International Journal of Research and Review (ijrrjournal.com) 425 Vol.7; Issue: 7; July 2020 SMEs Competitiveness Development in Small Industrial Village (PIK) of Pulogadung by Government Agency as a Public Sector Roselina Lathi Putri Rusarditya 1 , M. Syamsul Maarif 2 , Setiadi Djohar 3 1,2 IPB University, School of Business, Jl Raya Pajajaran, Bogor, Indonesia 3 PPM School of Management, Jl Menteng Raya, Jakarta, Indonesia Corresponding Author: Roselina Lathi Putri Rusarditya ABSTRACT Small Industrial Village (PIK) of Pulogadung is the center of SMEs in East Jakarta, Indonesia, and managed by Management Unit of Small and Medium-sized Enterprises Development Centers and Pulogadung Settlements (UPK PPUKMPP) which is a government agency to assist SMEs. The research aims to analyze strategies in financial perspectives, customer perspectives, internal business process perspectives, and learning & growth perspectives, and also to recommend priorities strategies in the development of SMEs in PIK Pulogadung. The data collection methods are in-depth interviews and survey techniques. The data analysis method was done using a Balanced Scorecard to describe strategic objectives and AHP to weight against strategic target priorities. Based on AHP's weighted results, the customer perspective ranks first in the strategic priority of the 52,0%, followed by a learning and growth perspective of 26,3%, an internal business process perspective of 14,0%, and the last is financial perspective of 7,7%. The strategic goal of the financial perspective that has the greatest weight is the increase in independence by 67,2% weight. The customer perspective with the largest weight value is the strategic target of 84,8%. The strategic goal of internal business process perspective which has the largest weight is an effective business process improvement, with a weighted value of 45,9%. The strategic objective of the most significant learning and growth that has the greatest weight is the increase in the competency of human resources, with a weight value of 82,5%. Keywords: AHP, balanced scorecard, SMEs INTRODUCTION The opportunities opening and the increasingly free community to conduct business activities will have an impact on the Indonesian economy, especially in terms of trade. A factor that can widely be supporting product trade is the adoption of the ASEAN Economic Community (AEC). The four pillars in the establishment and implementation of the AEC are to make ASEAN as the area of production base area and single market, the area having competitiveness, area promoting equitable economic development, and Area integrated with global markets. Bank Indonesia (2016) states that ASEAN as an area promoting economic development is the third pillar of the AEC, aims to build Micro, Small & Medium-sized Enterprises (MSMEs) in ASEAN to become one having competitiveness, being firmer, and having a big contribution to the ASEAN economy. However, in terms of operational and supporting activities, the MSMEs development institutions in Indonesia are still unstable. Many programs are not sustainable, such as Business Development Centers. This Business Development Center has been built in 1,096 locations throughout Indonesia, but their existence has not existed anymore. Furthermore, Bank Indonesia (2016) states that so far, government policies related to MSMEc use more social welfare approaches than business approaches. MSMEs are considered as vulnerable