59 JURNAL AKSI (Akuntansi dan Sistem Informasi). 2020. 5 (1): 59-65 p-ISSN: 2528-6145, e-ISSN: 2541-3198 Accredited Fifth Grade by Ministry of Research, Technology and Higher Education of The Republic of Indonesia, Decree No: 30/E/KPT/2018 Cite this as: Ardyan Firdausi Mustoffa, Ika Farida Ulfah, and Iin Wijayanti. (2020). Role of the Local Government and Participation of Micro, Small and Medium Enterprises (UMKM) In the Development of Plastic Craft Industry. JURNAL AKSI (Akuntansi dan Sistem Informasi), 5 (1), 52-58. http://doi.org/ 10.32486/aksi.v5i1.427 JURNAL AKSI Akuntansi dan Sistem Informasi http://aksi.pnm.ac.id Role of the Local Government and Participation of Micro, Small and Medium Enterprises (UMKM) In the Development of Plastic Craft Industry Ardyan Firdausi Mustoffa 1) , Ika Farida Ulfah 2) , and Iin Wijayanti 3) 1,2,3) Faculty of Economics, Muhammadiyah University of Ponorogo ARTICLE INFO ABSTRACT This study aims to describe the role of local government and the participation of Micro, Small and Medium Enterprises in the development of Plastic Woven Crafts in Karanggebang Jetis Village, Ponorogo Regency. The theory used in the formulation of the first problem regarding the role of local government uses the theory of Gede Diva (2009) which divides the role of government in three ways, namely the role of government as a facilitator, the role of government as regulator and the role of government as a catalyst. Second, the participation of UMKM actors uses the theory of Cohen and Uphoff in Distianto (2016) into four forms of participation, namely participation in planning, participation in implementation, participation in the utilization of results and finally participation in evaluation.This research uses the descriptive qualitative method. The technique of determining informants using purposive sampling techniques and data collection techniques carried out through interviews, observations, and documentation. The results of this research in the efforts to develop UMKM Plastic Weaving Crafts in Karanggebang Jetis Village, Ponorogo Regency, in general, there has been no interference from the government and UMKM entrepreneurs. So far, plastic woven crafts are still not developed. To develop UMKM especially plastic woven handicrafts located in Karanggebang Jetis, it is necessary to have the role of government and participation of UMKM actors. Keywords: Role of Local Government, Participation of UMKM, Development of UMKM Article History: Received: 19/11/2019 Accepted: 12/02/2020 Corresponding author: Ardyan Firdausi Mustoffa E-mail: ardyanfirdausi@gmail.com INTRODUCTION UMKM is a potential effort for economic development in Indonesia so that in its implementation it needs to be optimized and explored again the potentials that exist to increase community economic development. Development can be done with the support of the government in providing the facilities needed to support the implementation and progress of the business being run in order to produce good quality products so that it can compete with the international market. According to data from the Office of Cooperatives and UMKM, the high state foreign exchange revenue from UMKM actors reached 88, 45 billion rupiahs in 2017 (www.kompasiana.com accessed on November 10, 2018). The UMKM sector received special attention from the government, this was proven by the existence of a special forum for UMKM along with cooperatives under the auspices of the Ministry of Cooperatives and UMKM. UMKM gets special attention from the government because the number is always increasing every year. The number of UMKM