Strategy Development of MSMEs In Order to Face of Industrial Revolution 4.0

: Today we are facing the industrial revolution 4.0, the stage where the problems cannot be solve without internet. The Internet of things (IoT) and Artificial Intelligence are coloring the way of conducting a company. Therefore, entering this era, every company including Micro, Small and Medium Enterprises (MSMEs) is required to have the ability to change and adapt to technological developments. Considering this situation, some interesting question are, is the MSMEs in Indonesia are ready to adapt and take advantage of this technological change? What is the appropriate strategy for enhancement the MSMEs in order to survive and developed in this circumstance? The MSMEs have a significant role in the national economy. This can be seen by the amount of business unit that reached more than 55.6 million units in 2011-2012, which involves more than 107 million workers. Meanwhile, the Big company has only 5 thousand business units and involves about 3 million workers. The MSMEs can penetrate to the wider market, more flexible, can provide income sources for broaden communities, and has more resilience to the economic crisis, as proven in year 1998. Considering these characteristics, the government must pay attention to such issues. By fostering the MSMEs, Indonesia can create small, strong and advanced entrepreneurs who have technological capabilities. This paper temps to analyze and discuss the various strategies needed to build MSMEs in order to have adaptability in this era of industrial revolution.