Abstract
Micro, Small and Medium Enterprises are very influential on the Indonesian economy. This has been proven during the economic crisis that hit Indonesia in the period 1997 - 1998 which was the bankruptcy of large scale companies that differed from Micro, Small and Medium Enterprises which remained and grew without economic assistance. In this study, using national data 2000 - 2017 at BPS Indonesia and the Indonesia Ministry of Cooperatives SMEs. Data analysis uses multiple linear regression analysis and path analysis. The results showed that the number of MSMEs had a positive and significant effect on the contribution of MSME GDP, the number of MSME Workers did not affect the contribution of MSME GDP, the number of MSMEs had a negative effect on poverty levels, the number of MSME workers had a negative effect on poverty levels and the contribution of MSME GDP had a negative effect on the level of poverty in Indonesia. Path analysis shows the effect of the number of MSMEs on poverty levels with GDP as intervening contributes to a greater negative effect than the effect of Labor on poverty levels with GDP as intervening.
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