This study looks at how the development of the small and medium business industry in Indonesia. This study uses secondary data and is a descriptive study that looks at how the development of the SME industry in Indonesia. The results of the study will illustrate how the potential of the SME industry and the role of SMEs can influence the development and growth of the SME industry in Indonesia. The hope is that this study can describe the state of the economy in Indonesia in terms of the contribution of the SME industry sector. From the existing SMEs, it will be seen how the situation of the SME industry in Indonesia tends to focus more on the supply side or on the demand side. Good business is a business that reaches a balance point when the number amount of goods demanded is equal to the quantifier of goods offered. So from this, it can be concluded that the right policy and can provide effective advice and policies to enhance the development of the SME industry in Indonesia.

Keywords : Demand, SME Potentials, SME Role, SME Industry Development.