The importance of this research is to determine whether the interest rates and tight monetary policy set by Indonesian banks create obstacles for micro and small and medium enterprise (SMEs). Often when micro and SMEs face difficulties, they tend to blame interest rates and tight monetary policy. As a result, this paper seeks to research the influence of and relationship between interest rates and tight monetary policy on the growth and development of micro and SMEs. This paper uses the case study method with a quantitative and semi-structured qualitative method. The research object consists of 192 respondents from street peddlers in West Jakarta. Data was collected via observation, questionnaires, and interviews. The results revealed an influence of and relationship between interest rates, tight monetary policy, and the growth and development of micro and SMEs. Furthermore, the results showed that the micro and SMEs program is wellsuited as a twenty-first-century program for the Indonesian economy
