Font Size: 

This study aims to analyze the role of Micro Small Enterprises (MSEs) and Medium Large Enterprises (MLEs) in addressing income inequality in all districts/cities in Aceh Province and also analyzethe mostdominant variables that reduce the comunity income gap.This study uses 2016 Economic Census of BPS province of Aceh for 23 districts/cities and Gini Ratio for community income gap variables. The results showed that the number of MSEs units, the average MSEsworkers, the total wages received by the SMEs workers, the SMEs wage average, and the district/city economic growth in 2016 had a significant effect on the income inequality in the districts/cities of Aceh Province. While the number of MSEs workers, the number of MLEs units, the number of MLEs workers, the average of MLEs workers, the total wages of MLEs workers, and the average wage of MLEsworkers have not significantly influence to thecomunity income gap. The only factor that has a significant influence in reducing the gap in community income is the total remuneration (wages) received by MSEsworkers.The recommendation that can be given to be implemented immediately for the Aceh government is to strengthen MSEs, including cooperatives as the drivers of the Aceh's economic which can absorb more labor and compensation or wages received by workers also increases. Furthermore, the Government of Aceh in this case the Provincial Manpower Officeand the Office that manages labors all districts/cities must monitor the application of the Provincial Minimum Wage (PMW) for MSEs which have been under-emphasized for various reasons and considerations. Strengthening MSEs and monitoring PMW can have an impact reduce the income gap in the province of Aceh.