The main concept of the MEA is creating ASEAN as a single market entity where there is a production base of free flow of goods, services, factors of production, capital and investment, as well as the elimination of trade tariffs among ASEAN countries. Through the strengthening of this cooperation is expected to reduce the level of poverty and economic disparities among its member states through a number of mutually beneficial cooperation. Environment single market and production base is expected as well, making ASEAN more dynamic, productive and make more powerful segments of the chain of global forces, as well as the bargaining position of ASEAN in the global economy to be strong and competitive. SMEs in Indonesia to make greater contributions to the National for Economic Employment, GDP and Exports compared to Other Countries. Indonesia has the power to develop the economy in the ASEAN market environment (MEA), among others: the purpose ASEAN investors, potentially becoming the exporting country and others - others. Environmental ASEAN markets create opportunity and a challenge, especially for SMEs, to be able to compete, In fact, the existence of the market environment of ASEAN, For SMEs still face obstacles in doing business in Indonesia compared to Other Countries, internal barriers include: Institutional and Human Resources, Production and Marketing, as well as capital intellectual. While the External barriers include: access financing, bureaucracy and Infrastructure Services. SMEs can choose the right business strategy to take advantage of the ASEAN market environment, one of which is the institutional development strategy, which includes the dimensions of the internal changes, the dimensions of intellectual capital, the dimensions of environmental change and the dimensions of the business network. Indonesian SMEs institutional development strategy can be implemented, would be but need policies and practical proactive support from various Indonesian SMEs institutional development strategy can be implemented, would be but need policies and practical proactive support from various stakeholders. Keywords: Institutional Strategies SMEs, ASEAN Market Environment.