The objective of this research is to analyze the effect of Business Model Innovation (BMI) on the firm performance of manufacturing SMEs in Indonesia. This study used structured questionnaires to gather information from 100 manufacturing with 2 until 3 employees, in order to examine the relationship between variables. In this study, there are three variables and hypotheses altogether. Value creation innovation, value proposition innovation, value capture innovation serves as the dependent variable, and firm performance as the independent variables. SmartPLS tool will be utilized for data analysis, utilizing structural equation modeling (SEM).