By: Prita Puspitasari) *
The government created the Job Creation Law to help UMKM entrepreneurs so that their businesses can revive again. MSMEs are targeted, because they are the backbone of the economy in Indonesia. The reason is, 90% of business entities in Indonesia are small and medium businesses. If MSMEs are assisted, the state’s financial condition will automatically improve.
The Job Creation Law is the most popular law, because it regulates many things, from employment to MSMEs. It is hoped that bureaucratic changes will make people’s lives easier, because they no longer need to be bothered by confusing regulations. In addition, if traders are facilitated, it will help to roll back the wheels of the economy in Indonesia.
The leading cluster in the Job Creation Law is the investment cluster. Because the money from investors will be used to revive the economic sector in Indonesia. This fund is not a debt, but is given for a joint project with Indonesia. The level of security is also high, because it is regulated by the investment management agency. So that there is certainly no cheating in it.
Coordinating Minister for the Economy Airlangga Hartarto stated that the Job Creation Law not only helps investment in the jumbo sector, but also helps small and medium entrepreneurs. Because the target of the Job Creation Law is to empower small and medium-sized entrepreneurs, so that the contribution of MSMEs to GDP increases to 65%.
Small and medium entrepreneurs are very grateful for assistance from the government in the form of the Job Creation Law. Because thanks to the UMKM cluster, it is easy to get a business license. In the new regulation, MSMEs are included in low-risk businesses. So you only need a business license number (NIB), without having to take care of complicated and expensive HO permits.
If there is already a business license number, then UMKM is considered a legal business. They can export their products, because if they enter the international market, they must have a business license granted by the government. So that the businesses of UMKM businessmen will be more advanced, because they have entered the realm of exports and get profits in dollars.
Luhur Pradjarto, Expert Staff to the Minister of Relations between the Ministry of Cooperatives and SMEs, stated that the Job Creation Law made it easy for MSME players. Because they get priority in the procurement of government services by 40%. So that you will have a regular subscription, and usually in this project the orders are large.
If there are a lot of orders from the agency, then small and medium entrepreneurs can smile again, because they will get quite a lot of profit. They can rise from trials during the pandemic, because previously there were few orders when people’s purchasing power decreased. Currently, the regular customer is official, so it is certain that they will be paid in cash.
Why are MSMEs always assisted by the government? This is because the majority of entrepreneurs in Indonesia are at the small and medium level. Imagine if there is no assistance in the form of a law, their business will suffer. When the business is quiet, you get hit by a confusing bureaucracy. Already hit by a ladder.
When MSMEs are assisted, they can enthusiastically continue their business, then the positive effect is that the wheels of the economy can run again. Because the MSME business license can make banks and money lending institutions trust them, credit is disbursed. With that money, the business can be enlarged and get a decent profit.
The Job Creation Law was designed to assist MSME entrepreneurs through many regulatory changes. The bureaucracy was cut so that a business license only took 7 days. In addition, MSME entrepreneurs only need NIB as business legality, so that it will make it easier for them to continue their business.
) * The author is a contributor to the Cikini Press Circle and Students
