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Thanks to the Job Creation Law, Micro and Small Businesses Get Privileges

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By : Muhammad Ridwan )*

It is hoped that the existence of the Job Creation Law (Job Creation Law) can provide protection and convenience for Micro and Small Enterprises (UMK) and Cooperatives, to be able to enter the formal sector through ease of establishment, licensing and coaching.

The community will also get various kinds of facilities in terms of accelerating licensing and also business certainty or legality. This is in line with the passing of the Job Creation Bill by the DPR into law.

Business licenses The Job Creation Law will provide convenience for MSME actors by providing certainty and speeding up the licensing process by registering through OSS (Online Single Submission).

​The government also provides convenience for business actors who wish to register Intellectual Property Rights (IPR) for their business products. In addition, business actors who wish to set up an individual PT are also provided with easy requirements and low costs .

​The government regulates partnership programs for MSME businesses by providing access to public facilities such as rest areas, airports and train stations to display or market their products.

Fiscal incentives The government also simplifies the process of establishing cooperatives, one of which is by stipulating a minimum number of

Meanwhile , Deputy Chairperson III of the Job Creation Law Task Force, Raden Pardede, said that his party is trying to facilitate the development of MSMEs through this law. Raden said, in fact, the biggest job creators were MSMEs, so the Job Creation Law made it very easy for MSMEs to continue to grow.

Raden explained that the Job Creation Law was a formulation by the Government in the process of strengthening the people’s economy. Efforts that can be made are by cutting bureaucracy in order to speed up services to MSME groups and investors.

On a different occasion, Deputy for HR Development of the Ministry of Cooperatives and SMEs (KemenkopUKM) Arif Rahman Hakim said the conveniences that SMEs get include, ease of starting a business, ease of managing and ease of developing SMEs.

​Then regarding the ease of managing MSMEs, in the Job Creation Law it is spelled out, that micro businesses are still exempt from business licensing fees and small businesses are given business licensing fee waivers.

​Then for micro and small businesses wages are based on an agreement between employers and workers, at least a certain percentage of the average public consumption.

​The Job Creation Law also regulates the ease of developing MSMEs, among other things, MSME business activities can be collateral for accessing business financing loans. Not only that, the process of registering Intellectual Property Rights (IPR) is also said to be made easier and simplified.

​As for expanding the market and promoting their products, MSMEs also get greater opportunities in toll road rest areas and public infrastructure such as terminals, airports, seaports, train stations and others.

Please note that the position of MSMEs is very strategic because of the 133 million jobs in Indonesia, as many as 120 million of them are MSMEs. Of the total business units in Indonesia, 99.6% are MSMEs or the equivalent of 54.6 million MSMEs. This means that the position of MSMEs is very strategic both from the structure of national economic growth and in the context of equity.

​According to Article 87 point 1 of the Job Creation Law, the criteria for MSMEs can include business capital, turnover, indicators of net worth, annual sales results, or investment value, incentives and disincentives, application of environmentally friendly technology, local content, or the number of workers according to the criteria every business

​The Job Creation Law

​Provisions regarding the criteria for MSMEs in the Job Creation Law will be further regulated in government regulations. So regarding the criteria for MSMEs, they must wait for the government’s regulations first.

​In the provisions of the Job Creation Law, there are several provisions that provide convenience for MSMEs. One of them is the provision of incentives and facilities for Medium and Large Enterprises that partner with MSEs.

​This refers to article 90 paragraph (1) of the Job Creation Law which requires the central government and regional governments to facilitate, support and stimulate medium and large business partnership activities with cooperatives, micro and small businesses with the aim of increasing business competence and level .

With these provisions, micro and small business actors (UMK) are given facilities by the government to partner with medium and large businesses. The partnership in question includes the process of transferring skills in the fields of production and processing, marketing, capital, human resources and technology. So that the various conveniences and facilities offered by the Job Creation Law have proven that Micro and Small Businesses have their own privileges.

)* The author is a contributor to Lingkar Nusantara

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