By : Kyara Savitri )*
Legal protection is an element that must exist in a country. Every state formation must have laws to regulate its citizens. In a country, there must be a relationship between the state and its citizens. Law is a regulation that is coercive but does not mean imposing the will on other people, but rather to protect the public interest itself.
This is because these interests are often violated by certain parties, so a legal product is needed that is capable of securing it and, if necessary, can enforce it.
Micro, small and medium enterprises (MSMEs) are pillars of the Indonesian economy that need attention because they can absorb labor and reduce unemployment amidst competition for formal sector jobs. Many small businesses are founded by the community.
The Ministry of Cooperatives and MSMEs targets to increase the role of MSMEs in national economic growth. Setting up this business is very easy and does not require a large amount of capital. Empowering MSMEs is a strategic option to increase the income of low-income groups, in order to reduce income gaps and poverty through increasing business capacity and business management skills.
The increasing influence of MSMEs in Indonesia means that MSMEs can have a complex impact according to the size of the MSME business. MSMEs are a people’s economy that has a small scope that stands alone and is managed by individuals or groups. The development of MSMEs in Indonesia is one of the priorities in national economic development.
Protection of MSMEs which are defined as productive businesses owned by individuals and individual business entities that fulfill micro businesses as regulated in Law Number 2 of 2008 concerning MSMEs is an important factor in efforts to make the investment climate in Indonesia better.
Main Expert of the Presidential Staff Office, Ishak Saing, emphasized that the government is paying great attention to Micro, Small and Medium Enterprises (MSMEs). In fact, President Joko Widodo has designated MSMEs as one of the main focuses in the 2020-2024 RPJMN. Government support for the development of MSMEs, he said, is outlined in Government Regulation No. 7/2021 concerning Ease, Protection and Empowerment of Cooperatives and MSMEs, which is a derivative regulation of the Job Creation Law.
Government regulations (PP) are legal umbrellas for various supports for MSMEs from upstream to downstream. Ishak added that government support for the development of MSMEs does not only take the form of regulations.
But it is also provided through various programs and policies. He gave an example of support for MSMEs during the pandemic. Where the government provides assistance through the National Economic Recovery (PEN) program.
The level of support for MSMEs is because the government realizes that MSMEs have contributed to national development. With the number of MSMEs currently reaching 65 million, they have succeeded in absorbing a lot of labor and providing a national GDP output reaching 61 percent.
Not only that, the President’s Special Staff for Economic Affairs, Arif Budimanta, said that Law Number 6 of the Year concerning Job Creation has made it easier for MSMEs to apply for a business identification number (NIB) as the identity of business actors. Apart from functioning as a form of convenience for business licensing, the NIB also acts as a valid company registration certificate and can also be an identification number for the import process.
Government Regulation No. 5/2021 concerning risk-based business licensing and PP No. 7/2021 concerning ease of protection and empowerment of cooperatives and MSMEs, this business registration number is a form of ease of business licensing and then serves as an identity for business actors and also applies as company registration certificate and can also be an import identification number.
According to his view, business activities can be grouped into two different risk categories, namely low and high risk, where the risk reflects the level of uncertainty or possibility of loss that can occur along with the activities carried out in a small and medium business.
The steps taken by the state aim to make it easier for MSMEs and cooperatives when they are involved in cross-border transactions. So it is not only limited to imports, but is also related to access to customs services for MSMEs which are cross border in nature .
Therefore, the Job Creation Law is aimed at not only reducing the problem of disparities between income groups and between business actors, but can also make a significant contribution in accelerating structural change. Making it easier to build MSMEs can improve the regional economy and national economic resilience.
MSMEs are small-scale independent community economic activities whose management is carried out by community groups, families or individuals. MSMEs have an important role in the Indonesian economy which aims to increase economic independence.
)* The author is a student at the Faculty of Economics
