By Rianti Yuanita )*
The Job Creation Law (UU) issued by the Indonesian government has brought fresh air to Micro, Small and Medium Enterprises (MSMEs). This law, also known as the Omnibus Law, aims to create a better business climate. Meanwhile, the main aim of establishing the Job Creation Law is to accelerate national economic growth by creating a more conducive business environment. One of them is by making it easier for MSMEs to obtain capital and permits. With this convenience, it is hoped that MSMEs can develop more rapidly, providing a positive impact on the national economy.
MSMEs have a role in the Indonesian economy. Not only does it contribute around 60 percent to Gross Domestic Product (GDP) but it also plays an important role in absorbing labor and reducing poverty levels. Data shows that this sector is able to survive economic crises, such as the 1998 monetary crisis and the Covid-19 pandemic. MSMEs contribute significantly to economic equality, poverty alleviation and increasing the country’s foreign exchange. Therefore, the government always pays special attention to the development of MSMEs.
One of the positive impacts of the Job Creation Law is simplifying the licensing process and providing access to capital for MSMEs. The Job Creation Law introduces a number of significant reforms to make things easier for MSMEs in terms of licensing and access to financing. The previously complicated licensing process is now made easier through the risk-based electronic licensing system (OSS-RBA). With this system, business permits can be issued quickly, even in minutes, and can be accessed from anywhere. This really helps MSMEs to legally and safely run their business.
Plt. Head of the Banda Aceh City Investment and One-Stop Integrated Services (DPMPTSP) Service, Andri, explained that risk-based licensing is based on the level of business risk. This means that the permits required will be adjusted to the existing risks, making it easier for business actors to obtain permits according to their needs. Apart from that, for MSMEs with a turnover of under IDR 5 billion, the licensing process through OSS-RBA is free of charge, and MSMEs can obtain SNI and halal certificates for free.
This convenience is very important because complicated licensing often becomes an obstacle for MSMEs to develop. Apart from that, with the OSS-RBA, MSMEs can obtain a Business Permit Number (NIB) which is the main requirement for accessing various government services and facilities, including capital loans from banks. Simplifying this process ensures that MSMEs can focus on developing their business without getting caught up in complicated bureaucracy.
Apart from making licensing easier, the Job Creation Law also mandates the government to provide legal assistance and assistance services to MSME actors. Deputy for Micro Enterprises at the Ministry of Cooperatives and SMEs, Yulius, stated that MSMEs often face legal problems related to licensing, financing, employment, marketing and human resources. Therefore, KemenKopUKM builds collaboration with various institutions, such as the Supreme Court, Legal Aid Institute, and universities, to provide optimal legal assistance.
The Job Creation Law certainly makes it easier for MSMEs to access capital. The Task Force for the Acceleration of the Job Creation Law together with Financial Services Providers (PJK) and the Indonesian Employers’ Association (Apindo) have simplified loan application procedures, both for individuals and MSMEs. Business actors can now apply for People’s Business Credit (KUR) only with a Business Identification Number (NIB), without needing to apply for a Company Business License (SIUP). The KUR application procedure is also very simple, with low interest rates of between 3-6 percent, depending on the scale of the business.
Even though there are various conveniences from implementing the Job Creation Law, there are still many MSME players who prefer to apply for online loans (pinjol) because they offer faster disbursement of funds. This creates its own challenges because online loans often have very high interest, even reaching more than 100 percent. The Financial Services Authority (OJK) continues to strive to eliminate illegal lending sites and provide education to business actors about the associated risks. With the Job Creation Law, the government hopes that MSMEs can switch to safer and more affordable sources of financing that are supervised by the OJK.
Chair of the Monitoring and Evaluation Working Group for the Job Creation Law Task Force, Edy Priyono, said that this easy and cheap KUR was designed to help MSMEs develop quickly. Apart from that, even if MSME players were previously caught in illegal online loans, they can still apply for KUR through a bank supervised by the OJK, so that the risk of illegal loans can be minimized.
The ease of licensing and access to capital provided through the Job Creation Law is expected to be able to encourage the growth of MSMEs significantly. With the increase in legal and developing MSMEs, the contribution of this sector to Gross Domestic Product (GDP) will also increase. Successful MSMEs will pay taxes and create jobs, which in turn will drive the wheels of the national economy.
It is also hoped that these facilities will attract more investors, both from within the country and abroad, to invest their capital in the MSME sector. With a better investment climate, Indonesia’s economic growth can be accelerated more quickly, towards sustainable economic recovery, especially through strengthening the MSME sector, which is the backbone of the Indonesian economy.
)* The author is an observer of social economics
