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Job Creation Law Develops MSMEs

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By: Raavi Ramadhan

The existence of the Job Creation Law brings new hope for UMKM entrepreneurs, because there are regulations that benefit them. Licensing will be made easier and each government agency is obliged to provide 40% of the budget to purchase UMKM products. Small and medium class businessmen will be able to develop their business.

The inauguration of the Omnibus Law The Job Creation Law is still a byword in the community, because this is the first time there is a law regulating dozens of clusters at once. Apart from the investment cluster, there is an easy business cluster and an MSME cluster. The goal is to boost the business world, so that it is no longer sluggish due to the impact of the corona storm.

MSMEs are prioritized by the government because they are the backbone of Indonesia’s economy. As many as 90% of businesses in our country are run by MSMEs. No wonder they are privileged, in order to streamline their business and increase people’s purchasing power. Hopefully after increasing business, Indonesia’s financial condition will improve.

According to Minister of Cooperatives and SMEs Teten Masduki, the priority for MSMEs in the Job Creation Law is that government agencies are required to buy their products. The arrangement will be, if there is a state institution that needs a product, 40% of the supply will come from MSME entrepreneurs. So the entrepreneurs will get a new market share and will definitely be paid by the government.

In addition, MSMEs will be grouped by region. So later a collaboration will be planned between small and medium entrepreneurs. If they work together, for example to create an online store that contains various items to sell, it will certainly be good. Because we both want to move forward and expand the market.

Cooperation between UMKM entrepreneurs in 1 region can also be done through sharing sessions, for example gathering information on where suppliers are cheap but selling quality goods. Besides, they can collaborate. For example, there is an UMKM that makes imitation flowers, it can supply it to other UMKM entrepreneurs who are in the business of wedding party decorations.

The government will also assist MSMEs, especially in digital marketing. They will be taught how to create an online shop and its management. Promotion in the real world is different from the virtual world. So with the assistance, MSME entrepreneurs are no longer tech-savvy, but are able to find new buyers, because their market share is wider.

After MSME entrepreneurs are able to promote, both in the real world and cyberspace, then the next assistance can be by forming branding. Manufacturers are not only taught how to make good quality goods but have a good image. For example, by making packaging that has an attractive shape, so it deserves to be used as souvenirs from the region.

In the Job Creation Law there is also an article to make it easier for MSME entrepreneurs so that they can get business legality. To have a license, it can be registered online. So it saves time and money. Licensing will also come out quickly, so that when they borrow money from the bank, they will get credit easily. Because it is considered legal.
In addition, UMKM entrepreneurs who already have a business license can export their products. Because one of the requirements is that the business must be legal. As we know, clients from abroad are more strict, so that UMKM entrepreneurs must have official licenses and meet their standards. But of course the export of the product will be profitable, because it is paid in dollars.

In addition to getting more profit, MSME entrepreneurs who have succeeded in exporting their products can also be upgraded, because it proves that their sales are in demand by the international community. It is hoped that they will get more profits and will need many employees. Thus reducing the number of unemployed.

The existence of the Job Creation Law gives MSME entrepreneurs a breath of fresh air, because there is ease in licensing issues. They are also given assistance by the government. Agencies are also required to buy UMKM products. So that they get more profit and are able to maintain their business in the midst of a pandemic.

(The author is a contributor to the Cikini Press Circle and Students)

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