By: Edi Jatmiko) *
The Micro, Small and Medium Enterprises (MSME) Sector is claimed to be able to move up the class through efforts to simplify regulations. With this simplification, the economic stretch is expected to grow.
Of course the government’s attention in economic matters is a priority. Because this economic system is the basis of the operation of a country. Through the economy the community is able to create a climate of growth for the welfare of life and government. Not denying, if the economic system in Indonesia has a slightly complicated arrangement, so there needs to be an effort to make this run smoothly.
Therefore, the simplification of regulations and the new year are considered quite preventive to make economic growth stronger in the future. Moreover, approaching the new year, it is suspected that the government and the community are positioned at a vulnerable point. Namely, the increase in prices of basic necessities due to reduced supply of products to the market.
In this case, the availability of food before the turn of the year has a dominance in the course of its economy. Starting from the supply of goods, the distribution of goods which also has an impact on regulations in a number of sectors. Namely, entrepreneurs in the category of Micro, small and medium enterprises (MSMEs).
The main bases in economic activity are two things, namely, supply and demand. Consumer preferences for a product will determine how much quantity they will buy. So producers will see market fluctuations and estimate how much will be circulated in the market. With consideration, marketing, along with other factors that are suspected to create market price equilibrium.
The economic activities between the two parties that take place freely and voluntarily then have a rule that is applied by the government to control market prices. When speaking of market control in general, it will lead to failure and result in inefficient allocation of resources and decreased economic prosperity.
Meanwhile, regulations in a number of sectors in Indonesia seem complicated and slow in their handling. So President Jokowi instructed to simplify the regulatory system in Indonesia which would hamper the growth of MSMEs and investment.
Raising the MSME class is part of the government’s task. For this reason, the government must prepare regulations that can support the increase, including capital lending regulations.
While the Ministry of Cooperatives and SMEs explained that there are still many overlapping and often problematic regulations. Institutional Deputy of the Ministry of Cooperatives and UMKM Luhut Prajanto stated, there were approximately 71 laws (Laws) that had to be addressed.
In accordance with the President’s instructions, this entire regulatory system will be addressed through the “Omnibus Law” method. The method is the merging of several regulations into one which will later be called the Employment Copyright Law. This method is an alternative way, as a solution to the legislation that collides vertically and horizontally in order to provide convenience for the MSME sector.
In addition, the Kemenkop and UMKM have also created programs to develop MSMEs. However, there are still conditions that must be met by these SMEs.
On the other hand, bureaucratic issues related to complicated and complicated licensing are still a polemic in the country. The complexity of licensing makes investors reluctant to invest. Cabinet Secretary (Seskab) Pramono Anung also said that Indonesia had experienced obesity regulation, with many regulations from the level of law to local regulations. As a result, a number of regulatory arrangements overlap and cause various problems.
According to Pramono, the government has actually taken steps to regulate the regulation. However, these efforts have not been enough to overcome the regulatory problems that are considered so complex. In order to overcome obesity legislation that has implications for the complexity in its implementation, the idea of Omnibus Law is considered as an alternative way to resolve the impact of conflict conflicts (disharmony) and also obesity.
Hopefully the implementation of this step will soon be able to overcome all the problems of chaotic regulations in all sectors, especially the economy. Because the economy has an important role to realize the welfare of society as a whole.
Furthermore, if the SMEs are able to improve their performance, it is quite possible that ahead of the new year the impact of simplifying regulations will be able to stabilize the government economy. Food supply is safe, prices are safe, distribution is safe and the MSME sector can still benefit.
) * The author is a social political observer
