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The Job Creation Law Benefits the People and Small Entrepreneurs

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By: Ade Istianah ) *

The Job Creation Law, which was inaugurated on October 8, is apparently expected to change the face of the economy in Indonesia for the better. Moreover, this law has a positive contribution to Micro, Small and Medium Enterprises (UMKM) entrepreneurs. One of them is the matter of licensing which no longer has to deal with the convoluted bureaucracy it used to be.

The Job Creation Law is indeed designed by the government to ease the burden on small entrepreneurs, because there are several articles in the Omnibus Law on the Job Creation Law that can change their fate for the better in the future.

              Article 91 of the Job Creation Law states that licensing MSMEs will be easier. Previously, entrepreneurs had to come directly to the Licensing Service and go through the tortuous bureaucracy, now they can be registered online . With the condition that you must attach a business license from the Head of the RT and a valid KTP.

              Minister of Cooperatives and SMEs, Teten Masduki , stated that the licensing made easier also includes halal certification and distribution permits. Because the government cares for the majority of people who are Muslim, the problem of certification will be made easier. Of course, with assistance from the MUI, so that the UMKM products tested are truly halal tested.

              Halal certification is of course very important for businesses in the food, beverage and cosmetics sector. By having a halal certificate, their products will be trusted by the public and their sales will continue to increase. Because many people feel safe when consuming them or using their cosmetic products. So that the business can get repeat orders.

              The existence of the Omnibus Law on the Job Creation Law also aims for small entrepreneurs with minimal capital. Because they can open a business with official permission without being charged a fee. So that entrepreneurs do not need to worry when they want to export their products, because partners abroad will ask about the legality of their business.

              Changing the rules for managing permits that allow online channels also minimizes extortion by unscrupulous officials. So that small entrepreneurs with minimal capital do not need to prepare facilitation payments to smooth out their business licensing. This will certainly narrow the space for KKN actors.

              In addition, the consolidation of MSMEs, which have been managed by 18 ministries, has also become easier with the one-door policy under the Ministry of Cooperatives and SMEs.             

              Minister of Communication and Informatics (Menkominfo) Johnny G Plate said, it is wrong if the Ciptaker Law is only intended for big businessmen.

              According to him, opening up investment space through the Ciptaker Law should not only be connoted only to foreign investment (PMA) investors. In fact, this Law also targets domestic investment and specifically takes sides with MSMEs.

              Johnny reminded that MSMEs are a support and contributor to 97% of the workforce and contribute more than 60% to the Gross Domestic Product (GDP)

              Therefore, various incentives are provided for MSMEs through the Job Creation Law. In addition to some of these, Johnny pointed out regarding halal certification for SMEs given free of charge or borne by the state.

              Small entrepreneurs such as MSME businesses must be part of a large supply chain . Siding with industrial estate, for example, taking sides where facilities and facilities must be available for cooperatives and MSMEs.

              This alignment has not been done so far. The reason is that so far, MSMEs and cooperatives are in the same competition as large companies.

              Therefore, the government regrets the various disinformations circulating about this Job Creation Law, both in the mass media and social media.

              In addition, during the Covid-19 pandemic, the government also helped through a loan relaxation program. In this case, the small entrepreneur is given a period of 6 months not to pay the installments.

              Meanwhile, for small entrepreneurs who do not have banking access, his party said that the government will provide working capital grants. This program is aimed at productive businesses for micro businesses that have never applied for a loan from a bank.

              With the passage of the Job Creation Law, of course we should feel optimistic that small entrepreneurs, especially MSME players, can continue to rise and advance in class, so that they can remain competitive in the midst of a crisis.

) * The author is a citizen living in Bandung

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