By: Putu Prawira) *
The government initiated the Job Creation Law which was able to facilitate business. With this new legal product, it is hoped that the resilience of Micro, Small and Medium Enterprises can be empowered in the midst of the crisis due to the Covid-19 pandemic.
During the Covid-19 Pandemic, the health sector and the economic sector were the most affected sectors, including MSMEs, which partly chose to reduce production and lay off employees.
Director of the UKM Center, Faculty of Economics and Business, University of Indonesia (FEB UI) TM Zakir Syakur Machmud assessed that the Job Creation Law is an alternative solution to revive MSMEs in the midst of the Covid-19 pandemic.
He said, the Job Creation Law has contained a number of articles concerning support for MSMEs, one of which is the problem of cheaper and easier financing, especially for micro and small businesses.
The Job Creation Law (Ciptaker) allows the central and local governments to finance MSMEs only by guaranteeing the business prospects of micro and small entrepreneurs, no need to use collateral anymore.
Zakir also suggested, in terms of funding for MSMEs without collateral, it is necessary to involve other parties. This is because currently central and regional government funding sources are limited and they are also used for many other purposes.
In terms of providing cash assistance to MSMEs, Zakir assessed that the various assistance provided by the government at this time was just right to reach UMKM players.
Meanwhile, Didik Purwadi as an entrepreneurship observer invited MSME players to really take advantage of the support of the Job Creation Law to the UMKM sector.
In his written statement, Didik said that UMKM actors should really take advantage of the Job Creation Law.
Examples of utilization are collaborating with investors or State-Owned Enterprises (BUMN). Because one of the benefits of the Job Creation Law for MSMEs is to prioritize in partnerships with large unit companies and BUMN.
To find out what else can be utilized from the Job Creation Law, MSME actors and aspiring entrepreneurs really need to know the contents of the Job Creation Law and its derivative regulations regarding points regarding support for MSMEs.
The current pandemic condition poses a serious threat to both businesses and workers. The government arguably faces challenges in overcoming the problem of unemployment either due to the pandemic or the emergence of around two million new workforce each year. Of course, this condition can be answered with the implementation of the Job Creation Law.
He also said that the Job Creation Law was a breakthrough for problems arising from the pandemic, such as extraordinary unemployment to more than 8 million unemployed workers, even though the new workforce was still growing.
To overcome this problem, through the Job Creation Law, MSMEs get support by providing facilities, protection and empowerment so that they can develop and absorb more maximum employment opportunities. This is what is needed today.
This is written in article 3 of Law (UU) number 11/2020 concerning Job Creation, it is stated that to increase employment, micro, small and medium enterprises (MSMEs) are given facilities, protection and empowerment.
On different occasions, President Joko Widodo said that the Job Creation Law would have a significant impact on improving the business climate and investing in Indonesia. First, the business and investment licensing process has become simpler and more accelerated.
This simplification makes licensing for micro and small businesses unnecessary. These business actors can now carry out their business by simply registering. This has become the government’s commitment in helping and protecting the potential of micro and small businesses in Indonesia. Moreover, with the reduction of the bureaucracy, businessmen or umkm actors can avoid extortion.
The government has also integrated the entire licensing process into an electronic licensing system through an online single submission system which has implications for the prevention of increasingly strong extortion and corruption.
Through the Work Certificate Act, the government has also formed a soverign wealth fund and protects and enhances the role of workers in supporting investment in Indonesia, including providing legal certainty in regulating minimum wages and severance pay.
We have to get up and keep going even though the pandemic has not ended, cooperation, collaboration and synergy are components that must continue to be encouraged. Moreover, the Job Creation Law has been passed as the legal umbrella for business actors.
) * The author is a contributor to the Cikini Press Circle and Students
