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Derivative Rules of the Job Creation Law to Accelerate MSME Growth

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By: Alfisyah Kumalasari)*

Micro, Small and Medium Enterprises (MSMEs) are a sector that does not escape the attention of the government, the existence of MSMEs has succeeded in stimulating the economy in the region and is able to absorb labor. Of course, MSME actors must get convenience and protection in developing their business.

From the licensing aspect, the government has facilitated 1.3 million micro and small businesses to obtain a Business Identification Number (NIB) through a risk-based online licensing service system (OSS RBA) developed by the Investment Coordinating Board (BKPM).

In order to provide promotional space for MSMEs, the Kemenkop SME has also encouraged micro/small business partnerships with terminal managers through a plan to sign an MoU with the Ministry of Transportation, Ministry of PUPR and Ministry of SOEs. It is recorded that up to now the provision of MSME promotions in various public facilities has reached 30 percent.

The position of MSMEs is very strategic because of the 133 million jobs in Indonesia, 120 million of them are MSMEs. The total business units in Indonesia are also 99.6% of MSMEs or equivalent to 54.6 million MSME units. This means that the position of MSMEs is very strategic, both in terms of the structure of national economic growth and in the context of equity.

The Employment Creation Law also regulates the ease of developing MSMEs, among others, MSME business activities can be used as guarantees for accessing business financing loans. Not only that, the process of registering Intellectual Property Rights (IPR) is also said to be simplified and simplified.

As for expanding the market and promoting their products, MSMEs also get greater opportunities in toll road rest areas and public infrastructure such as terminals, airports, ports, train stations and others. Previously, Coordinating Minister for the Economy Airlangga Hartarto ensured that the Job Creation Act not only encouraged investment in the macro sector, but also micro, small and medium enterprises (MSMEs) in Indonesia. The Job Creation Law has apparently changed the provisions regarding the criteria for MSMEs in Law Number 20 of 2008 concerning Micro, Small and Medium Enterprises.

According to Article 87 point 1 of the Job Creation Law, the criteria for MSMEs can include business capital, turnover, net worth indicators, annual sales results, or investment value, incentives and disincentives, application of environmentally friendly technology, local content, or the number of workers in accordance with the criteria for each business sector.

The Job Creation Law itself has also changed the provisions regarding the criteria for MSMEs in Law Number 20 of 2008 concerning Micro, Small and Medium Enterprises. The provisions regarding the criteria for MSMEs in the Job Creation Law will be further regulated in a government regulation. So regarding the criteria for SMEs, they must wait for government regulations first.

In the provisions of the Job Creation Law, there are several provisions that provide convenience for MSMEs. One of them is the provision regarding the provision of incentives and facilities for Medium and Large Enterprises that partner with MSEs.

This is written in Article 90 paragraph (1) of the Employment Creation Law which obliges the central government and local governments to facilitate, support and stimulate the activities of medium and large business partnerships with cooperatives, micro and small businesses aimed at increasing competence and business level.

With this provision, micro and small business actors (UMK) are given facilities by the government to partner with medium and large businesses. The partnership in question covers the transfer of skills in the fields of production and marketing processing, capital, human resources and technology.

Then, based on article 90 paragraph (5) of the Job Creation Law, it is stated that medium and large businesses that partner with MSEs will be given incentives by the central government. So that it is not only the MSEs who benefit, the medium and large businesses that partner with MSEs also benefit. However, currently the provisions regarding the provision of incentives still need to be regulated in government regulations.

Meanwhile, in Article 92 of the Job Creation Law, MSE business actors will get convenience or simplification in terms of tax administration in order to apply for financing facilities from the central government. MSME actors who apply for business licenses will be given incentives without incurring fees or fee waivers.

In the article, certain MSME actors can be given income tax incentives (PPh). In addition, MSME entrepreneurs in the food sector will also get convenience in managing halal certification. This is of course based on Law Number 33 of 2014 Article 4 concerning Halal Product Guarantee which states that products circulated and traded in Indonesia must be halal certified.

Various facilities can be obtained by MSME actors with the Job Creation Act, ranging from licensing, professional facilities

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