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Job Creation Law Provides Ease for the MSME Sector

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By: Dodik Prasetyo )*

The Micro, Small and Medium Enterprises (MSME) sector seems to be getting ease in developing their business. This is due to the Employment Copyright Act which cuts various regulations that are considered overlapping.

Especially for MSMEs, the Job Creation Law is said to have several benefits that help facilitate access to licensing, supply chain access, business development access, financing access and market access. This law is also considered to support the acceleration of the digitization of MSMEs by providing training and assistance in the use of systems/applications in each line of business and business incubation, so that MSME businesses can be based on innovation and technology.

Regarding financing, the Job Creation Law also regulates easy and cheap credit distribution for business activities. In this law, there is an ease of collateral for MSEs, which does not have to be in the form of assets, but with the business activity itself. In addition, access to financing for MSEs has also been expanded, starting from alternative financing to revolving funds. Lastly, with the Employment Creation Act, market opportunities and priorities for MSME products can be wider.

The existence of the Job Creation Law can also provide convenience for MSMEs to obtain a Business Identification Number (NIB). MSME actors who obtain an NIB will also have their benefits expanded after the Employment Creation Law is enacted. In addition to getting a permit, the NIB can make the business more formal because it can serve as an Indonesian national standard (SNI) and halal certification.

Through the Job Creation Law, the government changed and added several provisions governing MSMEs which had previously been compiled in Law no. 20 of 2008. Changes and additions to the article are a form of assistance and support from the government in order to facilitate MSMEs to develop.

For MSMEs that apply for business licenses, they can be given incentives in the form of fee waivers for micro-enterprises and fee waivers for small businesses in accordance with Article 12 of the MSME Law jo. Job Creation Law. For MSMEs, financing can be received from the central government, regional governments, state-owned enterprises, as well as large national and foreign businesses. The financing can be in the form of loans, guarantees, grants and other financing.

The government can also provide incentives in the form of ease of licensing requirements, reduced tariffs for facilities and infrastructure and other forms of incentives. As for Medium Enterprises, the government facilitates and encourages increased working capital and investment financing through expansion of financing sources and patterns, access to capital markets and developing credit guarantee institutions and improving the functions of export guarantee institutions.

The central and local governments also have an obligation to facilitate, support and stimulate partnership activities of medium and large businesses with Cooperatives, Micro and Small Businesses aimed at increasing competence and business level. For actors who have entered into partnerships, the government will provide incentives through product development so that they can be exported, employment, use of environmentally friendly technology, as well as providing education and training.

Not only that, the central and regional governments also make it easier to process so that MSEs can import raw materials and industrial auxiliary materials if they cannot be met from within the country and/or export facilitation.

In addition, the central government also allocates a Special Allocation Fund (DAK). DAK is given as a form of funding support for local governments in the context of empowering and developing MSMEs. The allocation of DAK must be carried out in accordance with the provisions of the legislation.

For MSMEs who are constrained in promotional matters, the central and regional governments, BUMN, BUMD and private business entities are required to allocate the provision of promotion places, business premises and/or MSE development in public infrastructure which includes terminals, airports, ports, train stations, places of worship. rest and toll road services, as well as other public infrastructure. The allocation is at least 30% of the total area of ​​expenditure on the public infrastructure concerned.

One of the special things for MSME actors in the food and beverages sector is the fee-free policy to obtain halal certification. These points are regulated in Law Number 33 of 2014 concerning Guaranteed Halal Products which has been amended in the Job Creation Law. In accordance with article 44 paragraph 2 of the regulation, if the application for halal certification is submitted by UMK actors, no fees will be charged.

In addition, MSMEs will also be easier to develop because the government has simplified tax administration. Certain MSEs will receive income tax incentives (PPh).

The Job Creation Law is a special regulation for MSME actors who want to develop their business, with this regulation, the licensing process will be easier and faster, so that it will have an impact on acceleration

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