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The Job Creation Law makes it easier for MSME actors

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By: Astrid Julian )*

The Job Creation Act is a universal sweeping regulation that can summarize regulations in Indonesia. The regulation also has a Micro, Small and Medium Enterprises (MSME) cluster that favors small entrepreneurs so that they can continue to develop their businesses.

The pandemic has shaken the economic situation and the groups most affected are small traders or MSMEs (business, micro, small and medium enterprises). People’s purchasing power decreases so that their income is running low. The government is trying to help MSME actors not to go out of business by promulgating the Job Creation Law.

In the Job Creation Law, there is a cluster of MSMEs that will make it easier for small traders to do business. Managing business licenses is easier and the system is online via online single submission. In addition, MSME entrepreneurs only need legality in the form of an NIB (Business Permit Number) so they don’t have to take care of an HO permit which is relatively more expensive. With the NIB, it is easier for small traders to get credit from banks.

The Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki, stated that the Job Creation Law supports the strengthening of MSMEs through the digital economy. The way is through the incubation assistance program and the digitization of SMEs. Finally, MSME entrepreneurs will access national and international markets.

In a sense, MSMEs are encouraged to enter the digital realm because the opportunities are very wide. Its market reach is not only in its own city but throughout Indonesia, even the whole world. With online marketing, you will get more buyers because the market in cyberspace can be accessed by netizens from abroad, and the income is certainly greater because there are more customers.

Digitalization is indeed encouraged during the pandemic because there are changing trends in shopping. People no longer buy from conventional stores, but choose to shop online because it is practical, just open the gadget and the goods are delivered to their home. MSME actors are also encouraged to migrate to digital so that they are more able to reach potential markets.

To teach MSMEs to go digital, the method is the incubation method, namely mentoring and funding. The government provides a special budget that is channeled but not in the form of social assistance (bansos). However, the funding is in collaboration with third parties, namely Start Up companies that provide loan funds.

If the funding is in the form of a loan, MSME actors will be responsible for returning it. It is different from Social Assistance which can be used up once because it is used for personal purposes, not to increase trading capital. The government provides a hook, not a fish, so that the ease of borrowing will make MSME entrepreneurs continue to strive for their business to progress.

After MSME entrepreneurs get funding assistance, the government also provides assistance so that they understand how to go digital. Assistance through trainings held by the Cooperatives and SMEs Office. In this assistance, it will be discussed how to use the internet as a vehicle for trading and ways to advertise in order to get many customers.

So far, there are still MSME entrepreneurs who think that the internet is only used to watch videos or create statuses. Whereas video platforms can also increase brand awareness and social media helps acquire many potential buyers. With assistance, MSME actors understand how to advertise on Facebook, Instagram, and other social media platforms.

The implementation of the Job Creation Law makes it easier for MSME actors to run their business, because there is assistance from the government. With the government’s attention, MSMEs are expected to be more empowered and able to absorb a larger workforce.

)* The author is a contributor to the Press Circle and Cikini Students

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