Jakarta – The Job Creation Law supports micro, small and medium enterprises (MSMEs) in Indonesia. Among them through the ease of licensing and simplified regulations. In addition, MSMEs are also assisted with marketing through assistance by the Office of Cooperatives and UKM. MSME entrepreneurs must be assisted because they are the backbone of the Indonesian economy.
The Covid-19 pandemic for 3 years has shaken the economy a little, including MSME entrepreneurs. They were out of breath in running their business, because people’s purchasing power decreased. Then, there was a change in shopping trends where more people shopped online, while some MSMEs did not have an online shop.
The government helps MSMEs in various ways, one of which is by formalizing the Job Creation Law at the end of 2020. The law contains MSME clusters and ease of doing business clusters that will make it easier for small and medium-sized businesses. They must be assisted because 90% of traders in Indonesia are MSMEs, so saving them also helps the country’s economy.
In the Job Creation Law there is a cluster of ease of doing business and MSME which contains articles that benefit small and medium entrepreneurs. They will be facilitated in managing business license numbers (NIB). MSMEs will have business legality and their business will grow rapidly.
Ade Irfan Pulungan, Member of the Work Creation Law Task Force Synergy Working Group, stated that MSMEs can take advantage of what can be mandated by the government, namely the Job Creation Law. This law is for the benefit of society, and the quality of MSMEs can be improved by it.
In a sense, the Job Creation Law can improve the quality of MSMEs because there are several conveniences for them. First, it is easy to manage business license numbers (NIB). This permit is free so that MSMEs will not be in trouble, especially when they are recovering after being hit by a pandemic. NIB processing is also fast, it takes less than 2 weeks to complete, with the condition that the administration must be complete.
When MSMEs already have an NIB, their business will be legal and recognized by the state. MSME entrepreneurs will be more serious in doing business and try hard to improve their quality. They not only make products with national standards, but also international ones.
If the quality of MSME products increases, it will have a positive impact on them. Product sales will be more in demand and turnover will increase rapidly. MSMEs will get high profits, even more than before the pandemic. In this way, they will be more advanced and simultaneously drive the Indonesian economy.
Then, MSMEs are assisted by the Job Creation Law because there is a customs incentive. MSMEs engaged in exports and imports will be greatly helped by this. They will try to improve the quality of service because there is ease in doing business, and the people are happy because even though they are ‘only’ with MSME status, the service is satisfying.
MSMEs are also assisted to obtain loans from banks for business capital. Moreover, they already have an NIB as one of the conditions for obtaining credit with low interest. If there is additional capital, MSMEs can develop their business while improving their quality.
For example, in SMEs engaged in the culinary field. When you already have money as additional business capital, you will buy new machines, such as sealer machines so that food is safe and hygienic, large refrigerators, etc. The quality of food products will increase because they are more durable and do not spill easily when delivered by couriers.
The Job Creation Law also states that MSMEs are assisted to obtain MUI halal status and the government also provides free fees. With this status, they can sell more safely, because Indonesian people are always looking for halal food, beverage and cosmetic products.
MSMEs will be encouraged to improve the quality of their products because with the MUI halal label, they are expanding and exporting their products. In the Arabian peninsula, the government always requires that products that enter must be halal, and MSMEs have met these requirements.
Meanwhile, Macroeconomics expert, Iskandar Simorangkir, stated that the government provides ease of doing business for MSMEs. The breakthrough was made through the Job Creation Law. Efforts continue to be made so that the economy is more efficient and competitive in the global market. Indonesian MSMEs can also become part of a global value chain such as MSMEs in Japan and Germany.
In the Job Creation Law and its derivative regulations (Government Regulation number 7 of 2021) there are several rules that facilitate the performance of MSMEs in Indonesia. First, there is the acceleration of digitalization of MSMEs. The digitalization acceleration is carried out by the Ministry of Trade and cooperates with the private sector. MSMEs will learn how to do business online and take advantage of networks in the digital era.
The acceleration of digitalization is very important because now is the era of information technology and online shops are very widespread. Digitization is also carried out in financial settings. Where MSMEs are trained to be disciplined and take advantage of financial regulatory applications, which are facilitated by the central and regional governments. The facilities are also 100% free, making it easier for MSMEs, where they are experiencing various difficulties due to the effects of the pandemic. The Job Creation Law makes it easier for MSME players because there is a cluster of ease of doing business so that they can make it easier for them to formally process permits. With a business license number, the business is legal and gains the trust of the bank to increase capital through credit. MSMEs must be assisted because they are the backbone of the Indonesian economy.
