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Optimizing MSME Empowerment Through the Job Creation Law


The presence of Law Number 11 of 2020 concerning Job Creation has changed many components of employment in Indonesia. Law is very important in Indonesia because its presence regulates procedures for behaving and living as a sovereign country.

Indonesia is a legal country that understands and adopts various types of law to be able to provide regulations for everything that exists and happens. Employment activities are one of the things regulated by law. Based on this, everyone needs a law that regulates provisions related to employment.

As the country’s conditions change day by day, laws must also keep up with changing times. Indonesia is also a country whose legal system keeps pace with current developments, so it is felt that society and law in Indonesia will continue to experience open constitutional changes.

This means that the government will continue to make changes to laws and regulations over time with the aim of continuing to provide laws that suit the needs of society.

Even through the Job Creation Law, the government provides many conveniences for Micro and Small Enterprises (UMK) in carrying out their business activities. According to the Ministry of Finance (Kemenkeu), Indonesian MSMEs play an important role in driving the Indonesian economy by creating jobs for more than 100 million Indonesians.

The Director General of State Assets at the Ministry of Finance, Rionald Silaban, said that based on data from the Ministry of Cooperatives and Small and Medium Enterprises, there are approximately 65.4 million MSMEs in Indonesia which are a place of work for more than 100 million Indonesians. MSMEs are the backbone of the country’s economy and their contribution to gross domestic product will reach more than 60 percent in 2020.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the role of the business world was important in helping MSMEs move up in class. He added that the government provides support to help MSMEs through the Job Creation Law and its derivative regulations regarding the protection of the empowerment of cooperatives, small, micro and medium enterprises. It is important to remember that strong collaboration between the government and the private sector is the key to optimizing MSME empowerment

Especially in terms of carrying out halal certification, which has been quite expensive and a long process. The government also provides a solution with a free halal certification program, namely Sehati which implements a  halal self-declaration scheme.  Halal self-declaration  is a statement of the halalness of a product in accordance with the mechanisms and conditions regulated by the Halal Product Guarantee Organizing Agency (BPJPH).

Halal self-declaration provisions   are specified in Law no. 11 of 2020 concerning Job Creation. This scheme is different from the regular scheme because there are no fees charged to business actors.

So, with the Job Creation Law, anything related to MSMEs will be made easier considering that the empowerment of MSMEs requires optimization because it will become a strong pillar for the domestic economic sector.

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