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The Job Creation Law Facilitates MSME Development


Issues related to employment are always interesting to discuss, this is due to the increasing number of workforce every year, so large and small companies of course need regulations to develop their business so they can recruit more workers.

The Job Creation Law (UU Ciptaker) is a legal product that is predicted to be able to facilitate the development of Micro, Small and Medium Enterprises (MSMEs). This is because MSMEs are the biggest job creators.

​Raden Pardede as Deputy Chairperson III of the Job Creation Law Task Force said, the Job Creation Law is the government’s formulation in the process of strengthening the people’s economy. Efforts that can be made are by cutting bureaucracy in order to speed up service to the MSME and Investor groups.

Raden explained, whoever the next president will be, must continue, implement this properly, especially since this policy is very pro-MSMEs.

​On a different occasion , legal observer from Gadjah Mada University (UGM) Nindyo Pramono explained that one of the important benefits of the Job Creation Law is the ease of doing business.

​Prior to the regulation of the Job Creation Law, the ease of investment in Indonesia was still less competitive than other countries, including countries in Southeast Asia. Nindyo believes that the Job Creation Law has become a vehicle for economic growth and current investment climate in Indonesia.

​He said that the use of the omnibus method was very appropriate because the government did not need to revise every related law, so that it could accelerate the process of drafting regulations.

In several sub-sectors related to the investment climate, such as the mining, fisheries and licensing sectors, this has been accommodated in the Job Creation Law. Therefore, Nindyo invites the public to be able to study and read these legal products.

Nindyo said that a good understanding of the Job Creation Law is very important, so athe public can understand the positive impact of the Job Creation Law on the economic sector and the workforce.

The work copyright law With the Job Creation Law, it is hoped that this regulation will create a business climate in the country that will be in favor of MSMEs.

Where Micro businesses are able to develop into small businesses. Meanwhile, small businesses are moving into medium-sized businesses, which in turn, advanced medium-sized businesses will become big businesses. This will be a kind of positive domino effect due to the rotation of the Indonesian economy.

​This shows that the Job Creation Law is a policy that is oriented towards the welfare of the Indonesian people in general. Even the implementation of the Job Creation Law can also be a concrete step to reduce the number of unemployed.

​Meanwhile, Edy Priyono as Head of the Monitoring and Evaluation Team for the Job Creation Law at the Presidential Staff Office considers that the Ministry of Cooperatives and Small and Medium Enterprises has succeeded in pushing for the implementation of PP No 7/2021 concerning facilitation, protection and empowerment of Cooperatives and MSMEs which is one of the derivative regulations of the Job Creation Law.

He said that the implementation of the Job Creation Law had provided great support for MSMEs from upstream to downstream. Such as issues of capital, licensing, partnerships, certification, facilitation to marketing.

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

​Through the Job Creation Law, MSME actors also receive counseling and legal assistance. This is evidenced by legal counseling activities for micro-enterprises in 15 provinces and attended by 600 micro/small business actors. On the other hand the Ministry of Cooperatives and Small and Medium Enterprises has also provided legal assistance to 18 micro businesses by Advocates and LBH.

Regarding the mandate of PP No 7/2021 regarding the provision of promotional space facilities for MSMEs in public infrastructure, the Ministry of Cooperatives and Small and Medium Enterprises has also encouraged micro/small business partnerships with terminal managers through plans to sign an MoU with the Ministry of Transportation, Ministry of PUPR and Ministry of BUMN.

​In addition , the government is also proactive in efforts to increase the competence of human resources for MSME actors, the government proactively provides training on various topics. Such as vocational, e-commerce, financial management and competency-based training for micro businesses.

We cannot close our eyes that MSMEs have an important position in the national economic cycle. MSMEs are significantly able to contribute to the Gross Domestic Product by 60%.

What is no less interesting is that the Job Creation Law makes it easy for MSME actors who wish to apply for halal certification, where the application is free of charge.

The Job Creation Law So that it does not just grow but also transforms.

)* The author is a contributor to Nusantara Reading Room

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