The Job Creation Law offers a solution to the problems faced by micro, small, and medium enterprises (MSMEs), according to Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso.
Susiwijono highlighted that obstacles encountered by UMKM, such as business cannot be used as a guarantee for obtaining funds, difficulties in partnering and business licensing, and legal problems, can be overcome by Chapter V of the Job Creation Law for the ease, protection, and empowerment of cooperatives and MSMEs clusters.
“For tackling each of these difficulties, we have prepared regulations and policies to overcome the various obstacles faced by MSMEs and our cooperatives,” Susiwijono remarked during an online discussion “Economic Recovery for the National MSME Sector” in Jakarta, Wednesday.
The solutions outlined in the Job Creation Law encompass ease of financing facilities and fiscal incentives, additional arrangements related to partnerships, training and assistance in the use of bookkeeping systems and applications, certification of halal product guarantees for MSMEs, legal aid and assistance services, and ease of single business licensing via online single submission.
Apart from the Job Creation Law, support for MSMEs is also offered through the national economic recovery program (PEN), with funding allocation in 2021 reaching Rp191.13 trillion and realization until mid-April 2021 reaching 19.7 percent, or Rp37.71 trillion.
Some other forms of support are through subsidies for people’s business credit interest extended until the end of the year, productive assistance of Rp15.36 trillion for micro-businesses until guaranteeing the placement of funds on the restructuring of bank loans.
“The government has prepared various programs and policies, both in the context of PEN and various programs, which we are optimistic of providing convenience, protection, and empowerment for our MSMEs,” Susiwijono remarked.
Until March 2021, Indonesia had 64.2 million MSMEs, with the sector having employed 97 percent of Indonesia’s workforce and accounting for about 61.07 percent of the country’s GDP, or Rp8,573.9 trillion.
Moreover, around 60.42 percent of the investment was in the MSME sector that also contributed 14.37 percent to export growth.
Source: Antara News