Jakarta (ANTARA) - The Job Creation Law will usher in structural reform of MSMEs to streamline the way their businesses are run, according to President Joko Widodo (Jokowi).

"In the last six years, the government has continued to conduct structural reforms to improve the ease of doing business for MSMEs, including through the Job Creation Law," the head of state noted in a video statement at the SMSE Kumparan Festival here on Monday.

The president remarked that the Job Creation Law would ease the process of opening new businesses for MSME entrepreneurs. Business licensing for micro- and small-scale enterprises, or SMEs, is no longer necessary, though solely necessitating them to go for registration.

Overlapping regulations and complicated procedures for MSMEs have been done away with. In addition, business barriers, such as illegal fees in business bureaucracy, have been trimmed by simplifying, integrating, and adapting electronic systems.

"By simplifying, cutting, and integrating it into the licensing system electronically, extortion can be eliminated," the president noted.

The head of state is keen to witness rapid development of MSME businesses, including those owned by the millennial generation, since it would lead to greater job creation. To this end, it is crucial to ensure that the business ecosystem for the MSME sector is conducive.

"I imagine if one millennial-owned business employs only five people, how many thousands are already working, deriving direct benefits from the business transformation brought about by young people," Jokowi stated.

Demands for jobs in Indonesia are huge since some 2.9 million youngsters enter the working age group annually, he pointed out.

In addition, Indonesia experiences a demographic bonus. The composition of the population of people belonging to the productive age group of 15-64 years is very large. Indonesians in this productive age phase will cross 60 percent by 2030.

"Hence, we need more job creators, young entrepreneurs, who will create new jobs," the president noted. Related news: Government holds online halal products' management training for MSMEs
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Translator: Indra Arief P, Fardah
Editor: Rahmad Nasution
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