The law facilitates MSMEs in terms of licensing, business development, and access to finance and markets, Edy Priyono, a main expert staff of the Presidential Staff Office (KSP), remarked here on Thursday.
In line with the new law, business licenses can be obtained online through the Online Single Submission (OSS) system, and a cooperative can be set up with just nine people instead of 20, Priyono noted in a statement.
In addition, the official confirmed that the government will bear the cost of halal certification for micro and small businesses. Moreover, Intellectual Property Rights (HKI) for UMKM products can be managed conveniently.
"That will be immensely helpful. From there, in my opinion, the aim is quite clear, specifically to reduce obstacles to start a business for MSME players," he stated.
In terms of business development, the official cited Articles 99 and 101 that specifically regulate business incubation for micro and small entrepreneurs.
"This business incubation can be conducted by the central and regional governments, the business world, and the community," he noted.
Access to finance for MSMEs is stipulated in Article 102 of the law that has become a basis for the government to provide alternative financing support for micro- and small-scale startups.
The same article also stipulates provisions on government support for MSMEs to access sources of partnership financing, grants from the government, revolving funds, and Corporate Social Responsibility (CSR) funds from the business world.
Furthermore, export-oriented MSMEs can receive customs incentives in accordance with the provisions of the Customs Regulations, and certain MSMEs can also receive Income Tax incentives in accordance with the provisions of the Legislation in the Income Tax Sector as regulated in articles 92, 93, and 94 of the Ciptaker Law.
In connection with market access, an article regulates market guarantees for UMKM products. This article stipulates that in the procurement of government goods and services, a minimum of 40 percent of domestic products should be derived from UMKM.
Moreover, provisions oblige the government to facilitate the existence of partnerships between micro and small businesses and medium and large businesses in the supply chain.
Hence, he affirmed that the government had encouraged micro and small businesses to become suppliers for medium and large businesses through mutually beneficial partnerships.
The government has, so far, offered various stimuli for MSMEs to keep the wheels of the economy in motion.
Presidential Chief of Staff Moeldoko highlighted the crucial contribution of MSMEs to the Indonesian economy since they absorb the largest workforce, or some 97 percent of Indonesia's total workers. Related news: Job Creation Law will help people prosper: Moeldoko
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Translator: Rangga PAJ, Fardah
Editor: Suharto
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