We are optimistic that the certificate for village-owned enterprises would offer them a credential to prove their professionalismJakarta (ANTARA) - Minister of Law and Human Rights Yasonna Laoly expressed optimism that recognition of village-owned enterprises as legal entities through a certificate offered by the government will bolster the village economy and village enterprises in Indonesia.
"We are optimistic that the certificate for village-owned enterprises would offer them a credential to prove their professionalism. We must also remember Mr President's message that the certificate is not merely a piece of paper, but it should also boost the development of village enterprises," Laoly stated in a statement here on Monday.
The certificate was launched by President Joko Widodo at a ceremony conducted during the 2021 Village-owned Enterprises National Coordination Meeting in Jakarta on Monday.
The minister expects that the breakthrough would boost the utilisation of village funding for the best interests of residents.
The legal basis for village-owned enterprises is stipulated in Article 9, Chapter 5 of Law No. 11 of 2021 on village-owned enterprises and Law and Human Rights Ministry's Regulation No. 40 of 2021 on issuance of certificate for village-owned enterprises, he revealed.
Laoly noted that village-owned enterprises can register for recognition as a legal entity through the village information system (SID), and institutions responsible for village affairs will cross-check and examine the application.
Verified applications will be submitted to the law and human rights minister through the legal entity administration system (SABH), and applicant enterprises will receive the electronic certificate, he stated.
"To ensure sustainable village development, we have delegated the management of village funds to village-owned enterprises, currently totalling around 57,200 enterprises," Laoly stated.
The minister remarked that President Widodo had instructed the authority to ensure proper management of the village fund, as the central government had allocated a total of Rp400 trillion (around US$28 billion) for the village fund from 2015 to 2021.
The massive village fund budget demonstrates the government's commitment to advancing villages, enhancing the residents' livelihood, and reducing inequality, he added.
"The massive budget will ensure progress in village infrastructure, electricity access, and economic development, and villages will no longer be left behind," Laoly remarked.
Related news: Jokowi urges SOEs, private sector to involve village-owned enterprises
Related news: Village-owned enterprises must improve villagers' livelihood: Minister
Related news: Tourism development can fuel village economy recovery: expert
Translator: Putu Indah S, Nabil Ihsan
Editor: Sri Haryati
Copyright © ANTARA 2021
