MSMEs in Indonesia are not new and have actually existed for more than 20 years, where the regulation has been recognized in Law Number 9 of 1995 concerning Small Businesses, but unfortunately this only received attention during the reign of President Susilo Bambang Yudhoyono where at that time Indonesia was involved in various ASEAN economic cooperation, thus forcing reform of the legislation, which was formulated in Law Number 20 of 2008 concerning Micro, Small and Medium Enterprises.
In international regulations, MSMEs have received attention from ASEAN through the formulation of policies to support the growth and development of MSMEs that continue to be updated according to the times. MSMEs are better known as Minor, Small & Medium Entrepreneurs. It is appropriate that MSMEs receive special attention because the survey results in all ASEAN member countries which are developing countries have the largest contribution to economic growth originating from MSMEs.
Micro Enterprises are productive businesses owned by individuals and/or individual business entities that has a net worth less than Rp. 50,000,000.00 (fifty million rupiah) excluding the land and building of the place of business; or
has an annual sales revenue of no more than Rp. 300,000,000.00 (three hundred million rupiah).
Meanwhile, a Small Business is an independent productive economic business, carried out by an individual or business entity that is not a subsidiary or not a branch of a company that is owned, controlled, or a part either directly or indirectly of a small business as referred to in the Law, with a net worth of more than Rp. 50,000,000.00 (fifty million rupiah) up to a maximum of Rp. 500,000,000.00 (five hundred million rupiah) excluding land and building of the place of business, or
has annual sales revenue of more than Rp. 300,000,000.00 (three hundred million rupiah) up to a maximum of Rp. 2,500,000,000.00 (two billion five hundred million rupiah).
Medium-sized Enterprises are independent productive economic businesses, carried out by individuals or business entities that are not subsidiaries or branches of companies owned, controlled, or part of small or large businesses with a net worth of more than Rp. 500,000,000.00 (five hundred million rupiah) up to a maximum of Rp. 10,000,000.00 (ten billion rupiah) excluding land and building of the place of business; or
has annual sales revenue of more than Rp. 2,500,000,000.00 (two billion five hundred million rupiah) up to a maximum of Rp. 50,000,000,000.00 (fifty billion rupiah).
It cannot be denied that currently MSMEs have a very large role in advancing the Indonesian economy. According to Minister of State-Owned Enterprises (BUMN) Erick Thohir, MSMEs in the country are the biggest economic drivers in the country, where there are currently approximately 57 million MSMEs throughout Indonesia, and these MSMEs continue to grow even though Indonesia is experiencing an economic crisis. Therefore, the government provides many facilities as a form of support for MSME businesses such as the ease of copyright registration for MSMEs, where copyright registration for MSMEs is now free of charge.
On the other hand, MSMEs also have a weakness, namely that MSMEs are difficult to 'upgrade' because their businesses are always stalled, and their businesses are difficult to develop. So the question that arises is how can MSMEs develop? To develop MSMEs, they must be managed professionally, and one of the efforts so that MSMEs can be run professionally is to obtain legal entity status. By obtaining the status of a legal entity, MSMEs can carry out various legal acts in legal relations, and the type of legal entity that is most attractive to entrepreneurs including MSME entrepreneurs is a Limited Liability Company (PT) because PT legal entities have many advantages, such as personal assets are safer from the impact of company losses, there is no time limit, and it is easier to obtain large amounts of funds from banks to develop businesses.
However, in addition to the facilities that have been provided by the government, there are still various problems that are usually faced by MSME entrepreneurs, for example:
Can MSME entrepreneurs who are not yet legal entities obtain protection for copyrights, trademarks or patents in running their businesses?
Is there legal protection for MSME entrepreneurs who are complicated in obtaining certification and other licenses?
There are many other questions that readers can get an explanation by contacting our law office to discuss issues and strategies related to MSME business regulations.
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