Through Law No. 11 of 2020 on Job Creation (Job Creation Law), the government amended and added several provisions governing Micro, Small, and Medium Enterprises (MSMEs) that had previously been compiled in Law No. 20 of 2008 (MSME Law).
The changes and additions to the articles are a form of assistance and support from the government in order to make it easier for MSMEs to develop.
Want to know what are the conveniences provided?
Check out the next description!
Business License Fee Waivers
MSEs that apply for Business Licenses can be given incentives in the form of no fees for Micro Enterprises and fee waivers for Small Enterprises in accordance with Article 12 of the UMKM Law jo. Job Creation Law.
Financing and guarantee for MSMEs
For Micro and Small Enterprises, financing can be received from the central government, local governments, State-Owned Enterprises (SOEs), and national and foreign Large Enterprises.
Such financing can be in the form of loans, guarantees, grants, and other financing.
The government can also provide incentives in the form of ease of licensing requirements, tariff relief for facilities and infrastructure, and other forms of incentives.
As for Medium Enterprises, the government facilitates and encourages the increase of working capital and investment financing through the expansion of sources and patterns of financing, access to capital markets, and developing credit guarantee institutions, and improving the functions of export guarantee institutions.
Providing incentives to Large and Medium Enterprises in the context of partnership activities with cooperatives or MSEs.
The central and local governments are obliged to facilitate, support, and stimulate the partnership activities of Medium Enterprises and Large Enterprises with Cooperatives, Micro Enterprises, and Small Enterprises that aim to increase business competence and level.
For actors who have entered into partnerships, the government will provide incentives through product development for export, employment, use of environmentally friendly technology, and organizing education and training.
MSEs are given ease/simplification of tax administration
Export-oriented MSEs can be given customs incentives and certain MSEs can be given Income Tax (PPh) incentives.
Make it easier for MSEs to register and finance Intellectual Property Rights (IPR).
Not only that, the central and regional governments also facilitate and simplify the process for MSEs in importing raw materials and industrial auxiliary materials if they cannot be met from within the country, and/or export facilitation.
Fee waiver for obtaining Halal Certification.
This point is regulated in Law No. 33 of 2014 concerning Halal Product Guarantee which has been amended in the Job Creation Law.
It is said in Article 44 Paragraph 2 of the regulation, if the application for Halal Certification is submitted by MSE actors, it will not be charged.
The central government allocates the Special Allocation Fund (DAK).
DAK is provided as a form of funding support for local governments in the context of MSME empowerment and development activities.
The allocation of DAK must be done in accordance with the provisions of laws and regulations.
Provision of promotional space for MSEs in public infrastructure.
Central and local governments, BUMN, BUMD, and private business entities are obliged to allocate the provision of promotional places, business places, and/or the development of MSEs in public infrastructure which includes terminals, airports, ports, train stations, toll road rest areas and services, and other public infrastructure.
The allocation is at least 30% of the area of the shopping place in the public infrastructure concerned.
Provision of legal aid and assistance services.
Such provision is mandatory by the central government and local governments.
This provision is emphasized in Article 96 of the UMKM Law jo
The above benefits can be felt by MSME players if they already have a Micro and Small Business License (IUMK).
IUMK is a sign of legality to a person or business actor / certain activities in the form of a MSE license in the form of one sheet.
The IUMK is issued by the Online Single Submission (OSS) Institution which is carried out in a way:
- Access the OSS website to obtain a user account (https://oss.go.id)
- Register on the OSS page using a user account
- Registration is done by filling in the data as listed in OSS
- OSS issues NIBs to business actors who have filled in the data completely.
After the business actor obtains an NIB, the OSS Institution will simultaneously issue an IUMK.
The IUMK can be used by business actors to carry out business activities and apply for a Commercial or Operational License.
Read also: Important Points of the Job Creation Law that You Should Know
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