A global economic recession is expected to come in 2023. In the midst of this situation of increasing economic uncertainty, Micro, Small and Medium Enterprises (MSMEs) are considered to be an effective solution if their presence can be maximized. How can that be? Yes, experience has proven that during previous difficult times, such as the 1998 crisis and the Covid-19 pandemic, MSMEs were at the forefront of being able to survive and become a solution in dealing with economic problems. This is also what makes MSMEs believed to be a surefire solution in facing the 2023 economic recession. This is also in line with the statement of the Minister of Tourism and Creative Economy, Sandiaga Uno, who believes that MSMEs need to be strengthened in facing the 2023 economic recession. He believes that inflation and a potential recession will have an impact on the tourism and creative economy sectors in the country, so it is necessary to encourage the strengthening of MSMEs.
The role of MSMEs in the economy
According to the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM), Indonesia has 64.19 million MSMEs in 2021. This large number makes MSMEs the largest contributor to GDP for Indonesia, which is 61% or equivalent to IDR 8,573.89 trillion. In addition, MSMEs also make a major contribution to employment, which is 97%. From this figure, it is hoped that MSMEs can also survive consistently or even absorb more labor when facing the 2023 economic recession which causes high unemployment. From the data above, Indonesia has the potential for a strong economic base because the number of MSMEs, especially micro businesses, is very large and the absorption of labor is very large. Each year this sector provides a large percentage in reducing the number of unemployed in Indonesia. An additional point for MSMEs is their small dependence on the value of the dollar. Thus, the rise and fall of the dollar during a global economic recession will not have a major effect on the movement of MSMEs in Indonesia. This is the main reason why MSMEs can be an effective solution in various economic conditions, including recession. Awareness of the importance of MSMEs in the sustainability of the economy in Indonesia must be accompanied by policies and regulations from the government to be able to manage and improve the role of MSMEs so that they can continue to grow and develop. In this context, the government also needs to collaborate with banks, the private sector, and state-owned enterprises so that all of these parties can create capital schemes that are easily accessible to MSME players. In addition, the government also needs to prepare various ways to strengthen Indonesian MSMEs in facing the 2023 economic recession, namely by increasing exports, financing, and making it easier for MSMEs to take care of legality.
Benefits of Legality for MSMEs
This is because many MSMEs are informal and do not have legality, making it increasingly difficult to develop and have access to capital. In fact, legality also provides a number of benefits for MSME actors such as:
- Provide legal certainty and protection
- Provide assistance for business development
- Provide easy access to financing
- Provides convenience in empowerment
In order to accelerate economic growth and simplify the business licensing system for Indonesian MSMEs, the government through the Ministry of Investment / Investment Coordinating Board (BKPM) launched the Risk-Based OSS system (OSS RBA). Through the OSS system, the government maps the level of risk according to the business field or the Indonesian Standard Business Field Classification (KBLI). Risk levels are divided into low risk, low medium risk, high medium risk, and high risk. Businesses with a low risk level simply have a Business Identification Number (NIB) as a single license. This NIB includes as legality, Indonesian National Standard (SNI), and Halal Product Guarantee Certification (SJPH). In addition, NIB also includes Company Registration Certificate (TDP), Import Identification Number (API), and customs access for exporters and importers. NIB is very useful for Micro and Small Enterprises (MSEs). Apart from being a single license, NIB also makes it easier for MSEs to access financing from banks to obtain business capital. NIB also allows MSEs to access assistance programs from the Government, as well as to have certainty or legal protection of their business. Meanwhile, businesses with low-medium risk require NIB and Standard Certificate (SS) in the form of an independent statement. Medium-high risk businesses require NIB and SS which must be verified by Ministries/Institutions/Regional Governments. Finally, high-risk businesses need to have an NIB, a license that must be approved by the Ministry/Institution/Local Government, and an SS if required.
KH Contact
Therefore, for MSME players who have not taken care of the above legality documents, it is better to prepare them as soon as possible with Legal Contract. To take care of NIB, statement letter, and standard certification is quite easy, business actors only need to visit the page https://kontrakhukum.com/memulai-usaha. We will help you to take care of OSS legality with professional experts at Kontrak Hukum easily. All you have to do is pay the required fee of Rp1 million, then upload the required prerequisite data. The OSS processing will be completed within 1-3 working days.
What are you waiting for? Make MSMEs a strong business unit by obeying legality! If you want further consultation regarding MSMEs and other legal needs, you can immediately contact us at the following link Tanya KH or via Direct Message (DM) to Instagram @kontrakhukum.
