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Minister pushes MSMEs Law revision to bolster competitiveness

Jakarta (ANTARA) – Indonesian Micro, Small, and Medium Enterprises (MSMEs) Minister Maman Abdurrahman is pushing for a revision of the Law on MSMEs to strengthen the protection, empowerment, and competitiveness of small businesses.Speaking during a meeting with Committee IV of the Regional Representative Council (DPD) in Jakarta on Tuesday, he stated that the current regulatory framework governing MSMEs must be adapted to modern challenges.According to him, conventional approaches are no longer adequate for managing the tens of millions of MSMEs across Indonesia.”It is impossible for the Ministry of MSMEs to manage 57 million enterprises using conventional methods,” he said, as quoted from a press statement.Abdurrahman noted that existing MSME regulations are currently fragmented, thereby causing inconsistent approaches to mentoring and empowering these businesses.Therefore, the proposed revision is expected to streamline and synchronize policy implementation, making it more cohesive and effective.Law No. 20 of 2008 on MSMEs was previously amended by Law No. 6 of 2023 regarding the Enactment of the Job Creation Emergency Regulation (Perppu) into Law.However, the minister assessed that the regulation still needs updates to adapt to the current technological developments and shifts in the business climate.He affirmed that his ministry is currently preparing the revision, which will encompass several aspects, including strengthening MSMEs' empowerment, developing a unified data system, regulating the digital economy and online marketplaces, and providing legal aid and protection.Abdurrahman underscored that legal protection is a critical priority, as millions of MSME owners across the country remain vulnerable to practices that harm their livelihoods, for instance, illegal levies.He also noted that the revised law will regulate the strengthening of strategic partnerships, integrate MSMEs into global supply chains, and protect local businesses from unfair competition and the influx of cheap imported goods.The minister highlighted the importance of revising the law amid challenges that business owners face in the digital trade ecosystem.As activities in marketplace platforms continue to increase, he said, a regulation capable of fostering fairer and more sustainable relationships for MSMEs is needed to strike a balance.”The existing MSMEs law lacks binding sanctions. Moving forward, robust mechanisms are needed to ensure all parties fulfill their responsibilities to protect, empower, and boost the competitiveness of MSMEs,” he remarked.