Corporation and MSMEs

MSMEs in Indonesia are not new and in fact have existed for more than 20 years, where the regulation has been known in Law Number 9 of 1995 concerning Small Business, but unfortunately it only received attention during the reign of President Susilo Bambang Yudhoyono where at that time Indonesia has been involved in various ASEAN economic cooperation, thus forcing reforms to laws and regulations, namely those 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 which are constantly being updated according to the times. MSMEs are better known as Minor, Small & Medium Entrepreneurs. It is appropriate for MSMEs to get special attention because the results of the survey in all ASEAN member countries which are developing countries turned out to be the largest contribution to economic growth originating from MSMEs.

Micro enterprises are productive businesses owned by individuals and / or individual business entities that meet the following criteria:

  1. has a net assets of not more than Rp.50.000.000,00 (fifty million rupiahs) excluding land and buildings for business premises;
  2. or have annual sales proceeds of not more than Rp. 300.000.000,00 (three hundred million rupiah).

Meanwhile, Small Business is a productive economic business that stands alone, which is carried out by individuals or business entities that are not subsidiaries or not a branch of a company that is owned, controlled, or is a part, either directly or indirectly, of a small business as referred to in the Law. , that is:

  1. has net assets 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 buildings for business premises; or
  2. 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 and five hundred million rupiah).

Medium Enterprises are defined as independent productive economic enterprises, carried out by individuals or business entities that are not subsidiaries or branches of companies that are owned, controlled, or become part of a small or large business with net assets or annual sales proceeds as following:

  1. has a net worth of more than Rp. 500.000.000,00 (five hundred million rupiah) up to a maximum of Rp. 10.000.000.000,00 (ten billion rupiah) excluding land and buildings for business premises; or
  2. 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 is undeniable that currently MSMEs play a very large role in advancing the Indonesian economy. According to Minister of State-Owned Enterprises (BUMN) Rini Soemarno, MSMEs in the country are the biggest economic driver in this country, where currently there are approximately 57 million MSMEs throughout Indonesia, and these MSMEs continue to grow even when Indonesia is experiencing an economic crisis. Therefore, the government provides many facilities as a form of support for MSME business actors such as convenience in terms of registering Copyright for MSMEs, where copyright registration for MSMEs is now free of charge alias free.

On the other hand, MSMEs also have weaknesses, namely MSMEs find it difficult to 'upgrade' because their business is always stagnant, their market is limited, and their business is difficult to expand. So the question that arises is how can MSMEs develop? In order to develop MSMEs, they must be managed professionally, and one of the efforts so that an UMKM can be run professionally is to obtain legal entity status. By obtaining legal entity status, MSMEs can carry out various legal actions in legal relationships, and the type of legal entity that is most in demand by entrepreneurs, including MSME entrepreneurs, is a Limited Liability Company (PT) because PT legal entities have many advantages such as personal assets safer from the impact of company losses. , there is no time limit, and it is easier to obtain large amounts of funds from the bank to develop a business.

However, besides the facilities that have been provided by the government, there are still various problems that are usually faced by MSME entrepreneurs, for example:

  1. Can MSME actors who are not yet legally incorporated receive protection against copyright, trademark or patent rights in conducting their business?
  2. is businessmen mikro can establish a PT as a form of legal entity from the business considering that the existence of a PT can facilitate and accelerate the development of MSMEs?
  3. What is the dispute settlement mechanism if there is a dispute between MSME business actors who are not yet a legal entity with buyers and supporting organizations such as financial institutions and others?
  4. Is there any legal protection for MSME business actors who are made difficult when processing certification and other permits?

There are still many other questions that readers can get an explanation of by contacting our law office to discuss issues and strategies regarding MSME business rules.

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Writer team