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Jakarta Post

Government's plan to empower MSMEs through omnibus bill faces backlash

  • Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
Jakarta   /   Thu, February 27, 2020   /  02:47 pm
The Jakarta Post Image
Initiators and participants of the Ayo UKM Jualan Online (SMEs, Let's Sell Online ) movement during its launch in Jakarta in April 2019.(JP/Riza Roidila Mufti)

The government’s plan to empower micro, small and medium enterprises (MSME) and cooperatives through the omnibus bill on job creation is facing backlash from stakeholders. Association of Indonesian MSMEs (Akumindo) chairman Ikhsan Ingratubun said the plan would harm micro and small businesses. “The President said during his inauguration speech in 2019 that the government would empower MSMEs. However, the bill may actually harm businesses,” Ikhsan told The Jakarta Post on Wednesday. “The bill does not set a maximum threshold for businesses that could be considered an MSME, this could lead to big businesses claiming to be MSMEs.” Ikhsan said the bill could lead to multiple interpretations, calling on the government and stakeholders to review it. According to Article 94 of the draft bill, an MSME is defined by several criterial, namely its net wo...