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Muhammadiyah seeks simpler licensing process, tax exemption for social enterprises
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SMK Muhammadiyah 5 vocational school students in Tello Baru, Makassar, South Sulawesi, take part in in-person learning on Nov. 17, 2020. The class applied strict health protocols and only allowed a maximum of seven students per class. (Antara/epost-robot)
M
uhammadiyah, the country's second-largest Muslim organization and which pursues educational and social missions, has asked the government to ease permit application procedures and provide tax exemptions for social enterprises in the forthcoming implementing regulations for the Job Creation Law.
The group presented its request last Wednesday in a discussion with a team established by the Office of the Coordinating Economic Affairs Minister tasked with gathering public input concerning the planned government regulations (PP) and presidential regulations (Perpres).
"Certain organizations like ours often face difficulties in obtaining business permits, as the government often only provides two licensing options, which are for companies and for [nonprofit] foundations," the head of Muhammadiyah's economy and entrepreneurship council, Indra Nur Fauzi, said in a statement on Thursday.
"We hope the government could pay more attention to us and other [social enterprises], especially considering our big contribution to the country's economy," he added.
Muhammadiyah runs some 6,000 schools, 100 universities, 460 hospitals and more than 20,000 kindergartens and playgroups. According to Indra, the organization has contributed substantially to the nation's economy by providing jobs for more than 135,000 people through its various nonprofit missions.
"The 135,000 figure is only counting those who directly work for the organization, and does not take into consideration our multiplier effect," Indra said, hoping that the government would also regulate tax incentives for social enterprises that had made major contributions to society.
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