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Jakarta Post

Jobs law regulations aim to boost small businesses

  • Dzulfiqar Fathur Rahman


Jakarta   /   Mon, March 1 2021   /  01:00 am
Ebb and flow: Traders sort their catches at the Muara Angke Wholesale Fish Market in North Jakarta on Jan. 23, 2021. The period between December and January is a low fishing season, but fishermen and traders know that these difficult times will not last. (JP/Ricky Yudhistira)(JP/Ricky Yudhistira)

The government’s newly issued regulations derived from the Job Creation Law are expected to improve the business climate for pandemic-wracked micro, small and medium enterprises (MSMEs) by easing licensing processes and facilitating demand. For example, under Government Regulation No. 7/2021, the government and regional administrations are obligated to allocate 40 percent of their goods- and services-procurement budget for small businesses. Meanwhile, ministries and state-owned, regional-owned and private enterprises, should also allocate 30 percent of their commercial areas, shopping centers and public infrastructure, such as airports and rest areas, for promotional and business development spaces for small businesses, the regulation stipulates. The rent for such space is capped at 30 percent of the commercial rental price. MSMEs should also be able to obtain a business r...