Gov’t Issues Regulation on Empowerment of Cooperatives, MSMEs

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 27 Februari 2021
Category: News
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The Government on 2 February 2021 issued Government Regulation Number 7 of 2021 on Facilities, Protection and Empowerment for Cooperatives and Micro, Small and Medium Enterprises (MSMEs).

The Regulation is one of the implementing regulations of Law Number 11 of 2020 on Job Creation.

“The Job Creation Law stipulates many provisions for Cooperatives and MSMEs. I hope that the provisions can provide business certainty and strengthen business development for Cooperatives and MSMEs,” Minister of Cooperatives and Small and Medium Enterprises Teten Masduki said, as quoted from the Ministry of Cooperatives and Small and Medium Enterprises’s website.

Teten said that one of the priorities of the Ministry which will be carried out through the Government Regulation is the preparation of an accurate single database of the MSMEs.

“The compilation of the single data will be coordinated with Statistics Indonesia (BPS) that will conduct a census to obtain MSMEs data by name and address,” he said.

The Regulation also stipulates the allocation of 30 percent of the public infrastructure area for Cooperatives and MSMEs. Regarding this point, Teten said that the Ministry will cooperate with other Ministries / Agencies and the cooperation will be stipulated in a joint decree (SKB).

Teten also expressed hope that that the inclusion of Cooperatives and MSMEs into public infrastructure will increase the competitiveness and turnover of MSMEs entities.

The implementation of entrepreneurship training that emphasizes the incubation system, he added, will replace the on-off training model.

“The Regulation states that the Government is not only a regulator, but also a mentor, motivator and partner for aspiring entrepreneurial startups,” he said.

Teten went on to say that he would oversee the implementation of this implementing regulation of the Job Creation Law so that it will be properly implemented.

For the record, Government Regulation Number 7 of 2021 consists of 10 Chapters and 143 Articles. The Regulation covers the clusters of Cooperatives and MSMEs in the Job Creation Law.

With the enactment of the Regulation, the provision of facilities, protection and empowerment for Cooperatives and MSMEs can be more optimal, comprehensive and well-coordinated. The Regulation is expected to encourage cooperatives and MSMEs to be resilient and robust and can become the backbone of the Indonesian economy. (Public Relations of Ministry of Cooperatives and MSMEs/UN) (RI/MUR)

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