Jokowi Emphasize the Role of Job Creation Law on Structural Reforms of MSMEs

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President Joko Widodo

For President Joko Widodo (Jokowi), the Job Creation Law would usher in systemic reform of MSMEs to streamline the way their enterprises are managed.

The government emphasized that they continued to pursue structural reforms over the past six years to improve the ease of doing business for MSMEs, including through the Job Creation Law. The president remarked that the Job Creation Legislation would ease the process for MSME entrepreneurs to start new businesses. Business licensing for micro- and small-scale enterprises, or small and medium-sized enterprises is no longer required, although it merely allows them to register.

Overlapping laws and complex processes have been done away with for MSMEs. Furthermore, through simplifying, incorporating, and adapting electronic structures, market barriers, such as illegal fees in market bureaucracy, have been cut.

The Head of State is keen to see the rapid growth of MSME companies particularly those belonging to the millennial generation, as this will lead to further job creation. To this end, ensuring that the market environment is conducive to the MSME sector is crucial. As some 2.9 million young people join the working age group annually, he pointed out, job demands in Indonesia are massive.

Moreover, Indonesia is experiencing a demographic bonus. The population composition of individuals belonging to the active age group of 15-64 years is very large. Indonesians would reach 60 percent by 2030 in this active age phase.

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