Jakarta (ANTARA) \u2013 The Directorate General of General Legal\nAdministration (Ditjen AHU) at the Ministry of Law has stressed that\nbusiness legality must not prevent micro, small and medium-sized\nenterprises (MSMEs) from developing their businesses and accessing\nfunding.<\/p>\n
Director General of General Legal Administration Widodo said in a\nstatement in Jakarta on Thursday that legality was more than an\nadministrative document.<\/p>\n
The ministry, he said, was seeking to simplify legal-entity services\nso that legal requirements would not impede business growth, including\nthat of social enterprises.<\/p>\n
Clear legal status can boost a business\u2019s credibility, build\npartners\u2019 trust and create opportunities to work with financing\ninstitutions and investors, he said.<\/p>\n
\u201cSimplifying legal services must help businesses grow, not become an\nobstacle. We want MSMEs and social enterprises to have easier access to\nlegal-entity services that suit their needs,\u201d Widodo said.<\/p>\n
Legal certainty is needed to ensure that business activities and\nsocial missions can be sustained.<\/p>\n
Ditjen AHU estimates that around 340,000 social enterprises in\nIndonesia work in community, women\u2019s and youth empowerment. However,\nmore than 55 per cent of them face financial challenges, including\nlimited access to funding.<\/p>\n
The government introduced a mechanism for registering social\nenterprises in November 2024. The policy was strengthened through\nPresidential Regulation No.\u00a038 of 2026 on National Entrepreneurship\nDevelopment.<\/p>\n
To widen access to legal status, Ditjen AHU offers several\nlegal-entity options: individual companies for businesses that meet the\ncriteria for micro and small enterprises, limited liability companies,\nfoundations and associations.<\/p>\n
The individual company is one of the government\u2019s instruments for\nsimplifying business establishment for micro and small enterprises.<\/p>\n
Launched in October 2021, the service allows a company to be\nestablished by one person without a notarial deed, provided the\napplicable requirements are met.<\/p>\n
However, Widodo said, making it easier to establish a business must\nbe accompanied by the ability to sustain and grow it.<\/p>\n
\u201cLegal status is the first step towards building a credible business.\nBut we also recognise the need for other forms of support, such as\nmarket access, financing, capacity-building and strategic partnerships.\nThis will enable businesses to survive and grow, while ensuring that\ntheir economic benefits are felt by the community,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ahu-directorate-general-business-legality-must-not-hinder-msmes-1792669987", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }