Jakarta (ANTARA) - Legal and development expert Hardjuno Wiwoho has\nproposed the drafting of a Government Regulation (PP) on Strengthening\nthe UMKM Digitalisation Ecosystem.<\/p>\n
He stated that the regulation could serve as an overarching\ncross-sectoral legal framework to harmonise various dispersed and\nunsynchronised regulations, including the Electronic Information and\nTransactions Law, the UMKM Law, the Law on the Development and\nStrengthening of the Financial Sector, and Government Regulation Number\n7 of 2021.<\/p>\n
\u201cUMKM are not merely small-scale businesses. They represent the true\nembodiment of the people\u2019s economy mandated by the constitution,\u201d\nHardjuno said in a statement in Jakarta on Thursday.<\/p>\n
Therefore, he opined that when digitalisation arrives without\nadequate legal protection, it does not empower but rather creates new\nexclusions.<\/p>\n
In addition to the PP, Hardjuno also recommended the establishment of\nthe Indonesian UMKM Digitalisation Council as a national coordinating\nbody to connect the central government, regional governments, industry\nplayers, and digital communities.<\/p>\n
According to him, out of the 64 million UMKM units in Indonesia that\nabsorb 97 per cent of the national workforce and contribute more than 60\nper cent to the Gross Domestic Product (GDP), only about half have\nutilised digital platforms for their business activities.<\/p>\n
Overlapping regulations, uneven digital infrastructure, low legal\nliteracy among UMKM actors, and the dominance of large platforms that\ndisadvantage small businesses are identified as significant\nbarriers.<\/p>\n
Through his research titled Reformulation of Legal Policies for\nCreating a UMKM Digitalisation Ecosystem to Improve Community Welfare in\nIndonesia, Hardjuno offers three conceptual yet applicable innovation\nmodels.<\/p>\n
First, a tripartite legal protection model that proportionally\nregulates relationships between UMKM as sellers, consumers, and third\nparties such as digital platforms, payment service providers, and\nlogistics services.<\/p>\n
He continued, second, an integrated UMKM payment system model that\nensures legal certainty for transaction funds through fund segregation\nand the use of virtual accounts in the name of UMKM.<\/p>\n
The third model is strengthening the legal standing of UMKM as\ndigital legal subjects with rights to objections, defences, and access\nto fair and effective dispute resolution.<\/p>\n
\u201cThe PP can be used as a normative instrument to operationalise these\nthree models,\u201d he said.<\/p>\n
Meanwhile, the government, in supporting UMKM growth, is now focusing\non improving and fostering a fairer digital market.<\/p>\n
Deputy Minister of Communication and Digitalisation Nezar Patria\nstated that to support the growth of digital UMKM in Indonesia, the\ncurrent government focus is no longer on creating the number of online\nUMKM, but on enhancing UMKM capabilities to expand capacity, broaden\nmarkets, and upgrade their level.<\/p>\n
\u201cIf we say UMKM must go online, that is already done. Now we are\ntalking about how they can go productive and go competitive,\u201d Nezar said\nin his statement received and confirmed in Jakarta on Wednesday\n(8\/4).<\/p>\n
Digitalisation opens opportunities but also brings new risks. Many\nUMKM face pressure from cheap imported products entering through digital\nplatforms.<\/p>\n
Nezar emphasised the importance of fairness in the digital ecosystem.\nThe government is pushing for an equal playing field, a level playing\nfield, so that UMKM do not lose to the power of platforms and global\nproducts.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/legal-expert-proposes-drafting-government-regulation-to-strengthen-umkm-digitalisation-ecosystem-1775739056", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }