Legislator Urges Overhaul of MSME Legal Status and Data Systems

Member of the House of Representatives’ Commission VII, Gandung Pardiman, believes that business legality and data integration remain key challenges for the development of micro, small, and medium enterprises (MSMEs). He said resolving these issues will determine the success of MSMEs in growing and upgrading their scale.

Gandung said MSMEs are the backbone of the national economy, contributing 61-63% to gross domestic product (GDP) and absorbing 97% of the workforce.

“However, digitalisation and scaling up MSMEs will have no impact if these fundamental issues—insufficient legal status and fragmented MSME data—are not resolved,” Gandung stated on Friday (29 May 2026).

According to Gandung, many MSME operators still lack a Business Identification Number (NIB), halal certificates, PIRT, or corporate tax identification numbers (NPWP). This makes it difficult for them to access KUR financing, join state-owned enterprise (BUMN) supply chains, or participate in government procurement via e-katalog.

“Banking and financing institutions require legal certainty. Marketplaces and BUMNs need legal documents. If legality is not sorted, MSMEs will remain stuck at the micro level,” said the Golkar politician from the Special Region of Yogyakarta.

Furthermore, Gandung highlighted that MSME data is scattered across various sectors and platforms, causing government assistance and development programmes to be less effective as entrepreneurs have to repeatedly input the same data.

“This leaves the government struggling to provide stimulus to MSMEs needing support. Data integration is not just about efficiency but also fairness for MSME entrepreneurs,” Gandung said.

He stressed that strengthening the MSME ecosystem requires comprehensive efforts to ensure digitalisation proceeds alongside business certainty and easier access to financing.

“Digitalisation, legal status, and integrated data are key to enabling MSMEs to upgrade their scale,” Gandung added.