MSME Categorization In Indonesia: Is It Potentially Problematic?

Henrycus Winarto Santoso (), Noviaty Kresna Darmasetiawan, Made Siti Sundari, Raymond Lim and Erisa
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Henrycus Winarto Santoso: University of Surabaya
Noviaty Kresna Darmasetiawan: University of Surabaya
Made Siti Sundari: University of Surabaya
Raymond Lim: University of Surabaya
Erisa: University of Surabaya

A chapter in Proceedings of the 19th International Symposium on Management (INSYMA 2022), 2023, pp 272-281 from Springer

Abstract: Abstract In Indonesia, MSMEs play a critical role in driving the economy through labor absorption and contribution to GDP. Therefore, MSME categorization has been through numerous processes of refinement in order to be implemented as intended to ascertain better empowerment by policymakers and provide unbiased objects for researchers. This paper aims to verify if enacting the latest Government Regulation of The Republic of Indonesia No. 7 of 2021 potentially creates problems such as a change in the number of enterprises for each MSME category. The descriptive analysis method was used to anatomize in-depth interpretation of previous and ongoing MSMEs categorization in the law object, and associated scholarly sources are provided through library research. Through microeconomic evaluation “before-after”, this paper conceives that implementing the law object encompasses potential problems such as a change in the number of MSMEs for each MSME category.

Keywords: government regulation; policy; evaluation; implementation; problematic (search for similar items in EconPapers)
Date: 2023
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DOI: 10.2991/978-94-6463-008-4_36

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