The Role of the Government in Reaching the Welfare of Small and Medium Enterprises in the Perspective of Law Number 20 of 2008 Concerning Micro, Small and Medium Enterprises

Widiarty, Wiwik Sri (2023) The Role of the Government in Reaching the Welfare of Small and Medium Enterprises in the Perspective of Law Number 20 of 2008 Concerning Micro, Small and Medium Enterprises. RUSSIAN LAW JOURNAL, 11 (4). pp. 580-588. ISSN 2312-3605

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Abstract

State's role is urgently needed, especially in its main ideas to create prosperity for SME Sector. Such business undertakings have the ability to create jobs and generate supplementary income for the society, which can enhance social welfare and stimulate development while also boosting the country's economy. However, there are several problems: 1. How to regulate Small and Medium Enterprises in realizing a welfare state, 2. What is the government's role for SMEs according to Law No. 20 of 2008 regarding MSMEs? The study methodology applied is based on normative legal research methods with descriptive-analytical research specifications, and Normative legal research, specifically library-based research, is conducted by analyzing materials from libraries or secondary data sources. The findings of the research determined that, initially, the enactment of Law Number 20 of 2008 regarding Small and Medium Enterprises by the government has led to the advancement of the MSME sector, resulting in increased prosperity, encouraged MSMEs to partner with Large Enterprises by using Article 1338 of Civil Law, specifically the doctrine of contractual autonomy of the involved parties, then through holding the G20 Summit in Bali the order succeeded in making policies by encouraging MSME investment. Second, the government's role for SMEs, namely by providing various stimulus programs through additional restructuring of loan capital in government's initiatives to promote the well-being of the Indonesian populace through the advancement of MSMEs, the Job Creation Law has been enacted to oversee the facilitation, safeguarding, and empowerment of MSMEs, through National Economic Program (PEN). ), through the People's Business Credit (KUR), as well as government policies in organizing the G20 Summit in Bali, succeeded in making policies to encourage MSME investment. Keywords: Role of the State, Welfare, SMEs

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