Jakarta | Small and Medium Enterprises (SMEs) have enormous potential for our country's economy. SMEs are the backbone of the economy, as they contribute significantly to trade development and Indonesia’s economic growth.
In Indonesia, there are approximately 60 million SME business players. SMEs also serve as the largest contributor to our country's gross domestic product.
Given this reality, SMEs can be a key asset in facing global competition. However, many classic problems often affect SMEs, such as management and capital issues. Many SME business players are also still confused about licensing.
Presidential Regulation No. 98 of 2014 on Licensing for Micro and Small Enterprises explains that empowering SME players is necessary to drive regional economic growth. This empowerment is carried out by providing simple business permits for micro and small business operators.
The Micro and Small Business License (IUMK) is a legal certificate in the form of a single-page permit for micro and small businesses.
In February 2015, the government issued a policy to simplify the IUMK application process through the local sub-district head or village head. This policy was marked by the signing of a memorandum of understanding by three ministers: the Minister of Cooperatives and SMEs, the Minister of Trade, and the Minister of Home Affairs.
How to Apply?
In reality, obtaining an IUMK for SME business players is quite simple. SME business players need to submit several documents to process the IUMK. These documents include an introduction letter from the neighborhood association (RT) and community association (RW) where they reside, as well as details about the type and location of the business. Additionally, applicants must provide their identity card (KTP), family card (KK), and a passport-sized photo. After that, they need to complete the application form.
Next, the sub-district head, who has received a mandate from the district head or mayor, will review the IUMK registration documents. If all requirements are met, the sub-district head can approve and issue the IUMK.
The issuance of a single-page IUMK document takes a maximum of one day from the date of application submission. There are no fees, levies, or charges involved in obtaining the IUMK.
The sub-district head has the authority to revoke the IUMK if SME business players are found to violate regulations, fail to comply with the IUMK's business activity provisions, sell illegal products, or operate businesses that contradict the law.
Benefits of IUMK
The IUMK is not just an ordinary business permit for SMEs. There are many benefits that SME business players can gain. What are they?
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Easier Collaboration
IUMK serves as a legal certification for SME business players. With IUMK, SMEs can collaborate with similar or different business players. This legal certification provides trust and strengthens business operations. -
Legal Status
IUMK is an official legal certification that is legally accountable and recognized by various authoritative entities. It represents SME compliance with national laws. -
Tax Awareness
IUMK helps increase awareness and encourages SME business players to pay taxes according to their business sector. -
Easier Access to Capital
Banks require official licensing documents. IUMK fulfills this requirement. With IUMK, SME business players can access funding from banks and non-bank institutions. They can apply for loans more easily. -
Business Location Protection
Holding an IUMK provides SME business players with security, legal certainty, and protection in designated business locations. They will not be relocated without a clear reason. -
Business Assistance and Development
Lastly, SME business players holding an IUMK can receive business assistance and development support from relevant institutions. They gain broad access to grow their businesses. Additionally, they have greater opportunities to receive government support and participate in SME business programs.
IUMK is crucial for SME business players. To ensure smooth business operations, IUMK should be obtained and properly maintained by SME entrepreneurs. Moreover, the central government has already simplified the application process. (Source: http://www.seputarukm.com / Kinciakincia.com)