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The Indonesian Employers Association (Apindo) emphasizes the importance of simplifying regulatory frameworks to support the sustainability of Small and Medium Enterprises (SMEs), which serve as the backbone of the economy and dominate job creation in the country.

"I think one thing we all know for sure is that SMEs should not be burdened with excessive licensing and too many regulations," said Apindo Chairman Shinta Kamdani during a panel discussion at the 2nd Indonesia-Africa Forum (IAF) in Nusa Dua, Badung, Bali, on Monday.

Shinta stressed that SMEs are often unable to manage their own businesses, so if they are overwhelmed with numerous licensing processes, they will not be able to grow.

"So, in my opinion, we need to address this very clearly. In fact, the Indonesian government has already begun with the Job Creation Law (Omnibus Law). We have started to review structural reforms to make everything much easier for SMEs," she said.

However, Shinta acknowledged that the implementation of the various regulatory frameworks prepared by the government has not been optimal and needs further support, including from large companies.

Market access, she added, remains a challenge in sustaining SMEs. She emphasized that market access is not only about the global market but also the domestic market, which can integrate SMEs into the value chains of large companies.

"Innovation and digitalization are, of course, major factors for our SMEs. This is where we build all the capacity development and so on. It's done through innovation and digitalization. During the pandemic, I think they lost 60 percent of their income, and they began adapting by developing through e-commerce," she explained.

Additionally, Shinta highlighted the importance of developing human resources and basic skills to help SMEs scale up.

Similar to Africa, Indonesia's SMEs play a significant role in the national economy. SMEs absorb 97 percent of the workforce, while large companies, including industries, are unable to provide as many job opportunities.

"It's not just about job creation but also about how our SMEs can scale up because we want their businesses to be sustainable. It's not just about creating new SMEs but also about ensuring their survival so that their businesses can last longer," she concluded.

source : https://www.antaranews.com/berita/4303455/apindo-soroti-urgensi-penyederhanaan-regulasi-demi-keberlanjutan-ukm