Empowering and Protecting Local Products: The Implementation of SMEs Product Protection and Legality in Lerep Village Indonesia

Abstract

SMEs are a source of livelihood for small and medium communities in areas in Indonesia. Currently, the government is actively assisting SMEs players in building their businesses in order to improve the family economy and the economy of the people in the region. The size of the contribution of SMEs in supporting the economy of a country so that the existence of SMEs is highly expected by any country because of its vital role in the development and progress of the economy to achieve people’s welfare. The establishment of a business in the SMEs sector is able to absorb the number of workforces who are ready to work but have not yet got a job so that it can reduce the number of unemployed. In establishing a business, SMEs actors should have a legality license or business license to run their business. The importance of legality for SMEs activists is that in running their business entrepreneurs do not need to be confused when their merchandise or business is tested to find out the feasibility and legality of the business they are running. Implementation in the ease of granting permits for SMEs is still not possible in all regions because there are still regional heads who have not issued regulations to delegate the authority to issue SMEs permits to sub-districts. Business licenses or SMEs that have received legality of their products to get it easier in running their business. Business licensing provisions that need to be owned by entrepreneurs in the form of Company Business License are based on the Regulation of the Minister of Trade No. 46/2009 concerning Amendments to Permendag No.36/2007 concerning Issuance of Trading Business Permits.

The Value of Community Participation in the Creation of Local Legal Products in Indonesia

“…The purpose of regional legal products is to regulate the lives of communities at the local level and maintain order, security, and welfare of the local community. Regional legal products must also comply with higher legal regulations, such as the Constitution of the Republic of Indonesia of 1945 and other national legislation (Maulana et al, 2021).…”

Analysis of Product-Service Systems in Micro Small and Medium Enterprises (MSMEs) for Sales Sustainability

“…MSMEs in Indonesia are highly regarded since they provide a significant contribution to the country's economic growth (Khoiruddin, 2023). The features of micro, small, and medium-sized businesses can be inferred from the Law of the Republic of Indonesia Number 20 of 2008 on MSME is the nature of the company's products is subject to change at any time and is not always fixed, the location of the business is subject to change and is not always permanent, not even basic accounting practices such as keeping family and business finances separate, there is insufficient entrepreneurial spirit among human resources (entrepreneurs), the average educational attainment is comparatively extremely low, they typically lack access to banking, however some are able to use non-bank financial institutions, and usually don't have any legality or business license requirements (Maulana et al, 2021).…”

Building Partnership or Competition: Village Business Sustainability in Indonesia

“…Many small and medium enterprises develop and grow in rural areas [41]. The source of raw materials is one reason why small and medium enterprises are widely spread in rural areas [42,43], apart from certain reasons such as the need and special expertise in batik cloth production [44,45].…”