Abstract
This study analyzes the challenges of Indonesian MSMEs under Law No. 20 of 2008 concerning Micro, Small and Medium Enterprises in the era of AEC 2015-2020 and the readiness of MSMEs under Law No.11 of 2020 concerning Job Creation (the Omnibus Law) in facing the era of AEC 2025. It adopted a normative legal research and found that MSMEs faced many challenges in the AEC era under the MSMEs Law. However, the amendment of this Law by the Omnibus Law constitutes a better strategy to improve and develop the Indonesian MSMEs to be ready in facing the AEC 2025.
Highlights
Association of South East Asian Nations (ASEAN) was formed on August 8, 1967 by five countries, namely the Philippines, Indonesia, Malaysia, Singapore and Thailand
Since Indonesia just enacted this Law in the era of ASEAN Economic Community (AEC), this study aims to analyze the readiness of Indonesian MSMEs and to find out the efficiency of the Law No.[11] of 2020 concerning Job Creation in governing the MSMEs in the era of AEC
The AEC has integrated the economies of ASEAN member states by forming a free trade system among its members
Summary
Association of South East Asian Nations (ASEAN) was formed on August 8, 1967 by five countries, namely the Philippines, Indonesia, Malaysia, Singapore and Thailand. A more political nuance was marked by the birth of the Declaration of ASEAN Concord or Bali Concord I in the 1st ASEAN Summit in Bali on February 24, 1976. In this Declaration, the ASEAN leaders were determined to make ASEAN as a region of peace, neutrality and free from big state intervention outside the Southeast Asian region.[1] At the beginning of its formation, ASEAN was more aimed at responding to the Cold War and anticipating the threat of communism in the Southeast Asian region. Economic cooperation was focused on preferential trade, joint ventures, and complementation schemes between the member states and private parties in the ASEAN region, such as the ASEAN Industrial Projects Plan (1976), Preferential Trading Arrangement (1977) and Enhanced Preferential
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