Abstract
This study aims to investigate the empowerment of small enterprises in construction sector and the risks since the issuance of Perpres No.16 Year 2018 and PermenPUPR No 7 Year 2019. The accuracy of the procurement and the development of small-medium enterprise role have been parts of the objectives of government procurement. Then, the policy states that government should give opportunities to small enterprises. Qualitative study was conducted using the approach of applied law research. Literature study and observation on the stake holders were done. The results showed that small enterprises in construction sector played more roles with the procurement package up to Rp 10,000,000,000.00 (ten billion rupiah). However, the implementation in 2018 showed that the role of small enterprises declined compared to the previous year, the participation of small enterprises in construction sector was still low compared to non-small enterprises. Besides that, the small enterprises that received the procurement package were prone to criteria violation of small enterprises as in UU No. 20 Year 2008 about micro, small and medium enterprises (MSME). The identified risk was that the small enterprises received the package for small enterprises in construction sector. This risk should be maintained and handled by procurement agents through effective qualification verification, by government instances that issue the construction permit by developing the potency of the small enterprises to level up, and government instances through association of construction enterprises by cooperating in building good governance in the management of construction procurement.Keywords: small enterprises, empowerment, risks, good governance
Highlights
Micro, small, and medium enterprises (MSME) have proven to be durable during the economic crisis in Indonesia from 1997 to 1998
This study aims to investigate the empowerment of small enterprises in construction sector and the risks since the issuance of Perpres No
This study aims to figure out the mandate and the portrait of the role development of small business in construction sector and the risk control that can obstruct the achievement of accuracy objective and objective to develop the role of MSME
Summary
Small, and medium enterprises (MSME) have proven to be durable during the economic crisis in Indonesia from 1997 to 1998. The government always endeavors to support the development of MSME and strengthens the role of MSME through regulation and policy. The mandate to develop MSME comprehensively, optimally, and sustainably has been stated in Constitution of Indonesian Republic No 20 year 2008 about MSME (which later is called UU 20/2008). Presidential Regulation of Indonesian Republic No 16 year 2018 (abbreviated as P16/2018) about government procurement of goods and services or pengadaan barang dan jasa pemerintah (abbreviated as PBJP) explicitly states several objectives of PBJP. One of which is to develop the role and the number of MSME. The three of the PBJP policies are to give opportunities to MSME, to use information and communication technology and electronic transaction, and to develop PBJP e-marketplace
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