Nurhaedah Nurhaedah, Dian Eka Puspita Azis

Legal Protection of MSMEs in the Digital Technology Era in Makassar City: Facing Recession

Introduction

Legal protection of msmes in the digital technology era in makassar city: facing recession. Explore legal protection for MSMEs in Makassar's digital era amid recession. This study identifies challenges in legality & market access, highlighting low document ownership despite policies. Recommends intensive legal assistance to boost competitiveness.

Abstract

This study aims to encourage government policies and regulations in protecting MSMEs, to analyze the obstacles faced by micro, small, and medium enterprises in obtaining legality and access to the market. Using a normative-empirical legal approach method, this study examines the applicable laws and regulations and explores the socio-economic conditions of MSME actors in Makassar. The results of the study show that although the government has issued policies such as NIB, IUMK, and PIRT, the level of ownership of legal documents among MSMEs is very low. This is due to the lack of socialization, minimal digital-based knowledge services for business actors, and limited access to legal services. The digital era has made a positive contribution to legal protection of businesses, through the Online Single Submission (OSS) system, which facilitates the creation of documents as business legalization. The use of electronic documents can strengthen legal certainty, as valid evidence if a business dispute. Therefore, intensive and continuous legal assistance is needed to increase the awareness and presence of business actors, in order to support the desires and competitiveness of the emerging MSMEs in the era of globalization and the threat of future recession.

Review

This study addresses a highly pertinent and critical issue concerning the legal protection of Micro, Small, and Medium Enterprises (MSMEs) in Makassar City, particularly in the context of the evolving digital landscape and the looming threat of economic recession. The paper sets out to encourage more effective government policies and regulations while meticulously analyzing the multi-faceted obstacles MSMEs encounter in achieving legal recognition and market access. Its focus on Makassar City provides a valuable localized perspective on a challenge that resonates globally, highlighting the imperative for robust legal frameworks to bolster the resilience and competitiveness of these vital economic actors. Employing a commendable normative-empirical legal approach, the research effectively bridges the gap between legal theory and practical realities. It scrutinizes existing legal provisions and government initiatives such as NIB, IUMK, and PIRT, contrasting them with the socio-economic conditions of MSME actors. A significant finding is the alarmingly low rate of legal document ownership among MSMEs, primarily attributed to insufficient socialization, inadequate digital-based knowledge services, and limited access to legal assistance. While the study rightly identifies the Online Single Submission (OSS) system as a positive digital contribution for facilitating business legalization and strengthening legal certainty through electronic documents, it underscores that the full potential of these digital tools remains untapped due to the aforementioned barriers. The findings convincingly argue for the urgent necessity of intensive and continuous legal assistance for MSMEs. This support is crucial not only to raise awareness and improve compliance but also to fully leverage digital technologies for legal protection, ultimately enhancing the presence and competitiveness of MSMEs in the face of globalization and recession. The study's conclusions offer clear and actionable policy recommendations, emphasizing that proactive government intervention, coupled with sustained capacity building in digital literacy and legal navigation, is paramount for MSMEs to thrive. This paper thus makes a valuable contribution to understanding the intricate dynamics of MSME legal protection and offers a pathway towards more effective policy implementation.

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