• UMKM and PMA in Indonesia Regulation and Benefits

    UMKM and PMA in Indonesia are business terms that are recently popular due to the introduction of the company establishment regulation. The new regulation introduced in early August 2021 has significant changes compared to the previous 2020 regulation. Among the changes are the requirements for foreign direct investment or PMA to invest in the country.

    Aligning with the government’s agenda of increasing more foreign investments in the country, the new regulation aims to facilitate foreign investment in Indonesia. One of the driving forces for the government to push for this agenda is to improve the local economy. During this pandemic, the government realizes that the local economy relies heavily on imports and exports. Once borders close, businesses topple down one by one.

    Worse, the local government is also forced to restrict businesses instead of health safety. The restriction causes more companies to close down while the unemployment rate climbs. The emergency aids that the government disbursed was not enough to revive the previously growing economy. The number of dying businesses continues to climb while the people grow restless from the lack of income.

    Previous Company Establishment Regulation

    One of the plausible solutions for this problem is to have more foreign investments in the country. It is no secret that Indonesia, a developing country with rich natural resources, is an attractive choice for foreign companies. There is still a lot of untapped markets. Plus, the large population poses a lucrative buying power. Furthermore, there is still much room for technology improvements which can be a good opportunity for foreign investors.

    However, foreign investments in the country are limited due to strict regulations. Some attractive industries for foreign investors are only open for local investments due to the risk factor. The government deems that these strategic industries may be harmful if foreign companies have control.

    In other industries that are less risky, the government imposes a partial ownership regulation. This regulation states that foreign companies can own a majority of the stake, depending on the industry. However, at the least, they must have a local partner. Furthermore, the regulation requires a foreign company to go through complicated bureaucracies to get a business permit.

    Collaborating UMKM and PMA in Indonesia

    Understanding the gravity of the situation, the government forms a plan that involves both UMKM and PMA in Indonesia. UMKM or micro-businesses are the largest occupants of the business category in the country. These businesses are very versatile, targeting various socioeconomic markets. The versatility of this category allows UMKM to cater to the needs of the lower-income population.

    The existence of micro-businesses creates a miniature economy ecosystem in the lower-income sector. It allows money to move and transactions to occur. However, an economic stimulus is crucial to encourage the growth of local businesses. Since the government is unable to give financial stimulus, the best option is to let foreign money into the local economy.

    Putting two and two together, the government decides to create a beneficial symbiosis between UMKM and PMA in Indonesia. Foreign companies must collaborate with local micro-businesses if they wish to invest in the country. For instance, foreign companies investing in a supermarket must have a collaborate with local micro-businesses. This way, foreign companies are still able to invest in the industry they are interested in, while micro-businesses gets the opportunity to grow.

  • Pesiapan Memulai Usaha di Indonesia

    Memulai usaha di Indonesia memang terkesan menarik, tetapi dalam pengerjaannya banyak hal yang harus dipersiapkan. Sering sekali para calon pengusaha terjebak dalam dilema menentukan kapan memulai usahanya dan akhirnya kesempatan pun terlewat. Salah satu kendala yang sering dipikirkan adalah meragukan apakah sudah saat yang tepat atau belum untuk memulai usahanya. Ada juga calon pengusaha yang masih meragukan apakah konsep usahanya dapat berjalan atau tidak.

    Kekhawatiran diatas dapat dimaklumi, karena memulai usaha di Indonesia tentunya dihadapi berbagai resiko. Namun, apabila kekhawatiran ini tidak dapat diatasi, maka usaha pun tidak akan pernah dimulai. Oleh karena itu, penting bagi calon pengusaha untuk mempersiapkan dengan matang saat akan memulai usahanya. Berikut adalah daftar persiapan yang dapat dilakukan menurut MESO:

    Persiapan untuk Memulai Usaha di Indonesia

    • Konsep dan Perencanaan Awal

    Konsep awal sebuah usaha akan menentukan masa depan usaha tersebut. Sebab di dalam tahap perencanaan konsep, perlu dipikirkan barang atau jasa apa saja yang akan diperjualbelikan serta cara untuk menjual barang tersebut. Pengusaha harus dapat menganalisa kekuatan, kelemahan, kesempatan dan ancaman yang berpotensi dihadapi usaha tersebut. Selain itu, calon pengusaha juga harus menentukan target pasar yang sesuai dan yang dituju. 

     

     

    • Market Research Sebelum Memulai Usaha di Indonesia

     

    Setelah mendapatkan konsep yang sesuai, calon pengusaha tersebut harus melakukan market research atau penelitian pasar terlebih dahulu. Fungsi market research ini adalah untuk menunjang analisa awal usaha terhadap produk dan jasa yang ingin dijual. Dari hasil market research, pengusaha dapat menentukan apakah ada target pasar yang berpotensi untuk membeli produk atau jasa yang ditawarkan. Selain itu market research juga dapat membantu calon pengusaha untuk mengetahui kompetitor yang ada di pasar sehingga pengusaha dapat mempersiapkan strategi penjualan dalam menghadapi pesaingnya di bidang yang sama.

     

    • Modal untuk Memulai Usaha di Indonesia

    Untuk memulai usaha di Indonesia atau dimanapun, tentunya memerlukan modal. Tergantung dari jenis usahanya, jumlah modal bervariasi dari yang kecil sampai besar. Oleh karena itu penting bagi calon pengusaha untuk memperhitungkan dengan rinci dan matang jumlah modal yang akan diperlukan. Selain modal utama, calon pengusaha juga harus menyiapkan dana darurat apabila timbul biaya diluar perhitungan saat usahanya sedang dibangun.

     

    • Mengatur Waktu

    Setelah mempersiapkan hal-hal diatas, pengusaha harus juga dapat mengatur waktu dengan baik. Walaupun pada tahap awal waktu yang diperlukan untuk mengurus usaha lebih fleksibel, namun calon pengusaha harus meluangkan waktu lebih banyak untuk fokus membangun usaha tersebut. Oleh karena itu, sangat penting bagi calon pengusaha untuk bisa mengelola waktu dengan benar. Ketika usaha tersebut mulai dijalankan, maka calon pengusaha harus bisa memberikan seluruh waktunya untuk fokus menjalankan usahanya sampai dalam tahap usaha tersebut sudah berjalan dengan stabil. Dengan manajemen waktu yang baik, maka pengusaha dapat meningkatkan efisiensi dan efektifitas saat membangun usahanya. 

     

    • Mental Pengusaha dan Cara Mengelolanya

    Selain dari keempat poin diatas, yang tidak kalah penting untuk dipersiapkan yaitu mental sebagai seorang pengusaha. Dalam menjalankan usaha diperlukan mental yang kuat dalam mengambil keputusan yang cepat dan tepat, dengan segala konsekuensi yang akan dihadapinya ketika menghadapi masalah yang datang, apabila tidak, maka usahanya dalam sekejap akan mengalami kegagalan. Mentalitas yang kuat dan kemampuan untuk mengambil keputusan yang cepat dan baik merupakan faktor penting menjadi pengusaha yang sukses di kemudian hari.

     

    Sekian daftar persiapan yang dapat dilakukan pengusaha sebelum memulai usaha di Indonesia. Apabila pembaca memiliki usul lainnya, silahkan memberi tahu kami melalui bagian komentar. Bagi yang ini membentuk sebuah perusahaan ataupun menyewa Virtual Office atau Ruang Kantor, silahkan hubungi 0812-13-15-4189 (Whatsapp) atau kunjungi www.meso.co.id

     

  • Founding Business in Indonesia with MESO

    Founding business in Indonesia is one of the favourite options for foreign investors looking to expand their business. Indonesia has an estimated 270 million population and is the largest economic powerhouse of South East Asia. With their rich natural resources, the country is known for producing mining goods and displaying a beautiful natural landscape for the tourism industry.

    Aside from the businesses that utilize the rich natural environment, the recently growing technology industry of the country is also of great interest. For example the ride-sharing company, GoJek and the marketplace business, Tokopedia. Moreover, other technology giant companies have also invested in the country. Some of the well-known ones are Shopee, Grab, and many more. The interest of these companies is a testament to Indonesia’s robust economic environment.

    Founding Business in Indonesia: How?

    Founding business in Indonesia requires foreign investors to understand the process of company establishment in the country. A lot of foreign investors mistakenly engages with lawyers to help them to establish their company in Indonesia. In other countries, this is the right step. However, unlike most countries, Indonesia still applies a Dutch system. Therefore, services like company establishment as well as legalizing documents falls in the hands of the notary.

    Like any other purchase, it is important to compare and contrast the options. The same goes for notary services. There are a lot of notaries offering their services. However, it is important to find a trustable and responsible one. Many foreign investors fell for the price trap and ended up with dissatisfying results.

    To ensure a smooth company establishing process, it is crucial to find a trustable source. One of the options is to use MESO Serviced and Virtual Office Legal Services. MESO has been assisting hundreds of companies both local and foreign, in establishing their businesses in Indonesia. The company has been providing their services since 2013. Furthermore, the company also offers a virtual office and serviced office service.

    With those services on top of their legal services, the company needs to maintain a good reputation to maintain its large client base. In addition to those services, MESO also provides a corporate tax service to help clients to report their taxes. All of these services provide clients with an A to Z office solution. Hence, MESO is a great option for foreign investors looking to start their business in Indonesia.

    New Regulations for Investments

    Establishing a business in Indonesia is not difficult. Especially with the introduction of the Omnibus Law that heavily discusses facilitating foreign investment. Many regulations are changed to make it easier for foreign investors to invest and establish companies. For instance, before the most recent regulation change, foreign companies are not able to invest in supermarkets.

    High-risk industries like food and oil are considered key strategic businesses. To prevent possible food shortages, the government used to reserve the business for local companies only. However, in the new regulation, the industry is open for foreign investments as long as they collaborate with micro businesses. The government understands that with more foreign investment, the nation’s economy might gain a significant boost. Plus, collaborating with foreign investors will give the local micro-businesses a higher chance to grow.

    Another set of regulations that benefits foreign investment is the document requirements. Previously, most foreign companies are not allowed to have full ownership of their business. At the time, local companies must have partial ownership of the business. Furthermore, foreign investors need to submit various documents and apply for numerous permits to run the business. With the current rule, everything is much more simplified.

    The requirements for foreign investments in founding a business in Indonesia are mainly company legal documents and capital.

  • Peraturan Baru UMKM di Tahun 2021

    Peraturan Baru UMKM yang diterbitkan pada awal bulan Agustus tahun 2021 lalu memiliki berbagai perbedaan jika dibandingkan dengan peraturan yang lalu. Peraturan sebelumnya terdapat pada UU UMKM yang berdasarkan pada UU No. 20 Tahun 2008 pada dasarnya memiliki batas modal yang jauh lebih kecil bagi setiap kategori usaha. Sehingga perusahaan yang sebetulnya berstatus mikro terpaksa terkategorikan sebagai perusahaan kecil. Hal ini menyebabkan ekosistem usaha yang kurang sehat karena banyak perusahaan yang sebenarnya berukuran mikro namun karena terpaksa menjadi perusahaan kecil tidak kuat menanggung kewajiban.

    Sebaliknya, di peraturan baru UMKM di Tahun 2021 yang mengacu pada PP No. 7 Tahun 2021 (PP UMKM) diutarakan bahwa modal usaha untuk kategori usaha mikro, kecil, dan menengah di perbesar. Tujuan dari perubahan ini adalah untuk meningkatkan batas keuntungan perusahaan mikro. Perbedaan ini cukup signifikan dan penting untuk diketahui para pebisnis, baik yang baru akan memulai usaha maupun yang sudah menjalankan usaha.

    Peraturan Baru UMKM

    Peraturan baru UMKM ini memang sengaja disusun untuk memberikan kesempatan bagi perusahaan mikro untuk berkembang. Selama ini banyak perusahaan mikro yang memiliki perputaran usaha sampai 1 miliar rupiah. Namun, jika mengikuti peraturan tahun 2017 silam, maka perusahaan tersebut sudah tidak dapat lagi beraktifitas sebagai sebuah perusahaan UMKM, melainkan dikategorikan menjadi perusahaan kecil. Dengan adanya aturan tersebut banyak perusahaan yang akhirnya gagal berkembang karena tidak mampu membayarkan kewajiban.

    Padahal jika ditelaah lebih dalam, perputaran keuntungan perusahaan di angka 1 Miliar Rupiah sebetulnya belum dapat dikategorikan sebagai usaha yang sudah kokoh. Perusahaan yang sudah kokoh pastinya akan memiliki perputaran rata-rata lebih dari 83 Juta Rupiah per bulannya. Tumbangnya perusahaan-perusahaan kecil ini mempengaruhi ekosistem ekonomi negara. Perputaran uang pada tingkat dasar menjadi tersendat dan tingkat kemiskinan meningkat. Menanggapi masalah ini, pemerintah akhirnya merubah peraturan agar dapat mengembangkan sektor UMKM.

    Di dalam perubahan peraturan tersebut yang paling signifikan adalah jumlah modal dari kategori perusahaan. Untuk perusahaan berskala mikro atau UMKM, kini batas modal menjadi 1 Miliar Rupiah. Dengan adanya peningkatan modal ini, semakin banyak usaha yang dapat terkategorikan sebagai usaha mikro. Sebagai usaha mikro, usaha mikro yang tadinya dikategorikan sebagai usaha kecil terlepas dari kewajiban yang melebihi kemampuan perusahaan.

    Peningkatan ini juga terjadi pada kategori usaha lainnya. Untuk ukuran usaha kecil, modal usaha kini diatas 1 Miliar Rupiah hingga 5 Miliar Rupiah. Dari angka tersebut dapat dilihat bahwa perusahaan kecil diharapkan merupakan sebuah perusahaan yang sudah mapan. Sementara itu untuk ukuran usaha menengah, modalnya berjarak dari 5 Miliar Rupiah keatas hingga 10 Miliar Rupiah. Berbeda dengan kategori usaha lainnya, Perusahaan Besar tidak mengalami perubahan dengan nilai diatas 10 Miliar Rupiah.

    Informasi ini khususnya penting untuk diketahui pengusaha yang sedang atau akan menjalankan perusahaan berskala mikro. Perusahaan-perusahaan UMKM sendiri banyak mendapatkan dukungan dari pemerintah baik dalam bentuk bantuan dana maupun dalam bentuk kesempatan. Contoh dari bentuk kesempatan ini adalah pameran produk Indonesia di luar negeri. Acara-acara ini biasanya merupakan hasil kolaborasi dari Menteri Perdagangan dan Menteri Parawisata. Di acara ini, UMKM yang mendaftar akan mendapatkan kesempatan untuk menjual produk mereka ke pasar asing.

    PERUSAHAAN PERORANGAN

    Selain dari perubahan modal, peraturan pemerintah UMKM yang baru juga menyinggung perihal kategori usaha baru yakni Perusahaan Perorangan. Tipe badan usaha baru ini diadakan oleh pemerintah untuk mempermudah pelaku bisnis menjalankan usaha. Semakin banyak usaha yang berjalan dan berhasil, maka pondasi ekonomi lebih sehat. Perbedaan antara Perusahaan Perorangan dengan Perseroan Terbatas (PT) adalah jumlah minimum pemegang saham.

    Pada PT, jumlah minimum pemegang sahamnya ada 2 orang sementara untuk Perusahaan Perorangan, hanya dengan 1 pemegang saham sudah bisa berjalan. Namun untuk Perusahaan Perorangan, jenis perusahaan terbatas pada UMKM. Apabila pengusaha berniat untuk menjalankan usaha dengan jumlah modal diatas 1 Miliar Rupiah, maka ia perlu mencari pemegang saham lainnya untuk membentuk sebuah perusahaan kecil.

    Keberadaan Perusahaan Perorangan diharapkan dapat membangkitkan sektor UMKM negara, namun sayangnya sampai sekarang pelaksanaannya belum dapat dijalankan. Hal ini disebabkan karena Kementrian Hukum dan Hak Asasi Manusia (Kemenkumham) belum meresmikan Perusahaan Perorangan. Maka dari itu, informasi perihal Perusahaan Perorangan di situs web Kemenkumham maupun di OSS masih belum tersedia.

  • Virtual Office Legality and Advantages in Indonesia

    Virtual Office legality in Indonesia is no doubt safe. With the development of technology and the appearance of new business models, the regulations to adapt to the changes. Today, the government have set rules to regulate virtual office providers. Therefore, using a Virtual office is safe and legal as long as the providers are registered.

    The sentence above may raise another doubt of confirming the provider’s license. Simply, all a company need to do is ask. Most virtual office providers who have experience in the business is trustable. Like MESO Serviced and Virtual Office, the company has been operating since 2013 and has been providing its service to numerous clients.

    The extensive experience gives the company an advantage in providing excellent service. They will be able to know the troubles clients usually face as well as their basic needs. This is also the reason MESO provides a legal and tax service. Clients can consult with the team in regards to company establishments, permits, and taxes.

    Virtual Office Legality

    Virtual office legality is important because, without it, the clients will not be able to get their business domicile. This is because a company using a virtual office will be using the provider’s address to register their business. Without a legal business address, the government will not issue a business permit.

    In relation to the business address, clients must also check the category of their business. In Jakarta, there are zones to indicate different types of business areas. For instance, a green zone is for business, while a yellow zone is for industrial business. If a company doesn’t follow the regulation they will not be able to get the business permit.

    Furthermore, a company must also check the business requirements before registering in a virtual office. Aside from the business registration documents, companies must also check the requirements for business permits. The registration document is only one out of the various documents needed to issue a business permit. Regardless of whether the virtual office provider has a business permit or not, it doesn’t affect the company renting with them.

    It is important to note that a virtual office is simply providing the business address. The virtual office company is unable to provide business permits for clients. All business permits are issued by the government, not by companies. Hence, companies must check the business permit requirements for the business type the company wants to do.

    The Advantages

    Once an entrepreneur understands the requirements they need to prepare, they must first ensure that they have a company. If the company wants to re-open a subsidiary, Although virtual office legality helps with the business address, other requirements such as capital, etc. must be completed by the applicant. Despite being unable to issue the permit, a virtual office provider usually has a team to aid with the application process. This is true for MESO Serviced and Virtual Office. MESO Legal team can assist and give consultation for company establishment.

    After establishing the company, the next step is to rent a virtual office. Aside from the business address, other advantages of a virtual office are the supporting facilities. Depending on the virtual office packages, the facilities may include a dedicated phone line, meeting room services and even a workstation.

    The dedicated phone line is useful for companies with employees that actively operates outside of the office. That way, even if they are working mobile, they will never miss a client call. Furthermore, it also acts as a barrier between unwanted callers and the company.

    As for the meeting room, a company can utilize this facility with prior booking. In MESO, clients can use various facilities to support their meetings. For instance, Wi-Fi service, webcam, projector, LCD screen and writing board. The clients and their meeting guests will also get free-flow beverages including, tea, fresh coffee, and mineral water.

  • What is Virtual Office and How Does it Work?

    What is virtual office can be a common question for businesses. These days, the term is popular among entrepreneurs as a means to increase business efficiency. In a modern business environment, efficiency and effectiveness are the heart of operations. The goal for company operations is to retain high profit while maintaining a low cost. One of the ways to do it is to simplify daily office operations. Office operations include office costs and the number of employees working.

    Background of Virtual Office

    The two above correlates with each other. Most of the time, office rental cost is high because companies need large offices to fit more employees. In turn, companies hire a lot of employees because they need people to fulfil various jobs. No matter if the job is a specialized or a general one, companies would hire an individual to fill the spot.

    Nonetheless, today, with the advancement of technology, an individual can handle multiple jobs. This situation is often seen in modern startup companies. Rather than having an administration and a sales, one person can do both jobs. The same goes for a marketing position. A marketing person could also work double for business development.

    With this concept in mind, companies no longer need to hire many employees. A team of four suffices. With lesser employees, companies can rent a smaller office. They no longer need a whole office floor or unit to operate. Instead, the simpler it is, the better. Hence, Virtual Office has become a popular choice for businesses.

    What is Virtual Office?

    Lean management is not the sole contributor to the rising popularity of virtual offices. The advanced development of the internet plays an important role as well. The versatility of the internet allows companies to operate freely with no geological boundary. In the past, an office only works if employees are present physically in an office area.

    Today, with the presence of cloud technologies and online communication systems, work can be done online. The ability to do so makes it possible for companies to exist virtually. Companies can register their business in a business location while the personnel work from elsewhere. This is where virtual office comes in handy.

    Using virtual offices enables companies to be free. The employees can work from anywhere without having to commute to a certain location. Any calls to the company can also be forwarded to a designated number the company assigns. Mails and packages too can be delivered to a designated address. This way, the company can easily operate from a residential place without having to worry about breaking the law.

    How Does it Work?

    As the name implies, a virtual office allows the company to exist virtually. A virtual office provides a business address rental service. This is crucial because companies need a business address to operate. In Jakarta, using a residential business to register a company is illegal.

    Furthermore, virtual office addresses are usually in prime business locations. This is advantageous for companies that do not require a physical office to work from. They can gain a prestigious office address with a rental cost far less than an actual office. Plus, by using a virtual office they will also gain access to various supporting office facilities.

    The supporting facility mentioned includes a meeting room, lounge area, as well as a front desk service. When using a meeting room, companies will be able to utilize complimentary facilities like Wi-Fi access, beverages, webcams and projectors. The front desk service will also handle incoming guests, mail and packages and receive calls directed to the company.

  • KBLI 2020 NEW COMPANY ESTABLISHMENT REGULATION

    KBLI 2020 is the newest version of the KBLI that officially applies on the online system on the 3rd of August 2021. Before the change, all entrepreneurs must refer to KBLI 2017 when establishing a company. KBLI itself stands for ‘Klasifikasi Baku Lapangan Usaha Indonesia’ or otherwise, the classification for business fields in Indonesia. The function of this classification is to create standardised business categories for businesses. In turn, the standard serves as a reference for the company decree documents.

    In the newest KBLI 2020, entrepreneurs will find that there are subtle changes within the content. Although it does not apply to all sorts of industries, some undergo significant changes. It is especially true for foreign investment companies and their ownership percentage.

    Using KBLI to find Business Codes

    Understanding the function of the classification standard in the KBLI 2020 document is essential for entrepreneurs. Not just local entrepreneurs, but more so for foreign investment companies. The reason is that, in Indonesia, there are limitations on the amount of capital foreign nationals or companies can own in a company. To identify them, entrepreneurs must first know their business codes.

    Within KBLI 2020 itself, there is information regarding each classification in detail. Entrepreneurs who are unsure if their business falls into which category can easily find explanations written in the document. Compared to the previous KBLI, the newest version is much more helpful for entrepreneurs to read. Not only are the documents better designed for an easier read, but the flow of the content is also fluid.

    To use this document, entrepreneurs need to understand what kind of business they plan to do in Indonesia. In total, entrepreneurs can choose up to 5 KBLI codes. Within the KBLI 2020, the business categories are divided using the Alphabet. This makes it easier for entrepreneurs to narrow down their businesses. Once they found the correct Alphabet, they need to find the number that represents their business.

    These numbers are displayed in table format and also consists of an explanation regarding the business. For instance, what sort of activities they can partake, what kind of items they can sell, and so on. From the information on the business activities, entrepreneurs will know if there are any activity prohibitions within the business code.

    KBLI 2020 and Presidential Order Number 10 2021

    Once the entrepreneur has selected the appropriate KBLI codes, they need to cross-reference the code with the Presidential Order. Similar to the KBLI 2020, the newest Presidential Order was also recently applied to the online system. Within the document, entrepreneurs can find which business categories are open for foreign investments fully or partially. Compared to the previous Presidential Order number 44, the current Presidential Order has many leniencies towards foreign investments.

    This is under the government’s plan to invite more foreign investments to the country. The reason the government does this is to create more job fields, transfer knowledge, as well as to increase the GDP of the country. Furthermore, foreign investments play an important part in helping suburban areas to develop. This scene is quite common in the Central Java area. With more foreign companies building factories there, the area that was previously underdeveloped is now able to build proper roads and public facilities.

    In addition, within the newest Presidential Order, business categories like Supermarket which was initially off-limits for foreign investments are now available. Unlike the KBLI 2020 and current Presidential Order, the closest thing to a supermarket that foreign investment can own is a department store. Even then, foreign investment can only own up to 67% of the PT PMA owning the business. However, now that the policy changes, foreign investments can fully own a supermarket. The only extra requirement is to engage in local UMKM.

  • How do Covid-19 Affect Micro Businesses in Indonesia?

    Micro Businesses in Indonesia experience many negative impacts ever since the COVID-19 pandemic strikes hard on the country. The government sets partial lockdowns to get control over the virus spread. These partial lockdowns only allow the essential business to operate fully while others must operate with the minimum employee or stop their operations. With the pandemic dragging on, the Micro Businesses begins to die down.

    Micro Businesses in Indonesia and their Struggles

    Unfortunately for the country, Micro Businesses in Indonesia occupies the majority of business entities in the country. When the pandemic hits Indonesia, many businesses struggle to sustain the bleak economy. The bad economy has forced many entrepreneurs to close their companies, which increases the unemployment rate.

    Furthermore, the population no longer engages in active buying and selling, which causes a stagnant economy. To give incentives for the people to spend, the government tries to disburse aid funds to Micro Businesses. The plan is not working as the covid-19 pandemic continues to ravage the country. Day by day, more businesses continue to close down as more people are left unemployed.

    Furthermore, the government has also imposed a rule to stop export and import. While the government means well by this regulation, it affects microbusinesses badly. Companies that rely on trading their goods can no longer continue their activity. The businesses are forced to stop their operation since they cannot compete in the market. Furthermore, the buying market that was once a large pool is now a small pool with too many fishermen.

    The Impact Towards the Economy

    With the largest business proportion facing a direct hit, the country’s economy plunges further. As the Micro Businesses in Indonesia faces a rapid decline, larger businesses also face the threat of bankruptcy. Multinational companies begin to shut down their operations one by one. Small and medium companies, that managed to sustain their business for the first year of the pandemic begins to be shaken down.

    Unlike microbusinesses, the government does not extend aid funds to those businesses. One by one they disappear and the number of unemployed increases even higher. The deaths of these companies result in an oversupply of human resources as jobs are declining, demands are much lower than supplies, and poverty level skyrockets. It is a nightmare for any economist.

    To add salt to the injury, the Indonesian government does not have enough funds to support their local businesses. Unlike other neighbouring countries, to support the local economy, their government provides subsidies. The businesses that experience profit loss during the pandemic receives subsidies from the Government. These aids allow companies to run and the economy to sustain at a certain level.

    Solution for Businesses in Indonesia

    On the other hand, Indonesia is facing a larger socio-economic problem. The people have become restless from the ongoing pandemic and the lack of income. More people fall to starvation. The only way for everything to return to normal is if the country and its people can beat the virus. To do that, there is a huge need for cooperation between the government and its people. The government needs to handle medication, vaccines, and the health system correctly while the citizens must obey the rules and regulations.

    If both parties manage to uphold their parts, Micro Businesses will be able to bloom again. That means a decrease in the unemployment rate and an increase in spending. This situation will be beneficial to the whole economy of the country.

    Another effective solution for existing Micro Businesses is to use modern office solutions like MESO Serviced and Virtual Office. Entrepreneurs can either choose to rent a Virtual Office or a Serviced Office. Find out more about the products through our website. Alternatively, contact us on our Whatsapp number at +62812-1315-4189.

  • How to Start a Business in Indonesia

    To start a business in Indonesia requires a lot of preparation to be made. Before engaging a company setup service, entrepreneurs must determine the kind of business they want to do. Entrepreneurs cannot change their decision about the business model after the company is established. This is because Indonesian law states that each company can only have five business codes. These codes will determine which industries the business can do.

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  • What Kind of Office That You Need to Pick?

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