Opportunities and Challenges of One Person Company for Micro and Small Enterprises in Indonesia

Abstract

The presence of Law Number 11 of 2020 concerning Job Creation invites many pros and cons from various parties. On the other hand, the Job Creation Law also provides new hope for business actors, especially those on a small scale and who are just starting to be able to establish a legal entity for a Limited Liability Company. The presence of the Company for Micro and Small Enterprises (MSE) provides a number of concessions for MSE entrepreneurs, as well as aims to improve the national economy. As a new business model in Indonesia, the Company for MSEs requires adequate regulations to realize the ease of doing business effectively and efficiently. This article discusses the opportunities that can be maximized from this form of business as well as the challenges that both the government and business actors must anticipate. This study on the Company for MSEs which adopts the concept of One Person Company or Single Limited Liability Company in Indonesia also refers to the practice and regulatory experience in Germany and India. From the results of the study, it is necessary to immediately implement an implementing regulation of the Job Creation Law, especially the Limited Liability Company sector which is comprehensive and in accordance with the needs so that the Company's practice for MSEs can be realized in Indonesia.