President Jokowi

The President of the Republic of Indonesia, Joko Widodo (Jokowi), today (24/1/22) has inaugurated Presidential Regulation (Perpres) no. 2/2022 concerning the rules for the 2021-2024 National Entrepreneurship Development.

The Presidential Regulation regulates the Development of National Entrepreneurship in 2021-2024, to achieve the targets of the 2020-2024 National Medium-Term Development Plan. The main objective is clearly to improve the quality of national growth, business climate, competitiveness, and expand job opportunities.

This is explained in one of the considerations of Presidential Decree no. 2 2022, “In the context of accelerating the growth and ratio of entrepreneurship through entrepreneurial development as referred to in letter a, it is necessary to synergize and strengthen cross-sectoral program coordination between ministries/agencies and local governments.”

As stated in the Presidential Regulation 2/2022, it can be concluded that the Presidential Regulation aims to be a guideline for ministries/agencies (K/L), local governments, and other stakeholders in the development of national entrepreneurship which is set for the 2021-2022 period. This needs to be regulated so that a balance is created between several stakeholders.

With the Presidential Decree, economic growth through the entrepreneurial sector is predicted to increase. This is because the Presidential Regulation can strengthen the entrepreneurial ecosystem in Indonesia.

Furthermore, the Presidential Regulation can strengthen the added value, capacity, and scale of entrepreneurial businesses that utilize technology.

Article 11 of Presidential Decree 2/2022 states, Ministries/Agencies, and local governments will provide facilities and incentives following the state’s financial capacity/regional finances to develop national entrepreneurship. Referring to this information, entrepreneurs will be greatly helped by the existence of this Presidential Regulation.

Various needs are given

The convenience that will be provided by the government is the ease of registration of business licenses that are integrated electronically by the provisions of laws and regulations, facilitation of standardization, domestic and export certification, access to financing and guarantees, as well as prioritizing the procurement of government goods and services.

Meanwhile, access to incentives in question is in the form of relief and/or relief from regional and local taxes, interest subsidies for government project credit loans, and income tax relief (PPh) as required by law.

This Presidential Regulation also regulates funding for the implementation of national entrepreneurship development.

In the Presidential Regulation, it is explained that the funding in question can be sourced from the APBN, APBD, and/or other legitimate sources in accordance with the provisions of the legislation.