The role of SMEs in the economic development of Indonesia: a study of competition law and policy in the field of retail industry

Anggraini, Anna Maria Tri (2014) The role of SMEs in the economic development of Indonesia: a study of competition law and policy in the field of retail industry. In: 11th ASLI Conference: Law in Asia 2014: Balancing Tradition and Modernization, 29-30 Mei 2014, Kuala Lumpur, Malaysia.

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Abstract

Indonesian Anti-Monopoly Law provides for the exemption of business actors which belong to the category of small scale businesses (Article 50 sub-article h of Law Number 5 Year 1999). This is the materialization of the law’s objective, namely ensuring equal opportunities to do business for large-, medium-, and small-scale entrepreneurs. Further assurance for the protection of small businesses is provided for in Law Number 20 Year 2008 concerning Medium, Small, and Micro Enterprises, giving mandate for the implementation of supervision to the business competition authority, namely KPPU (Article 36 paragraph 2). Small-scale business actors which play a role in Indonesia’s trading system include, among others, business actors engaging in the retail industry. The retail industry started to emerge with the proliferation of modern retail businesses in urban areas based on the franchise concept. In fact, there have been certain large retail businesses which have been proven of violating the Anti- Monopoly Law, particularly the prohibition of abusing dominant position. With their presence, modern retail businesses have gradually replaced traditional retail businesses which generally include small-scale enterprises (SMEs). The above mentioned government policy on protecting small industries has been based on juridical, political as well as economic considerations. From the juridical point of view, there is a law concerning the treatment of medium, small and micro businesses (MSMEs). At the same time, the political and economic consideration is that the government has the task of materializing a just and prosperous society based on the 1945 Constitution of the Republic of Indonesia through national economic development based on economic freedom.

Item Type: Conference or Workshop Item (Paper)
Subjects: K Law > K Law (General)
Divisions: Faculty of Law > Undergraduate Program in Law
Depositing User: FH Universitas Trisakti
Date Deposited: 23 Aug 2020 00:30
Last Modified: 23 Aug 2020 00:30
URI: http://libprint.trisakti.ac.id/id/eprint/1347

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