The Role of SMEs in The Economic Development of Indonesia: A Study of Competition Law and Policy in The Field of Retail Industry

Authors

  • Anna Maria Tri Anggraini Faculty of Law, Trisakti University, Jakarta

DOI:

https://doi.org/10.31098/ic-smart.v1i1.38

Keywords:

retail industry, small and medium enterprises

Abstract

Indonesian Anti-Monopoly Law provides for the exemption of business actors which belong to the category of small scale businesses. This is the materialization of the law's objective, namely ensuring equal opportunities to do business for large-, medium-, and small-scale entrepreneurs. Small-scale business actors who 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 that have been proven to violate the Anti-Monopoly Law, particularly the prohibition of abusing a 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).  

References

Commission Regulation Number 9 Year 2011 concerning Guidelines for Article 50 Sub-Article h of Law Number 5 Year 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition.

Dwi Susilo, “Dampak Operasi Pasar Modern Terhadap Pendapatan Pedagang Pasar Tradisional di Kota Pekalongan” (The Impact Of Modern Market Operation Towards Traditional Market Tradesman Income In Pekalongan City), http://journal.unikal.ac.id/m index.php/lppm/article/view/199. Accessed on March 15, 2014.

Government Regulation Number 17 Year 2013 concerning the Implementation of Law Number 20 Year 2008 concerning Micro, Small and Medium Businesses.

Government Regulation Number 57 Year 2010 concerning Consolidation, Merger and Acquisition of Shares in Companies Which May Potentially Cause Monopolistic Practices and Unfair Business Competition.

Hasiholan, Samuel. “Role of the SME Sector in Indonesia’s Economy). Written on May 12, 2011. http://samuelhasiholan.wordpress.com/2011/05/12/peran-sektor-ukm-pada-ekonomi-indonesia, accessed on March 12, 2014.

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KPPU’s Decision Number 02/KPPU-L/2005 concerning the Violation of Trading Terms by Carrefour.

KPPU’s Decision Number 09/KPPU-L/2009 concerning the Acquisition of Alfa by Carrefour.

Law Number 20 Year 2008 concerning Micro, Small and Medium Businesses.

Law Number 5 Year 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition.

Lubis, Andi Fahmi, et al. Hukum Persaingan Usaha Teks Dan Konteks (Business Competition Law Text and Context). Jakarta: KPPU, 2009.

Maria Hendriani, “Peran UMKM dalam Perekonomian Indonesia” (The Role of MSMEs in Indonesian Economy), written on December 20, 2012. http://mariahendriani.blogspot.com/ 2012/12/artikel-peran-umkm-dalam-perekonomian.html. Accessed on February 5, 2012.

Presidential Regulation Number 112 Year 2007 concerning the Structuring and Development of Traditional Markets, Shopping Centers and Modern Shops.

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Published

2020-10-12

Issue

Vol. 1 No. 1 (2020): October 2020

Section

Articles

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