Legal Protection for Small and Medium Enterprises (SMEs) in Facing Unfair Business Competition

In the context of toxic business competition, this research investigates the legal protection of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, particularly in partnerships with large corporations. The primary emphasis is on the implementation of Law Number 5 of 1999, which prohibits monopolistic practices and unfair business competition, and Law Number 20 of 2008, which pertains to small and medium-sized enterprises. Data was collected from literature studies, pertinent regulations, and in-depth interviews with relevant stakeholders using a qualitative approach and a case study design. The research results show that although the legal framework already exists, effective implementation still requires improvement. MSMEs face various challenges in partnerships with large companies, including access to resources and greater risks in business transactions. Recommendations are prepared to strengthen legal protection through regulatory revisions, strengthening legal institutions, legal education, developing partnerships, and stricter law enforcement. The main aim is to increase fairness in business relations between MSMEs and large companies, as well as support inclusive and sustainable economic growth in Indonesia. It is hoped that the implications of this research can provide a positive contribution in renewing policies that support the development of MSMEs as the backbone of the national economy.

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Publication Details

Journal
Journal Research of Social Science Economics and Management
Published
2024-08-21
DOI
https://doi.org/10.59141/jrssem.v4i1.690
Primary Topic
Indonesian Legal and Regulatory Studies
Type
article
Field-Weighted Citation Impact
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article

Legal Protection for Small and Medium Enterprises (SMEs) in Facing Unfair Business Competition

Diky Dikrurahman, Alip Rahman, Wardi Wardi, Tatang Basujata et al.
Journal Research of Social Science Economics and Management
Indonesian Legal and Regulatory Studies
article

Legal Protection for Small and Medium Enterprises (SMEs) in Facing Unfair Business Competition

Diky Dikrurahman, Alip Rahman, Wardi Wardi, Tatang Basujata, Putri Lestari
article en

Abstract

In the context of toxic business competition, this research investigates the legal protection of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, particularly in partnerships with large corporations. The primary emphasis is on the implementation of Law Number 5 of 1999, which prohibits monopolistic practices and unfair business competition, and Law Number 20 of 2008, which pertains to small and medium-sized enterprises. Data was collected from literature studies, pertinent regulations, and in-depth interviews with relevant stakeholders using a qualitative approach and a case study design. The research results show that although the legal framework already exists, effective implementation still requires improvement. MSMEs face various challenges in partnerships with large companies, including access to resources and greater risks in business transactions. Recommendations are prepared to strengthen legal protection through regulatory revisions, strengthening legal institutions, legal education, developing partnerships, and stricter law enforcement. The main aim is to increase fairness in business relations between MSMEs and large companies, as well as support inclusive and sustainable economic growth in Indonesia. It is hoped that the implications of this research can provide a positive contribution in renewing policies that support the development of MSMEs as the backbone of the national economy.

Journal Research of Social Science Economics and ManagementVol. 4(1)
Universitas Swadaya Gunung Jati (ID)
Partnerships for the goals
Openalex Percentile: Top 79%
Indonesian Legal and Regulatory Studies
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