Literature Study : Is Government Regulation Effective On Umkm Actors In Indonesia?

This study aims to evaluate the effectiveness of government regulations on Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, especially through Law Number 20 of 2008 concerning MSMEs and the Job Creation Law (UU Cipta Kerja). Using qualitative methods and a descriptive approach, data were collected through literature study by science journals and related documents. Thematic analysis was used to identify key themes, such as licensing, financing, and digitalization, and to compare field data with government policies. The results of the study show that although regulations have helped improve access to financing and simplify licensing, implementation in the field still faces bureaucratic obstacles, lack of coordination between institutions, and limited access to technology. The Job Creation Law has expanded the criteria for business capital and introduced a risk-based licensing system, but its effectiveness still needs to be improved through better socialization and strengthening of digital infrastructure. With further evaluation and simplification, regulations are expected to support optimal MSME growth.