Reduction of Digitalization Policy in Indonesian MSMEs and Implications for Sharia Economic Development

Reza Octavia Kusumaningtyas; Rahayu Subekti; Abdul Kadir Jaelani; Asron Orsantinutsakul; Utkarsh K Mishra

doi:10.31958/juris.v21i2.6855

Reduction of Digitalization Policy in Indonesian MSMEs and Implications for Sharia Economic Development

Reza Octavia Kusumaningtyas, Rahayu Subekti, Abdul Kadir Jaelani, Asron Orsantinutsakul, Utkarsh K Mishra

Abstract

Micro, Small, and Medium Enterprises are one of Indonesia's economic buffer pillars. However, its position as a financial buffer still faces various problems. The purpose of this research is to examine the reduction of digitalization policies for Indonesian MSMEs and their implications for the development of the Islamic economy. This research is normative legal research with a statutory approach. The results showed that the provisions in the Copyright Law that require the digitization of MSMEs make its management more efficient and straightforward. During the COVID-19 pandemic, there has been a twofold increase in the number of businesses transitioning to the digital ecosystem. MSMEs are present in the development of the Islamic economy, with the possibility of managing MSMEs in the technology-based halal industry. Deregulation is carried out by simplifying regulations in order to improve the flow of bureaucracy. However, behind the ease, there are obstacles experienced by MSMEs in their digitalization efforts, including blocks in terms of community culture, regulation, and structure

Keywords

MSMEs; Digitalization; Management; Sharia Economic; Law.

Full Text:

PDF

References

Al-shami, H. A., & Abdullah, S. (2022). Halal food industry certification and operation challenges and manufacturing execution system opportunities. A review study from Malaysia. Materials Today: Proceedings, xxxx. https://doi.org/10.1016/j.matpr.2021.07.331

Ariani, N. K. (2017). Strategi Dinas Koperasi, USAha Kecil dan Menengah dalam Pemberdayaan USAha Mikro Kecil Menengah Dikabupaten Gianyar. Citizen Charter, 18(4), 547–553.

Arianto, B. (2020). Pengembangan UMKM Digital di Masa Pandemi Covid-19. ATRABIS: Jurnal Administrasi Bisnis (e-Journal), 6(2), 233–247. https://doi.org/10.38204/atrabis.v6i2.512

Azizah, S. N., & Muhfiatun, M. (2018). Pengembangan Ekonomi Kreatif Berbasis Kearifan Lokal Pandanus Handicraft dalam Menghadapi Pasar Modern Perspektif Ekonomi Syariah (Study Case di Pandanus Nusa Sambisari Yogyakarta). Aplikasia: Jurnal Aplikasi Ilmu-Ilmu Agama, 17(2), 63. https://doi.org/10.14421/aplikasia.v17i2.1273

Bann, L. L., Singh, M. M., & Samsudin, A. (2015). Trusted Security Policies for Tackling Advanced Persistent Threat via Spear Phishing in BYOD Environment. Procedia Computer Science, 72, 129–136. https://doi.org/10.1016/j.procs.2015.12.113

Castro, L., & Scartascini, C. (2015). Tax compliance and enforcement in the pampas evidence from a field experiment. Journal of Economic Behavior and Organization, 116, 65–82. https://doi.org/10.1016/j.jebo.2015.04.002

Deakin, S., Gindis, D., Hodgson, G. M., Huang, K., & Pistor, K. (2017). Legal institutionalism: Capitalism and the constitutive role of law. Journal of Comparative Economics, 45(1), 188–200. https://doi.org/10.1016/j.jce.2016.04.005

Dewi, F., & Mahendrawathi, E. R. (2019). Business process maturity level of MSMEs in East Java, Indonesia. Procedia Computer Science, 161, 1098–1105. https://doi.org/10.1016/j.procs.2019.11.221

Dian, R., & Jenvitchuwong, S. (2021). Implementation of Halal Product Assurance in the Pharmaceutical Sector in Indonesia. Journal of Human Rights, Culture and Legal System, 1(3), 164–179. https://doi.org/https://doi.org/10.53955/jhcls.v1i3.19

Fikry, M. S., & Ghozali, M. L. (2022). Tinjauan Ekonomi Syariah Terhadap Strategi Pemberdayaan Ekonomi Masyarakat di MWC NU Dukun dan Panceng Gresik. Jurnal Ilmiah Ekonomi Islam, 8(03), 2456–2472.

Gunadi. (2015). Modelling Impacts of Maintenance, Staff Management and Collaboration on E-government Website Availability: A Qualitative System Dynamics Approach. Procedia Computer Science, 72, 145–153. https://doi.org/10.1016/j.procs.2015.12.115

Hartini, T. (2022). Legal Policy of Protection COVID-19 Patients in Hospitals. Journal of Human Rights, Culture and Legal System, 2(1), 45–57. https://doi.org/https://doi.org/10.53955/jhcls.v2i1.25

Henderson, J. C. (2016). Halal food, certification and halal tourism: Insights from Malaysia and Singapore. Tourism Management Perspectives, 19, 160–164. https://doi.org/10.1016/j.tmp.2015.12.006

Hilal, H. F. N., Frastiawan, D., Sup, A., Syams, A., Fahmi, R., & Hilal, F. N. (2020). Dinamika Regulasi Sertifikasi Halal di Indonesia.

Huong, V. Van, & Cuong, L. K. (2019). Does government support promote SME tax payments? New evidence from Vietnam. Finance Research Letters, 31(November 2018), 270–277. https://doi.org/10.1016/j.frl.2018.11.017

Indonesia, B. (2021). Sharia Economic And Financial Report 2021.

Ishak, N., Hasibuan, R. R., & Arbani, T. S. (2020). Bureaucratic and Political Collaboration Towards a Good Governance System. Bestuur, 8(1), 19. https://doi.org/10.20961/bestuur.v8i1.42922

Juniarti, -, Noersanti, L., & Susanti, E. H. (2019). The Impact of Modern Tax System Against Transport Workers Taxpayer Compliance Online. 73(Aicar 2018), 221–223. https://doi.org/10.2991/aicar-18.2019.48

Komite Nasional Keuangan Syariah. (2018). Masterplan Ekonomi Syariah Indonesia 2019-2024. Kementerian Perencanaan Pembangunan Nasional/ Badan Perencanaan Pembangunan Nasional, 1–443. https://knks.go.id/storage/upload/1573459280-Masterplan Eksyar_Preview.pdf

Kusumo, B. A., Wijaksana, M. M. S., Najicha, F. U., Fujiastuti, A., & Jaelani, A. K. (2022). COVID-19 Vaccination Service: Legal Issues and Health Workers Protection in Indonesia. International Journal of Health Sciences, 6(1), 50–60. https://doi.org/10.53730/ijhs.v6n1.2954

Kuswanto, H., Asfihani, A., Sarumaha, Y., & Ohwada, H. (2015). Logistic Regression Ensemble for Predicting Customer Defection with Very Large Sample Size. Procedia Computer Science, 72, 86–93. https://doi.org/10.1016/j.procs.2015.12.108

Le, D. T., Malesky, E., & Pham, A. (2020). The impact of local corruption on business tax registration and compliance: Evidence from Vietnam. Journal of Economic Behavior and Organization, 177, 762–786. https://doi.org/10.1016/j.jebo.2020.07.002

Luh, N., Telagawathi, W. S., Suci, N. M., & Krisna Heryanda, K. (2021). Implikasi Kewirausahaan Terhadap Digitalisasi Ekonomi dan Ekonomi Kemanusiaan UMKM Kerajinan Tenun di Provinsi Bali. Jurnal Ilmiah Manajemen, 11(2), 228–240.

Madelene, M. L., Sidauruk, J., & Debora. (2022). Implementasi Undang-Undang Cipta Kerja dalam Perizinan Berusaha bagi UMKM. Nommensen Journal of Business Law, 01(01), 32–46.

Mahy, P. (2022). Indonesia’s Omnibus Law on Job Creation: Legal Hierarchy and Responses to Judicial Review in the Labour Cluster of Amendments. Asian Journal of Comparative Law, September 2021, 1–25. https://doi.org/10.1017/asjcl.2022.7

Matompo, O. S., & Izziyana, W. V. (2020). Konsep Omnibus Law Dan Permasalahan Ruu Cipta Kerja. RECHTSTAAT NIEUW: Jurnal Ilmu Hukum, 5(1), 22–29. https://doi.org/10.52429/rn.v5i1.14

Noordin, N., Noor, N. L. M., & Samicho, Z. (2014). Strategic Approach to Halal Certification System: An Ecosystem Perspective. Procedia - Social and Behavioral Sciences, 121(September 2012), 79–95. https://doi.org/10.1016/j.sbspro.2014.01.1110

Novikasari, S. R., Quang Ly, D., & Gershaneck, K. (2021). Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance. Bestuur, 9(1), 59. https://doi.org/10.20961/bestuur.v9i1.49184

Novriansyah, Y., & Harahab, D. F. (2021). Meningkatkan Kesadaran Legalitas Usaha BerdasarkanPeraturan Pemerintah No 06 Tahun 2021 Tentang PerizinanBerusaha Di Daerah Bagi Pelaku Umkm Di Kabupaten Bungo. Jurnal Pengabdian KITA, 4(2), 40–48.

Oliviero, T., & Scognamiglio, A. (2019). Property tax and property values: Evidence from the 2012 Italian tax reform. European Economic Review, 118, 227–251. https://doi.org/10.1016/j.euroecorev.2019.05.015

Otusanya, O. J. (2011). The role of multinational companies in tax evasion and tax avoidance: The case of Nigeria. Critical Perspectives on Accounting, 22(3), 316–332. https://doi.org/10.1016/j.cpa.2010.10.005

Pramudya, K. (2018). Strategi Pengembangan Ekonomi Syariah Melalui Penguatan Fungsi Pengadilan Agama Dalam Penyelesaian Sengketa. Jurnal Rechts Vinding: Media Pembinaan Hukum Nasional, 7(1), 35. https://doi.org/10.33331/rechtsvinding.v7i1.216

Purnawan, A., Khisni, A., & Witasari, A. (2019). Politics of Law of Imposing Income Tax (PPh) Based on Micro, Small and Medium Enterprises (MSMEs) with Justice Value Base to Increase Voluntary Tax Compliance in Industrial Revolution 4.0 Era. 358(23), 294–299. https://doi.org/10.2991/icglow-19.2019.73

Rahmah, A. (2015). Digital Literacy Learning System for Indonesian Citizen. Procedia Computer Science, 72, 94–101. https://doi.org/10.1016/j.procs.2015.12.109

Rakhmadhani, I., Yulida, E., Fauzan, A., & Jaelani, A. K. (2022). Adverse events following immunization Post Moderna (mRNA-1273) booster vaccination after two primary doses of CoronaVac. International Journal of Health Sciences, 6(1), 160–173. https://doi.org/10.53730/ijhs.v6n1.3626

Rodrigues, M., & Mendes, L. (2018). Mapping of the literature on social responsibility in the mining industry: A systematic literature review. Journal of Cleaner Production, 181, 88–101. https://doi.org/10.1016/j.jclepro.2018.01.163

Rojo Ramírez, A. A., Diéguez Soto, J., & López Delgado, P. (2011). Importancia del concepto de Empresa Familiar en investigación: utilización de la base de datos SABI para su clasificación. European Journal Of Family Business, 1(1), 53–67. https://doi.org/10.24310/ejfbejfb.v1i1.5034

Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024

Saleh, A. Z. M., Rozali, N. A., Buja, A. G., Jalil, K. A., Ali, F. H. M., & Rahman, T. F. A. (2015). A Method for Web Application Vulnerabilities Detection by Using Boyer-Moore String Matching Algorithm. Procedia Computer Science, 72, 112–121. https://doi.org/10.1016/j.procs.2015.12.111

Sánchez-Infante Hernández, J. P., Yañez-Araque, B., & Moreno-García, J. (2020). Moderating effect of firm size on the influence of corporate social responsibility in the economic performance of micro-, small- and medium-sized enterprises. Technological Forecasting and Social Change, 151(November 2019), 119774. https://doi.org/10.1016/j.techfore.2019.119774

Saputra, R., & Emovwodo, S. O. (2022). Indonesia as Legal Welfare State : The Policy of Indonesian National Economic Law. Journal of Human Rights, Culture and Legal System, 2(1), 1–13. https://doi.org/https://doi.org/10.53955/jhcls.v2i1.21

Shafi, M., Liu, J., & Ren, W. (2020). Impact of COVID-19 pandemic on micro, small, and medium-sized Enterprises operating in Pakistan. Research in Globalization, 2. https://doi.org/10.1016/j.resglo.2020.100018

Shariff, S. M., & Lah, N. A. A. (2014). Halal Certification on Chocolate Products: A Case Study. Procedia - Social and Behavioral Sciences, 121(September 2012), 104–112. https://doi.org/10.1016/j.sbspro.2014.01.1112

Soewardi, T. J., & Ananda, C. F. (2015). The Transformation of Bea Acquisition Rights to Land and Buildings (BPHTB): Case Study in Kediri City of East Java. Procedia - Social and Behavioral Sciences, 211(September), 1179–1185. https://doi.org/10.1016/j.sbspro.2015.11.157

Suci, Y. R. (2017). Perkembangan UMKM (Usaha Mikro, Kecil dan Menengah) di Indonesia. Jurnal Ilmiah Cano Ekonomos, 6(1), 1–31.

Sugiri, D. (2020). Menyelamatkan Usaha Mikro, Kecil dan Menengah dari Dampak Pandemi Covid-19. Fokus Bisnis : Media Pengkajian Manajemen Dan Akuntansi, 19(1), 76–86. https://doi.org/10.32639/fokusbisnis.v19i1.575

Susanti, L. E. (2020). Economic Law Creation Beautiful Global Indonesia. Bestuur, 7(2), 47. https://doi.org/10.20961/bestuur.v7i1.42701

Szablowski, D., & Campbell, B. (2019). Struggles over extractive governance: Power, discourse, violence, and legality. Extractive Industries and Society, 6(3), 635–641. https://doi.org/10.1016/j.exis.2019.06.009

Triasari, D., & Zwart, F. De. (2021). The Legal Reform Policy on the Shariah Supervisory Board Role’s in Indonesian Shariah Banks. Bestuur, 9(2), 113–125.

Wahyuni, H. C., & Handayani, P. (2022). Program Implementasi Sistem Jaminan Halal Pada Umkm Binaan Pcm Tanggulangin Sidoarjo. JMM (Jurnal Masyarakat Mandiri), 6(1), 177–186. http://journal.ummat.ac.id/index.php/jmm/article/view/6163

Wahyuningrum, A., Anasom, H., & Kusmanto, T. Y. (2017). Strategi Dakwah Mui (Majelis Ulama Indonesia) Jawa Tengah Melalui Sertifikasi Halal. Jurnal Ilmu Dakwah, 35(2), 186. https://doi.org/10.21580/jid.v35.2.1618

Widayat, W., Sulardjaka, S., Al-Baarri, A. N., & Nurjannah, R. (2020). Pendampingan Sertifikasi Halal Pada UMKM Hanum Food (Halal Certification Support in UMKM Hanum Food). Indonesian Journal of Halal, 3(1), 83–87. https://ejournal2.undip.ac.id/index.php/ijh/article/view/9189

Yáñez-Araque, B., Sánchez-Infante Hernández, J. P., Gutiérrez-Broncano, S., & Jiménez-Estévez, P. (2021). Corporate social responsibility in micro-, small- and medium-sized enterprises: Multigroup analysis of family vs. nonfamily firms. Journal of Business Research, 124(June 2020), 581–592. https://doi.org/10.1016/j.jbusres.2020.10.023

DOI: http://dx.doi.org/10.31958/juris.v21i2.6855