M Shidqon Prabowo
Universitas Wahid Hasyim, Semarang Indonesia

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Justice-Based Reform of MSME Empowerment Regulations in Indonesia Anto Kustanto; Ainul Masruroh; M Shidqon Prabowo; Takwim Azami
DiH: Jurnal Ilmu Hukum Volume 22 Nomor 2 Agustus 2026
Publisher : Doctor of Law Study Program Faculty of Law, Universitas 17 Agustus 1945 Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30996/dih.v22i2.133456

Abstract

Regulations on the empowerment of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia have evolved through Law No. 20 of 2008, the Job Creation Law, and Government Regulation No. 7 of 2021. However, these various provisions have not yet been fully effective in creating equitable economic access for small business owners. The main issues lie in institutional fragmentation, inconsistent norms, the dominance of administrative approaches, weak protection of partnerships and financing, and the low legal literacy of MSME actors in dealing with policy formalities and digitalization. This study aims to analyze the weaknesses of MSME empowerment regulations within the Indonesian legal system and formulate a regulatory reconstruction model based on the value of justice. The study employs a normative legal method using a legislative approach and a conceptual approach. Primary, secondary, and tertiary legal materials were collected through literature review and then qualitatively analyzed through systematization, interpretation, and legal argumentation. The research findings indicate that the weaknesses in SME regulations lie not only in the quality of the norms but also in the lack of integration between legal structure, legal substance, and legal culture in policy implementation. A justice-based regulatory reconstruction must be built through cross-sectoral regulatory harmonization, strengthening partnership protections, reformulating inclusive financing policies, and integrating adaptive SME digitalization. The policy implications of this research emphasize the importance of establishing SME empowerment regulations that are more just, coordinated, inclusive, and oriented toward expanding economic access for small business owners.