DiH : Jurnal Ilmu Hukum
Volume 22 Nomor 2 Agustus 2026

Justice-Based Reform of MSME Empowerment Regulations in Indonesia

Anto Kustanto (Universitas Wahid Hasyim Semarang, Indonesia)
Ainul Masruroh (Universitas Wahid Hasyim, Semarang Indonesia)
M Shidqon Prabowo (Universitas Wahid Hasyim, Semarang Indonesia)
Takwim Azami (Universitas Wahid Hasyim, Semarang Indonesia)



Article Info

Publish Date
20 Aug 2026

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.

Copyrights © 2026






Journal Info

Abbrev

dih

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

DiH: Jurnal Ilmu Hukum is published by the by the University Law Faculty Doctor of Law Study Program August 17, 1945 Surabaya. First published in 1996 and up to now there are as many as two editions per year. This journal gives readers access to download journal entries in pdf file format. DiH: ...